Question

Mathis Inc. is a home appliance manufacturing firm based in Vermont that sells its products under the brand name GoodHome. The firm initially built a reputation in the household appliances market for its high-quality products. After an extensive market research, the firm used its brand reputation to expand into the home furnishing industry. In this example, Mathis Inc. uses which of the following product line extension strategies?A) a vertical brand-line extension strategy

B) a horizontal brand-line extension strategy
C) a new product-market brand extension strategy
D) a cobranding extension strategy
E) a product bundling extension strategy

Answer 1

Answer: The correct answer is "C) a new product-market brand extension strategy".

Explanation: Mathis Inc. uses a new product-market brand extension strategy since it takes advantage of the positioning and reputation of the brand to extend it to a completely new line of products such as furniture and that the public considers to be of good quality.