Brand Extensions Are a Strategic Use of a Brand's Equity

question 51

True/False

Brand extensions are a strategic use of a brand's equity, in which the marketer leverages the brand's good name to get customers to buy something new.

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Definitions:

Perfect Substitutes

Goods that can be completely replaced by another with no loss of utility to the consumer.

Inputs

The resources such as labor, materials, and capital, that are used in the production process to produce goods and services.

Output

The total amount of goods or services produced by an individual, firm, industry, or economy in a given period.

Production Function

A formula detailing how input factors like raw materials and labor are turned into output or goods.