Even If Sales of a Brand Extension Are High and Meet

question 135

Multiple Choice

Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings - in effect ________ the parent brand.

• A) diluting
• B) cannibalizing
• C) reinforcing
• D) eroding
• E) revamping

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Definitions:

Expectancy Theory

A psychological theory that describes the process by which individuals decide on behavioral options, based on their expectations of the reward's value and the likelihood their efforts will lead to expected performance.

Instrumentality

The belief that a certain amount of effort will lead to the desired performance and outcome.

Employee Theft

The act of stealing or misappropriating assets or resources from an employer by an employee.

Equity Theory

A theory in psychology that explains how individuals gauge the fairness of their work outcomes in relation to the work outcomes of others.