All of the given options are correct. The use of family brands can involve multiple firms if one firm licenses its brand to others. It is common among both producers and intermediaries. The use of family brands signals the quality of new products to customers, which can be efficient since the brand name will carry over in the firm's advertising.

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Use of Family Brands

Question 198

Multiple Choice

Use of family brands

A) may involve several firms-if one licenses its brand.
B) is common among both producers and intermediaries.
C) can provide customers with cues about the quality of new products.
D) can be efficient, since the brand name will carry over in the firm's advertising.
E) All of these alternatives are correct.

Correct Answer: