Question

What is the primary distinction between a line extension and a product modification?

a) A product modification results in a completely new product while a line extension is simply changing an old product.
b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension.
c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market.
d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality

Answer 1

A line extension involves introducing new variations within the same product line, while a product modification involves making changes to an existing product in terms of quality, functionality, or features.

Step-by-step explanation:

The primary distinction between a line extension and a product modification lies in the scope of the changes made to an existing product. A line extension refers to introducing new variations or versions of an existing product within the same product line, while a product modification involves making changes to an existing product in terms of quality, functionality, or features.

For example, if a company introduces a line extension for a shampoo brand by launching a new variation with added herbal extracts or a different fragrance, it stays within the existing product line. On the other hand, if the company decides to modify the shampoo formulation to make it more suitable for people with specific hair conditions, it would be considered a product modification.