A winery introduced a brand of wine that is priced twice as high as its other wines. This is an example of product extension by a(n) ________.
A) downward product line stretch
B) product mix
C) cannibalization strategy
D) upward product line stretch
E) two-way product line stretch

Question

Quizplus · Accepted Answer

Upward product line stretch involves introducing a higher-priced product in order to capture a higher-end market segment. This is the case with the winery introducing a new, higher-priced wine. The other answer choices do not accurately describe this strategy. A downward product line stretch involves introducing a lower-priced product, while a two-way product line stretch involves introducing both higher-priced and lower-priced products. Product mix refers to the entire range of products offered by a company. Cannibalization strategy involves one product taking sales away from another product within the same company.

A Winery Introduced a Brand of Wine That Is Priced