Ted Donovan owns a store that sells all-terrain vehicles (ATVs). In the past Ted just sold one version of each of the ATVs he sold in his showroom, but to increase sales, Ted now sells a low-end, a medium-priced, and a high-end version of each of the ATVs he sells. Ted's new strategy is called a(n):
A) improving an existing product or service strategy
B) market penetration strategy
C) product line extension strategy
D) geographic expansion strategy
E) joint venture strategy

Question

Quizplus · Accepted Answer

Ted's new strategy is to extend his product line by offering low-end, medium-priced, and high-end versions of each ATV he sells. This is a product line extension strategy, which is designed to increase sales by offering a variety of products within a given product category.

Ted Donovan Owns a Store That Sells All-Terrain Vehicles (ATVs)