All of the Following Are True About Product Line Extensions

question 82

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 provide incremental company revenue by taking sales away from competing brands.
• E)product line extensions involve using a current brand name to enter a different product class.

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Definitions:

Utilitarian Justice

A principle in ethics and political philosophy that actions are right if they are useful or for the benefit of a majority, focusing on outcomes that maximize happiness or reduce suffering.

Dollar Worth

The value of the United States dollar in terms of goods, services, or other currencies.

Legal Obligation

A duty enforceable by law, requiring a person or organization to perform or refrain from performing a certain action.

Basic Necessities

Essential items and services required for individuals to maintain an adequate standard of living, such as food, shelter, and healthcare.