Mathis Inc. is a home appliance manufacturing firm based in Vermont that sells its products under the brand name GoodHome. The firm initially built a reputation in the household appliances market for its high-quality products. After an extensive market research, the firm used its brand reputation to expand into the home furnishing industry. In this example, Mathis Inc. uses which of the following product line extension strategies?A) a vertical brand-line extension strategy
B) a horizontal brand-line extension strategy
C) a new product-market brand extension strategy
D) a cobranding extension strategy
E) a product bundling extension strategy

The correct answer is "C) a new product-market brand extension strategy".

Explanation: Mathis Inc. uses a new product-market brand extension strategy since it takes advantage of the positioning and reputation of the brand to extend it to a completely new line of products such as furniture and that the public considers to be of good quality.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer target market;