Which of the following is a specific method for introducing lower-cost products?

The correct answer focuses on cost reduction as a specific method for introducing lower-cost products. Cost reduction involves optimizing the production process, sourcing materials more economically, or implementing efficiencies to minimize overall expenses. By reducing costs, a company can afford to lower the price of its products, making them more accessible to a broader audience. This approach is particularly effective for businesses aiming to compete in price-sensitive markets.

While price skimming, market penetration, and value proposition might relate to overall pricing strategies or competitive positioning, they do not specifically address the method of reducing costs in order to introduce lower-priced products. Price skimming typically involves setting initially high prices for new products and then gradually lowering them, which is the opposite of introducing lower-cost items. Market penetration refers to a strategy aimed at increasing market share, often through aggressive pricing or marketing efforts, rather than focusing solely on cost reductions. Lastly, value proposition relates to the perceived value of a product by consumers, which, while important, does not directly connect to the method of introducing lower-cost products.