Scenario 10-3 Choice Homes Inc. Built Its Reputation by Building High-Quality New

Multiple Choice

Scenario 10-3
Choice Homes Inc. built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the dream of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to move up to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighbourhoods.
-Refer to the scenario. Choice Homes is considering the development of a new category of small homes designed to replace low-income housing in the inner city. What does this strategy represent?

A) a quality modification
B) a product line extension
C) a style modification
D) a product line contraction