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:

Creativity

The capacity to generate unique and novel concepts, or to create something innovative and imaginative.

Feedback

Information provided regarding aspects of one's performance or understanding, intended to guide future improvements.

Manager

A person responsible for controlling or administering an organization or group of staff, making decisions regarding its operations.

Coworkers

Individuals who work together in the same organization or on the same team but do not necessarily have the same rank or position.