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:
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 of selling low-end, medium-priced, and high-end versions of each ATV in his showroom is a classic example of product line extension strategy, where a company extends its line of products by offering additional variations of an existing product to target different customer segments and increase sales.

Ted Donovan Owns a Store That Sells All Terrain Vehicles