Boone Inc., a soft-drink company, extended its brand name to include soaps.Boone did not succeed in selling its soaps and, as a result, sales of its core brand also declined.It took considerable effort to regain customers who had turned to other soft drinks.This decline was most likely due to its:

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Brand dilution occurs when a company extends its brand to a product in a different category that fails to meet market expectations, negatively impacting the perception and value of the original brand. In this case, Boone Inc.'s extension of its soft-drink brand to soaps that did not succeed led to a decline in its core brand's sales, illustrating brand dilution.

Boone Inc, a Soft-Drink Company, Extended Its Brand Name to Include