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:

Real-world Issues

Practical problems or challenges that occur in everyday life, outside of controlled experimental settings.

Independent Variables

Factors in an experiment that are intentionally changed or manipulated to observe their effect on dependent variables.

Manipulated

Altered or controlled in a skillful manner, often referring to variables in scientific experiments or to influence people's behaviors or perceptions.

Dependent Variables

In an experiment, these are the variables that are tested and measured to see if they are affected by changes in the independent variables.