DECA Sports and Entertainment Marketing Practice Exam

What best describes Product Extensions?

1. Improvements to existing products

2. New variations of a single product

3. Additional items offered alongside a product

4. Changes to pricing strategies

The correct answer is: Additional items offered alongside a product

Product extensions refer to the practice of adding new items or variations to an existing product line, which can enhance the overall offering and provide customers with more choices. This concept often includes new flavors, colors, sizes, or related products that complement the original product. By introducing additional items alongside a product, companies can attract different segments of the market, meet diverse customer preferences, and potentially increase overall sales. In contrast, improvements to existing products pertain to enhancements or upgrades made to the product itself rather than adding new items. New variations of a single product focus specifically on changes to that one product rather than offering a range of products. Changes to pricing strategies involve adjustments in how a product is priced, which does not pertain to the product itself or its accompanying items. By emphasizing additional items offered alongside a product, the concept of product extensions is about expanding the product's reach and appeal, thus enhancing its market presence.