Which of the Following Is a Potential Drawback of Multibranding

question 156

Multiple Choice

Which of the following is a potential drawback of multibranding?

• A) Multibranding tends to decrease brand loyalty.
• B) Company resources are likely to be concentrated on a single brand.
• C) Multibranding curbs the growth opportunities of established brands.
• D) Each brand might obtain only a small market share, and none may be very profitable.
• E) Multibranding causes companies to refrain from product diversification.

---

Definitions:

Degrees of Freedom

The number of independent pieces of information upon which a statistical estimate is based minus the number of parameters being estimated.

Two-way ANOVA

A statistical method used to examine the effects of two different independent variables on one dependent variable.

Two-way Factor ANOVA

A statistical test used to determine the effect of two nominative variables on a continuous outcome.

Total Sum of Squares

A statistical measure that quantifies the total variance in the observed data points from the mean of the data.