Which of the following risks is most closely associated with the strategy of brand extension?

Question

Quizplus · Accepted Answer

Brand extension involves leveraging the existing brand name to introduce new products or services. The risk associated with this strategy is losing focus of the core positioning of the brand, which can dilute the value of the brand and confuse customers. This is why maintaining brand focus and consistency is crucial in brand extension. The other options, brand flanking, counterfeiting, controlling the use of an image owned by the company, and negotiating a relationship with a brand ally, are risks associated with other marketing strategies, but not with brand extension.

Which of the Following Risks Is Most Closely Associated with the Strategy