A luxury car manufacturer was facing a loss as his sales were diminishing due to rising inflation and weak economy. He therefore decided to manufacture fuel efficient and cheaper cars. The manufacturer was stretching his product line:
► Upwards
► Downwards
► Both ways
► None of the given options
P#100,,It can systematically increase the length of its product line in two ways: by stretching its line and by filling its line. Product line stretching stretches its line downward, upward, or both ways.
Question No: 33 ( Marks: 1 ) - Please choose one
Mr. A started his business by manufacturing small cheaper cars. As his business blossomed he decided to manufacture expensive luxury cars to add prestige to his current products. Mr. A was stretching his product line:
► Upwards
► Downwards (not sure) Wrong
► Both ways
► None of the given options
Let me describe in a simple way.
What is Upwards Stretching? Introducing a new product into a product line at the higher priced end of the market. Companies may wish to enter the high end of the market for more growth, higher margins or simply to position themselves as full time manufacturers.
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