A manufacturer adds a smaller package size to an existing product line to serve budget-conscious buyers. This is an example of:
Correct answer: A. Product line stretching
- A. Product line stretching
- B. Market skimming
- C. Channel integration
- D. Promotional bundling
Explanation
Product line stretching occurs when a firm adds products outside or toward another level of its existing range, such as a smaller and cheaper package. Market skimming is a pricing method, while the other options concern distribution or promotion.
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