Compared with the multiproduct strategy, advertising and promotion costs tend to be higher with _________ because the company must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions.

Question

Quizplus · Accepted Answer

Multibranding involves introducing multiple brand names in the market, each with a different product. This strategy requires higher advertising and promotion costs, as each new brand name needs to be introduced to consumers and retailers without the benefit of previous brand impressions. In contrast, multiproduct branding involves marketing different products under the same brand name, allowing for greater brand recognition and lower advertising and promotion costs. Therefore, C is the correct choice.

Compared with the Multiproduct Strategy, Advertising and Promotion Costs Tend