A Major Advantage of Using Individual Branding Is That

question 286

Multiple Choice

A major advantage of using individual branding is that

• A) the promotion of one of the company's brands will also promote the company's other brands.
• B) this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original.
• C) a poor-quality product will not contaminate all of the company's other products with negative images.
• D) a specific brand name for each product will help the company grow during times of economic recession.
• E) the quality of one of the company's products will help increase the perceived quality image of the company's other related products.

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Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, or loan payments.

Marginal Cost

Marginal Cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

Average Total Cost

The per-unit cost of production that includes all variable and fixed costs, calculated by dividing total costs by the number of units produced.

Production Process

The sequence of operations or activities involved in the conversion of raw materials into finished goods or services.