When a Company Uses Line Extension It Is

question 149

Multiple Choice

When a company uses line extension it is:

• A)speeding up the movement of a product category through its PLC.
• B)contracting with another firm to manufacture modified versions of the original products.
• C)manufacturing a new product with the same brand name that consumers will view as a logical addition to the original product line for a new market segment in the same product class.
• D)manufacturing a product under a new brand name that consumers will view as an entirely new product line.

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Definitions:

Soybeans

A species of legume native to East Asia, widely grown for its edible bean which has numerous uses in food, oils, and as a source of protein.

Domestic Price

The price of goods or services within a country's borders, unaffected by international trade factors.

World Price

The international market price at which goods, services, or commodities are bought and sold across countries.

Trade Sector

Refers to the part of a country's economic activity that is involved in the exchange of goods and services, domestically and internationally.