Which of the Following Statements About Product Line Extensions Is

question 211

Multiple Choice

Which of the following statements about product line extensions is most accurate?

• A)A product line extension strategy typically leads to increased advertising costs.
• B)There are no risks associated with a product line extension strategy.
• C)When the Clorox Company joins with Kroger supermarkets to advertise Clorox products in a local newspaper,it is engaged in a product line extension.
• D)A product line extension is a form of multiproduct branding.
• E)A product line extension is with a form of multibranding.

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Definitions:

Beginning

The starting point or initial state of an event, process, or accounting period.

Released

Typically refers to products, information, or software being made available to the public or to a specific group.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annual Cost Savings

The reduction in total expenses achieved during a fiscal year, often as a result of process improvements or budget adjustments.