Georgia DECA Advertising Practice Test

Which of the following is an example of a product extension in services marketing?

1. A transportation company offering new routes

2. A restaurant changing its menu

3. An online store improving its website

4. A hotel enhancing its room decor

The correct answer is: A transportation company offering new routes

A product extension in services marketing refers to the practice of adding new offerings or features to an existing service in order to meet customer needs or expand market reach. The example of a transportation company offering new routes is a clear illustration of this concept. By introducing new routes, the transportation company is enhancing its existing service offering, providing customers with more options for travel and potentially attracting a broader customer base. This type of extension directly addresses customer demands for accessibility and convenience, without fundamentally changing the core service, which remains transportation itself. Other options, while they represent changes or improvements, do not fit as neatly into the concept of product extension. For example, changing a restaurant's menu is an improvement within the same service category but does not expand the fundamental offering of dining. Similarly, an online store improving its website focuses on enhancing user experience rather than extending its product offering, and a hotel enhancing its room decor upgrades the existing offerings but does not introduce a new service parameter. Therefore, the best example of a product extension is the transportation company introducing new routes.