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During his recent business trip, Jackson stayed in a hotel across the street from a restaurant that had a Dunkin Donuts and Baskin Robbins ice cream store in the same building. These two restaurant chains being located together represents the idea of__________

a. Synergy
b. Co-branding
c. Monopoly
d. Product diversification

1 Answer

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Final answer:

The presence of Dunkin Donuts and Baskin Robbins in the same building represents co-branding, a marketing strategy where two brands partner to enhance each other's business.

Step-by-step explanation:

The situation with Dunkin Donuts and Baskin Robbins being located in the same building during Jackson's recent business trip is an example of co-branding. Co-branding is a strategic marketing and advertising partnership between two brands where the success of one brand brings success to its partner brand, too. In the case of Dunkin Donuts and Baskin Robbins, they benefit from shared space and potentially attract a larger customer base that enjoys both coffee and ice cream. This utilization of space and customer base serves as mutually beneficial marketing for both entities, which differentiates it from other business strategies like synergy (the interaction of two or more organizations to produce a combined effect greater than the sum of their separate effects), monopoly (the exclusive possession or control of the supply or trade in a commodity or service), and product diversification (company increases variety of products or services to achieve better sales).

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