| Book Edition | 19th Edition |
| Author(s) | Ferrell, Pride |
| ISBN | 9781337272896 |
| Publisher | Cengage Learning |
| Subject | Business |
What is a line extension, and how does it differ from a product modification?
Line extension is the extension of a firm's existing line of offerings.
Line extension is the process of developing new products in the same product line. The products are closely related to the existing products of the product line but are developed for a different target market.
Product modification is the process of making changes in one or two characteristics of the existing product.
Line extension results in the creation of a completely new product without any effect on the old products. Whereas, in product modification, the existing product vanishes from the market as the new product is made available.
Line extension involves launching a new product in the same product line which is intended to serve different target markets and is related to other products closely.
Line extensions don't have an effect on the existing products but product modification brings changes in the characteristics of existing products.
