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A firm adds a new flavor under an existing brand name in an existing category. What is this called?
AA new product, since the flavor did not exist before
BA line extension, since the brand and class are known
CA rollout, since the item is going to the whole market
DA prototype, since the item is still being tested out
Answer & Solution
Correct answer: B. A line extension, since the brand and class are known
1. Marketers use different terms for new products depending on how each fits the existing line.
2. A new flavor, size or model under an existing brand name in an existing category is a line extension.
3. Expanding a line this way helps a firm tie up shelf space and brand recognition.
4. A rollout is the market introduction step and a prototype is a test version, so neither fits.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.7 Creating Products That Deliver Value_
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