An upmarket extension involves introducing a brand at a higher price point.

• A. Brand extension
• B. Market development
• C. Upmarket extension
• D. Price skimming

Answer: (C)

Extending a brand upward to higher price points means repositioning the brand to attract premium customers while maintaining the existing brand identity. This is an upmarket extension—adding higher-priced, more premium offerings under the same brand to shift its overall market position. It relies on leveraging established brand equity to justify the premium, often with enhanced features, packaging, or exclusivity.

This differs from a broader brand extension that might introduce new products in different categories or at various price levels, and from market development, which focuses on entering new markets rather than changing the brand’s price positioning. It also isn’t primarily about the pricing tactic of price skimming, which is about setting high initial prices to capture early profits rather than reshaping the brand’s entire pricing tier.