Evaluating the fit between the product class of the core brand and that of the extension, evaluating consumer perceptions of the attributes of the core brand, and refraining from extending the brand name to too many products and product categories are all strategies designed to reduce the likelihood of:

Question

Business

Trevin Carrillo

15 August, 10:48

Evaluating the fit between the product class of the core brand and that of the extension, evaluating consumer perceptions of the attributes of the core brand, and refraining from extending the brand name to too many products and product categories are all strategies designed to reduce the likelihood of:

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Answers (1)

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Miracle Richard · Answer 1

Brand dilution

Explanation:

"Brand dilution is the weakening of a brand though its overuse. This frequently happens as a result of ill-judged brand extension. Price cutting that increases volumes but moves a brand down-market can be similarly damage a brand.

Brand dilution is an ever present risk for companies that rely on a strong brand for high margins. A company that owns a strong brand obviously wants to leverage it to sell as much as possible, but the very strategies used to purse this end often also bring the danger of brand dilution."

Reference: Pietersz, Graeme. "Brand Dilution." Moneyterms, 2016