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      Question

      A bank expanding its product portfolio to include

      insurance and mutual funds is pursuing:
      A Market penetration Correct Answer Incorrect Answer
      B Diversification Correct Answer Incorrect Answer
      C Harvesting Correct Answer Incorrect Answer
      D Line contraction Correct Answer Incorrect Answer
      E Undifferentiated marketing Correct Answer Incorrect Answer

      Solution

      Diversification involves entering new product categories. Why others are incorrect: Penetration increases share of existing product; Harvesting reduces support; Line contraction removes variants; Undifferentiated ignores segmentation. Banking Example: Bancassurance tie-ups.

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