Pierre Cardin Partnered with Several Other Product Manufacturers and Attached

question 64

Multiple Choice

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing, housewares, and even cosmetics. Eventually, its brand image became diluted and lost its influence as a luxury manufacturer. Which of the following disadvantages of cobranding does this example illustrate?

• A) loss of control
• B) overexposure
• C) lack of perceived quality
• D) lack of brand awareness
• E) accommodation

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Definitions:

Return Ratio

A financial metric indicating the profitability or effectiveness of an investment, often expressed as a percentage.

Denominator

The bottom number in a fraction that shows the total number of equal parts the whole is divided into.

Quick Ratio

A financial ratio that measures a company’s “instant” debt-paying ability, computed as quick assets divided by current liabilities.

Account Payable

The liability created by a purchase on account.