Question

We see the Nike Swoosh on athletic shoes as well as on an assortment of athletic apparel for almost every sport. The company has begun branching out into several entirely new product categories, such as MP3 players. This indicates that Nike has decided to pursue a strategy of__________.

Answer 1

D) brand extension

Step-by-step explanation:

Brand extension basically refers to extending or stretching a successful brand into other product lines which may or may not even be related to the original product. In this case, Nike was originally an athletic shoe manufacturer but now has extended its brand into different types of products. The new products benefit from customer loyalty to Nike's brand.