Which statement describes a line extension?

Which statement describes a line extension?

• A. Adding a new product to an existing product line.
• B. Extending a brand into a different product category.
• C. Creating a completely new brand for a new market.
• D. Downscaling production to reduce costs.

Answer: (A)

Line extension is introducing a new product within an existing product line, using the same brand and staying in the same category. This expands the assortment by offering variations such as new flavors, sizes, or forms that fit alongside current offerings. It leverages the brand’s existing recognition and distribution while exploring consumer preferences without moving into a new brand or category. This option matches that idea precisely: a new product added to an existing line, rather than entering a different product category or creating a new brand. Extending the brand into a different category would be a brand extension, not a line extension; launching a completely new brand for a new market is starting a new brand altogether; and downscaling production focuses on cost or capacity, not adding products to the line.

Line extension is introducing a new product within an existing product line, using the same brand and staying in the same category. This expands the assortment by offering variations such as new flavors, sizes, or forms that fit alongside current offerings. It leverages the brand’s existing recognition and distribution while exploring consumer preferences without moving into a new brand or category.

This option matches that idea precisely: a new product added to an existing line, rather than entering a different product category or creating a new brand. Extending the brand into a different category would be a brand extension, not a line extension; launching a completely new brand for a new market is starting a new brand altogether; and downscaling production focuses on cost or capacity, not adding products to the line.