What is one of the benefits of offering many product versions that provide distinct benefits and "fill" as many positions as possible in a product category?
A) lower need for shelf space
B) lower production costs
C) creating lower margins for the firm
D) creating barriers to competitive entry and market penetration
E) All of the above are benefits for product line extensions.

Question

Quizplus · Accepted Answer

Offering many product versions that provide distinct benefits and "fill" as many positions as possible in a product category creates barriers to competitive entry and market penetration. This is because it makes it difficult for competitors to differentiate their offerings and makes it harder for them to gain a foothold in the market. It also allows the firm to capture more market share and increase its bargaining power with retailers. The other options, such as lower need for shelf space and lower production costs, may be potential benefits of product line extensions, but they are not as significant as creating barriers to competitive entry and market penetration.

What Is One of the Benefits of Offering Many Product