Chapter 14 Study Guide

True or false: Brand equity does NOT contribute to a firm's ability to succeed in a difficult competitive environment.

False Reason: Competitors try to lure customers into purchasing their products. But, a consumer who has a positive perception of a product (brand equity) is more likely to continue to buy it regardless of outside influences.

Which of the following shows how social media can utilize customers as brand advocates? Multiple choice question. a. A company sends e-mails to all its customers reminding them about an upcoming sale b. A company hires customers to search for negative reviews posted on line about its product c. A company airs its television commercials on its YouTube channel d. A company encourages customers to post pictures of themselves promoting its brand and the lifestyle it represents

d. A company encourages customers to post pictures of themselves promoting its brand and the lifestyle it represents

What two facets of nonprofit organizations makes branding more critical for them as compared to for-profit organizations? (Check all that apply.) Multiple select question. a. Lack of global presence b. Limited funds c. Limited staff d. Complex goals e. Varied audiences

d. Complex goals e. Varied audiences

The image of Colonel Sanders' smiling face that customers instantly recognize represents a brand ________ for Kentucky Fried Chicken.

mark

True or false: The major downside to co-branding is the potential that negative publicity on the part of one brand, could affect the other brand in a negative way as well.

True

Which of the following are used to calculate customer lifetime value? (Check all that apply.) Multiple select question. a. Average value of a sale b. Repeat transactions per year c. Average retention time d. Marketing cost per sale e. Number of sales per customer

a. Average value of a sale b. Repeat transactions per year c. Average retention time

A company will balance the costs of research against the benefits of insights uncovered to choose _______. Multiple choice question. a. the trademark to use b. the firm to develop the logo c. a new brand strategy d. the tools to measure brand equity

d. the tools to measure brand equity

Since the real power of a brand exists in the minds of consumers, marketers must always capture and analyze customer ________.

feedback

A(n) ________ brand is a brand that is marketed under the same name in multiple countries.

global

Brand ________ is the unique set of associations target customers or stakeholders make with a brand.

image

According to your text, ________ is one of the most under-appreciated tools in marketing.

packaging

________ ________ are tools used to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves.

projective techniques

A jewelry firm that packages its product in velvet-lined bags and then places the bags in leather-like boxes is most likely using packaging to ________ its brand image as one of luxury.

promote

Brand recall and brand recognition research are two common ________ research techniques.

quantitative

Another name for a brand revitalization strategy is ________.

rebranding

Red Mango wants its customers to be creative when ordering its frozen yogurt desserts by varying the flavors and toppings they choose. It encourages customers to post pictures of their creations on both Facebook and Instagram. In this way, Red Mango is using ________ media as a way to help brand its product.

social

Elana is a personal blogger and spends a great deal of her time on social media sites. She actively manages her Facebook, Twitter, tumblr, and YouTube accounts and regularly checks in with Foursquare. All of this has resulted in Elana having a high Klout score. Based on this, firms would consider Elana to be a(n) ________ ________.

super influencer

Which of the following are ways in which social media can support the goal of building a successful brand? (Check all that apply.) Multiple select question. a. By allowing a firm to develop deeper relationships with customers b. By providing a forum for customers to voice their complaints c. By providing more than one venue for customers to purchase a product d. By generating positive word-of-mouth about the brand on social networks

a. By allowing a firm to develop deeper relationships with customers d. By generating positive word-of-mouth about the brand on social networks

Over the past decade, annual sales of private label products have increased by _______ in U.S. supermarkets. Multiple choice question. a. 100% b. 40% c. 20% d. 10% e. 70%

b. 40%

Which of the following exhibits how the components of a successful brand benefit a firm internally? (Check all that apply.) Multiple select question. a. A strong brand helps to reduce the number of competing firms. b. A strong brand helps a firm build the capacity and skills to implement its mission. c. A strong brand results in trust among the firm's stakeholders. d. A strong brand drives cohesion.

b. A strong brand helps a firm build the capacity and skills to implement its mission. d. A strong brand drives cohesion.

When choosing a brand strategy, marketers aim to _______ their brand equity, without _______ profits or damaging the attractiveness of the brand. Multiple choice question. a. simplify; utilizing b. minimize; diluting c. maximize; diluting d. maximize; increasing e. broaden; utilizing

c. maximize; diluting

In addition to devaluing the brand, firms that constantly offer discounts and specials risk the chance that they may be _______ the product, thereby reduce its potential profits.

underpricing

Firms who want to build a successful brand should seek to have their products attract a positive reaction from consumers. If a consumer does not perceive ________ in using a particular product, he or she will not remain a customer for very long.

value

________ research is particularly helpful in identifying the sources of brand equity and its role in consumer decisions.

Qualitative

A firm that decides to increase its own brand equity by leveraging the equity of another brand is utilizing what type of brand strategy? Multiple choice question. a. Co-branding b. Private-label branding c. Re-branding d. Brand extension e. Brand revitalization

a. Co-branding

Which of the following are the four essential components of building a successful brand? Multiple select question. a. Create consistent brand messaging b. Monitor the competitive environment c. Train and empower employees d. Create a consistent brand image e. Deliver a product that provides value f .Capture feedback

a. Create consistent brand messaging d. Create a consistent brand image e. Deliver a product that provides value f .Capture feedback

Which of the following are tools used to monitor a firm's social media presence? (Check all that apply.) Multiple select question. a. Twitter Search b. Social Mention c. Google Alerts d. Klout Score e. Media Mix

a. Twitter Search b. Social Mention c. Google Alerts

Select the ways in which brand marks can be expressed. Multiple select question. a. colors b. symbols c. designs d. words

a. colors b. symbols c. designs *brand marks are elements of a brand not expressed in words*

Brand _______ is defined as the degree to which customers can identify the brand under a variety of circumstances. Multiple choice question. a. recognition b. placement c. comparison d. loyalty e. equity

a. recognition

Which of the following are common brand strategies? (Check all that apply.) Multiple select question. a. Brand recognition b. Brand extension c. Brand recall d. Brand revitalization e. Co-branding

b. Brand extension d. Brand revitalization e. Co-branding

Which of the following are quantitative research techniques for measuring brand equity? (Check all that apply.) Multiple select question. a. Projective techniques b. Brand recognition c. Free association d. Brand recall e. Focus groups

b. Brand recognition d. Brand recall

Which element of building a successful brand would most likely engage customers through the use of social media tools? Multiple choice question. a. Create a consistent brand message b. Capture feedback c. Create a consistent brand image d. Deliver a quality product

b. Capture feedback

When building a successful brand, which of the following should a firm look to achieve regarding its brand message? (Check all that apply.) Multiple select question. a. The brand message should share all of the individual good things about the product. b. The brand message should be easy to remember. c. The brand message should be consistent and concise. d. The brand message should point out negative aspects of the competition. e. The brand message should remind consumers about the product attributes they care about most.

b. The brand message should be easy to remember. c. The brand message should be consistent and concise. e. The brand message should remind consumers about the product attributes they care about most.

So as not to confuse customers, brand messaging should _______. Multiple choice question. a. be detailed and complex b. be consistent and concise c. explain every aspect of the product d. be varied but simplistic

b. be consistent and concise

According to your text, which of the following allows you to identify and measure your own level of brand equity? Multiple select question. a. Performance on company-wide skills tests b. Conversations with family and friends c. Casual conversations with colleagues d. Performance reviews with supervisors

c. Casual conversations with colleagues d. Performance reviews with supervisors

What mistake is commonly made by U.S. firms in adapting their brands to the global market? Multiple choice question. a. Using a product's packaging as the main way to appeal to a local culture b. Foregoing advertising by assuming that other cultures already know about the brand c. Grouping nations together and assuming those consumers have similar tastes and brand preferences d. Failing to translate promotional materials correctly so that the meaning becomes misconstrued

c. Grouping nations together and assuming those consumers have similar tastes and brand preferences

Which method for monitoring a social brand captures mentions of brands across most social network sites and has a search engine that monitors over 100 platforms, allowing it to isolate relevant keywords in order to measure a brand's impact online? Multiple choice question. a. Google Alerts b. Media Measure c. Social Mention d. Twitter Search e. Klout Score

c. Social Mention

How does having a strong brand help a firm externally? Multiple choice question. a. By helping the organization to complete its mission b. By signaling to competitors that the firm is strong c. By building a good rapport with employees d. By building trust among the firm's constituents e. By building cohesion within the organization

d. By building trust among the firm's constituents

_______ refers to all of the activities involved in designing and producing the container for a product. Multiple choice question. a. Containment b. Distribution c. Marketing d. Packaging e. Housing

d. Packaging

When a group of consumers is unwilling to express themselves, what qualitative measurement tool could a marketer use to obtain the consumers' true opinions and feelings? Multiple choice question. a. Free association b. Brand recognition techniques c. Focus group surveys d. Projective techniques

d. Projective techniques

What type of methods do companies use to measure brand equity? Multiple choice question. a. Company-based and market-based b. Direct and indirect c. Consumer-driven and company-driven d. Strategic and calculated e. Qualitative and quantitative

e. Qualitative and quantitative

In brand recognition research, what technique do marketers employ to tell if consumers are truly able to identify the brands they have seen and distinguish between those brands and the brands they have not yet been exposed to? Multiple choice question. a. The use of labels b. The use of aided recall c. The use of free association d. The use of projective techniques e. The use of decoys

e. The use of decoys

In a brand revitalization strategy, a firm seeks to recapture lost sources of brand ________ and identify and establish new sources of the same.

equity

When consumers think that a brand is positively thought of and highly regarded by others, they are exhibiting the ________ dimension of the BrandAsset Valuator.

esteem

A marketer is using a brand ________ strategy if he or she asks consumers "When you think of a great tasting soft drink, what brands come to mind?"

recall

For years, Tropicana used the image of a straw embedded into an orange on its cartons of orange juice. Customers could easily identify the brand by this image, so when the company changed the image to a simple glass of orange juice, customers reacted negatively---going so far as to say the image was "ugly" and reminded them of a "generic bargain brand." This is an example of how important it is for a company to have an image or logo that promotes brand ________.

recognition

Constantly offering discounts and specials has the potential to _______ a brand and its relationship with its customers. Multiple choice question. a. strengthen b. revitalize c. overvalue d. devalue

d. devalue

What three criteria are used in ranking a global brand? (Check all that apply.) Multiple select question. a. The ability of the brand to draw a premium price or significantly impact the company's profits b. The number of countries the brand is located in c. The financial performance of the branded product d. The relative market share of the branded product in comparison to its competing products e. The role the brand plays in influencing consumers

a. The ability of the brand to draw a premium price or significantly impact the company's profits c. The financial performance of the branded product e. The role the brand plays in influencing consumers

As a component to building a successful brand, the product should attract a positive reaction from consumers. According to your text, this can be accomplished by which of the following? (Check all that apply.) Multiple select question. a. Through a product's packaging b. Through the way a product is delivered c. By outperforming the competition d. By the value the product offers consumers

a. Through a product's packaging b. Through the way a product is delivered d. By the value the product offers consumers

Whether you are building a brand for your firm's product or your own personal brand, the process involves how many essential components? Multiple choice question. a. Seven b. Four c. Two d. Five e. Three

b. Four

Select from the following the ways in which a brand adds value to organizations. (Check all that apply.) Multiple select question. a. Reducing a firm's competition b. Generating loyal customers c. Providing recognizable goods and services d. Attracting qualified employees

b. Generating loyal customers c. Providing recognizable goods and services

Young and Rubicam's BrandAsset Valuator suggests that brand equity is based on which of the following dimensions? (Check all that apply.) Multiple select question. a. Consistency b. Knowledge c. Value d. Relevance e. Esteem f. Differentiation

b. Knowledge d. Relevance e. Esteem f. Differentiation

What is another name for private label brands? Multiple choice question. a. Manufacturer brands b. Store brands c. Generic brands d. Consumer brands e. Co-brands

b. Store brands

In today's world, a marketer is best positioned for success if he or she can _______. Multiple choice question. a. consistently craft messages onto print ads b. connect with customers through the use of social media c. be creative at crafting messages onto digital materials d. specialize in the use of one medium and use it consistently e. promote the use of traditional forms of media

b. connect with customers through the use of social media

The maker of Monster energy drinks promotes its brand as a drink for young males who love extreme action and motor sports. If the company decided to promote its product at women's figure skating events, it would be failing to _______. Multiple choice question. a. capture feedback b. create a consistent brand image c. create a consistent public message d. deliver a quality product e. advertise in more than one outlet

b. create a consistent brand image

Camille was grocery shopping with her 3-year old son. When they entered the cereal aisle, her son exclaimed "Look, Tony the Tiger! Can we get some Frosted Flakes, please?" This is most likely an example of brand _______. Multiple choice question. a. discrimination b. recognition c. preference d. equity e. labeling

b. recognition

When researching products, social media users tend to most trust recommendations from _______. Multiple choice question. a. posts on a company's Facebook page b. their family and friends c. independent bloggers d. a company's website e. an independent review site

b. their family and friends

A firm has achieved ________ _______ if its consumers perceive its product in a positive light.

brand equity

On a personal level, having a high personal ________ ________ translates into a larger salary and more career opportunities similar to how it increases a firm's ability to succeed in a difficult competitive environment.

brand equity

The process of broadening the use of a firm's current brand to include new products is the brand strategy known as ________ ________.

brand extension

When a consumer displays a steadfast allegiance to a brand by repeatedly purchasing it, that consumer is exhibiting ________ ________.

brand loyalty

Select the three major benefits high brand equity brings to marketers. (Check all that apply.) Multiple select question. a. It facilitates the creation of a consistent brand image and message. b. It can contribute to negative perceptions of the competitor's products. c. It increases a firm's ability to succeed in a difficult competitive environment. d. It facilitates a brand's expansion into new markets. e. It can contribute to positive perceptions of product quality.

c. It increases a firm's ability to succeed in a difficult competitive environment. d. It facilitates a brand's expansion into new markets. e. It can contribute to positive perceptions of product quality.

Natalie sells her homemade candles at local craft fairs. She decided to expand her product line to include fragrance diffusers as well. Natalie is noticing that customers are buying the diffusers more than the candles. She thought that adding the line of diffusers would increase her sales, but this has not happened, in fact, sales have decreased slightly. This is most likely due to _______. Multiple choice question. a. low brand equity b. revitalization c. cannibalization d. co-branding e. poor marketing

c. cannibalization

The importance of brand recognition can be best seen when a company _______. Multiple choice question. a. changes its mission statement b. hires new employees c. changes or updates its logo d. appoints a new chief executive officer

c. changes or updates its logo

As a marketer, Jared is in charge of building his firm's brand. While meeting with his marketing team he tells them that in order to build a successful brand, it is crucial that all of their marketing decisions, promotions, and employees reinforce the brand by providing a(n) _______ experience in the minds of consumers. Multiple choice question. a. unpredictable b. simplistic c. consistent d. unique e. ambiguous

c. consistent

Martina's family has always owned Macintosh computers and has been very pleased with them. Martina will be heading off to college soon and is looking to purchase a laptop of her own. She doesn't even want to look at other manufacturers because she feels that the Macintosh laptops are the best. Martina is exhibiting brand _______. Multiple choice question. a. omission b. recognition c. loyalty d. exclusion e. discrimination

c. loyalty

A problem associated with a brand extension strategy, ________ occurs when the new product takes sales away from the firm's existing products rather than generating additional revenues through new sales.

cannibalization

Disney spends millions of dollars each year promoting their brand and they enjoy the value derived from the consumers' positive perception of its products. This demonstrates the idea of brand _______. Multiple choice question. a. image b. marketing c. personalization d. equity

d. equity

Brand-loyal customers are important contributors to a firm's long-term success and profitability because they typically exhibit _______. Multiple choice question. a. less enthusiasm for promotional campaigns b. more frequent use of coupons and rebates c. more price sensitivity d. less price sensitivity e. more enthusiasm for promotional campaigns

d. less price sensitivity

The total amount a customer will spend from acquisition through the end of a relationship with a brand is referred to as customer _______. Multiple choice question. a. equity b. acquisition cost c. loyalty cost d. lifetime value e. brand value

d. lifetime value

Recent data from the Nielsen research firm show that 60% of consumers researching products through online sources learned about a specific brand or retailer through _______. Multiple choice question. a. a product comparison website b. a competitor's website c. the company's website d. social networking sites e. a search engine

d. social networking sites

Your text defines a(n) _______ as the name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products. Multiple choice question. a. image b. label c. patent d. copyright e. brand

e. brand

When the makers of Budweiser beer decided to create a line of barbecue sauces, the company was using a _______ strategy. Multiple choice question. a. private label b. cannibalization c. brand revitalization d. co-branding e. brand extension

e. brand extension

A firm that builds its brand as high quality, luxury, and exclusive wants to know if consumers feel the same way when they think about the brand. In order to measure this, the marketing team assembles a group of consumers to ask them what comes to mind when they think about the firm's brand. This use of _______ allows marketers to see if consumers associations with the brand are consistent with the firm's marketing mix strategies. a. Multiple choice question. b. brand recognition c. prompted response d. aided recall e. free association f. brand recall

e. free association

Jeffrey is known around the office as a hard worker and someone you can count on to be a team leader. These characteristics make up his _______. Multiple choice question. a. reflection b. outward appearance c. primary brand d. social brand e. personal brand

e. personal brand