Question

    When a bank withdraws support for an outdated product

    but continues limited sales to extract profit, it follows:
    A Diversification Correct Answer Incorrect Answer
    B Harvesting strategy Correct Answer Incorrect Answer
    C Market penetration Correct Answer Incorrect Answer
    D Product development Correct Answer Incorrect Answer
    E Cost leadership Correct Answer Incorrect Answer

    Solution

    Harvesting reduces marketing expenditure while extracting remaining profits in decline stage.  Why Other Options Are IncorrectA: New product & market. • C: Growth strategy. • D: New product introduction. • E: Competing on cost.  Banking Example: Minimal promotion of cheque-based services.

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