Trading Down Refers to ________ When Repositioning a Product

question 2

Multiple Choice

Trading down refers to ________ when repositioning a product.

• A) reducing the number of features, qualities, or price
• B) reducing the amount of product carried as inventory
• C) reducing the number of product items in a product line
• D) redirecting marketing resources from a "cash cow" target market to one that is not performing as well in the hopes of increasing sales and profits
• E) encouraging consumers through the use of coupons and deals to purchase a firm's lower-priced products

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.

APB No.25

An accounting principle that dealt with stock-based compensation and required companies to record an expense for issued options.

Vesting Period

The period of time an employee must work before gaining full access to their benefits or compensation plans, such as pension plans or stock options.

Stock Options

Financial instruments that give employees the right to buy or sell shares of their company at a predetermined price.