Business Studies Multiple Choice Question – 24 January 2022

Lego sells toys, such as Harry Potter characters, made from plastic bricks.

Each of the following is a product extension strategy that Lego could use EXCEPT?

Select ONE answer:

1. Lego video games
2. Lego books
3. Lego bricks
4. Lego clothing

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – video games are an add-on to the original idea designed to prolong the product’s life cycle.
2. Not correct – books are designed to raise the presence of the brand in order to increase the sale of bricks.
3. Correct – product extension strategy is a marketing method which seeks to increase sales/extends the maturity stage/prevents decline in sales of an existing product. An example of product extension strategies, e.g. modification, re-packaging, re-branding. Lego bricks are the original products and therefore cannot be a product extension strategy. The original idea is unlikely to continue to increase sales over a period of time, without a further stimulus.
4. Not correct – the introduction of Lego clothing is designed as a complementary good.

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