The seller's potential problem with a strategy of trading down is:
A) legal restrictions on the size of any price increase.
B) packaging.
C) determining competitors' reactions.
D) deciding how to test market the new product.
E) the injury to the company's reputation that a lower-quality product might cause.

Question

Quizplus · Accepted Answer

Trading down involves offering a lower-quality product, which can harm the company's reputation if consumers perceive the brand as less reliable or inferior compared to its previous offerings.

The Seller's Potential Problem with a Strategy of Trading Down