You are learning about product lines in your marketing class and want to impress your professor with some details you have learned on your own. Required:
Which of the following assertions can you make about expanding a company's product lines?
A)Product line expansion is a risk not worth the reward.
B)Product line expansion is a fairly inexpensive process.
C)Product line expansion increases production costs in the long term.
D)Product line expansion can help to cut production and marketing costs.
E)Product line expansion does not affect the cost of a company's marketing mix variables.

Question

You are learning about product lines in your marketing class and want to impress your professor with some details you have learned on your own. Required:
Which of the following assertions can you make about expanding a company's product lines?​
A)​Product line expansion is a risk not worth the reward.
B)​Product line expansion is a fairly inexpensive process.
C)​Product line expansion increases production costs in the long term.
D)​Product line expansion can help to cut production and marketing costs.
E)​Product line expansion does not affect the cost of a company's marketing mix variables.

Quizplus · Accepted Answer

Product line expansion can help a company to cut production and marketing costs by requiring fewer resources to market and promote multiple products under one brand umbrella. There may be initial costs associated with developing and launching new products, but in the long term, the added variety and options can lead to increased revenue and customer loyalty.

You Are Learning About Product Lines in Your Marketing Class