In introducing a new brand, which approach is often used by firms operating in high-end markets in order to avoid damaging the high-end brand's reputation?
A)Brand extension
B)Co-branding
C)Flanker brand
D)Complementary brand

Question

Quizplus · Accepted Answer

Firms operating in high-end markets often use a flanker brand approach to introduce a new brand in order to avoid damaging the high-end brand's reputation. A flanker brand is a separate brand introduced by a company in the same product category as a high-end brand, but at a lower price point, with the aim of appealing to a different market segment. This approach allows the company to reach a broader market without diluting the high-end brand's perception of exclusivity and luxury. Brand extension involves using an existing brand name on a new product or in a new product category. Co-branding involves two or more brands collaborating on a product or service. Complementary brand involves creating a new brand that is related or complementary to an existing brand.

In Introducing a New Brand, Which Approach Is Often Used