Why are many retailers creating and promoting their own captive brands?
a. Captive brands carry evidence of a store's affiliation and are available everywhere.
b. Captive brands help to increase a company's presence in markets where it has little room to differentiate itself.
c. Captive brands allow retailers to ask a price similar or equal to manufacturers' brands.
d. Captive brands allow retailers to gain greater profits by marketing cheaper products under a brand name owned by them.
ANSWER: c
Instead of marketing private brands as cheaper and inferior to manufacturer brands, many retailers are creating and promoting their own captive brands. This strategy allows the retailer to ask a price similar or equal to manufacturers' brands.
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