Which of the following is a potential risk of a brand umbrella?
A)The brand umbrella reduces the incumbents sunk cost of introducing a new product
B)The umbrella brand may help the incumbent navigate the vertical chain
C)The brand umbrella allows an incumbent offset uncertainty about the quality of a new product
D)A brand umbrella may make suppliers and distributors more willing to enter relationship specific investments in or sell credit to incumbents
E)If a new product under the umbrella fails,consumers may become disenchanted with the entire brand

Question

Quizplus · Accepted Answer

If a new product under the brand umbrella fails, it may negatively impact the overall brand's image and reputation, leading to consumer disenchantment. This can be a potential risk associated with having a brand umbrella.

Which of the Following Is a Potential Risk of a Brand