Using an Existing Brand Name to Introduce a Product That

question 124

Multiple Choice

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, disposable pen, lighter, and razor maker Bic introduced perfume under the Bic brand name and it failed quickly. This innovation strategy is known as a

• A) radical invention.
• B) product line extension.
• C) disruptive innovation.
• D) product deletion.
• E) brand extension.

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Definitions:

Dividends

Cash disbursements issued to shareholders by a company, commonly originating from the organization's earnings.

Total Assets

The sum of all resources owned or controlled by a company, valued in terms of money, which can be used to produce goods or services.

Investment Account

A financial account held at a bank or brokerage used to buy, sell, and hold securities like stocks, bonds, and mutual funds.

Consolidated Dividends

Dividends paid by a parent company that include those received from and paid out to its subsidiaries.