Marketing Mix

Product Line Decisions

Line stretching occurs when a company ______.

Narrows a product line

Adds products beyond current price or quality range

Adds unrelated products

Improves existing items

Stretching can be upward, downward, or both to capture new segments outside the existing scope.

Adding a new product at a higher price and quality is specifically called ______ line stretching.

Upward

Two‑way

Downward

Internal

Upward stretch targets more premium segments above the current line.

'Line filling' involves ______.

Dropping underperforming products

Adding items within the present range to address gaps

Entering a new category

Raising all prices

Filling seeks closer increments in price or features to combat competitors and utilise capacity.

A risk of downward line stretching for premium brands is ______.

Channel exclusivity

Excessive margin growth

Reduced cannibalisation

Brand dilution through lower perceived quality

Lower‑end extensions may erode upscale brand equity if not clearly differentiated.

Product line length refers to ______.

Sales volume

Number of categories served

Number of items in the line

Package sizes

Length counts distinct products within a single line from low to high end.

Pruning a product line typically aims to ______.

Maximise shelf clutter

Focus resources on profitable items

Increase assortment complexity

Enter new geographic markets

Dropping weak SKUs frees capacity and marketing support for stronger products.

Cannibalisation is a key concern when ______.

Stretching upward

Producing limited editions

Line filling introduces items too close to existing ones

Partnering with retailers

Overlapping features and prices can shift sales instead of expanding the pie.

A two‑way stretch means the company adds items ______.

Only at the premium end

Only within current range

Only at the low end

Both above and below the current line

Extending in both directions seeks coverage of entry‑level and premium segments simultaneously.

Offering economy, standard, and deluxe versions of a service is an example of managing ______.

Channel conflict

Product mix consistency

Product line depth

Brand resonance

Depth refers to variations within a line to meet different price/performance preferences.

When a firm adds an eco‑friendly variant to appeal to green consumers without dropping existing SKUs, it is practicing ______.

Brand pruning

Line filling for a psychographic segment

Horizontal diversification

Backward integration

The green option fills a need gap (eco benefit) within the current range to capture a distinct segment.

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