Ch 11 SB

What does a brand need in order to be somewhat protected from competition from other firms and price competition?

A loyal customer base An established track record in the market

Which of the following are advantages to firms of owning their own brands? (Choose every correct answer.) Ability to create brand equity Control over marketing strategy Lower manufacturing costs Choice of market segments and positioning

Ability to create brand equity Control over marketing strategy Choice of market segments and positioning

Which of the following is an example of a brand extension? Acme sleds and Timberland boots Acme chips and Acme dips Acme barbecue potato chips and Acme salt and vinegar potato chips Acme cars and generic pencils

Acme chips and Acme dips Reason: If Acme is known for making chips, adding a dip under the same brand name is known as a brand extension.

If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do?

Add items to its product line Reason: The more items in a single product line, the more depth the product line has.

Which of the following are included in the ideas for sustainable packaging? (Check all that apply.) Adding recycled materials to packaging Using 3D printing Using returnable packaging Adding more layers of plastic

Adding recycled materials to packaging Using 3D printing Using returnable packaging

What are some of the benefits a brand can receive from a licensing agreement? (Choose every correct answer.) Lower production costs Additional revenues Improved customer loyalty Increased brand equity

Additional revenues Increased brand equity

Which of the following are roles played by packaging? (Choose every correct answer.) Improving the design of the product itself Adjusting product sizes for different markets Promoting product features or changes Differentiating a product from competitors

Adjusting product sizes for different markets Promoting product features or changes Differentiating a product from competitors

Manufacturer's Brand

Also known as national brands, have famous manufacturers such as: Coca-Cola and Nike

Retailer/Store Brand

Also known as private-label brands, sold exclusively by the retailer

When a firm changes its packaging as a means of repositioning its product, what is it trying to accomplish? (Check all that apply.) Moving the product to a different store aisle or shelf Appearing more up to date Attracting a new target market Changing production facilities

Appearing more up to date Attracting a new target market

Which of the following is NOT one of the categories of consumer products that buyers use for their personal use? Associated products Shopping products Convenience products Specialty products

Associated products Reason: This is an element of the augmented product.

Which of the following help to increase a brand's equity? (Choose every correct answer.) Lower prices from competitors Brand awareness Competition level Perceived value Customer loyalty

Brand awareness Perceived value Customer loyalty

A new clothing brand is struggling to gain market share due to consumers' lack of familiarity with the brand and concerns about the quality of its products. How could the company use co-branding to enhance consumers' perceptions?

By linking with a brand that is well known for its quality

Which of the following is a method firms use to create positive brand associations? Franchise agreements Efficient distribution networks Low prices Catchy jingles

Catchy jingles

Firms risk a significant amount of money when repositioning their products. Which of the following are expenses associated with repositioning? (Choose every correct answer.) Changing packaging Buying out competitors' product stockpiles Relocating company headquarters overseas Changing brand image through promotion

Changing packaging Changing brand image through promotion

Which of the following is an example of product line extension? Kellogg's, in addition to its existing cereals, begins to sell branded bowls and spoons. Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke. Honda, in addition to its vehicles, begins to sell gasoline. Ritz, in addition to its crackers, begins to sell cheeses.

Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke

Shopping Good

Compares alternatives and consumer spends moderate amounts of time and effort deciding among products, features, and brands

What are products that household buyers use for their own use called?

Consumer products

Specialty Good

Consumer spends lots of time and effort involved in searching, may compare alternatives and options, and consumer has a good idea of the brand he or she will buy in advance

What makes the search for shopping goods different from the search for specialty goods?

Consumers are willing to consider alternative brands and features with shopping goods. Reason: Correct. Consumers are not tied to a particular brand or feature when it comes to shopping goods.

What must occur for the perceived value of a cheaper product to be high? The cheaper product must have the same or higher brand awareness than premium products. The price of the cheaper product must be below half that of a premium product. Consumers must believe the quality of the cheaper product is about the same as that of a premium product. The cheaper product must be endorsed by a celebrity or other notable figure.

Consumers must believe the quality of the cheaper product is about the same as that of a premium product. Reason: When customers think they are getting similar quality to a premium brand for a lower price, the perceived value of the lower-priced product is high.

What is a product or service for which consumers usually expend no effort toward decision making? Convenience product/service Specialty product/service Shopping product/service Unsought product/service

Convenience product/service

Typically, who determines the product's or service's value in relationship to that of its close competitors?

Customers

Which of the following are risks of co-branding? (Choose every correct answer.) Profitability being too high Increased revenues and costs for both brands' owners Customers for the two brands being too different Conflicts of interest between the co-brands

Customers for the two brands being too different Conflicts of interest between the co-brands

A cosmetics company has decided to eliminate several of its underperforming products to focus its energies on its most profitable items. What has the firm decided to do?

Decrease depth Reason: Decreasing depth involves eliminating under-performing items from a product line.

A mobile phone manufacturer decides to eliminate its flip phone product line to focus on the more popular touchscreen products. What is this an example of?

Decreasing breadth

The risks associated with brand licensing include which of the following? Increasing production costs Slowing distribution times Losing brand visibility Diluting brand equity

Diluting brand equity

After signing a number of licensing agreements to allow their characters to appear on clothing, toys, and video games, the makers of a popular television show saw viewership decline and consumer perceptions of the show start to fall. What is the most likely reason for this phenomenon?

Dilution of brand equity through overexposure

Branding includes which of the following? (Choose every correct answer.) Distinctive packaging Slogans Logos Augmented services

Distinctive packaging Slogans Logos

Firms decrease depth to do which of the following? (Choose every correct answer.) Increase investment in less profitable items Eliminate unprofitable items Refocus marketing efforts on profitable items Reduce market share

Eliminate unprofitable items Refocus marketing efforts on profitable items

True or False: In order to achieve success, a brand must have a name that is a part of the English language.

False A brand name can be composed of invented words, such as Zillow.com.

True or False: The sole purpose of a product package is to protect the product from damage while in the supply chain.

False Important communication tool

True or False: In recent years, sales of store brands have declined significantly.

False Reason: In recent years, as firms have grown and consolidated, more retailers have built their identity around private-label merchandise.

Which of the following are components of the actual product? (Choose every correct answer.) Warranties Product support Features/design Brand name

Features/design Brand name

Which government agency is responsible for enforcing product labeling laws in the United States for consumer products? Food and Drug Administration Bureau of Economic Analysis Office of the Inspector General National Institutes of Health

Food and Drug Administration

When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos brand (under which it sells taco chips). What advantages did this strategy provide Frito-Lay? (Choose every correct answer.) Frito-Lay could spend less on developing consumer brand awareness. Frito-Lay did not have to do any promotion of the new product. The Tostitos brand already had brand associations that helped to sell salsa. Frito-Lay could introduce the product to the market more quickly.

Frito-Lay could spend less on developing consumer brand awareness. The Tostitos brand already had brand associations that helped to sell salsa. Frito-Lay could introduce the product to the market more quickly.

Which of the following is the best example of a convenience product/service? Apartment Gasoline Jewelry Running shoes

Gasoline Reason: When consumers need gasoline, they usually do not shop around or go out of their way to buy it.

Brand awareness is MOST likely to influence purchasing decisions for which type of product? Goods purchased infrequently Goods purchased frequently or habitually Goods that the consumer spends a lot of time researching Goods never purchased before by the consumer

Goods purchased frequently or habitually Reason: Brand awareness has the greatest impact on goods consumers buy without much thought or purchase habitually.

Which factor has contributed to the increased presence of store brands in recent years? Increased regulation of international trade Growth and consolidation of retail firms Declining overall demand among consumers Stronger competition among manufacturers

Growth and consolidation of retail firms Reason: The increasing size of retailers through consolidation has led to an increase in store brands.

A popular hair salon determines that there is a high demand for other beauty treatments in the area and decides to offer manicures, pedicures, and massages. What is this an example of?

Increasing breadth Reason: Increasing breadth would mean adding whole new product lines.

Which of the following are examples of CRM programs? (Choose every correct answer.) Invitations to the company's special events End of season sales Points that can be turned in for discounts Advance notice of sale items Word-of-mouth marketing opportunities

Invitations to the company's special events Points that can be turned in for discounts Advance notice of sale items

Some brands become so predominant in a particular product market that they become synonymous with the product itself over time. Which of the following brands is an example of this situation? Microwave Toyota Kleenex Computer

Kleenex Reason: Many people say "Hand me a Kleenex" when they ask for any kind of facial tissue.

Which of the following is a risk associated with repositioning a product? Being a long-term trend instead of a short-term fad Dilution of brand equity through overexposure Loss of funds invested in the repositioning effort Loss of control over marketing strategy

Loss of funds invested in the repositioning effort

Which of the following is a negative consequence that can occur as a result of a brand becoming synonymous with an entire category of products (such as Kleenex or Band-Aid)? Loss of perceived value Loss of brand awareness Loss of brand loyalty Loss of trademark status

Loss of trademark status Reason: Once a brand name becomes synonymous with the product category, a company can lose its trademark.

Branding enables a firm to do which of the following? (Choose every correct answer.) Reintroduce old products at a higher cost Make consumers aware of available products Eliminate advertising spending Differentiate its product offerings

Make consumers aware of available products Differentiate its product offerings

Firms should make sure the fit between the core brand and the brand extension does what? (Choose every correct answer.) Makes sense to customers Modifies the core brand's associations Increases the price of the item Displays credibility

Makes sense to customers Displays credibility

A strong brand protects firms from which of the following? (Choose every correct answer.) New products offering similar features or benefits An overall drop in consumer demand An existing competitor lowering prices Changes in industry trends

New products offering similar features or benefits An existing competitor lowering prices

Which traits are true of ALL products? (Choose every correct answer.) Delivered directly to the consumer Bought through an online distributor Offered through a marketing exchange Something that a customer values

Offered through a marketing exchange Something that a customer values

Which of the following are components of the augmented product? (Choose every correct answer.) Product support Packaging Warranties Features/design Brand name

Product support Warranties

Examples of communication media that firms use to create brand awareness include which of the following? (Choose every correct answer.) Licensed brands Low prices Publicity Advertising

Publicity Advertising

What are the two basic types of brand ownership strategies? Price brands Retailer/store brands Manufacturer brands Product brands

Retailer/store brands Manufacturer brands

Labels must comply with laws and regulations and must include which of the following? (Choose every correct answer.) Where the product is sold Safety precautions How the product was transported Ingredients contained in the product

Safety precautions Ingredients contained in the product

______ products/services are typically consumer durables, such as a dryer or a refrigerator. Buyers spend a fair amount of effort and time to make the comparisons before purchasing and usually do not know which one or which brand they will buy in advance of the process.

Shopping

______ products/services are those such as an Apple iPhone, a Harley-Davidson motorcycle, or a Starbucks latte for which the consumer shows a fairly strong preference and loyalty and will go out of the way to find that specific brand.

Specialty

_______ packaging is better for the environment than traditional packaging

Sustainable

The physical item to which marketers assign such attributes as the brand name, features/design, quality level, and packaging is ______.

The actual product Reason: Physical attributes define the actual product.

Which of the following describes the core customer value of a product? The price range The basic benefits consumers are seeking Product warranties and financing Attributes such as design/features, quality level, and packaging

The basic benefits consumers are seeking

If the makers of a luxury good with high consumer acceptance extend their brand name to a line of less expensive products such as clothing featuring the brand logo, what is the most likely result?

The brand acceptance will carry over to the new product. Reason: Consumers' knowledge and opinions of the brand will transfer to the new product line.

Which of the following refers to the basic problem-solving benefits that consumers seek in a product? The actual product Associated services The core customer value Augmented product

The core customer value Reason: Core customer refers to the aspects of a product that provide problem-solving benefits.

What is the most likely result of a co-branding effort between two brands that have completely different customers?

The entire effort will fail for both brands.

Manufacturer brands such as Kraft and Nike are owned and managed by whom?

The manufacturer Reason: Such brands are owned by the companies that make them.

How do brands improve consumers' shopping experience? (Choose every correct answer.) They signal that a product is interchangeable with competitors' offerings. They help shoppers distinguish between similar products. They indicate a certain level of quality. They make it easier to decide which products to buy.

They help shoppers distinguish between similar products. They indicate a certain level of quality. They make it easier to decide which products to buy.

True or False: Most brands marketed in the United States are manufacturer brands.

True

True or False: Trademarks and copyrights are legal ways to protect brands from being used by others.

True

True or False: Brands are sold either under a common/family name or as an individual brand.

True Reason: Brands are sold under a common/family name, such as Kraft, or as an individual brand, such as Kraft's A1 steak sauce.

When consumers experience brand loyalty, which feeling do they associate with the brand?

Trust

______ products/services are those that people don't think about buying or don't know about.

Unsought

When can brand extensions increase overall sales for a firm? When the original brand and the extension are complementary products When the extension is priced lower than the original brand When the extension is positioned against the original brand When the extension is priced higher than the original brand

When the original brand and the extension are complementary products

Co-branding can enhance consumer perceptions of product quality by linking

a brand to an existing well-known quality brand Reason: When two brands are combined in a co-branding offering, the stronger or more well-perceived brand may rub off on the less well-known of the two.

The mental link customers make between a brand and its key product attributes is known as brand

association

One consumer research exercise asks consumers to say the first things that occur to them when they hear a brand name. For example, for the brand "Coca-Cola," someone might respond, "Red and white cans, sweet, carbonated." These are examples of brand

associations Reason: The qualities and characteristics consumers associate with brands are known as brand associations.

Products are complex, with multiple components. The term " ______ product" (also known as associated services) refers to the nonphysical aspects of the product, such as financing and support.

augmented

If a brand has a high degree of brand ______ it means that most consumers are familiar with the brand and what it stands for even if they do not use the brand.

awareness

Marketers can assess the level of brand ______ by measuring the extent to which consumers in a market are familiar with a brand, know what it stands for, and have an opinion about it.

awareness Reason: Brand awareness measures familiarity with a brand and its attributes.

When consumers see new packaging on a product that is otherwise untouched, they tend to

be more interested in trying the product

Strong brand acceptance for Reese's peanut butter candies among consumers would probably ______ Reese's Peanut Butter when competing with Jif and Skippy.

be transferred to Reason: Since consumers already know the Reese's brand, they would bring those associations to the new product.

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by a product or service is ______ equity.

brand

Suppose that Toyota introduced a small, inexpensive car under its Lexus brand. This action might harm consumers' current luxury-oriented brand associations for the Lexus brand. This is an example of _______ , a risk companies face when adding a new product to an existing brand.

brand dilution

When a brand extension adversely affects consumer perceptions about the core brand, it is known as

brand dilution Reason: Brand extensions that damage the reputation or perception of the brand cause brand dilution.

A contractual arrangement between firms where one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee is called

brand licensing

When K-Mart paid Martha Stewart (famous for her business related to lifestyle and the home) a fee in return for permission to introduce a line of towels and other housewares bearing Stewart's name, it was an example of

brand licensing

The strategy in which marketers change a brand's focus to target new markets, or realign the brand with changing market preferences, is known as

brand repositioning

A firm's product mix ______ represents the number of product lines offered by the firm.

breadth Reason: Breadth refers to the number of product lines contained in the product mix.

To capture new or evolving markets, a firm may increase ______ to compete in new product areas.

breadth Reason: If a firm sees an opportunity in a new market, it can introduce new product lines to try to capture market share.

Consumer packaged goods companies sell products across many different product lines. These companies have significant ______ in their product mixes.

breadth Reason: Product breadth refers to how many product lines a company has in its product mix.

Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to

build brand awareness

Marketers invest in developing a strong brand identity to help establish ______.

buyer loyalty Reason: Over time, consumers learn to trust brands that deliver consistent quality.

What is the term used when a company's products are so closely related that sales of one brand take away sales from the other brand?

cannibalization

If a company's products are too closely related, sales of one brand may ______ , or take away sales from the other brand, with no net sales, profit, or market share increase.

cannibalize

One of Taco Bell's most successful new products has been its "Doritos Locos Tacos," tacos with shells in the flavors of Doritos taco chip varieties. This is an example of

co-branding

The practice of marketing two or more brands together on the same package or promotion is known as

co-branding

Because they include information such as ingredients, nutrition, and the product benefits to a consumer, labels can be considered ______ tools.

communication

Brand extensions for ______ products, such as the Barbie car sold to be used with a Barbie doll, can increase sales.

complementary

Firms reward loyal customers through ______ programs.

customer relationship management

A firm can delete entire product lines to address changing market conditions; this is also known as ______.

decreasing breadth

The number of products within a product line is a firm's product line ______.

depth

Branding provides a way for a firm to ______ its product offerings from those of its competitors.

differentiate

Brands are assets that a firm can build and harness over time to increase its

equity Reason: Brand equity functions as an asset for a firm.

The value of a brand can be calculated and compared to other brands in the form of brand

equity Reason: Brand equity refers to the assets and liabilities associated with a brand that allows it to be compared to other brands.

The value of a brand can be calculated and compared to other brands in the form of brand ______.

equity Reason: Brand equity refers to the assets and liabilities associated with a brand that allows it to be compared to other brands.

The use of an existing brand name in a different product line is called brand

extension

Apple sells the majority of products under its Apple name brand. This is known as a(n) _______ brand.

family

Kellogg's sells a variety of products under its Kellogg's name brand. It then identifies groups of products with a secondary name such as Raisin Bran or Froot Loops, each in several sizes and versions. Froot Loops is known as a(n) _______ brand.

family

When a firm sells all its products under one ______ such as Pepperidge Farm, the individual brands benefit from the overall brand awareness associated with it.

family brand

Because a brand name is already well established, a firm can spend _______ resources to develop consumer brand awareness when introducing a brand extension.

fewer

Since brands are easily recognized by consumers and signify a certain quality level to buyers, brands ______.

help consumers to make quick decisions

Firms add items to their product lines to address changing consumer preferences. For example, an ice cream company might add low-fat offerings to its existing ice cream flavors. This is an example of ______.

increasing depth Reason: Adding new flavors or varieties of ice cream (product item) to its overall product line (ice cream) increases the product depth.

Toyota sells cars under several brands: Lexus, for luxury cars, Scion, for targeting young consumers, and Toyota for its mid-market cars. Toyota is using a(n) ______ brand naming strategy to target different market segments.

individual Reason: In this example, each model of vehicle is made by Toyota but not all are sold under that brand name.

Some firms use _______ for each of their products, as opposed to the same name or brand for all their product lines and products.

individual brands

Brand loyalty tends to be an advantage to the firm because it will ______ competition.

insulate the firm from Reason: Loyal customers will typically choose a firm's product over a competitor's.

A firm's product line depth is the number of ______ within a product line, as opposed to the number of product lines a firm has.

items Reason: Product depth is the number of products within a single product line.

The component of the product package that provides the information consumers need to make their purchase decisions and for proper consumption of the product is known as the

label

The use of the same brand name within the same product line is called a(n) ______.

line extension Reason: A line extension increases a product line's depth by adding additional branded products to it.

A product mix typically consists of product ______ or groups of associated items.

lines

A person who buys the same brand's product or service repeatedly over other options demonstrates what is known as brand

loyalty

The majority of the brands marketed in the United States are ______ brands

manufacturer

Product lines are a part of a product ______.

mix

The complete set of all products and product lines offered by a firm is called its product assortment, or product ______.

mix

The product ______ is the complete set of all products and services offered by a firm.

mix

Manufacturer brands such as Nike and Coca-Cola are also known as _______ brands.

national Reason: Manufacturer brands and national brands are the same thing.

The element of a product that is used both to physically protect and to market the item is the

packaging

From the customer's perspective, the relationship between a product's or service's benefits and costs is called

perceived value Reason: Customers determine a product's value by weighing its benefits against its costs.

Geico Insurance uses characters like the gecko and humorous associations with ______ emotions to reinforce the brand.

positive

People prefer that the _______ package on their products is convenient in terms of storage, use, and consumption.

primary

The packaging that the consumer uses is known as the _______ package.

primary

Another name for a store brand is a(n) ______ brand

private-label

A ______ is something that a customer values and that can be bought or sold voluntarily.

product

For most products, the label is used for

promotion and branding

Brand repositioning is also known as

rebranding

A brand, such as T-Mobile, can build awareness through ______ exposure to the brand's logo, symbols, and slogans.

repeated

Manufacturers tend to manage their own brands because it allows them to

retain control over their marketing strategies

A product's exterior wrapper or exterior carton that contains additional product information is known as the _______ package.

secondary

The _______ packaging is the exterior wrapper that contains the product as well as the UPC label used by retailers.

secondary

Jack and his wife were in need of a new a mattress. They compared mattresses at a few local stores, learning about different brands, before making a purchase. In Jack's case, a mattress is most likely a(n) ______ product.

shopping Reason: Consumers generally compare alternatives when it comes to shopping goods.

Debbie is considering having Botox treatments and knows it is a very serious process. On the advice of three of her friends who have each visited Dr. Parsons several times in the past two years for Botox treatments, Debbie makes an appointment with Parsons. She considers the selection to be a(n) ______ good/service.

specialty Reason: When it comes to a specialty product or service, consumers seek out the best supplier or practitioner available to them.

Firms tend to spend ______ to market to loyal customers compared to marketing to new customers.

substantially less

Brands have value as corporate assets and the "value of the brand" refers to ______.

the earning potential of the brand over the next year Reason: The projected earnings for a brand over a 12-month period constitutes the value of a brand.

Brands are typically legally protected through

trademarks and copyrights Reason: Trademarks and copyrights are the legal mechanisms used to protect brands.

E-book readers existed for many years before Amazon introduced the Kindle, but few consumers were aware of the devices, and sales stayed at very low levels. In the days before the Kindle, e-book reading devices were ______ products for most consumers.

unsought Reason: Correct. Because consumers did not know this product existed, they did not seek it.

A brand that is projected to earn $1 billion over the next 12 months has a high brand

value

Brand-loyal consumers provide an important source of ______ of firms.

value

Good marketing increases perceived ______ by raising customers' quality expectations relative to price.

value

Licensing is an effective way for a brand to improve its

visibility

When firms introduce brand extensions, they should seek to create new products

with similar attributes to those of the core product

Firms find that loyal customers help market their product or service through

word-of-mouth