Marketing Management Chapter 9
10) When a marketer expresses his or her vision of what the brand must be and do for consumers, they are expressing what is called ________. A) a brand promise B) a brand personality C) a brand identity D) a brand position E) a brand revitalization
A
12) 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 brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage
A
17) According to brand asset valuator model, esteem and knowledge, the two pillars of brand equity together create ________, a "report card" on past performance and a current indicator of current value. A) brand stature B) brand parity C) brand strength D) brand personality E) brand architecture
A
19) According to brand asset valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
A
22) 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 brand dynamics pyramid? A) presence B) bonding C) relevance D) performance E) advantage
A
28) 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?" A) performance B) bonding C) advantage D) relevance E) presence
A
30) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message " Nothing else beats this brand"? A) bonding B) relevance C) advantage D) performance E) presence
A
33) With respect to the "six brand building blocks," ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs. A) brand imagery B) brand judgment C) brand resonance D) brand salience E) brand performance
A
39) Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference? A) performance and imagery B) judgment and feelings C) resonance and salience D) imagery and judgment E) salience and feelings
A
43) 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? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and programs
A
44) ________ are devices that can be trademarked and serve to identify and differentiate the brand. A) Brand elements B) Brand value propositions C) Brand perceptions D) Brand images E) Brand extensions
A
47) Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance
A
53) ________ consists of activities and processes that help inform and inspire employees about brands. A) Internal branding B) Personal branding C) Individual branding D) External branding E) Co-branding
A
55) A ________ is a specialized group of consumers and employees whose identification and activities focus around the brand. A) brand community B) brand channel C) brand association D) brand personality E) brand cluster
A
57) Which of the following value creation processes means detailing the brand relationship journey in a narrative way, often anchored by and peppered with milestones? A) documenting B) milestoning C) badging D) evangelizing E) staking
A
59) A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________. A) the brand value chain B) the brand portfolio C) the brand life cycle D) brand partitioning E) brand positioning
A
61) Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ of the brand value chain. A) program multiplier B) brand multiplier C) market multiplier D) customer multiplier E) profit multiplier
A
64) Apple's ipod shuffle is an example of ________. A) a sub-brand B) a parent brand C) family brand D) a brand mix E) an umbrella brand
A
67) The introduction of diet coke by the Coca Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding
A
68) A ________ consists of all productsoriginal as well as line and category extensionssold under a particular brand. A) brand line B) cobrand C) generic brand D) licensed product E) subbrand
A
7) When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity
A
73) The hallmark of an optimal brand portfolio is ________. A) the ability of each brand to maximize equity in combination with all the other brands in it B) the ability of each brand to maximize its individual equity in isolation C) maximum brand overlap D) the eventual reduction of brand differentiation to create a unified brand appearance E) maximum internal competition within the firm
A
74) ________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation
A
8) The challenge for marketers in building a strong brand is ________. A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge B) pricing the product at a point that maximizes sales volume C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience D) minimizing the impact of customer brand equity E) avoiding the usage of an established brand to introduce a new product in the market
A
1) The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value
B
15) According to the brand asset valuator model, which of the components of brand equity measures the breadth of a brand's appeal? A) differentiation B) relevance C) esteem D) knowledge E) value
B
18) According to the brand asset valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem
B
24) Which of the following levels of the brand dynamics pyramid pertains to consumer's needs? A) advantage B) relevance C) bonding D) performance E) presence
B
26) 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 the question "Do I know about this brand?" A) relevance B) presence C) performance D) advantage E) bonding
B
31) Brand salience ________. A) is customers' emotional responses and reactions with respect to the brand B) is how often and how easily customers think of the brand under various purchase or consumption situations C) is how well the product or service meets customers' functional needs D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it
B
4) Brand ________ is the added value endowed to products and services. A) loyalty B) equity C) preference D) identity E) licensing
B
5) ________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand. A) Mission-driven brand equity B) Customer-based brand equity C) Product-driven brand equity D) Service-driven brand equity E) Function-based brand equity
B
6) 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 an IFB Bosch 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 Bosch. This example implies that ________. A) the imported brand will not survive the competition from Bosch B) Bosch has a positive customer brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Bosch washing machine has better features than the imported brand
B
60) Competitive superiority and channel support are factors that influence the ________ of the brand value chain. A) program multiplier B) customer multiplier C) brand multiplier D) profit multiplier E) market multiplier
B
75) Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions
B
77) 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 offeringsin effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping
B
11) Identify the four pillars of brand equity, according to brand asset valuator model. A) relevance, performance, bonding, and advantage B) presence, performance, advantage, and bonding C) energized differentiation, relevance, esteem, and knowledge D) brand salience, brand feelings, brand imagery, and brand performance E) energized differentiation, esteem, brand feelings, and brand salience
C
13) Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario? A) knowledge B) energized differentiation C) esteem D) advantage E) presence
C
23) If a consumer, trying to decide between alternatives, believes that a particular brand delivers acceptable product performance and can be short listed, she is in the ________ level of the brand dynamics pyramid. A) presence B) relevance C) performance D) advantage E) bonding
C
27) 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 "Does this brand offer something better than the others?" A) performance B) presence C) advantage D) bonding E) relevance
C
29) 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 "Does this brand offer me something?" A) advantage B) presence C) relevance D) bonding E) performance
C
3) Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands
C
37) With respect to the "six brand building blocks," ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) brand imagery B) brand judgment C) brand resonance D) brand salience E) brand performance
C
41) 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? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development
C
42) 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? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place
C
48) With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" or "handle" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright
C
51) Brand equity can be built by ________, which create(s) equity by linking the brand to other information in memory that conveys meaning to customers. A) internal marketing B) brand transferability C) secondary associations D) customer alignment E) brand auditing
C
56) Which of the following value creation processes means sharing the brand "good news" and inspiring others to use the brand? A) staking B) badging C) evangelizing D) justifying E) milestoning
C
65) When a firm uses an established brand to introduce a new product, it is called a ________. A) brand harmonization B) brand valuation C) brand extension D) brand positioning E) brand parity
C
69) A major advantage of a ________ strategy is that the company does not tie its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization
C
72) A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) brand architecture B) brand position C) brand portfolio D) brand extension E) brand image
C
14) According to the brand asset valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand? A) esteem B) energized differentiation C) relevance D) knowledge E) presence
D
2) 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." A) copyright B) trademark C) slogan D) brand E) logo
D
21) According to Young and Rubicam's brand asset valuator, a brand's ________ measures how well the brand is regarded and respected. A) differentiation B) energy C) relevance D) esteem E) knowledge
D
32) With respect to the "six brand building blocks," ________ signifies how well the product or service meets customers' functional needs. A) brand judgment B) brand imagery C) brand salience D) brand performance E) brand resonance
D
34) With respect to the "six brand building blocks," ________ focuses on customers' own personal opinions and evaluations. A) brand salience B) brand performance C) brand imagery D) brand judgment E) brand resonance
D
38) With respect to the "six brand building blocks," ________ are customers' emotional responses and reactions with respect to the brand. A) brand imagery statements B) brand judgments C) brand performances D) brand feelings E) brand resonances
D
40) With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"? A) resonance B) imagery C) performance D) salience E) judgment
D
45) If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________. A) memorable B) meaningful C) likeable D) transferable E) adaptable
D
54) 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? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work
D
58) Which of the following value creation processes means translating milestones into symbols and artifacts? A) staking B) evangelizing C) milestoning D) badging E) documenting
D
63) ________ is the job of estimating the total financial worth of the brand. A) Brand tracking B) Brand auditing C) Brand equity D) Brand valuation E) Brand harmonization
D
66) A parent brand that is associated with multiple products through brand extensions is also called a(n)________. A) category brand B) subbrand C) extension brand D) family brand E) line brand
D
70) Starbucks introduced ice creams in the same flavors as the frappucinos it sold in its coffee shops. This is an example of ________. A) brand dilution B) cobranding C) brand variants D) category extension E) brand harmonization
D
78) In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension
D
9) Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases
D
16) According to brand asset valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________. A) position B) image C) depth D) knowledge E) strength
E
20) According to brand asset valuator model, declining brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) high relevance—appropriateness of brand's appeal—a lower level of energy and differentiation, and even lower knowledge C) high levels on energy, differentiation, relevance, knowledge, and esteem D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
E
25) A consumer who expresses rational and emotional attachments to the brand to the exclusion of most other brands has reached the ________ level in the brand dynamics pyramid. A) advantage B) relevance C) presence D) performance E) bonding
E
35) 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? A) salience B) imagery C) feelings D) judgments E) resonance
E
36) With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions? A) resonance B) salience C) imagery D) performance E) feelings
E
46) If consumers can easily recall and recognize a brand element, the brand element is said to be ________. A) meaningful B) protectable C) adaptable D) transferable E) memorable
E
49) A ________ can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer's product or service. A) brand value B) brand personality C) brand trait D) brand character E) brand contact
E
50) The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) Personalized marketing B) Mass customization C) Globalized marketing D) Relationship marketing E) Integrated marketing
E
52) Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing ________. A) brand alliance B) brand essence C) brand harmonization D) brand parity E) brand bonding
E
62) ________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies
E
71) A ________ is a set of all brand lines that a particular seller makes. A) brand platform B) brand image C) cobrand D) brand extension E) brand mix
E
76) According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies. A) liquidity trap B) cognitive dissonance C) branding fallout D) cannibalization E) line-extension trap
E
100) Brand equity is essentially the same as brand valuation.
FALSE
80) Physical goods, services, and stores can be branded, but ideas and people cannot.
FALSE
82) Brand equity arises from unanimity in consumer response.
FALSE
83) The quantity, rather than quality, of a marketer's investment in brand building is the critical factor in building brand equity.
FALSE
85) According to the BRANDZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.
FALSE
87) Brand salience describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.
FALSE
88) Brand imagery is a consumer's emotional response and reaction with respect to the brand.
FALSE
90) If a brand element has the characteristic of being memorable, the brand is credible and suggestive of the type of person who might use the brand.
FALSE
91) Brands are built only by advertising.
FALSE
95) Modifying a brand to suit group-level or individual needs is called staking.
FALSE
97) The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.
FALSE
79) Consumers may evaluate identical products differently depending on how they are branded.
TRUE
81) One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.
TRUE
84) According to brand asset valuator (BAV) model, knowledge is one of the key components of brand equity.
TRUE
86) Under the BRANDZ model of brand strength, customers who are bonded to the brand believe "nothing else beats it."
TRUE
89) One of the selection criteria for creating a successful brand element is that it should be protectable.
TRUE
92) To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise.
TRUE
93) Brand equity can be built by linking the brand to sources, such as channels of distribution as well as to other brands.
TRUE
94) The brand promise will not be delivered unless everyone in the company lives the brand.
TRUE
96) A brand community can be a constant source of inspiration and feedback for product improvements or innovations.
TRUE
98) Spending on product research, development, and design constitutes investment in the brand value development process.
TRUE
99) The brand audit can be used to set strategic direction for the brand.
TRUE
