__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Question

Quizplus · Accepted Answer

Brand dilution occurs when the brand extension damages the attributes that the core brand is perceived to possess. For example, if a luxury car brand launches a low-priced, entry-level vehicle, it may lead to brand dilution because consumers may perceive the luxury brand as less exclusive and prestigious.

__________ Occurs When the Brand Extension Adversely Affects Consumer Perceptions