A Danger of Too Many Brand Extensions Is That

question 51

Multiple Choice

A danger of too many brand extensions is that

• A) the associations that are transferred to the new product will be too strong.
• B) motivation to process the brand image will be too high.
• C) it will be impossible to create a new brand name.
• D) it can dilute, not elaborate, the original brand image.
• E) there will be too many associations linked with the original brand name.

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Definitions:

Private Fleet

A fleet of transportation vehicles owned and operated by a company for its own logistics and distribution needs.

Safety Inventory

Extra inventory held as a buffer against demand variability and supply chain disruptions to prevent stockouts.

Cycle Inventory

The portion of inventory that companies hold to facilitate smooth production and sales operations, fluctuating based on production cycle needs.

Low-Value Product

Products that have a low price point or perceived economic value to the consumer, often resulting in slim profit margins.