Mercedes$-$Benz sells a range of sedans ranging from the A$-$Class to the S$-$Class. The S$-$Class is a full$-$sized, fully loaded luxury vehicle with features such as genuine leather, driver aids, more cabin space and more powerful engines as standard. Not surprisingly this model starts at $$114,000.$ The A$-$Class model is designed to appeal to the less$-$informed segments of the new$-$car market. It possesses the Mercedes$-$Benz name, but has a compact size, upholstered seats, fewer standard features and is priced at $$34,000.$ According to the material in Chapter $13,$ what is the term for Mercedes' A$-$Class model?

Question $7$ options:

Enhanced$-$functioning features

Entry$-$level version

Retention$-$rate vehicle

Contribution margin adjustment

Brand differentiation