Question

The use of the same brand name for new products being introduced into a different product class is known as ______.

1) Brand extension
2) Brand positioning
3) Brand equity
4) Brand loyalty

Answer 1

The use of the same brand name for new products in a different class is known as a brand extension. It capitalizes on the existing brand equity and can help in building brand loyalty by leveraging the brand's well-respected name.

Step-by-step explanation:

The use of the same brand name for new products being introduced into a different product class is known as brand extension. This strategy can benefit a company by leveraging the existing brand equity that has been carefully built up over many years. A successful brand extension can reinforce a brand's pre-existing reputation and contribute to building loyalty among consumers.

For example, if a well-known sports footwear brand decides to introduce a line of sports apparel, this would be considered a brand extension. Because the company already has a well-respected brand name, the new product line could benefit from the strength and recognition of the parent brand, potentially making the introduction of the new product category more successful than launching with a completely new brand.