Brand Extensions Is the Practice of

question 191

Multiple Choice

Brand extensions is the practice of

• A)manufacturing a product under a new name that consumers will view as an entirely new product line.
• B)manufacturing a new product with the same brand name for a new market segment in the same product class.
• C)manufacturing accessory products for the base offering, such as Barbie clothes for Barbie dolls.
• D)licensing another firm to manufacture modified versions of the original product.
• E)applying the current brand name to enter a completely different product class.

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Definitions:

Discretionary Cost

A cost that is not essential for the operation of a business and can be adjusted or eliminated without directly impacting the immediate viability of the business.

Furniture Manufacturing

The industrial process of producing furniture items, combining various materials such as wood, metal, and textiles.

Advertising

The activity or profession of producing advertisements for commercial products or services, aimed at influencing the buying behavior of consumers.

Cost Driver

A factor that causes the cost of an activity or process to change, such as labor hours or machine hours.