Why would a company choose to use an established brand name when introducing a new product?

Question

Quizplus · Accepted Answer

All of the given options are valid reasons for a company to use an established brand name for introducing a new product. Using an established brand name can save costs associated with creating brand awareness, leverage positive brand associations of the original brand, be useful when introducing complementary products, and speed up the product introduction process. Thus, companies often prefer to use established brand names rather than creating a new one from scratch.

Why Would a Company Choose to Use an Established Brand