What is a potential risk of increasing a product line's length? It can lead to greater market share It can increase brand awareness It might dilute the brand image It will attract a new market segment
Question
What is a potential risk of increasing a product line's length? It can lead to greater market share It can increase brand awareness It might dilute the brand image It will attract a new market segment
Solution
One potential risk of increasing a product line's length is that it might dilute the brand image. When a company has too many products under the same brand, it can confuse consumers and weaken the overall perception of the brand. This is because the brand may lose its association with a specific product category or quality level. For example, if a luxury car brand starts selling budget cars, it may dilute the brand's image of luxury.
Similar Questions
What is the primary reason for a company to decide on product line filling? To fend off competitors entering the market To target a completely new market To drastically increase product prices To diversify the company's operations
Which strategy would most likely be used when sales are declining in a specific product line?Product line modernizingProduct line fillingProduct line pruningProduct line extending
What does the term "length" refer to in product line management?Select one:a.The total number of products offered by a companyb.The number of product lines offered by a companyc.The depth of a product lined.The number of product items within a product line
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