A Line Extension Occurs When a Company Comes Out with Another

question 23

Multiple Choice

A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products.

• A)platform; advertising
• B)platform; brand
• C)brand; advertising
• D)marketing mix; offering
• E)offering; consumers

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Definitions:

Production Process

The series of actions or steps taken in order to create a product or service.

Goods and Services

The physical items (goods) and intangible assistance or activities (services) that fulfill the needs or wants of consumers, forming the basis of all economic activities.

Comparative Advantage

The capacity of a country or firm to produce a particular good or service at a lower marginal and opportunity cost over another.

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently (using fewer resources) than another country or entity.