Question

The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______. a. quality modification b. aesthetic modification c. product modification d. brand extension

Answer 1

Answer:

d. brand extension

Explanation:

Brand extension is also called line extension. It involves using the same brand name for products that are closely related to the original but meet e different set of consumer needs. Additional items are introduced in the product category using the same brand name. For example introducing flavors, colours, ingredients, and package sizes.

Line extensions are of two types:

-Horzontal: price and quality are consistent, bit other factors like flavour and colour are changed.

-Vertical: involves increase or decrease of quality and price to create luxury and inferior goods