Chapter 8 Questions

Yum Brands brings together its Taco Bell, Pizza Hut, and KFC brands under one roof in various locations. This is an example of a(n) ______ type of co-branding. A. Co-location B. Multiple company venture C. Joint venture D. Internal brand combination E. Merger

A. Co-location

ABC Pasta has developed a strong brand name in the dry pasta marketplace based on its texture and taste. Through its strong brand, ABC was able to introduce a successful line of sauces under the same brand name. This is an example of the _______ benefit of brand equity for brand sponsors being used to extend the product range. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

A. Perceived quality

Even though a national brand pain reliever and a store brand pain reliever both contain the same amount of ibuprofen per capsule and are both gel coated, Joan chooses to purchase the national brand because she thinks it will work better based on the brand name alone. This is an example of the _______ benefit of brand equity for customers. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

A. Perceived quality

The marketing manager of Store Brand Pain Reliever is designing the package for its new gel-coated capsules. Her main concerns are to design a package that prevents tampering on the shelf and keeps children from accessing the product without adult assistance. She is focusing on the ______ objective of packaging. A. Protection B. Aesthetic C. Communication D. Harmony E. Usage promotion

A. Protection

The owner of Santos Lawn Service is looking to buy a new lawn tractor, a major purchase and significant financial investment. The owner decides to purchase a Dixie Chopper because of its reputation for dependability and excellent customer service. This is an example of the _______ role the brand plays for customers. A. Reassurance B. Education C. Communication D. Invigoration E. Benchmarking

A. Reassurance

The manufacturer of Fast Peddle Bikes offers a warranty that states that the gear-shifting mechanism for its product will work consistently and be free of mechanical defects for five years. This is an example of a(n) ______ warranty. A. Specific B. Additional C. Extended D. General E. Basic

A. Specific

Heinz recently changed the shape of its ketchup packages from a pouch to a tub because product testing revealed that the tubs created less mess for consumers. This is an example of the ______ objective of packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

A. Usage promotion

Heinz revolutionized the industry when it introduced its inverted bottle because consumers had complained for years about how hard it was to get out that last bit of ketchup. The company spent three years designing the convenient container, which is equipped with a vacuum cap that stops crustiness from forming around the lid. This is an example of the _______ objective of package design. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

A. Usage promotion

The marketing manager of Super Fresh Frozen Vegetables is working on the package for a new line of self-steaming microwaveable vegetables. He wants the package to show a physically fit individual happily eating the product and how to work the steamer packaging. He is focusing on the ______ objective of packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

A. Usage promotion

Victorinox, maker of the Swiss Army knife, warrants its knives to be "free from defects in material and workmanship for the entire life of the knife." These is an example of a ________. A. Warranty B. Product label C. Service contract D. Brand strategy E. Communication device

A. Warranty

The marketing manager for ABC Corp. is about to launch a new product. He is concerned about coming up with a combination of name, symbol, and design to identify the new product and to differentiate from the competition. He is trying to come up with the _____ for the product. A. Identity B. Characteristics C. Personality D. Brand E. Unique aspects

D. Brand

When Toyota, Honda, and Nissan created luxury cars, they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile. This is because the luxury lines would not fit with the ________ that customers held. A. Brand associations B. Brand loyalty C. Perceived quality D. Brand connections E. Brand identity

D. Brand connections

David Aaker defines _____ as "a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers." A. Brand identity B. Brand C. Brand momentum D. Brand equity E. Brand symbol

D. Brand equity

Gino always purchases clothing made by S&G Clothing. He tells others about how much he likes their clothes and the good qualities about them. When a shirt he purchased turned out to be defective, instead of switching clothing companies he gave S&G a chance to fix the problems and still shops there. This is an example of the _____ dimension of brand equity. A. Brand assets B. Brand association C. Brand awareness D. Brand loyalty E. Perceived quality

D. Brand loyalty

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ______ extension. A. Natural B. Line C. Random D. Category E. Basic

D. Category

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. Licensing

D. Co-branding

LMN Spirits created a digital nightclub as a way to reach younger customers in Generation X and Generation Y. It felt that this second-life hangout would positively influence the value of its brand. However, it did not verify the ages of users and created a national stir when it was discovered that up to 30 percent of the users were under the legal drinking age of 21. Its failure to meet the industry's ethical guidelines about promoting products to minors led to a sharp decrease in the value of LMN's brand. This is an example of the ______ limitation of branding. A. Lack of meaningful differences among products B. Failure to persuade the customer C. Failure to overcome poorly designed products D. Failure to protect the brand E. Lack of brand-worthy communications

D. Failure to protect the brand

The warranty on a bottle of Store Brand Pain Relievers says that consumers may return this product if they are dissatisfied with it for any reason. This is an example of a(n) ______ warranty. A. Specific B. Additional C. Extended D. General E. Basic

D. General

Procter & Gamble co-branded its Tide detergent and Downy fabric softener to create Tide Simple Pleasures and Downy Simple Pleasures in the U.S. market. In England, the company co-branded its Bold and Lenor detergents, creating a premium brand called Bold Infusions and Lenor Infusions. These are examples of a(n) _____ type of co-branding relationship. A. Co-location B. Multiple company venture C. Joint venture D. Internal brand combination E. Merger

D. Internal brand combination

Listerine mouthwash sells for $2 more than Target's Up & Up brand mouthwash even though both products contain the same ingredients and are manufactured by the same company. This is because _____ brands can command a price premium. A. Licensed B. Family C. Store D. National E. Stand-alone

D. National

Colgate Palmolive reported fake Colgate toothpaste being shipped in phony packages in the United States. It was not clear where the fake toothpaste originated, but Colgate and other packaged goods companies took a number of steps to reduce counterfeit packaging. Document Security Systems works with manufacturers to make their packaging more secure. This is part of the _____ objective of packaging. A. Harmony B. Aesthetic C. Communication D. Protection E. Usage promotion

D. Protection

Courtney always purchases Coke products. She doesn't even consider other beverages when they are cheaper than Coke. This is an example of the _______ benefit of brand equity for customers. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

E. Brand loyalty

Because Sony has so many different product offerings in various electronics categories, management has found that it is helpful to use brands to keep track of products in each category, Thus, it has different brand names for its televisions, DVD players, and portable music players. This is an example of the _______ role the brand plays for the brand sponsor. A. Benchmarking B. Education C. Protection D. Invigoration E. Categorization

E. Categorization

Procter & Gamble wanted Crest Vivid White Toothpaste to stand out from competitor brand toothpastes on store shelves so it created a standup package and used a graphics-heavy box. This relates to the ______ objective of packaging. A. Usage promotion B. Aesthetic C. Protection D. Harmony E. Communication

E. Communication

Brand loyalty develops when customers develop a number of emotional, psychological, and performance links with a brand.

FALSE

Brand-loyal customers are less forgiving of problems related to the brand, which hinders the company's ability to respond to a negative experience.

FALSE

Brands such as Crest, Tide and Gillette, which are sold under the same name throughout the country, are known as store brands.

FALSE

Licensing joins two or more well-known brands in a common product or takes two brands and markets them in partnership.

FALSE

Loyal customers are great advocates for a brand; however, blogs and other online communities have yet to become useful tools for marketers to reinforce the brand's message because they have not figured out how to best use them.

FALSE

One big advantage unbranded products have over branded products is that customers will infer a level of quality from the unbranded and give the customer a reason to buy.

FALSE

Successful marketing strategy builds quality into only the product in order to validate a price premium.

FALSE

The advantages of family branding include that they are less expensive to create and that there is protection for the brand if one of its members has a problem.

FALSE

The company brand roles are legal protection for the product and offer an effective and efficient methodology for distributing products.

FALSE

A key advantage of a brand sponsor is that loyalty is transferred from the well-known sponsor brand to the less-known brand.

TRUE

Dave's Donuts decided to enter a co-branding relationship with Sid's Sandwiches in which both companies would have operations in the same retail space. This was beneficial for both because it reduced unused capacity for both as Dave's major usage is in the morning while Sid's is from 11 a.m. until midnight. This is an example of a(n) _____ type of co-branding relationship. A. Co-location B. Multiple company venture C. Joint venture D. Internal brand combination E. Merger

A. Co-location

The marketing manager for DRNK Spirits has decided that all of the products his company produced would carry the same brand name of Nightlife. As a result there is Nightlife Ale, Nightlife Lager, Nightlife Vodka, Nightlife Tequila, and Nightlife Whiskey. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. National branding

A. Family branding

KFC is very protective of its "Seven Herbs and Spices" recipe intellectual property, which, in the view of the company, gives them a significant competitive advantage over other chicken restaurants, and will use any legal resource available to protect its patented formula. This is an example of the _____ dimension of brand equity. A. Brand assets B. Brand association C. Brand awareness D. Brand loyalty E. Perceived quality

A. Brand assets

______ is defined as a summary of unique qualities attributed to the brand. A. Brand identity B. Brands C. Brand momentum D. Brand equity E. Brand symbol

A. Brand identity

Because of its reputation for excellent flavor and increasing energy, NRG Beverages is able to charge a price premium for its products. However, NRG must continue to validate the reasons for this premium price to its customers. This is an example of linking the ______ benefit of brand equity to marketing strategy. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

A. Perceived quality

International Delight coffee creamers frequently adds new flavor offerings to its product offerings. This would be an example of a ______ extension. A. Natural B. Line C. Random D. Category E. Basic

B. Line

The owner of NOP detergents is working with an art designer on the label for a new line of naturally scented detergents. They are trying to come up with the best way to place the brand and logo along with the other required information on the label. They are working on the ________ requirements of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

B. Marketing

The Symbian operating system came about from the co-branding effort of Nokia, Ericsson, Sony, Panasonic, Siemens, and Samsung. They license Symbian to a number of wireless manufacturers including LG and Fujitsu. This is an example of a(n) _____ type of co-branding relationship. A. Co-location B. Multiple company venture C. Joint venture D. Internal brand combination E. Merger

B. Multiple company venture

Intel makes a product most people never see; however, it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the ______ benefit of brand equity to marketing strategy. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

E. Brand loyalty

XYZ is a new hotel chain and is relatively unknown among Disney park visitors. However, because Disney has attached its name to the hotel, most rooms are booked every night. This is probably because customers associate Disney with quality and so they also expect XYZ to be a high-quality hotel. This is an example of the __________ benefit of brand equity. A. Brand communications B. Brand image C. Brand connections D. Brand loyalty E. Brand sponsors

E. Brand sponsors

Food product manufacturers are required to list the number of calories at the top of the nutrition panel. Posting calorie information is an example of a(n) _______. A. Communication feature B. Aesthetic feature C. Legal requirement D. Marketing requirement E. Identification device

C. Legal requirement

The blue colored box that jewelry from Tiffany & Co. comes packaged in is widely recognized by consumers. This is an example of the ______ role of packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

B. Aesthetic

The owner of Tiny Tots Baby Food is redesigning the package for her product. She is trying to select a color that is both comforting and natural as well as a shape that is distinctive so that her brand is easy to identify and distinguish from it main competitors. She is focusing on the ______ element of effective packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

B. Aesthetic

XYZ tissues decided to change the shape of its tissue box from a cube into a sphere because consumers thought the sphere was more visually pleasing. The change in shape represents a(n) _____ change to packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

B. Aesthetic

The American Marketing Association defines _____ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors." A. Brand identity B. Brand C. Brand momentum D. Brand equity E. Brand symbols

B. Brand

The St. Louis Rams pump the smell of candy cane's into their stadium because the team feels that the scent adds to the _____ experience. A. Olfactory B. Brand C. Tangible D. Intangible E. Environmental

B. Brand

A good branding strategy can overcome a product that fails to deliver on the value proposition by infusing it with the brand image.

FALSE

James has been to Farm Fresh Ice Cream Shops several times. Based on his previous visits he has developed certain emotional, psychological, and performance expectations for all subsequent visits to Farm Fresh. For instance, he believes he will feel happier when he leaves than when he arrives and that the ice cream will be rich and smooth. This is an example of the _____ dimension of brand equity. A. Brand assets B. Brand association C. Brand awareness D. Brand loyalty E. Perceived quality

B. Brand association

Because she knows that no other single product element conveys more information about the company than the brand, the marketing manager of XYZ Shoes is concerned with ____ as an integral part of the product development process. Even though XYZ offers an established product, it is defined, in large measure, by its brand, and the marketing manager works very hard to protect this critical asset. A. Marketing imagery B. Branding strategy C. Customer perceptions D. Competitive actions E. Internal strengths

B. Branding strategy

Recently, Mercedes-Benz quietly reduced its warranty coverage by eliminating some free scheduled maintenance because the expense for the firm was too high. At the same time, Hyundai and others have expanded their warranties to build consumer confidence in their cars. They realize that extending the period of warranty coverage demonstrates they are making better cars in a very tangible way. These are examples of firms considering the ______ of the product warranty. A. Competitive advantage B. Costs and benefits C. Message D. Product differentiation E. Persuasiveness

B. Costs and benefits

Harley-Davidson introduced a cologne. While the Harley brand has a large and loyal customer base, the cologne was not successful. This is an example of the ______ limitation of branding. A. Lack of meaningful differences among products B. Failure to persuade the customer C. Failure to overcome poorly designed products D. Failure to protect the brand E. Lack of brand-worthy communications

B. Failure to persuade the customer

On a box of Procter & Gamble's Bounce fabric softener sheets, the brand name "Bounce" is approximately 50 percent of the space on the front panel and the rest of the space is a bright color (orange) with clean fresh images of a sun rising and a green field. This is an example of the _____ requirements of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

B. Marketing

The marketing manager of NRG Beverage Company is revamping the product's label to carry a better product image, and more relevant messages. He is designing the ________ requirements of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

B. Marketing

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing, housewares, and even cosmetics. Eventually Pierre Cardin wasn't known for anything anymore. This is an example of _____, a disadvantage of co-branding. A. Loss of control B. Overexposure C. Brand strength D. Brand identity E. Partner fit

B. Overexposure

Super-Mart decides to create its own brand of personal care products. It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry its newly formed brand's name. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. National branding

B. Store branding

When consumers see an apple with a single bite taken out of the right side, several small electronic devices such as iPhones, iPods, or iPads might come to mind. This occurs because consumers form a _____ between the logo and electronic devices. A. Perception B. Brand link C. Brand association D. Brand identity E. Brand connection

C. Brand association

The owners of ABC Medical Equipment has been developing the brand equity of their MRI and CAT scan equipment. Now when someone mentions ABC's machines, radiologists and hospital purchasing agents usually say that they have heard of ABC's offerings and are interested in learning more about them. This response signals a familiarity and potential commitment to the brand. They have achieved the _____ dimension of brand equity. A. Brand assets B. Brand association C. Brand awareness D. Brand loyalty E. Perceived quality

C. Brand awareness

When Maria purchases laundry detergent she is able to easily recall and process information about Tide, but this does not happen for other brands. This is an example of the _______ benefit of brand equity for customers. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

C. Brand connections

XYZ brand is the market leader in small appliances. Its brand is also the strongest in the category and customers identify with the brand. Because of the strength of its brand, other competitors are finding it difficult to successfully enter the marketplace. This is an example of the _______ benefit of brand equity for brand sponsors. A. Perceived quality B. Brand image C. Brand connections D. Perceived bonuses E. Brand loyalty

C. Brand connections

Mrs. Butterworth's syrup comes in a bottle shaped like a woman. Many competitor syrup brands come in teardrop-shaped bottles. The unique shape of the Mrs. Butterworth's bottle is an example of the ______ objective of packaging. A. Usage promotion B. Aesthetic C. Communication D. Harmony E. Protection

C. Communication

Mercedes-Benz offers a lifetime roadside assistance warranty on all of its vehicles and shows that Mercedes is committed to customer service. This is an example of the ability of a warranty to ___________________. A. Provide a cost to customers B. Provide a service to customers C. Convey a message to customers D. Build brand awareness E. Build brand identity

C. Convey a message to customers

Over the years Athena Footwear had developed a reputation as a high-quality brand of shoes at a moderate price point. Recently it decided to introduce a low-price line of shoes; however, the new line suffered from poor performance and durability, and if the shoes in the new line got wet, the colors would bleed. Because of these problems, the sales of new line shoes were poor and the value of Athena Footwear's brand dropped significantly. This is an example of the ______ limitation of branding. A. Lack of meaningful differences among products B. Failure to persuade the customer C. Failure to overcome poorly designed products D. Failure to protect the brand E. Lack of brand-worthy communications

C. Failure to overcome poorly designed products

When customers see the logo of McDougal's restaurant, they think of decent food served quickly in a clean, family-friendly environment. This is an example of the _______ role the brand plays for customers. A. Reassurance B. Education C. Information conveyance D. Invigoration E. Benchmarking

C. Information conveyance

Nickelodeon and Marriott partnered to create a kid-friendly chain of vacation-oriented hotels. This is an example of a(n) _____ type of co-branding relationship. A. Co-location B. Multiple company venture C. Joint venture D. Internal brand combination E. Merger

C. Joint venture

Hazardous materials such as cleaning products, pesticides, and many other items require 14 different pieces of information be included on the label. This is an example of the ______ requirements of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

C. Legal

The Food and Drug Administration requires all processed-food companies to provide detailed nutritional information clearly identifying calories, fats, carbohydrates, and other information. This is an example of a(n) ________ requirement of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

C. Legal

The marketing manager for ABC Appliances is working on the warranty for the company's new line of dishwashers. She is considering a two-year total warranty based on costs, but the competition offers a four-year total warranty and a five-year mechanical warranty. She is worried that the shorter warranty she is planning will make customers think that ABC's dishwashers are inferior in quality. She should think about the _______ of the warranty. A. Competitive advantage B. Costs and benefits C. Message D. Product differentiation E. Persuasiveness

C. Message

Porsche was able to successfully introduce the Cayenne SUV as the first high-performance sporty SUV. Because the company's brand had high _____ it was able to introduce a product into a category that, to that point, had not been considered a "sports vehicle." A. Brand associations B. Brand loyalty C. Perceived quality D. Brand connections E. Brand identity

C. Perceived quality

When a competitor used its logo in a disparaging way in an advertisement, XYZ brand sued. It won the suit on the basis that the competitor violated its trademark. This is an example of the _______ role the brand plays for the brand sponsor. A. Benchmarking B. Education C. Protection D. Invigoration E. Categorization

C. Protection

American Express recently introduced the One card that incorporates the American Express brand as well as its own brand One. This is an example of combining a family brand with _____. A. Merging B. Store branding C. Stand-alone branding D. Co-branding E. Licensing

C. Stand-alone branding

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of one another. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. National branding

C. Stand-alone branding

Robitussin redesigned its packaging to provide specific product use information to help parents make a purchase decision and to inform them about proper product usage. The package lists four key pieces of information: the product's formulation, whether it is drowsy or nondrowsy, the symptoms it treats, and the recommended age for usage. This is an example of meeting the ________ requirements of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

E. Consumer

The marketing manager of QRS Children's Furniture is designing a new label for her line of highchairs. The two key aspects of the label that she is working on are the assembly instructions and the simple usage instructions. These are examples of the ________ requirement of labeling. A. Legislative B. Marketing C. Legal D. Industry E. Consumer

E. Consumer

The producers of a successful animated television program for children entered in agreements with restaurants and toy manufacturers right to use the brand in exchange for a set fee or percentage of sales. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. Licensing

E. Licensing

Really Big Soaps, the market leader in body wash, sell its products around the country under the same brand. This is an example of _______. A. Family branding B. Store branding C. Stand-alone branding D. Co-branding E. National branding

E. National branding

Over the years Maytag has earned a reputation as reliable and durable, so when John decided to buy a new Maytag washing machine, he was willing to pay more for it. This is an example of the _____ dimension of brand equity. A. Brand assets B. Brand association C. Brand awareness D. Brand loyalty E. Perceived quality

E. Perceived quality

A customer is comparing two different cars advertised online. She isn't sure which will be of higher quality. Then she notices that one brand is a Lexus while the other is a brand she hasn't heard of before. In this case the Lexus brand provides _____ to the consumer. A. Identity B. Equity C. Warranty D. Protection E. Reassurance

E. Reassurance

Companies with a well-known brand and a loyal customer base spend less on advertising than companies with an unknown brand and low customer loyalty. This is an example of how brand loyalty can influence strategy. Since customers make brand connections, marketing managers generally want to extend the brand to new products, no matter how well they fit with the existing perception of the brand as long as the extension is into a profitable category.

TRUE

Georgio Armani sells clothes under the Armani Exchange brand, the Emporio Armani brand, and the Armani brand. This is an example of a family branding strategy.

TRUE

The SpongeBob SquarePants cartoon characters can be found on clothing items, snacks, and toys, yet the movie producer doesn't produce any of these items. This is an example of licensing the brand name to other types of product manufacturers.

TRUE

The major advantage of brand connections for the brand sponsor is that it is a barrier to entry for potential competitors, especially for smaller firms that lack brand recognition.

TRUE

The perceived quality of a brand enables companies to extend the product range, can lead to a price premium opportunity, and is an excellent differentiator in the market.

TRUE

The strongest form of brand equity that reflects a commitment to repeat purchases is brand loyalty.

TRUE

The three customer brand roles are conveying information and educating and reassuring the customer during the purchase decision.

TRUE

The two primary advantages of brand connections for customers are that they connect information with a brand they know rather than sort through information on unfamiliar brands, and strong brands generate a more positive attitude toward the product.

TRUE

To create a brand identity there must be real, identifiable, and meaningful differences among products.

TRUE