Question

If Huy Fong were to introduce a new milder version of its renowned Sriracha hot chili sauce to satisfy customers who think the current product is too spicy and the original product is kept in the product mix, this would represent a _______. a.product differentiation b.product modification c.line extension d.quality modification e.brand extension Huy Fong uses peppers that are ground within six hours of being picked to ensure their freshness, and David Tran, creator of the sauce, says, "We do the fresh one, the best one, the cheapest one." He clearly believes these attributes make his product stand out in a crowded market. Which of the following terms is used to describe the process of creating and designing products so customers perceive them as different from competing products? a.Product design b.Line extension c.Customer service d.Product differentiation e.Product modification

Answer 1

A new milder Sriracha sauce from Huy Fong represents a line extension, which diversifies the existing product line. Product differentiation refers to distinguishing a product from competitors through various features, design, or intangible qualities.

Step-by-step explanation:

When Huy Fong considers launching a new, milder version of its renowned Sriracha hot chili sauce while keeping the original product, this strategy is identified as a line extension. This approach involves adding a new flavor, variety, or other differentiation to an existing product line to target a different consumer segment or to offer a new choice to current customers.

The action of creating and designing products in a way that makes them stand out from the competition is known as product differentiation. Huy Fong's focus on using freshly ground peppers and the creator's claims of being fresh, best, and cheapest exemplify this strategy. Product differentiation can include a range of aspects, from physical attributes like packaging or flavor to intangible aspects such as brand reputation, guarantees, and advertising campaigns that influence consumer perceptions and preferences.

Answer 2

Letter b is correct. Line extension

Step-by-step explanation:

This question is an example of product line extension. When the company decides to incorporate some version of a product to please new customers and keep the old product in the product mix, it is using the strategy of extending the product line. This is one way an organization uses to position the brand in new markets, which benefits in attracting new customers and gaining competitiveness.