Which of the following statements is true of a brand extension strategy?
A) Brand extension cuts the costs and risks of introducing new products.
B) It is used by firms that have a weak brand name.
C) It is a strategy used by start-up firms.
D) It refers to developing items to fill gaps in the market.
E) Brand extension refers to creating variations of a product.

Question

Quizplus · Accepted Answer

A) Building on the name recognition of an existing brand cuts the costs and risks of introducing new products.

Which of the Following Statements Is True of a Brand