Which term is also known as brand stretching when used to introduce a product in a new category?

Which term is also known as brand stretching when used to introduce a product in a new category?

• A. Celebrity endorsements
• B. Slogan
• C. Product range
• D. Brand extension

Answer: (D)

Brand extension is the practice of using an established brand name to launch a product in a different category. By applying the familiar brand to a new category, the company leverages existing customer trust and recognition to make the new product quicker to accept and reduce launch risk. When this move crosses into new territory, it’s often described as brand stretching. The other terms don’t fit: celebrity endorsements rely on a third-party endorser, a slogan is just a catchy phrase, and a product range is simply the lineup of products a brand offers within its current categories.

Brand extension is the practice of using an established brand name to launch a product in a different category. By applying the familiar brand to a new category, the company leverages existing customer trust and recognition to make the new product quicker to accept and reduce launch risk. When this move crosses into new territory, it’s often described as brand stretching. The other terms don’t fit: celebrity endorsements rely on a third-party endorser, a slogan is just a catchy phrase, and a product range is simply the lineup of products a brand offers within its current categories.