Extensions can grow penetration or just clutter the shelf. This quiz helps you spot the risks and rewards of stretching a line.
A core risk of frequent line extensions is ______.
automatic shelf gains
faster trademark approval
simpler forecasting
cannibalizing high‑velocity base SKUs
Which outcome signals a healthy line extension?
incremental penetration from a new need state or segment
lower brand awareness
identical buyers switching flavors only
only higher coupon redemption
Which guardrail reduces brand‑dilution risk when stretching into a new form?
abandon all brand codes
maintain distinctive brand assets and a clear fit to the parent promise
use unrelated category cues
copy a competitor’s look
Retailers often require proof of what before granting extra facings for extensions?
corporate tax rate
ad recall alone
expected velocity and incremental category growth
employee satisfaction
Which metric best flags SKU bloat from too many extensions?
gross margin % alone
long tail of items below velocity thresholds
number of colors offered
shipment lead time
What pricing role do extensions commonly play?
eliminate promotions forever
replace the masterbrand name
create a ladder (good/better/best) without undermining the flagship
reset the corporate share price
A typical failure pattern for far brand stretches is ______.
low trial due to poor category fit and weak credibility
legal bans on advertising
instant dominance from name alone
too much product quality
Which research readout most directly supports extending a flavor line?
number of SKUs already on shelf
CEO preference
distinctive‑asset recognition plus stated trial interest above benchmark
historic ad spend
What’s a sensible sequence for pruning after an extension wave?
rename everything annually
keep the top movers, cut the tail, and consolidate packaging where possible
drop the flagship first
eliminate all promotions
Compared with radical new brands, line extensions usually have ______ launch costs and ______ speed to trial.
similar; slower
lower; faster
higher; slower
zero; identical
Starter
Focus the line on hero SKUs and define guardrails before adding more.
Solid
Strong instincts—prove incrementality and prune the tail.
Expert!
You balance growth and discipline like a category captain.
Line Extensions Risk vs Reward Interview Questions will test your ability to balance growth opportunities against potential brand dilution. Start your prep with the Brand Strategy & Architecture Interview Questions resource to understand core frameworks and sample scenarios. Then sharpen your messaging skills by reviewing the Naming Frameworks: Descriptive to Evocative practice questions, refine how you articulate brand promises with the Choosing a Brand Promise Customers Remember quiz, and deepen your strategic insight in the Brand Equity Models: Keller vs Aaker scenarios. Working through these targeted examples will give you the confidence to discuss line extension strategies clearly in any brand interview.
