Question

Gadgetbug, an electronic gadgets company, has established itself as one of the industry leaders. The company has been facing competition from new entrants. The new entrants offer gadgets in different colors, with compelling artwork embossed on the cases. Seeing the interest in this market, Gadgetbug introduced its own range of uniquely designed gadgets.
In this scenario, Gadgetbug's attempt to cater to the different segments of customers to deter competition demonstrates:

A) price signaling
B) product proliferation
C) harvest strategy
D) limit price strategy
E) diseconomies of scale

Answer 1

Answer:

B. product proliferation

Explanation:

Product proliferation -

It refers to the practice of making variation on the same product , in the market , is referred to as product proliferation .

various innovative and latest method of packaging , sizes and color are used , to attract the consumers .

The method is used to deal with the upcoming competition and attract the consumers .

Hence , from the given scenario of the question ,

The correct answer is B. product proliferation .