Even If Sales of a Brand Extension Are High and Meet

question 82

Multiple Choice

Even if sales of a brand extension are high and meet targets,the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.

• A) diluting
• B) cannibalizing
• C) reinforcing
• D) eroding
• E) feeding back to

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Definitions:

Product Duplication

The process of creating a product that closely resembles or copies the design and functionality of another product in the market.

Cost of Goods Sold

The straightforward costs tied to the production of goods a firm sells, covering workforce and materials needed.

Patent Amortization Expense

Refers to the systematic write-off of the cost of a patent over its useful life, allowing companies to spread the expense over multiple accounting periods.

Legal Costs

Expenses incurred due to legal action, including lawyer fees and court costs.