What is the primary distinction between a line extension and a product modification?

A. A product modification results in a completely new product while a line extension is simply changing an old product.
B. In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension.
C. Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market.
D. With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
E. Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.


Answer: D

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