Mathis Inc

question 26

Multiple Choice

Mathis Inc.is a home appliance manufacturing firm based in Vermont that sells its products under the brand name GoodHome.The firm initially built a reputation in the household appliances market for its high-quality products.After an extensive market research,the firm used its brand reputation to expand into the home furnishing industry.In this example,Mathis Inc.uses which of the following product line extension strategies?

• A)a vertical brand-line extension strategy
• B)a horizontal brand-line extension strategy
• C)a new product-market brand extension strategy
• D)a cobranding extension strategy
• E)a product bundling extension strategy

---

Definitions:

R&D Project

Research and Development project, which involves investigative activities that a business or organization undertakes with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures.

R&D Activity

The process of investigating new ideas and refining existing products or processes through research and development efforts.

Expected Returns

The anticipated return on an investment, calculated as an average of all possible returns weighted by their likelihood of occurrence.

Expected Rate of Return

The expected rate of return is the anticipated percentage gain or loss that an investment is projected to generate, based on historical or estimated future performance.