How does umbrella branding aid economies of scale and scope?
A)Increases effectiveness of advertising due to a greater presence
B)Increases effectiveness of advertising due to national advertising
C)Increases effectiveness of advertising due to offering a broad product line under one name
D)Increased cost effectiveness through purchasing as a cooperative
E)Increased cost effectiveness through bulk purchasing

Question

Quizplus · Accepted Answer

Umbrella branding allows for a range of products to be marketed under one name, increasing the effectiveness of advertising and creating economies of scale and scope. This allows for cost savings through the ability to produce and market multiple products at a lower cost than individual branding.

Answer: D and E 
 Umbrella branding also allows for cost savings through purchasing as a cooperative and bulk purchasing. This is due to the larger buying power of the umbrella brand, which can negotiate lower prices for goods and services from suppliers. This creates economies of scale and scope by reducing costs associated with purchasing and distribution.

How Does Umbrella Branding Aid Economies of Scale and Scope