Test your knowledge of Category Extension Risks essentials. Each question sharpens your strategic marketing insight.
A brand faces dilution when a new category extension weakens the core brand’s ______ associations.
price
distribution
color
unique
Introducing dissimilar products can blur the distinctive meaning consumers hold.
Cannibalization risk refers to new variants stealing sales from ______ offerings.
premium
competitor
seasonal
existing
Extension might shift current customers rather than attract new ones.
The 'fit' heuristic suggests extension success rises when perceived similarity is ______.
negative
low
irrelevant
high
Consumers accept new items if they logically align with brand expertise.
Regulatory scrutiny intensifies if extension claims create misleading ______ expectations.
aesthetic
functional
social
nostalgic
False efficacy promises invite legal and trust backlash.
Line‑logic overextension often leads retailers to cut shelf space due to SKU ______.
rotation
integration
proliferation
animation
Too many similar items clutter the aisle and hurt stocking efficiency.
House‑of‑brands architecture lowers extension risk by isolating ______ equity.
regional
partner
parent
seasonal
Separate sub‑brands protect the corporate name from failures.
Launching a budget extension under a premium brand can trigger ______ pricing perceptions.
dynamic
elastic
skimming
inconsistent
Consumers may question overall quality and resist paying high prices.
Testing extension ideas with conjoint analysis quantifies cannibalisation by modelling consumer choice under ______ conditions.
retroactive
exclusive
hypothetical
mandatory
Simulations reveal likely share shifts before real launch.
One classic mitigation tactic is to launch the extension as a ______ brand endorsed by the parent.
distribution
competitor
sub
legacy
Endorsed brands borrow equity while keeping distance.
Negative halo effects can spread faster on social media, amplifying ______ risk of poor extensions.
reputational
operational
tax
logistical
Viral commentary can quickly damage brand credibility.
Starter
Dive deeper into the fundamentals.
Solid
You have a good grasp—keep polishing.
Expert!
Impressive command of advanced concepts.
