One of the Earliest Examples of Social Media's Impact on a Brand

question 38

Multiple Choice

One of the earliest examples of social media's impact on a brand occurred with Kryptonite,which has been a leading producer of bicycle locks for more than three decades.How was this firm impacted by social media?

• A)Users contacted the company about sponsoring a bike competition and this led to social media product endorsements by all types of different companies.
• B)Users posted videos showing how the bike lock could be employed for other uses around the house,and this led to an increase in company sales.
• C)Kryptonite enjoyed steady sales until negative product reviews on Yelp and YouTube drastically reduced company sales,causing the firm to go out of business.
• D)Users posted videos showing how the company's bike locks could be opened with a pen and this forced the company to change its design.
• E)Kryptonite was a little-known brand until social media users began raving about the company products,leading to an unprecedented increase in sales.

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Definitions:

Brand Extension

A marketing strategy where a company uses an existing brand name to launch a new product in a different category, leveraging brand equity.

Complementary Goods

Products or services that enhance or are necessary for the use of another product, such as printers and ink cartridges.

Generic Goods

Products that are not branded and are sold without any trademark or logo. They are typically characterized by lower prices and are considered equivalent in quality to branded products in many cases.

Brand Extension

involves the use of an established brand name on a new product in a different category, leveraging the brand's existing recognition and goodwill to introduce new offerings.