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Which of the Following Is a Potential Risk of a Brand

Question 21

Multiple Choice

Which of the following is a potential risk of a brand umbrella?


A) The brand umbrella reduces the incumbents sunk cost of introducing a new product
B) The umbrella brand may help the incumbent navigate the vertical chain
C) The brand umbrella allows an incumbent offset uncertainty about the quality of a new product
D) A brand umbrella may make suppliers and distributors more willing to enter relationship specific investments in or sell credit to incumbents
E) If a new product under the umbrella fails,consumers may become disenchanted with the entire brand

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