Despite the success of its Pentium chips, Intel faced a major threat from competitors such as AMD's cheaper K6 chips, which were better placed to serve the emerging low-cost PC market. Intel wanted to protect the brand equity and price premium of its Pentium microprocessors, but it also wanted to avoid AMD gaining a foothold into the lower end of the market. So it created Celeron as a cheaper, less powerful version of its Pentium chips to serve this market. This is a notable example of a
A) private brand.
B) brand extension.
C) subbrand.
D) co-brand.
E) fighting brand.
Correct Answer:
Verified
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