Why are line extensions more common than new products?
A) They are higher risk and more expensive.
B) They are guaranteed to succeed in the marketplace.
C) They are less expensive and lower-risk.
D) They require no market research.
E) Modifications to existing products are very easy.

Question

Quizplus · Accepted Answer

Line extensions are less expensive and lower-risk than launching entirely new products. This is because they are built off of an established brand with a known audience and market, and require less market research and development than creating something entirely new.

Why Are Line Extensions More Common Than New Products