What is a brand extension?

• A. Using an existing brand name to launch a new product in a different category.
• B. Rebranding an existing product with the same category.
• C. Merging brands with another company.
• D. Launching an entirely new brand name for the same product category.

Answer: (D)

Brand extension is using an existing brand name to introduce a new product in a different category, leveraging the brand’s recognition to help customers accept and try the new offering. This approach relies on the equity and trust the brand has built, making it easier for consumers to try something new under a familiar name. For example, a well-known fashion label expanding into fragrances or a sportswear brand launching headphones under the same brand. This differs from introducing a brand-new name for the same product category, which wouldn’t be an extension of the existing brand, or from rebranding within the same category or merging brands, which are other branding moves with different aims.