Why Are Line Extensions More Common Than New Products

question 176

Multiple Choice

Why are line extensions more common than new products?

• A) They are higher risk and more expensive.
• B) They are guaranteed to succeed in the marketplace.
• C) They are less expensive and lower-risk.
• D) They require no market research.
• E) Modifications to existing products are very easy.

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Definitions:

Inflation

The pace at which the overall price level of goods and services increases, diminishing buying power.

International Monetary Cooperation

This concept involves the collaboration between countries to ensure the stability and efficiency of the global monetary system, often facilitated through institutions like the International Monetary Fund.

Financial Stability

The condition in which a financial system operates smoothly, without significant fluctuations in key financial indicators such as prices, interest rates, and credit availability.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicative of a healthy economy.