Segmentation Targeting Positioning Interview Questions & AnswersMarketing Foundations Interview Questions & Answers

Category Extension Risks

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.

Mastering Category Extension Risks Interview Questions will equip you to evaluate when brands should venture into new lines. Start with our segmentation targeting positioning interview questions guide to understand how risk fits into broader strategies, then tackle the competitive frames of reference interview MCQs, test your skills with the POD vs POP identification question set, and sharpen your framework using the value proposition canvas interview questions. Working through these interview questions will give you the confidence to discuss category extension tactics clearly.

Hi, I am Aniruddh Sharma. I’m a digital and growth marketing professional who loves transforming complex strategies into simple, interactive learning experiences. At QuizCrest, I design marketing quizzes that cover SEO, Google Ads, Meta Ads, analytics,…

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