Which of the following statements about product line extensions is most accurate?

Question

Quizplus · Accepted Answer

A product line extension is a form of multiproduct branding because it involves adding new variants or versions of existing products within the same product line. Option A is incorrect because increased advertising costs are not necessarily a direct consequence of product line extensions. Option B is incorrect because there are always risks associated with any business strategy, including product line extensions. Option C is incorrect because the example given is not a product line extension, but rather a cooperative advertising arrangement. Option E is incorrect because multibranding refers to offering different brands in the same product category, not different versions of the same brand.

Which of the Following Statements About Product Line Extensions Is