What are the methods used to extend the life of a product called?

What are the methods used to extend the life of a product called?

• A. Skimming
• B. Development
• C. Extension strategies
• D. Decline

Answer: (C)

Extending the life of a product is about keeping sales strong after the product has matured. The term for the actions taken to do this is extension strategies. These strategies involve refreshing or repositioning the product to renew demand—things like updating features or quality, changing packaging, adjusting the price or promotions, and finding new markets or new uses for the product. The aim is to delay the decline phase and continue earning profits for longer. For example, a firm might introduce a slightly improved version, rebrand to appeal to a new customer group, or enter a new region with targeted marketing. These moves are all examples of extension strategies. Skimming is about setting a high price early to maximise short-term profits, not about extending the product’s life. Development refers to creating a new product or a new version from scratch, not prolonging an existing one. Decline is the stage the extension strategies are designed to prevent or postpone.

Extending the life of a product is about keeping sales strong after the product has matured. The term for the actions taken to do this is extension strategies. These strategies involve refreshing or repositioning the product to renew demand—things like updating features or quality, changing packaging, adjusting the price or promotions, and finding new markets or new uses for the product. The aim is to delay the decline phase and continue earning profits for longer.

For example, a firm might introduce a slightly improved version, rebrand to appeal to a new customer group, or enter a new region with targeted marketing. These moves are all examples of extension strategies.

Skimming is about setting a high price early to maximise short-term profits, not about extending the product’s life. Development refers to creating a new product or a new version from scratch, not prolonging an existing one. Decline is the stage the extension strategies are designed to prevent or postpone.