All of the Following Are True About Product Line Extensions

question 31

Multiple Choice

All of the following are true about product line extensions EXCEPT:

• A)this strategy can result in lower advertising and promotion costs.
• B)a risk that comes with product line extensions is that sales of an extension may come at the expense of other items in the company's product line.
• C)a product line extension raises the level of brand awareness.
• D)line extensions work best when they do not cause cannibalization.
• E)product line extensions involve using a current brand name to enter a different product class.

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Definitions:

Diameter

The length of a straight line passing from side to side through the center of a body or figure, especially a circle or sphere.

Thickness

The dimension from one surface of an object to the opposite surface, important in determining material properties and suitability for particular applications.

Flatness Tolerance

A specification that defines the permissible amount of deviation from a perfectly flat surface.