Question

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)a) aesthetic modification.b) line extension.c) material adjustment.d) functional modification.e) quality modification.

Answer 1

Answer:

The correct answer is letter "E": quality modification.

Explanation:

Quality modification is the process in which a company modifies its product standards by introducing better or worst materials in the production improving or worsening the quality of the output. This is usually done to attract luxury segment clientele -in the case of improvements, or to reduce costs -in the case of lowering the quality.