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)mass customization.
B)two-tier marketing strategy.
C)one product and multiple market segments.
D)price discrimination.

Question

Quizplus · Accepted Answer

This is an example of a two-tier marketing strategy, where the same basic product is offered to both high-end and low-end segments at different price points. The slight variation in the product justifies the price difference. This helps the company capture a larger market share by catering to customers with varying purchasing power.

Firms Offer Different Variations of the Same Basic Product or Service