Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings - in effect ________ the parent brand.
A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) revamping

Question

Quizplus · Accepted Answer

When sales of a brand extension meet targets, it does not necessarily mean that the brand's revenue is growing. One possibility is that consumers are simply switching from existing parent-brand offerings to the new extension, which means that the company is "cannibalizing" its own sales. This can lead to a short-term bump in revenue, but it ultimately weakens the parent brand by eroding its customer base.

Even If Sales of a Brand Extension Are High and Meet