Question

Scenario 12.1 During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______. a. product modification b. line extension c. product development d. product organization e. product positioning

Answer 1

A) product modification

Step-by-step explanation:

Procter & Gamble modified Tide Basic's quality (lowered the quality) in order to lower costs and offer it at a lower price.

Product modifications are usually made by companies that try to extend the product cycle of aging products, or in this case extend its product line. Product modifications usually involve small changes to existing products, e.g. different packaging sizes, new flavors, etc. Companies do this in an attempt to extend the product's popularity.