QPractice question
Which of the following best describes Line Extension?
  1. A.The structure linking the firm's brands — house of brands, branded house, endorsed brand, hybrid — managing brand equity across the portfolio.
  2. B.Private labels (retailer-owned brands like Costco Kirkland) compete with national brands (P&G, Unilever) on price, quality, and shelf advantage.
  3. C.Adding new variants — flavors, sizes, formulations, colors — within an existing product line, leveraging brand equity within the same category. ✓
  4. D.Adding new variants — flavors, sizes, formulations, colors — within an existing product line, leveraging brand equity within the same category.
Why this answer:

Line Extension is adding new variants — flavors, sizes, formulations, colors — within an existing product line, leveraging brand equity within the same category. The other options describe related but distinct concepts in Product & Brand — see the deep-dive guide for the full distinction.

How to think about questions like this

Lower risk than category extension; captures more occasions and preferences. Questions like this test whether you can distinguish Line Extension from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Line Extension for a worked example you can adapt to your assignment.

Underlying concept

Concept · Product & Brand Line Extension

More practice in Product & Brand Management

Practice · Product & Brand Management Product Life Cycle — Definition Practice Practice · Product & Brand Management Product Life Cycle — Application Practice Practice · Product & Brand Management New Product Development (NPD) — Definition Practice Practice · Product & Brand Management New Product Development (NPD) — Application Practice Practice · Product & Brand Management Product Mix and Product Line — Definition Practice Practice · Product & Brand Management Product Mix and Product Line — Application Practice Practice · Product & Brand Management Product Line Stretching — Definition Practice Practice · Product & Brand Management Product Line Stretching — Application Practice