Whenever a Product Line or a Product Family Is Extended,there

question 66

Multiple Choice

Whenever a product line or a product family is extended,there is a risk of ________,which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

• A)product line contraction
• B)disintermediation
• C)cannibalization
• D)brand inequity
• E)a downward line stretch

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Definitions:

Monopolistic Competition

Monopolistic competition is a market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power and product differentiation.

Perfect Competition

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence market prices, leading to maximum efficiency.

Advertise

Advertising involves the use of messages to educate or persuade a target audience to purchase a product, subscribe to a service, or adopt a viewpoint.

Differentiate

To identify or establish the differences between two or more things, or to create unique offerings in a market.