When a Company Sells a New Product with the Current

question 326

Multiple Choice

When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a ________ strategy.

• A) mixed branding
• B) brand extension
• C) co-branding
• D) family branding
• E) product line extension

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Definitions:

Company

A business or association of persons engaged in commercial, industrial, or professional activities, either incorporated or unincorporated.

Return on Investment (ROI)

A measure of the profitability of an investment, expressed as a percentage of the initial amount invested.

Division's

Relates to a separate part of a larger organization, typically responsible for a specific operation or function.

Residual Income

Income that remains after all costs of capital have been deducted from net operating income, a measure of profitability.