What is downward product line stretching?
The introduction of a new product into an already established line of products whereby the newly introduced product comes in at a lower price point. Downward stretching is an attempt to use an already established brand to sell more of a similar product or service.
A business strategy that involves increasing the number of products in an existing product line to take advantage of marketplace gaps and reduce competition. Many businesses use line filling to round out an already well established product line and to help increase the market success of new related products.
- Common examples of consumer durable goods are automobiles, furniture, household appliances, and mobile homes. (See also capital.) Consumer nondurable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years.
- In economics, any commodity which is produced and subsequently consumed by the consumer, to satisfy his current wants or needs, is a consumer good or final good. Consumer goods are goods that are ultimately consumed rather than used in the production of another good.
- A capital good is a durable good (one that does not quickly wear out) that is used in the production of goods or services. Capital goods are one of the three types of producer goods, the other two being land and labour, which are also known collectively as primary factors of production.
In such a state of affairs, it is true that products do remain alive: but, in the interest of the company, it is desirable to drop them. This dropping of a product or the slimming of the product line is known as product line contraction. When a product is dropped, the turnover of the company is considerably affected.
- A product contract or design specification is a document that defines the product design task and measures by which success of the design will be judged. The contract defines expectations for the alpha prototype. A simple partial example of a product contract is provided below.
- (a) A personal services contract is characterized by the employer-employee relationship it creates between the Government and the contractor's personnel. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws.
- “Contract action,” as used in this part, means an action resulting in a contract, as defined in Subpart 2.1, including actions for additional supplies or services outside the existing contract scope, but not including actions that are within the scope and under the terms of the existing contract, such as contract
Updated: 2nd October 2019