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.

---

Definitions:

Inner City

Typically refers to areas near the city center, often characterized by high population density, economic and social challenges, but also vibrant community life.

Poor

A socioeconomic status characterized by a lack of financial resources and access to basic life necessities.

Meth

A powerful, addictive stimulant drug, also known as methamphetamine, that affects the central nervous system.

Powder Cocaine

A fine, white crystalline drug obtained from coca leaves, often snorted, that can cause euphoria and addiction; it's contrasted with crack cocaine, a more potent form that's smoked.