Which of the following is an example of trading down?
A) Whirlpool develops a full-size clothes washer that uses only 17 to 28 gallons per load rather than 25 to 45 gallons.
B) Burpee creates a Web site where gardeners can go to find out what will grow best in their region of the country.
C) Alka-Seltzer reintroduces a trade character that it used in the 1960s.
D) The growers of California avocados run a full-page ad in a cooking magazine.
E) A manufacturer of $200+ all-leather handbags begins marketing a line of bags that look like leather but . are actually made of relatively inexpensive plastic.

Question

Which of the following is an example of trading down?
A) Whirlpool develops a full-size clothes washer that uses only 17 to 28 gallons per load rather than 25 to 45 gallons.
B) Burpee creates a Web site where gardeners can go to find out what will grow best in their region of the country.
C) Alka-Seltzer reintroduces a trade character that it used in the 1960s.
D) The growers of California avocados run a full-page ad in a cooking magazine. 
E) A manufacturer of $200+ all-leather handbags begins marketing a line of bags that look like leather but . are actually made of relatively inexpensive plastic.

Quizplus · Accepted Answer

Trading down occurs when a company offers a product that is less expensive and often of lower quality than its existing products, aiming to reach a broader market or different consumer segment. The manufacturer introducing a line of less expensive, plastic "leather-look" bags is an example of trading down, as they are offering a cheaper alternative to their higher-priced all-leather handbags.

Which of the Following Is an Example of Trading Down