Question

As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies. The first pair will retail for $40 and has as its target market the "bargain" shopper. The second pair will retail for $200 and is targeted at the "sophisticated shopper." In relation to product-line strategy, what is the company trying to accomplish with these two new items?

Answer 1

Answer:

The correct answer is: two-way stretching .

Explanation:

Two-way stretching refers to a technique companies that implement product lines in their operations perform. It consists of introducing two goods to the market each one focused in a different sector according to the price: one for the lower-income sector and the other for higher-end consumers. Companies do this to cover most of their market.