Product line addition also known as line extension

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Reference no: EM132156067

1. Which of the following is the best example of a product line addition also known as a line extension?

A) Virgin Records added Virgin Mobile

B) Tata Steel added Tata Salt

C) Budweiser beer added Busch beer

D) Nyquil liquid added Nyquil capsules

E) M&M candies added M&M clothing

2. True or false

A keyboard may be considered part of the "enhanced" product component of a standard HP computer.

3. Over the past 10-15 years, advertising expenditures by companies have decreased while business or trade-oriented sales promotion expenditures have increased.

True

False

4. Selling the original iPhone for approximately $600 was an attempt at a competitive pricing strategy by Apple, Inc. (as opposed to a skimming or penetration strategy).

True

False

5. A breakeven point, as discussed during the pricing lecture, is the point where, if achieved, a company would likely be indifferent toward a project (according to economic theory).

True

False

Reference no: EM132156067

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