Which of the following statements about product line extensions is most accurate?

Question

Quizplus · Accepted Answer

A product line extension is a form of multiproduct branding, where a company introduces a new product(s) under an existing brand name. This strategy helps the company to leverage its existing brand equity while introducing new products to the market. This approach typically involves lower advertising costs than launching a completely new brand. However, there are still risks associated with a product line extension, such as cannibalization of existing products, dilution of the brand, and confusion among customers.

Which of the Following Statements About Product Line Extensions Is