All of These Are True About Product Line Extensions Except

question 71

Multiple Choice

All of these are true about product line extensions except which?

• A) This strategy 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:

Income Inequality

The unequal distribution of income among individuals or households within a society or between countries.

Effective Marginal Tax Rate

The rate at which the last dollar of an individual's income is taxed, taking into account the impact of deductions, exemptions, and tax brackets.

Medicaid Benefits

Government-provided health insurance that assists low-income individuals and families in covering medical expenses.

Food Stamp Benefits

Government-provided assistance to low-income individuals and families to purchase food.