Which of the following is a potential drawback of multibranding?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very profitable.
E) Multibranding causes companies to refrain from product diversification.

Question

Quizplus · Accepted Answer

Multibranding strategy might lead to the creation of several brands with limited market share and profitability, as the company's resources are divided among multiple brands. Hence, it might lead to none of the brands being very profitable.

Which of the Following Is a Potential Drawback of Multibranding