When a company enters a new product category for which its current brand names are not appropriate it will likely follow which of the following brand strategies ?
Correct answer: D. New brands
- A. Product extensions
- B. Line extensions
- C. Brand extensions
- D. New brands
Explanation
When existing brand names do not suit a new product category, the firm introduces a new brand. Product and line extensions use an existing brand for related products or variations within an existing 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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