Of the Following Are True About Product Line Extensions EXCEPT

question 268

Multiple Choice

of the following are true about product line extensions EXCEPT:

• A) This strategy practice 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 provide incremental company revenue by taking sales away from competing brands.
• E) Having strong brand equity allows a marketer to use a current brand name to enter a different product class.

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Definitions:

Modeling

In psychology, a therapeutic technique that involves learning through the observation of others’ behaviors and the outcomes of those behaviors.

Systematic Desensitization

An exposure therapy that uses relaxation training and a fear hierarchy to help clients with phobias react calmly to the objects or situations they dread.

Flooding

A psychological treatment method where a person is exposed to their phobia at its worst until the fear diminishes.

Specific Phobias

An irrational fear and avoidance of a particular object or situation that poses little to no actual danger.