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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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