Chapter 8 - CREATING BRAND EQUITY AND DRIVING GROWTH

The introduction of Diet Coke by the Coca-Cola Company is an example of ________.

line extension

Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.

cannibalizing

A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, its product category, or its market.

contact

________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making.

Brand-tracking studies

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.

Flanker

Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)?

It has quantifiable measures of financial performance.

Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business?

Make the core of the brand as distinctive as possible.

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________.

Maytag has positive customer-based brand equity

WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business?

Offer the core product in new formats or versions.

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special.

a slogan

Apple's iPod Shuffle is an example of ________.

a sub-brand

Which of the following is a defensive criterion for choosing brand elements?

adaptable

Which of the following is a marketing advantage of strong brands?

additional brand extension opportunities

A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid.

bonding

The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

brand

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company.

brand extensions

The failure of Cracker Jack cereal is an example of consumers' ________ dictating that the extensions were inappropriate for the brand.

brand knowledge

When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________.

brand knowledge

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.

brand line

In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves.

customer equity

Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand.

elements

Branding is ________.

endowing products and services with the power of a brand

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario?

energized differentiation

Using an established brand to introduce a new product is called brand ________.

extension

According to BrandAsset® Valuator model, leadership brands show ________.

high levels of energy, differentiation, relevance, knowledge, and esteem

According to the BrandAsset® Valuator model, strong new brands show ________.

higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still

The first step in the strategic brand management process is ________.

identifying and establishing brand positioning

In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects.

integrated marketing

AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray?

linking internal and external marketing

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?"

performance

A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.

portfolio

Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid?

presence

When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________.

promise

With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it.

resonance

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty?

resonance

A major advantage of a ________ strategy is that if the product fails, the company has not tied its reputation to the product.

separate family brand name

The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario?

the associations indirectly transferred to the brand by linking it to a place or thing

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand?

the initial choices for the brand elements or identities making up the brand

Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario?

the product and all accompanying marketing activities and supporting marketing programs

Brand ________ is the job of estimating the total financial worth of the brand.

valuation