A company can stretch its product line either upward or downward, but not both directions.

Question

Quizplus · Accepted Answer

This statement is not necessarily true. A company can stretch its product line both upwards and downwards at the same time, as long as it targets different market segments with each line. For example, a clothing company can offer a high-end luxury line as well as a more affordable line for everyday wear, targeting both upper and lower income consumers.

A Company Can Stretch Its Product Line Either Upward or Downward