Extension Strategies Quiz

What is the main aim of an extension strategy?

• To increase employee satisfaction

• To eliminate competition

• To maintain sales revenues and market share

• To reduce production costs

Which company frequently updates its iPhone models to keep them relevant?

• Microsoft

• Samsung

• Google

• Apple

What is a disadvantage of product modification?

• It guarantees customer approval

• It reduces market share

• It is always successful

• It involves expensive research and development

Which extension strategy involves changing the brand name or logo?

• Advertising

• Product innovation

• Rebranding

• Repositioning

What is an advantage of updating packaging?

• It is always cheap

• It guarantees increased sales

• It enhances the brand image

• It eliminates competition

Which company is known for introducing product variants like Diet Coke and Coke Zero?

• Dr Pepper

• Nestlé

• Pepsi

• Coca-Cola

What is a potential disadvantage of reducing prices?

• It always increases revenue

• It guarantees customer loyalty

• It eliminates the need for advertising

• It may negatively affect the perceived quality of the product

Which strategy involves entering new geographical areas to maintain sales?

• Advertising

• Enter new markets

• Rebranding

• Product modification

What is a disadvantage of advertising as an extension strategy?

• It eliminates the need for product innovation

• It guarantees market saturation

• It may not always lead to increased sales

• It is always free

Which company often collaborates with celebrities to create limited edition products?

• Puma

• Adidas

• Nike

• Reebok