Final answer:
Product extension and refinement in Business is aimed at improving and enhancing a product to meet customer needs and preferences.
Step-by-step explanation:
The purpose of product extension and refinement in Business is to improve and enhance a product in order to meet the ever-changing needs and preferences of customers. This process involves making modifications to existing products by adding new features, improving quality, or updating technology.
For example, a company might extend a product by introducing a new flavor or variety to cater to different customer preferences. On the other hand, product refinement could involve making improvements to an existing product based on customer feedback, such as enhancing its durability or user-friendliness.
These strategies help businesses stay competitive in the market, retain existing customers, attract new ones, and ultimately increase sales and profitability.