UGC NET COMMERCE December 2018 Q19
0. Which one of the following is not true for introducing multiple brands in a category?
- Option : C
- Explanation : Many firms have to introduce multiple brands because no one brand is viewed equally favourably by all the different market segments the firm would like to target. Some reasons for introducing multiple brands in a category include the following:
∎ To increase shelf presence and retailer dependence in the store.
∎ To attract consumers seeking variety who may otherwise switch to another brand.
∎ To increase internal competition within the firm.
∎ To yield economies of scale in advertising, sales, merchandising and physical distribution.
