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:

Managers

Professionals responsible for planning, leading, organizing, and controlling resources to achieve organizational goals.

Empowerment

Empowerment refers to the process of giving individuals or groups the authority, resources, and confidence to take control of their own decisions and actions.

Exercise Power

The act of utilizing authority or influence over others to make decisions or enforce actions.

Organization

A structured group of people working together to achieve common goals through coordinated efforts.