Tavera,an automobile company,experienced a significant decline in sales over the last 10 months of its flagship car,Tetra.In response,Tavera reduced its R&D,advertising,and sales expenditures for Tetra in an attempt to improve short-run profits.Which term best describes Tavera's actions with regards to Tetra?
A) sales outsourcing
B) product modification
C) industry repositioning
D) product harvesting
E) marketing mix modification

Question

Quizplus · Accepted Answer

Tavera's actions of reducing R&D, advertising, and sales expenditures for Tetra indicate that the company is attempting to improve short-run profits. This strategy is also known as product harvesting. The company is reducing its investments in Tetra to maximize profits in the short-term rather than investing in the product to boost its long-term growth potential.

Tavera,an Automobile Company,experienced a Significant Decline in Sales Over the Last