Which of the Following Is a Potential Drawback of Multibranding

question 79

Multiple Choice

Which of the following is a potential drawback of multibranding?

• A)Consumers may become confused about the image of the main brand.
• B)An overextended brand name might lose its specific meaning for consumers.
• C)Different product features can appeal to consumers with different buying motives.
• D)The company's resources may be spread over too many brands.
• E)The company can occupy more retail shelf space.

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Definitions:

Remitting Profits

The process of sending back earnings to a company's home country or investors.

Long-Run Exposure

The risk faced by investors or companies that emerge from long-term financial decisions or market conditions.

Strengthening Economies

Refers to economies that are experiencing growth in GDP, employment rates, and trade, indicating an overall improvement in financial health.

Long-Run Exposure

The potential impact on a company's financial health over an extended period due to risks associated with changes in exchange rates, interest rates, or market conditions.