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      Question

      If a bank offers different versions of a savings account

      (Basic, Premium, Elite) within the same category, it is practicing:
      A Brand extension Correct Answer Incorrect Answer
      B Line extension Correct Answer Incorrect Answer
      C Product bundling Correct Answer Incorrect Answer
      D Diversification Correct Answer Incorrect Answer
      E Market withdrawal Correct Answer Incorrect Answer

      Solution

      Line extension refers to introducing new variants within the same product category under the same brand.  Why Other Options Are Incorrect • A: Launching into new product category. • C: Combining products. • D: New product + new market. • E: Removing product.  Banking Example: Savings account tiers with increasing privileges.

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