If Mr. X pays a well-known fashion innovator such as Calvin Klein for the right to use its name on his…
When a manufacturer pays a royalty or fee to a well-known designer, celebrity, or corporate brand owner (such as Calvin Klein, Disney, or Pierre Cardin) for the legal right…
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If Mr. X pays a well-known fashion innovator such as Calvin Klein for the right to use its name on his apparel and accessories, then Mr. X is using which type of branding?
Answer and explanation
Correct answer D
When a manufacturer pays a royalty or fee to a well-known designer, celebrity, or corporate brand owner (such as Calvin Klein, Disney, or Pierre Cardin) for the legal right to use its established brand name on apparel or accessories, the strategy is known as 'Licensed Branding' (brand licensing).
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UGC NET Management