A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.
A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation

Question

Quizplus · Accepted Answer

The manufacturer is stretching down-market to reach a new segment of customers by offering low-priced items. This strategy is known as a down-market stretch, which means expanding the company's offerings to lower-end (lower-priced) markets while retaining its higher-end customers.

A Manufacturer of Hiking Boots Looks at Data That Indicate