Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
A)brands protect corporate copyrights.
B)consumer loyalty can be bought for less now compared to the past.
C)brand equity can be obtained only by means of product line depth.
D)people already know what the brand means.
E)well-known brands are less likely to introduce brand extensions.

Question

Quizplus · Accepted Answer

When a firm uses the same brand name for new products, people already know what the brand means, which can result in less need for marketing costs to build brand recognition and awareness. This is because the brand already has an established reputation and associations in the minds of consumers.

Firms That Use the Same Brand Name for New Products