What is "borrowing brand equity" generally associated with?

"Borrowing brand equity" refers to the practice of extending a positive brand name to other products, allowing those new or lesser-known products to benefit from the established reputation, trust, and recognition of the original brand. This strategy is often used to introduce new products in the market while reducing the risks associated with consumer acceptance.

When a well-respected brand launches a new product, the existing brand equity can lend credibility and desirability to the new offering. For example, if a luxury car manufacturer branches out into producing a line of accessories, the positive perception of the brand in the automotive sector can positively influence consumer attitudes toward the new products.

The other options do not align with the concept of "borrowing brand equity." Creating new brands focuses more on starting from scratch without the benefits of an existing brand reputation, while discontinuing old products pertains to brand management and lifecycle rather than leveraging existing equity. Lastly, increasing production costs is not related to brand equity in the context of consumer perception and market strategy.