When Chrysler produces new model vehicles, it discontinues production of previous year's model. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Chrysler's newproduct strategy is an example of a(n) , while Apple's strategy is an example of a(n) .
A) functional modification; quality modification
B) product modification; line extension
C) product lining; product bundling
D) product extension; brand extension
E) brand extension; product bundling

Question

When Chrysler produces new model vehicles, it discontinues production of previous year's model. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Chrysler's new­product strategy is an example of a(n) , while Apple's strategy is an example of a(n) .
A) functional modification; quality modification
B) product modification; line extension
C) product lining; product bundling
D) product extension; brand extension
E) brand extension; product bundling

Quizplus · Accepted Answer

Chrysler's strategy is an example of a product modification, as it involves changing the product's features or design. Apple's strategy is an example of a line extension, as it involves adding new products to an existing product line.

When Chrysler Produces New Model Vehicles, It Discontinues Production of Previous