Question

_______ occurs when two established brand names of different companies are used on the same product.

Select one:

A. A brand extension
B. Internal marketing
C. Cannibalisation
D. Brand equity
E. Co-branding

Answer 1

E) Co-branding occurs when two established brand names of different companies are used on the same product, aiming to combine brand strengths and appeal which can lead to numerous benefits such as an expanded customer base and shared marketing costs.

Step-by-step explanation:

The phenomenon where two established brand names of different companies are used on the same product is known as E. Co-branding. This strategy is used to combine the strength and market appeal of both brands, aiming to increase consumer interest, market share, and perceived value through the association and synergy of the two brands. Co-branding can lead to various benefits such as an expanded customer base, enhanced brand images, and shared marketing costs. An example of co-branding is when a computer manufacturer like Dell incorporates Intel processors into its computers. Both Dell and Intel benefit from the co-branding arrangement—the former highlights the performance of the computer due to the high-quality processor, while the latter benefits from exposure and association with the finished product.