What Is the Primary Distinction Between a Line Extension and a Product

question 167

Multiple Choice

What is the primary distinction between a line extension and a product modification?

• A) A product modification results in a completely new product while a line extension is simply changing an old product.
• B) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension.
• C) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market.
• D) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
• E) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.

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Definitions:

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An initial statement that there is no effect or no difference and that any observed variation is due to chance, used as a starting point for statistical testing.

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