Spending significant amounts of money to familiarize customers with new brands is a disadvantage primarily associated with _____.
A)franchise extension
B)multibranding
C)dual branding
D)line extension

Question

Quizplus · Accepted Answer

Multibranding refers to launching new brands in a similar product category. Since each brand requires significant marketing efforts to build awareness and familiarity among customers, multibranding can be costly, leading to a disadvantage of this strategy. Franchise extension involves extending the current brand to a new product category, while dual branding refers to marketing two brands together as a single product. Line extension involves introducing new products under the existing brand. None of these strategies necessarily require significant marketing spend comparable to multibranding.

Spending Significant Amounts of Money to Familiarize Customers with New