In product line stretch, which describes adding higher-end offerings to attract a premium segment?

• A. Merging with another brand.
• B. Reducing features to simple version.
• C. Adding higher-end offerings to attract a premium segment.
• D. Cutting prices to increase volume.

Answer: (C)

The idea being assessed is product line stretch, specifically extending the line upward to reach a premium segment. When a brand adds higher-end offerings, it’s performing an upward stretch: you introduce models or versions with more advanced features, better materials, or a more premium image to attract customers who are willing to pay more. This approach leverages the brand’s existing recognition while shifting perception toward higher value and higher margins, and it can broaden the customer base without dropping the core products.

This differs from merging with another brand, which is a corporate move rather than a line extension, or from simplifying features to a basic version, which targets a lower-end market. It also isn’t about lowering prices to boost volume, which again focuses on price competition rather than appealing to premium buyers.