Marketing Chapter 11

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension.

F

Private-label brands are imitations often sold by street vendors.

F

Sales of private-label brands continue to decline in the United States, particularly in big-box stores such as Costco.

F

The more familiar customers are with a brand, the harder their decision-making process will be.

F

A toothpaste tube is an example of a ________ package. A. primary B. secondary C. brand positioning D. private-label E. convenience

A

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in content and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? A. private-label brand B. counterfeit brand C. premium brand D. national brand E. manufacturer's brand

A

What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? A. actual product B. associated services C. product style D. product position E. product concept

B

For the average college student, a retirement account would be a shopping product.

F

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. A. secondary; primary B. generic; private-label C. primary; secondary D. corporate; manufacturer's E. co-branded; licensed

C

Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product? A. convenience B. unsought C. shopping D. luxury E. routine

C

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of A. product style. B. the actual product. C. an associated service. D. the product position. E. the core value.

C

According to your text, _______ packaging is product packaging that is ecologically responsible. A. recycled B. environmental C. responsible D. sustainable E. green

D

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. A. specialty B. convenience C. unsought D. shopping E. sought

D

Where on a product's packaging would one most likely find nutrient content and country of origin? A. inside the secondary package B. inside the primary package C. on the company website D. on the label E. on the store shelf display

D

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. A. franchise B. joint venture C. shared D. common use E. licensed

E

A product is anything that is of value to a consumer and can be offered through a voluntary exchange.

T

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. A. SKU B. PDQ C. IMF D. CRM E. GATT

D

Which of the following is not one of the important functions of labels on products and packages? A. protecting against damage to the product B. providing consumer information to assist in purchasing C. identifying the brand and building brand image D. promoting the brand or complementary brands E. listing the ingredients

A

A _______ refers to the use of the same brand in a different product line. A. line extension B. brand extension C. product mix extension D. co-brand E. brand license

B

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in A. corporate branding. B. brand extension. C. brand licensing. D. brand association. E. perceived value branding.

B

Efforts to change a brand's focus to target new markets or change the image of a brand are called A. co-branding. B. brand extraction. C. brand collusion. D. brand repositioning. E. brand dilution.

D

One of the categories of products for which brand extension is especially logical is A. generic goods. B. generic services. C. commodities. D. complementary goods. E. licensed brands.

D

Which of the following is not true regarding secondary packaging? A. It can provide information to consumers not found on the primary packaging. B. It is important to the retailer in terms of convenience in handling. C. It can be an important positioning tool to convey the brand image. D. It can allow for cost efficiencies due to larger order and shipment sizes. E. It is of little value to the average consumer.

E

Which of the following scenarios is not a reason a firm would eliminate an item within a product line? A. The firm decided to refocus marketing efforts elsewhere. B. The firm must respond to evolving markets. C. The product undermined its own brand. D. The product being eliminated is unprofitable. E. The firm has decided to capture new markets.

E

A company's product line consists of its various product mixes.

F

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension

A

Which of the following is not part of the "actual product" level of the product offer? A. product warranty B. features C. design D. quality E. brand name

A

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. A. brand associations B. family brands C. co-brands D. product lines E. private-label brands

D

In the case of Band-Aid adhesive bandages, the brand name has A. successfully employed private-label branding. B. distinctive brand substitutability. C. grown through private-label branding. D. become synonymous with the product itself. E. avoided brand extensions.

D

Frequent buyer/user award programs are used to A. increase price sensitivity. B. decrease co-branding costs. C. lower licensing fees. D. expand product line depth. E. maintain contact with loyal customers.

E

Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing expenditures, benefiting businesses like Coca-Cola.

T

Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered a specialty product.

T

Manufacturers, wholesalers, and retailers can all own brands.

T

Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products.

T

When purchasing a mobile phone, the product you are buying is more than just the phone.

T

Brands are assets that can be legally protected through A. copyrights and trademarks. B. financial reporting. C. brand extensions. D. generic branding. E. corporate branding strategies.

A

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as A. individual brands. B. family brands. C. corporate brands. D. traditional brands. E. umbrella brands.

A

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been A. rebranded. B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

A

For a brand name to be effective, it needs to be A. easy for consumers to recognize and remember. B. a catchy, tongue-twisting phrase. C. a visual image containing human characters. D. generic, so it can be applied to as many products as possible. E. associated with a sports or movie superstar.

A

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable A. awareness. B. equity. C. extension. D. integration. E. depth.

A

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as A. brand dilution. B. comingled brands. C. undifferentiated brands. D. approximated brands. E. unlicensed brands.

A

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service? A. augmented product B. core customer value C. actual product D. modified product E. core product

A

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer. A. perceived value B. brand awareness C. brand loyalty D. generic positioning E. brand extension

A

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of A. co-branding. B. brand extraction. C. brand collusion. D. a generic brand. E. brand dilution.

A

When a company launches a new product line with an existing brand name, this is known as A. a brand extension. B. a line extension. C. a multi-brand. D. a new brand. E. co-branding.

A

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a A. brand extension. B. line extension. C. licensed brand. D. copycat brand. E. premium brand.

A

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? A. unsought product B. shopping product C. convenience product D. line extension E. secondary product

A

Which of the following statements regarding brand loyalty is not true? A. The marketing costs of reaching loyal customers are typically very high. B. Brand loyal customers are unlikely to switch to competitor's brands. C. Brand loyal customers generate positive word of mouth. D. Firms tend to reward brand loyal customers with extra benefits. E. Brand loyal customers do not need persuasion to buy the firm's brands.

A

For marketers, one of the benefits of having achieved brand loyalty is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. increased price sensitivity among loyal customers. D. greater concern about competitors' actions. E. few worries about copyright infringement.

B

In a competitive market, perceived value is determined by consumers mostly A. by quantitative analysis of brand personalities. B. in relationship to the value of competitors' offerings. C. by weighing primary versus secondary benefits. D. by trying out different products. E. through brand association and brand licensing.

B

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

B

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness. A. co-brand B. brand extension C. premium brand D. joint brand E. natural brand

B

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it A. creates a basis for effective packaging. B. provides a way for a firm to differentiate its product offerings from competitors. C. offers consumers promotional parity. D. allows manufacturers to capitalize on promotional expenditures. E. reduces the need for product line depth.

B

Marketers with successful brands sometimes hesitate to expand their brands because A. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. B. it is costly to maintain many product lines, and it might weaken the brand's meaning. C. it is often difficult to get additional marketing communications coverage for the brand. D. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division. E. the current economy can support only a limited number of product options.

B

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of A. social marketing. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

B

Sometimes brand names become synonymous with a product itself. If that happens, the brand A. has achieved brand stabilization. B. could lose its trademark status. C. should try co-branding to avoid brand dilution. D. should consider a new packaging strategy. E. easily eliminates all competition.

B

The basic reason manufacturers spend time and money building their own brands is to A. create brand awareness. B. build brand equity. C. offset the power of private-label manufacturers. D. create positioning possibilities for their generic product lines. E. maximize product line depth.

B

The decision to delete a product is never taken lightly because, generally, manufacturers A. have offered the product line to other firms for purchase. B. have made substantial investments in product development and manufacturing. C. have promised consumers they will maintain the product. D. have used brand repositioning to improve results. E. must meet federal standards when taking products off the market.

B

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to A. meet their self-actualization needs. B. make purchase decisions. C. consider repositioning their opinions. D. pursue generic alternatives. E. negotiate discounts.

B

Which of the following is the best example of a family brand? A. Cadillac, GMC, and Chevrolet B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies D. Lifesavers Soda, Coca-Cola, and Diet Coke E. KFC/Taco Bell fast foods

B

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? A. because of the annual competition for the most creative Super Bowl ad B. because the Super Bowl offers an opportunity to create significant brand awareness C. because the Super Bowl is a significant opportunity to be associated with global marketing D. because Super Bowl ads generate brand loyalty E. there is no good reason

B

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy. A. specialty B. shopping C. convenience D. ritual E. impulse

B

Marketers with luxury brands use brand extension cautiously in order to avoid A. brand licensing fees. B. exclusive co-branding arrangements. C. diluting the core brand. D. private-label branding disputes. E. product line extension limitations.

C

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer A. more brand awareness. B. higher degrees of brand loyalty. C. greater perceived value. D. a better brand image. E. more product line depth.

C

One important purpose of a brand is to A. sell advertising space. B. minimize product line depth needed to be effective. C. increase consumer recognition and awareness of product offerings. D. reduce product packaging. E. meet government regulations.

C

The complete set of all products offered by a firm is called its A. product line. B. product categories. C. product mix. D. product breadth. E. product line depth.

C

The value of a brand is often calculated by assessing the A. difference between brand equity and brand liability. B. corporate profitability divided by the monthly brand earnings. C. earning potential of the brand over the next 12 months. D. effect of brand dilution if it occurred. E. average product line depth.

C

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. A. brand equity B. product line breadth C. product line depth D. product mix depth E. product mix breadth

C

_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes. A. The core customer value B. Brand equity C. Brand associations D. Brand loyalty E. The product mix

C

__________ is the number of items within a product line. A. Brand equity B. Product line breadth C. Product line depth D. Product mix depth E. Product mix breadth

C

Brands that are owned by ___________ are called private-label brands. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can be obtained only by means of product line depth. D. people already know what the brand means. E. well-known brands are less likely to introduce brand extensions.

D

One of the major tools used by marketers to meet the needs of loyal customers is A. SKU. B. PDQ. C. IMF. D. CRM. E. GATT.

D

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand A. establishes novelty. B. is the only one the consumer will consider. C. reduces delivery costs. D. facilitates purchasing. E. creates brand dilution.

D

Which U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

D

Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has? A. brand awareness B. brand loyalty C. brand associations D. brand conceptualization E. perceived value

D

Private-label brands are developed and managed by A. manufacturers. B. wholesalers. C. supply chain specialists. D. manufacturer's representatives. E. retailers.

E

A customized carved cedar wood sign for your house is an example of a convenience product.

F

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. A. positioning B. licensing C. association D. equity E. solvency

D

Another name for brand repositioning is A. strategic brand alteration. B. change management. C. rebranding. D. perception tracking. E. brand scaling.

C

One key feature of the value of a strong brand is that A. it can protect the firm from competition. B. it no longer needs to be supported by advertising and promotion. C. if it becomes a generic name, the brand is worth even more. D. it cannot be successfully imitated by a retailer's own brand. E. competitors will typically abandon a sector altogether rather than compete.

A

________ is another term for private-label brands. A. Store brands B. Off brands C. Manufacturer's brands D. National brands E. Experiential brands

A

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct A. brand associations. B. product lines. C. product mixes. D. brands. E. augmented services.

B

Brand extension is a popular marketing strategy because it A. separates out the cost of brand extension from brand intention. B. allows the firm to discontinue complementary products. C. allows the firm to spend less on creating brand awareness and associations. D. avoids the problem of brand dilution. E. guarantees success for a new product.

C

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to A. product mix breadth. B. corporate stakeholder relations. C. profitability. D. brand liability. E. perceived brand personality.

C

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. A. specialty B. shopping C. convenience D. ritual E. impulse

C

Andy likes gourmet popcorn and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a(n) __________ good while for Joanne it is a(n) __________ good. A. shopping; specialty B. convenience; shopping C. convenience; specialty D. specialty; convenience E. unique; universal

D

Brand dilution occurs when A. customers see the "fit" between products sharing the same brand name. B. there are too few products and product categories. C. new brands compete with existing brands. D. brands are overextended and customer perceptions about the core brand are adversely affected. E. brand names seem too old-fashioned or familiar.

D

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. A. price-sensitive B. brand-persuasion-oriented C. brand-association-oriented D. brand-extension-oriented E. brand-loyal

E

The potential benefits of brand extension do not include A. allowing the perception of a brand with a quality image to be carried over to the new product. B. lowering marketing costs. C. boosting sales of the core brand. D. spending less on creating brand awareness and associations. E. eliminating competition.

E

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. A. Corporate branding B. Brand extraction C. Brand collusion D. Brand personality destruction E. Brand dilution

E

A decrease in a company's product depth will always hurt its marketing efforts.

F

A familiar brand name always helps the sales of a product.

F

A product label is just a required sticker on a package.

F

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

F

For a company like PepsiCo, brand dilution occurs when it sells more product than the competition.

F

In entertainment licensing, the major risk to licensees is that the brand will become overexposed.

F

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix.

F

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonald's, the Golden Arches reduce marketing costs because people (including young children) A. have memorized the McDonald's menu. B. prefer yellow to other colors. C. know what the Golden Arches brand symbol means. D. recognize increases in product line depth. E. are sensitive to brand repositioning.

C

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G A. can monopolize store brands. B. has greater opportunity to dictate retail pricing. C. has greater control over its marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created A. brand ownership. B. a brand extension. C. brand loyalty. D. brand dilution. E. a brand association.

E

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. A. core customer value B. associated services C. augmented products D. product support E. quality level

A

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product? A. line extension B. brand extension C. brand dilution D. rebranding E. co-branding

A

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu? A. a line extension B. a brand extension C. a copycat brand D. a premium brand E. a multi-brand

A

If a firm eliminates a product line, then it is A. increasing its product line depth. B. decreasing its product line depth. C. decreasing its product mix breadth. D. increasing its product mix breadth. E. introducing brand extensions.

C

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is A. the brand name. B. the logo. C. the packaging. D. the slogan. E. the product history.

E

Brands can be owned by A. manufacturers only. B. any firm in the supply chain. C. retailers only. D. wholesalers and retailers only. E. private-label generic retailers only.

B

Another name for a manufacturer's brand is a(n) __________ brand. A. systematic B. extended C. national D. premium E. private-label

C

A product is __________ that can be offered through a voluntary marketing exchange. A. the combination of a firm's marketing mix B. the brand associations C. the category depth D. a tangible item E. anything of value to consumers

E

Brands are assets that can be legally protected through trademarks.

T

Brands enable customers to quickly differentiate one firm or product from another.

T

Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases.

T

Effective packaging and labels send consumers the signal "Buy me."

T

When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the holiday-themed box featuring green and white bells. What Jaclyn is seeing is referred to as the secondary package.

T