Which statement is not true regarding a brand extension strategy?
A)It is best to have high brand equity before pursuing a brand extension strategy.
B)A brand extension strategy allows new products to profit from recognition the brand already enjoys.
C)Brand extensions must be implemented with an eye towards avoiding cannibalization.
D)Firms must make sure that the extension lives up to the quality consumers expect from the brand.
E)A brand extension strategy is the same thing as a product extension strategy.

Question

Quizplus · Accepted Answer

A brand extension strategy involves using an existing brand name for new products in different categories or markets, whereas a product extension strategy refers to adding new products or variations within the same product category under the same brand name. These are distinct concepts.

Which Statement Is Not True Regarding a Brand Extension Strategy