Question

If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
a) a brand extension.
b) line extension.
c) functional modification.
d) quality modification.
e) a new-to-the-world product

Answer 1

Answer:

B. Line extension

Explanation:

Product Line Extension

This involves the use of an already established brand name, in this case, cool whip for a new item (orange flavored cool whip) in the same product category. It's the production of a new product that is a little different to a company's existing products. The differences the new product usually has from the existing products may be in the line of new flavour, colors, product size, added ingredients and so on.

A popular example of this is Coke and Pepsi releasing Diet Coke and Pepsi respectively. Adding a new product to their existing range of products.