Licensing is a marketing strategy that operates on the principle of stimulus generalisation.

Question

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Licensing involves using a well-known brand, character or symbol to promote a new or existing product with the aim of capitalising on the recognition and positive associations that consumers have with the licensed property. This is an example of stimulus generalisation, which occurs when consumers respond to stimuli that are similar to a familiar stimulus in the same way that they respond to the original stimulus. In this case, the licensed property acts as a stimulus that triggers a positive response from consumers, which is then transferred to the product being promoted through the licensing arrangement.

Licensing Is a Marketing Strategy That Operates on the Principle