Parallel Branding

question 2

Multiple Choice

Parallel branding:

• A) targets a price-sensitive consumer
• B) abounds in the fragrance market
• C) is frequently referred to as the house brand
• D) can be used to bolster private-label sales
• E) imitates the manufacturer brand and is perceived as lower quality

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Definitions:

Fixed Cost

Costs that do not vary with the production volume or level of services provided, such as rent, salaries, and insurance.

Salary

Salary refers to a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of a product, reflecting only those costs that directly change with the level of production.

Production

Production involves the processes and methods used to transform raw materials or components into finished goods or services.