Whenever a Product Line or a Product Family Is Extended

question 45

Multiple Choice

Whenever a product line or a product family is extended, there is a risk of ________, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

• A) product line contraction
• B) disintermediation
• C) cannibalization
• D) brand inequity
• E) brand equity

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Definitions:

Quarterly

Taking place four times a year, or every quarter.

Withdrawals

The act of taking money out of an account, fund, or similar financial vehicle.

Invest

To allocate money in the expectation of some benefit in the future, usually through the purchase of assets with the hope that they will increase in value.

Ordinary Annuity

Continuous uniform payouts effected at every period’s cessation over a stipulated time frame.