A3. The following appeared in a memorandum from the development director of
the Largo Piano Company.
“The Largo Piano Company has long been known for producing carefully
handcrafted, expensive pianos used by leading concert pianists. During the
past few years, however, our revenues have declined; meanwhile, the Allegro
Musical Instrument Company introduced a line of inexpensive digital pianos
and then saw its revenues increase. In order to increase Largo’s sales and
in fact outsell Allegro, we should introduce a line of digital pianos in a
variety of price ranges. Our digital pianos would be likely to find instant
acceptance with customers, since they would be associated with the
prestigious Largo name.”