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    Question

    A bank modifies an existing savings account by adding

    free debit card insurance. This is an example of:
    A Line extension Correct Answer Incorrect Answer
    B Diversification Correct Answer Incorrect Answer
    C Market development Correct Answer Incorrect Answer
    D Harvesting Correct Answer Incorrect Answer
    E Undifferentiated marketing Correct Answer Incorrect Answer

    Solution

    Line extension means adding variations or additional features within the same product category. Why others are incorrect: Diversification is new product + new market; Market development is new geography; Harvesting reduces support; Undifferentiated ignores variation. Banking Example: Adding insurance cover to regular savings account.

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