Question

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 had to modify its Tide product to appeal to this new demographic. What type of product modification did it make?

Answer 1

P&G made a quality modification to its Tide product, creating a cheaper version with fewer features to appeal to budget-conscious consumers during a recession.

Step-by-step explanation:

The type of product modification that Procter & Gamble (P&G) made with its Tide detergent during the recession was quality modification. This modification involves altering a product's quality and features to offer a version at a different price point. Tide Basic was a cheaper, more basic version of the traditional Tide product, lacking some of the advanced cleaning features of the original. P&G aimed to provide a cost-effective option for cash-strapped consumers. Despite Tide Basic not succeeding in the market, P&G later introduced Simply Tide, another less expensive product variant.

P&G made a product modification by releasing a cheaper, more basic version of its Tide product called Tide Basic. This version lacked some of the cleaning features of the more expensive Tide product, but it was designed to appeal to cash-strapped consumers during the recession. However, Tide Basic failed to gain traction in the market and was eventually discontinued. A few years later, P&G tried again with another less expensive Tide product called Simply Tide.