Firms That Use the Same Brand Name for New Products

question 64

Multiple Choice

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

• A)brands protect corporate copyrights.
• B)consumer loyalty can be bought for less now compared to the past.
• C)brand equity can be obtained only by means of product line depth.
• D)people already know what the brand means.
• E)well-known brands are less likely to introduce brand extensions.

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Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Economic Wants

Desires for goods and services that can be satisfied through market transactions or consumption, including basic needs and luxuries.

Unlimited Resources

A hypothetical situation where resources available for use are infinite, eliminating constraints on usage or production.

Recurring Theme

A motif or subject that appears repeatedly throughout a work of literature, music, or art, emphasizing a particular idea or message.