Firms That Use the Same Brand Name for New Products

question 1

Multiple Choice

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

• A) brands protect corporate copyrights.
• B) consumer loyalty can be bought for less now compared to the past.
• C) brand equity can only be obtained by means of product line depth.
• D) people already know what the brand means.
• E) well-known brands are less likely to introduce brand extensions.
• Once a brand has established strong associations with its name, the firm may be able to spend less on promoting new products since consumers already recognize the brand and know what it stands for.

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