CH 11 MKT Exam Sample Test

A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.

CRM

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category. True or False?

False

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension. True or False?

False

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix. True or False?

False

Private-label brands are imitations often sold by street vendors. True or False?

False

The more familiar customers are with a brand, the harder their decision-making process will be. True or False?

False

Which of the following is the best example of a family brand?

Kraft Macaroni & Cheese and Kraft Mayo

Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases. True or False?

True

Sales of private-label brands continue to increase, particularly in big-box stores such as Costco and Trader Joe's. True or False?

True

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu?

a line extension

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable

awareness

All of the following are included in the main criteria used for determining how "good" a brand is, or how much equity it has except

brand conceptualization

Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. Ferrari might be at risk of which of the following?

brand dilution

When Disney flooded retail stores with products based on its movie Frozen, this illustrated

brand licensing.

Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few years and will often write positive reviews on his blog about Hollister's merchandise. From a strictly marketing perspective, Matt's positive reviews reflect

brand loyalty.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer.

perceived value

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

profitability.

Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product?

shopping. Shopping products/services are products or services for which consumers will spend a fair amount of time comparing alternatives.

Harley-Davidson's cake decorating kit tried to appeal to the brand's unparalleled consumer loyalty, but it was considered too tame by their consumer base. This is an example of

brand dilution.

When Amanda shops for lipstick, she always buys Really Red by Cover Girl. This is an example of

brand loyalty.

Efforts to change a brand's focus to target new markets or change the image of a brand are called

brand repositioning

The basic reason manufacturers spend time and money building their own brands is to

build brand equity.

When manufacturers try to understand what customers are looking for, they are thinking about the __________ component of the product offer.

core customer value

Marketers with luxury brands use brand extension cautiously in order to avoid

diluting the core brand.

In a competitive market, perceived value is determined by consumers mostly

in relation to the value of its close competitors.

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation.

decreasing product mix breadth

Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's

equity

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied—despite the cost. In this situation, Nora is likely to purchase the store-brand sneakers because at less the cost, they offer

greater perceived value.

The decision to delete a product is never taken lightly because, generally, manufacturers

have made substantial investments in product development and manufacturing.

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as

individual brands

One key feature of the value of a strong brand is that

it can protect the firm from competition.

In 2015, Nike signed an 8-year, $1 billion apparel deal with the NBA. This is an example of a deal for _______ rights.

licensing

For marketers, one of the benefits of having achieved brand loyalty is

lower marketing costs associated with reaching loyal customers.

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to

make purchase decisions.

Kraft, Nike, KitchenAid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.

national

A toothpaste tube is an example of a ________ package.

primary

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.

primary, secondary

All of the following scenarios illustrate a reason why a firm would eliminate an item within a product line except

the firm has decided to capture new markets.