Which of the following statements about line extensions is most accurate?
A)A line extension strategy typically leads to increased advertising costs.
B)There are no risks associated with a line extension strategy.
C)A line extension will not result in cannibalizing other products in the same class.
D)A line extension is used with multiproduct branding.
E)A line extension is used with multibranding.

Question

Quizplus · Accepted Answer

A line extension is used with multiproduct branding, meaning that the new product shares the parent brand with other products in the same category. Line extensions typically have lower advertising costs compared to launching a completely new brand. However, there is a risk of cannibalization, where the new product takes sales away from existing products in the same category.

Which of the Following Statements About Line Extensions Is Most