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.
B)Building on the name recognition of an existing brand cuts the costs and risks of introducing new products.
C)Building on the name recognition of an existing brand cuts the costs and risks of introducing new products.
D)Building on the name recognition of an existing brand cuts the costs and risks of introducing new products.
E)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