Line Extensions Are More Common Than New Products Because Line

question 43

Multiple Choice

Line extensions are more common than new products because line extensions:

• A) only focus on increasing sales within the existing market segment.
• B) are guaranteed to succeed in the marketplace.
• C) are a less expensive and lower-risk alternative for increasing sales.
• D) require no market research.
• E) do not keep the original product in the line after extension.

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Definitions:

Gains Wisdom

The process of acquiring deep understanding and insight, often derived from experiences over time.

Trusting Others

The act of believing in the reliability, truth, or ability of other people or entities.

Account Penetration

A sales and marketing strategy involving deepening business relationships with existing customers through the sale of additional products or services.

Maximum Sales

The highest potential or actual sales volume that can be achieved under current market conditions and operational capabilities.