Marketing In The Digital Era Practice Test

Flanker brands are lower-priced brands added by a company to defend against price competition and to win over price-sensitive customers, while keeping the more premium brand’s image intact. This approach creates a separate, budget-friendly option within the same brand family, so the company can compete with cheaper rivals without diluting the premium positioning. The scenario described fits this idea perfectly: a budget sub-brand is introduced under the existing premium line to attract price-sensitive shoppers. It targets a different segment and helps protect the premium brand from being eroded by lower-cost competitors. The other options describe different branding moves that don’t establish a separate budget option: launching a new premium product under the same name expands the high-end range rather than adding a low-cost alternative; merging brands simplifies the portfolio; replacing a product line with a new design is a redesign or repositioning, not creating a budget counter-brand.