A company can use its brand to expand into new product types. This is known as a ________.
A) brand association
B) store branding
C) category extension
D) cobranding
E) franchise

Question

Quizplus · Accepted Answer

Category extension refers to a strategy where a company uses its existing brand name to enter into new product categories. For example, Nike started as a brand of athletic shoes but has now extended into apparel, accessories, and even technology. This allows the company to leverage its existing brand equity and customer loyalty to capture new markets and increase revenue.

A Company Can Use Its Brand to Expand into New