Firms offer different variations of the same basic product or service to both, high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of:
A)one product and multiple market segments.
B)two-tier marketing strategy.
C)price discrimination.
D)mass customization.

Question

Quizplus · Accepted Answer

This is a two-tier marketing strategy where the same basic product is offered at different prices to target high-end and low-end segments. It's not price discrimination because the price difference is based on the different brand and target audience. It's not mass customization because the product variations are not customized to individual customers.

Firms Offer Different Variations of the Same Basic Product or Service