Multiple choice general knowledge

Q.It is much cheaper for a Manufacturer to extend an existing brand. (True I False)

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is significantly cheaper for manufacturers to extend an existing brand rather than create a new one, as brand extensions leverage established brand equity, distribution channels, and consumer awareness. New brands require substantial investment in advertising, packaging development, and retailer acceptance, while extensions can ride on the parent brand's reputation and marketing infrastructure.