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:

Tuna Fish Sandwiches

A type of sandwich made primarily from canned tuna fish and other ingredients such as mayonnaise and celery.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or wants.

Complements

Goods or services that are often used together so that the consumption of one increases the demand for the other.

Inferior Good

A type of good for which demand decreases as the consumer's income increases.