Chapter 2

Which type of corporate name reveals what a company does? A) overt B) implied C) conceptual D) iconoclastic

A) Overt

American Airlines and BMW Motorcycles are examples of: A) overt names B) implied names C) conceptual names D) iconoclastic names

A) Overt Names

In measuring brand equity companies can use a method called revenue premium, which compares a branded product's revenue to: A) the industry's average B) a private label brand C) a firm's primary competitors D) the industry leader

A) a private label brand

Traditionally, a package provided each of the following functions, except: A) allow customers to see the product B) provide for ease of shipping, moving, and handling C) protect the contents D) provide for easy placement on store shelves

A) allow customers to see the product

The goal of branding is to: A) be able to charge a higher price than the competition B) gain the largest market share C) set a product apart from its competitors D) have a trademark that is easily identifiable

A) be able to charge a higher price than the competition

Quality logos and corporate names should pass each of the following tests, except: A) be similar to others in the industry B) be familiar C) elicit a consensual meaning among those in the firm's target market D) evoke positive feelings

A) be similar to others in the industry

The perception that a brand is different and better is called: A) brand equity B) brand parity C) flanker branding D) the private label advantage

A) brand equity

Which involves using an established brand name on goods or services that are not related to the core brand? A) brand extension B) private brand C) flanker brand D) complementary brand

A) brand extension

Names assigned to individual goods or services or to groups of products in a line are: A) brands B) logos C) metrics D) designs

A) brands

Conceptual names: A) capture the essence of the idea behind the brand B) contain recognizable words or word parts that imply what the company is about C) do not reflect the company's goods or services, but instead something that is unique, different, and memorable D) reveal what the company does

A) capture the essence of the idea behind the brand

When brand equity is measured using estimates of the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value, the method is: A) financial value B) market value C) revenue premium D) consumer value

A) financial value

Co-branding can take the following forms, except: A) flanker brand B) ingredient brand C) cooperative brand D) complementary brand

A) flanker brand

Over the past few years, each of the following are changes that have occurred in the area of private branding, except: A) increase in prices to equal national brands B) improved quality C) increased advertising of private brands D) increased quality of in-store displays of private brands

A) increase in prices to equal national brands

Intel Pentium processors placed inside computers is a form of: A) ingredient branding B) flanker brand C) cooperative branding D) complementary branding

A) ingredient branding

The placement of one brand within another brand is: A) ingredient branding B) cooperative branding C) complementary branding D) flanker branding

A) ingredient branding

Manufacturers are using all of the following methods to respond to inroads made by private labels, except: A) modifying the brand's position in the marketplace B) expanding product offerings C) using alternative promotional methods D) improving in-store displays and packaging

A) modifying the brand's position in the marketplace

A family brand is: A) one in which a company offers a series or group of products under one brand name B) a type of extension or flanker brand offered by one company C) a logo or theme of a brand D) one that has a high level of brand equity

A) one in which a company offers a series or group of products under one brand name

Ingredient branding involves: A) placing one brand within another B) developing a new brand to be sold in a category where the firm already has a brand C) a joint venture of two brands in one product D) marketing two brands together to encourage co-consumption

A) placing one brand within another

A proprietary brand marketed by an organization and distributed within the organization's outlets is a: A) private label B) flanker brand C) co-brand D) complementary brand

A) private label

In making decisions about the image to be projected, it will be the easiest for marketers to: A) rejuvenate an image that is consistent with consumer's current view of the company B) reinforce an image that is not consistent with a consumer's current view of the company C) develop a new image for a new company D) revert to an earlier image of the company

A) rejuvenate an image that is consistent with consumer's current view of the company

Overt names: A) reveal what the company does B) capture the essence of the idea behind the brand C) contain recognizable words or word parts that imply what the company is about D) do not reflect the company's goods or services, but instead something that is unique, different, and memorable

A) reveal what the company does

When you know other people have purchased the same brand that you are buying, the feeling is called: A) social acceptance B) reliability C) cognitive dissonance D) brand recognition

A) social acceptance

When a logo elicits shared meanings across consumers, it exhibits: A) stimulus codability B) reliability C) consensus D) referent response

A) stimulus codability

When seeking to identify the desired corporate image, company leaders first assess: A) the company's current image B) the external environment C) tangible competitor advantages D) intangible competitor advantages

A) the company's current image

Logos help with in-store shopping because: A) they are more readily recognized by shoppers B) they move traffic past goods which are not being purchased C) they are a form of clutter D) consumers have made up their minds prior to arrival

A) they are more readily recognized by shoppers

Which of the following statements about image is false? A) Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing a well-established image that is not consistent with the image the company wants to project. B) It is relatively easy to change the image people hold about a given company. C) Any negative or bad press can quickly destroy an image that took years to build. D) The image being projected must accurately portray the firm and coincide with its goods and services.

B) It is relatively easy to change the image people hold about a given company.

It is important that the image being projected by a company's marketing messages: A) reinforce the competition's concept of the image B) accurately portray the firm and coincide with the goods and services being offered C) be consistent with what consumers already believe about the firm D) coincide with what competitors are doing

B) accurately portray the firm and coincide with the goods and services being offered

When a customer believes Black and Decker makes the best and most reliable tools, this is an example of: A) brand parity B) brand equity C) brand cooperation D) brand decision

B) brand equity

Nike creating a line of clothing to go along with their main products (shoes) is an example of a: A) flanker brand B) brand extension C) cooperative brand D) complementary brand

B) brand extension

Charles sees only minor differences among the various brands of high definition televisions. This is an example of: A) brand equity B) brand parity C) flanker branding D) the private label problem

B) brand parity

The perception that all brands are essentially the same is called: A) brand equity B) brand parity C) flanker branding D) the private label problem

B) brand parity

The joint venture of two or more brands into a new good or service is: A) ingredient branding B) cooperative branding C) complementary branding D) flanker branding

B) cooperative branding

Strong brands achieve the following, except: A) allow a company to charge more for products B) create brand parity C) provide customers assurance of quality D) transfer to other products or brands the company sells

B) create brand parity

Black and Decker's line of power tools is an example of a(n): A) adaptation B) family brand C) flanker brand D) private label brand

B) family brand

Corporate logos: A) are unrelated to image but are related to positioning B) help with recall of advertisements and brands C) usually are inexpensive to develop D) increase search time in product purchase decisions

B) help with recall of advertisements and brands

From the perspective of the corporation, a strong brand image is related to each of the following, except: A) ability to attract quality employees B) higher level of brand parity C) positive word-of-mouth recommendations by customers D) higher level of channel power

B) higher level of brand parity

Which is an intangible element of a corporate image? A) the corporate name and logo B) ideals and beliefs of corporate personnel C) the employees D) the package and label

B) ideals and beliefs of corporate personnel

Which type of corporate name contains recognizable words or word parts that imply what the company is about? A) overt B) implied C) conceptual D) iconoclastic

B) implied

Federal Express and International Business Machines (IBM) are examples of: A) overt names B) implied names C) conceptual names D) iconoclastic names

B) implied names

Which is not true concerning brand equity? A) it allows the company to charge a higher price B) it reduces name retention C) it is helpful in business-to-business markets D) it is helpful in international markets

B) it reduces name retention

When brand equity is measured using stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets, the method is: A) financial value B) market value C) revenue premium D) consumer value

B) market value

From a consumer's perspective, a strong corporate image generates which element when customers purchase goods or services with which they have little experience? A) memorable reference B) positive assurance C) immediate feedback D) increased purchasing options

B) positive assurance

Labels on packages serve the following purposes, except: A) provide legal requirements in terms of content B) provide consumers with pricing per unit information C) another marketing opportunity to reach consumers D) provide warranty and guarantee information

B) provide consumers with pricing per unit information

From a consumer's perspective, a strong corporate image provides each of the following functions, except: A) provides assurance regarding purchase decisions in unfamiliar settings B) provides purchase alternatives C) reduces search time D) provides social acceptance of purchases

B) provides purchase alternatives

Feeling good after making a purchase from a company with a strong and positive image is an example of: A) an impulse buy B) psychological reinforcement C) cognitive dissonance D) brand metrics

B) psychological reinforcement

From the perspective of the corporation, a strong brand image is related to each of the following, except: A) being able to charge a higher price B) psychological reinforcement and social acceptance C) more frequent purchases by customers D) more favorable ratings by financial observers

B) psychological reinforcement and social acceptance

A logo with a consensually held meaning, such as the Prudential Rock, displays: A) brand prominence B) stimulus codability C) brand parity D) product positioning

B) stimulus codability

McDonald's arches create shared meaning across consumers in the United States and around the world, which mean they exhibit: A) duality B) stimulus codability C) brand endurance D) brand equity

B) stimulus codability

A customer's belief in the efficacy and reliability of a brand that has been established over time through personal experience is: A) brand competence B) trust C) reliability D) distinctiveness

B) trust

Lucent Technologies and Google are examples of: A) overt names B) implied names C) conceptual names D) iconoclastic names

C) Conceptual names

When Procter and Gamble added a new laundry detergent in Asia called "Panda" to its current line of laundry detergents, the Panda brand would be considered a: A) brand extension B) family brand C) flanker brand D) complementary brand

C) Flanker brand

Which is the most recent new trend in packaging and labeling? A) providing warranty information B) meeting legal requirements C) adding QR codes D) protecting product content

C) adding QR codes

When customers purchase only one brand and consider no other brand, regardless of price differences, which exists? A) brand involvement B) brand specialty C) brand loyalty D) brand parity

C) brand loyalty

104) Target's addition of designer product lines and advertising intended to raise the brand's prominence is an example of seeking to: A) reinforce an image B) acquire an image C) change an image D) perfect an image

C) change an image

In terms of co-branding, the highest risk strategy is: A) ingredient branding B) cooperative branding C) complementary branding D) flanker branding

C) complementary branding

The marketing of two or more brands together to encourage co-consumption or co-purchases is: A) ingredient branding B) cooperative branding C) complementary branding D) flanker branding

C) complementary branding

Which type of corporate name captures the essence of the idea behind the brand? A) overt B) implied C) conceptual D) iconoclastic

C) conceptual

Stimulus codability is: A) a form of brand name B) the perception that the brand is known C) consensually held meanings among customers D) another name for product positioning

C) consensually held meanings among customers

The following statements about private labels are true, except: A) quality levels of many private label products have improved B) prices for private labels are going up in many markets C) consumers still perceive private labels as being inferior to manufacturer's brands D) some firms have begun advertising private labels

C) consumers still perceive private labels as being inferior to manufacturer's brands

Implied names: A) reveal what the company does B) capture the essence of the idea behind the brand C) contain recognizable words or word parts that imply what the company is about D) do not reflect the company's goods or services, but instead something that is unique, different, and memorable

C) contain recognizable words or word parts that imply what the company is about

Selling Reese's Peanut Butter Cup milkshakes at the DQ is an example of: A) flanker branding B) extension branding C) cooperative branding D) complementary branding

C) cooperative branding

From the company's perspective, a quality corporate image enhances the introduction of a new product because: A) the company can charge a lower price for the new product B) a new distribution channel can be established C) customers normally transfer their trust in and beliefs about the corporation to a new product D) the competition does not know how to respond

C) customers normally transfer their trust in and beliefs about the corporation to a new product

Which is a flanker brand? A) the offering of two or more brands in a single marketing offer B) the joint venture of two or more brands into a new product or service C) development of a new brand by a company in a good or service category where it currently has other brands D) a brand with the same name in a different industry

C) development of a new brand by a company in a good or service category where it currently has other brands

The corporate image of an automobile manufacturer such as Porsche, Mazda, Toyota, or Ford might be based on the following, except: A) evaluations of vehicles B) whether the company is foreign or domestic C) economic conditions D) customer views of company advertising and the local dealership

C) economic conditions

A firm that is expanding to international markets often adds additional brands to current brands in order to strengthen an international presence, reflecting which strategy? A) brand extension B) private brand C) flanker brand D) complementary brand

C) flanker brand

If a company's marketing team believes that offering a new product under the current brand name may adversely affect the current brand, the best approach would be to introduce the product as a(n): A) brand extension B) ingredient brand C) flanker brand D) co-brand

C) flanker brand

When a company develops a new brand in the same category in which the firm already has a branded product, it is a: A) brand extension B) private brand C) flanker brand D) complementary brand

C) flanker brand

When a company's marketing team introduces a new brand within a product category where it already has brands in an effort to appeal to target markets the team believes is not being reached by the company's current brand, which is being used? A) brand extension B) private brand C) flanker brand D) complementary brand

C) flanker brand

Which approach is used by firms operating in high-end markets in order to avoid damaging the high-end brand's reputation? A) brand extension B) co-branding C) flanker brand D) complementary brand

C) flanker brand

The feelings consumers and businesses have about an organization and its brand is the corporation's: A) advertising program impact B) flanker brand C) image D) persona

C) image

A Pillsbury cookie mix featuring Hershey's Chocolate is a form of: A) flanker branding B) cooperative branding C) ingredient branding D) complementary branding

C) ingredient branding

In the mind of the consumer, a strong corporate image is linked to: A) perceptions of economic conditions B) ratings by financial advisors C) reduction of search time in purchase decisions D) finding substitute goods when making purchases

C) reduction of search time in purchase decisions

When Applebee's faced declining sales in 2008, efforts were made to: A) divest IHOP to raise capital B) raise prices and increase quality C) rejuvenate the brand D) co-brand with IHOP

C) rejuvenate the brand

Keeping a consistent image while incorporating new elements is an example of: A) developing a new image B) image positioning C) rejuvenating an image D) completing an image

C) rejuvenating an image

When business travelers began to view Holiday Inn as outdated with old decor, the management team remodeled many properties and terminated contracts with proprietors that did not meet the new standards. This is an example of: A) reinforcing the current image B) developing a new image C) rejuvenating an image D) changing an image

C) rejuvenating an image

When brand equity is measured using a comparison of a branded product to the same product without a brand name, such as a private label, the method is: A) financial value B) market value C) revenue premium D) consumer value

C) revenue premium

When a brand is viewed a superior, a good value, and of high quality, the brand enjoys: A) diligence B) acceptance C) salience D) divergence

C) salience

Cooperative branding is: A) private labeling with a major brand B) placing one brand in another as a form of cooperation C) the joint venture of two or more brands in one product D) the marketing of two brands together to encourage co-consumption

C) the joint venture of two or more brands in one product

Changing an image is most necessary: A) every few years to meet changing consumers B) when sales begin to decline C) when target markets shrink or disappear or a firm's image no longer matches industry trends and consumer expectations D) when a competitor enters the market with a product that is viewed as being superior

C) when target markets shrink or disappear or a firm's image no longer matches industry trends and consumer expectations

The marketing of Velveeta Cheese with Rotel Tomatoes and Diced Green Chilies is an example of: A) ingredient branding B) flanker branding C) cooperative branding D) complementary branding

D) Complementary branding

Which measures returns on branding investments? A) brand infringement B) brand parity C) brand equity D) brand metrics

D) brand metrics

102) When Hewlett-Packard's management team decided to alter the impression that the company was a staid company run by engineers into an ultimate lifestyle technology company in tune with pop culture is an example of: A) developing a new image B) reinforcing a current image C) rejuvenating an image D) changing an image

D) changing an image or A) developing a new image

The following items are tangible components of a corporate image, except: A) goods and services sold B) retail outlets where the product is sold C) advertising, promotions, and other forms of communication D) competing businesses

D) competing businesses

When brand equity is measured using the value of a brand based on input from consumers, such as familiarity, purchase considerations, customer satisfaction, and willingness to seek out the brand, the method is: A) financial value B) market value C) revenue premium D) consumer value

D) consumer value

The iPhone's 100,000 apps that allow users to tailor the phone to fit their personalities is an example of brand building by: A) standardization B) a brand flanker program C) repeated product use (repetition) D) customization and personalization

D) customization and personalization

Iconoclastic names: A) reveal what the company does B) capture the essence of the idea behind the brand C) contain recognizable words or word parts that imply what the company is about D) do not reflect the company's goods or services, but instead something that is unique, different, and memorable

D) do not reflect the company's goods or services, but instead something that is unique, different, and memorable

When Procter and Gamble introduces a new laundry detergent with a different brand name, it is an example of creating a: A) family brand B) cooperative brand C) co-brand D) flanker brand

D) flanker brand

Which is not part of a corporate image? A) tangible elements B) intangible elements C) what the company stands for as well as how it is known in the marketplace D) governmental regulations that affect the company

D) governmental regulations that affect the company

Which type of corporate name does not reflect the company's goods or services? A) overt B) implied C) conceptual D) iconoclastic

D) iconoclastic

Which type of corporate name is unique, different, and memorable without suggesting the company's goods or services? A) overt B) implied C) conceptual D) iconoclastic

D) iconoclastic

Monster.com is an example of a(n): A) overt name B) implied name C) conceptual name D) iconoclastic name

D) iconoclastic name

Co-branding works the best when: A) the two brands are unrelated B) a well-known brand is attached to a lesser-known brand C) a private label is co-branded with a manufacturer's brand D) it builds the brand equity of both brands

D) it builds the brand equity of both brands

The Nike Swoosh is an example of a: A) brand B) package C) label D) logo

D) logo

The symbol used to identify a company and its brands is a(n) A) trademark B) patent C) icon D) logo

D) logo

Complementary branding is: A) using a private label to complement the main brand B) placing one brand within another brand C) the joint venture of two or more brands in one product D) marketing two brands together to encourage co-consumption

D) marketing two brands together to encourage co-consumption

Private brands are: A) new brands sold in the same category B) the joint venture of two or more brands in a new good or service C) the use of established brand names on goods and services not related to the company's core brand D) proprietary brands marketed by an organization and normally distributed exclusively within the organization's outlet

D) proprietary brands marketed by an organization and normally distributed exclusively within the organization's outlet

Manufacturers are using all of the following methods to respond to inroads made by private labels, except: A) focusing on a few core brands B) increasing advertising expenditures C) introducing new products and new versions of current products D) reducing prices to meet private label pricing

D) reducing prices to meet private label pricing

The desired corporate image is one that: A) coincides with the majority of companies within the industry B) highlights the quality of products being sold by the company C) is consistent with the views of management of each company D) sends a clear message about the unique nature of an organization and its products

D) sends a clear message about the unique nature of an organization and its products

The advertising campaign created by Hormel that was designed to show customers the rich variety of brands sold by the company was designed to: A) allow the company to charge more B) create brand parity across company brands C) create perceptions of corporate uniqueness D) transfer perceptions of strong brands to other company products

D) transfer perceptions of strong brands to other company products

A brand extension is: A) a group of related core products sold under one name B) the creation of a logo which further explains the brand C) the design of a public relations campaign to support a brand D) using an established brand name on goods or services not related to the core brand

D) using an established brand name on goods or services not related to the core brand