Question

The advantages of brand extension as a strategy are most closely related to those of _______ Family branding. Multiple branding Brand proliferation Brand equity None of the above.

Answer 1

Answer: Brand Equity

Explanation:

Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. This allows the creation of other products under that brand (brand extension).

An example of brand extension is Apple corperation. They started with computers and extended to other products such as iPods and phones. This is possible under brand equity. Retaining the brand name and extending it via the introduction of new products.