Asked by FRANCIS VENTURA on Jul 05, 2024

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Verified

A supermarket wants to offer banking services. What type of extension is this?

A) Co-branding
B) Category extension
C) Line extension
D) None of these

Category Extension

The practice of expanding a brand or product line into new categories or markets, leveraging existing brand equity to introduce new offerings.

Co-branding

A partnership between two or more brands to create a product or service that leverages the strength of each brand's identity.

Line Extension

A strategy where a company expands its existing product line into new variations or flavors to meet different customer needs or to capture a wider market.

  • Recognize and elucidate the various forms of brand extensions, including line extension, category extension, and co-branding.
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Verified Answer

BD
Bavan DhindsaJul 12, 2024
Final Answer :
B
Explanation :
Category extension occurs when a brand known for a particular type of product or service expands into a different category. In this case, a supermarket, known for retailing, extending into banking services represents a move into a different category of business.