Which of the Following Is a Disadvantage of Straight Product

question 92

Multiple Choice

Which of the following is a disadvantage of straight product extension?

• A) It involves additional product development costs.
• B) It involves changing the product to meet local requirements.
• C) It requires planning a new promotional strategy to promote the product.
• D) It can be costly in the long run if products fail to satisfy consumers.
• E) It requires making changes in the manufacturing process.

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Definitions:

Variable Cost Estimate

An approximation of the costs that vary in direct proportion to the volume of output or production, such as materials and labor.

Sensitivity Analysis

An approach utilized to assess the effects that changes in an independent variable have on a designated dependent variable within established assumptions.

Final Outcome

The ultimate result or conclusion reached after a series of events or processes.

Hard Rationing

A situation in which companies cannot obtain funds for projects through internal sources and external financial markets are unwilling or unable to lend.