All of the Following Are True About Product Line Extensions

question 326

Multiple Choice

All of the following are true about product line extensions EXCEPT:

• A)this strategy practice can result in lower advertising and promotion costs.
• B)a risk that comes with product line extensions is that sales of an extension may come at the expense of other items in the company's product line.
• C)a product line extension raises the level of brand awareness.
• D)line extensions work best when they provide incremental company revenue by taking sales away from competing brands.
• E)product line extensions involve using a current brand name to enter a different product class.

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Definitions:

Affiliative

Related to building relationships and fostering social connections, often used as a conflict resolution or management style emphasizing harmony and attachment.

FIRO

A theory of interpersonal relations that explains how interpersonal relationships can be understood through three basic needs: inclusion, control, and affection.

Need For Inclusion

The inherent desire or drive within individuals to belong, be accepted, and feel a part of a group or community.

Social Anxiety

A form of anxiety that occurs in social situations, characterized by a fear of being negatively judged or evaluated by others.