Lakronis Inc., a clothing line, acquired a music company and entered the music retail industry.Since Lakronis was known in the market for its high quality, it hoped that this perception would carry over to its new product as well.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of brand extension, as Lakronis Inc. is extending its brand from clothing to music retail. It hopes to leverage its existing reputation for high quality in the clothing industry to its new product in the music industry.