If Honda uses its company name to cover such different products as its automobile's lawn mowers and motorcycles, it is practicing which of the following strategies ?
Correct answer: D. brand extension strategy
- A. new brand strategy
- B. line extension strategy
- C. multiband strategy
- D. brand extension strategy
Explanation
Honda uses its established corporate brand name across automobiles, lawn mowers and motorcycles, which is brand extension into different product categories. Line extension would involve variations within an existing product category.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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