Marketing Chapter 11
specialty good
Consumer spends lots of time and effort involved in searching, may compare alternatives and options, and consumer has a good idea of the brand he or she will buy in advance
What must occur for the perceived value of a cheaper product to be high?
Consumers must believe the quality of the cheaper product is about the same as that of a premium product
Since brands are easily recognized by consumers and signify a certain quality level to buyers, brands _______
help consumers to make quick decisions
The majority of the brands marketed in the United States are ______ brands
manufacturer
The complete set of all products and product lines offered by a firm is called its product assortment, or product _________
mix
Manufacturer brands such as Nike and Coca-Cola are also known as ______ brands
national
Which traits are true of ALL products?
offered through a marketing exchange, something that a customer values
From the customer's perspective, the relationship between a product's or service's benefits and costs is called ______
perceived value
The physical item to which marketers assign such attributes as the brand name, features/design, quality level, and packaging is ______.
the actual product
Which products commonly use brand licensing?
toys, apparel, video games
What are the two basic types of brand ownership strategies?
Retailer/store brands, manufacturer brands
What is a product or service for which consumers usually expend no effort toward decision making?
convenience product/service
Firms reward loyal customers through ______ programs
customer relationship management
Typically, who determines the product's or service's value in relationship to that of its close competitors?
customers
Branding enables a firm to do which of the following?
differentiate its product offerings, make consumers aware of available products
Firms decrease depth to do which of the following?
eliminate unprofitable items, refocus marketing efforts on profitable items
Brands are assets that a firm can build and harness over time to increase its ______
equity
The value of a brand can be calculated and compared to other brands in the form of brand ______.
equity
The use of an existing brand name in a different product line is called brand ______
extension
Apple sells the majority of products under its Apple name brand. This is known as a(n) ______brand.
family
Kellogg's sells a variety of products under its Kellogg's name brand then identifies groups of products with a secondary name such as Raisin Bran or Froot Loops, each in several sizes and versions. Froot Loops is known as a(n) ______ brand.
family
Which of the following is the best example of a convenience product/service?
gasoline
Brand awareness is MOST likely to influence purchasing decisions for which type of product?
goods purchased frequently to habitually
A popular hair salon determines that there is a high demand for other beauty treatments in the area and decides to offer manicures, pedicures, and massages. What is this an example of?
increasing breadth
Firms add items to their product lines to address changing consumer preferences. For example, an ice cream company might add low-fat offerings to its existing ice cream flavors. This is an example of ________
increasing depth
Brand loyalty tends to be an advantage to the firm because it will ______ competition
insulate the firm from
A firm's product line depth is the number of ______ within a product line, as opposed to the number of product lines a firm has.
items
The use of the same brand name within the same product line is called a(n) ______.
line extension
A product mix typically consists of product _______ or groups of associated items
lines
Which of the following is a negative consequence that can occur as a result of a brand becoming synonymous with an entire category of products (such as Kleenex or Band-Aid)?
loss of trademark status
A brand, such as T-Mobile, can build awareness through ______ exposure to the brand's logo, symbols, and slogans.
repeated
Manufacturers tend to manage their own brands because it allows them to ______
retain control over their marketing strategies
three steps to develop/change a product
1. use core customer value to determine what customers are seeking 2. making an actual physical product 3. adding associated services
Which of the following are advantages to firms of owning their own brands?
Ability to create brand equity, choice of market segments and positioning, control over marketing strategy
Which of the following are examples of CRM programs?
Advance notice of sale items, invitations to the company's special events, points that can be turned in for discounts
A strong brand protects firms from which of the following?
An existing competitor lowering prices, new products offering similar features or benefits
What can be determined by looking at brand awareness, perceived value, brand associations, and brand loyalty?
Brand equity
shopping good
Compares alternatives and consumer spends moderate amounts of time and effort deciding among products, features, and brands
Which factor has contributed to the increased presence of store brands in recent years?
Growth and consolidation of retail firms
________ products/services are typically consumer durables, such as a dryer or a refrigerator. Buyers spend a fair amount of effort and time to make the comparisons before purchasing and usually do not know which one or which brand they will buy in advance of the process.
Shopping
Branding includes which of the following?
Slogans, logos, distinctive packaging
_______ products/services are those such as an Apple iPhone, a Harley-Davidson motorcycle, or a Starbucks latte for which the consumer shows a fairly strong preference and loyalty and will go out of the way to find that specific brand.
Specialty
______ products/services are those that people don't think about buying or don't know about
Unsought
A cosmetics company has decided to eliminate several of its underperforming products to focus its energies on its most profitable items. What has the firm decided to do?
decrease depth
A firm can delete entire product lines to address changing market conditions; this is also known as __________
decreasing breadth
A mobile phone manufacturer decides to eliminate its flip phone product line to focus on the more popular touchscreen products. What is this an example of?
decreasing breadth
The number of products within a product line is a firm's product line ______.
depth
The number of products within a product line is a firm's product line _______
depth
Branding provides a way for a firm to ______ its product offerings from those of its competitors.
differentiate
E-book readers existed for many years before Amazon introduced the Kindle, but few consumers were aware of the devices, and sales stayed at very low levels. In the days before the Kindle, e-book reading devices were ______ products for most consumers.
unsought
When consumers experience brand loyalty, which feeling do they associate with the brand?
trust
How do marketers begin the process of developing or changing a product?
using the core customer value to determine customer interests
A brand that is projected to earn $1 billion over the next 12 months has a high brand _______
value
The mental link customers make between a brand and its key product attributes is known as brand ______
association
Firms find that loyal customers help market their product or service through ______
word-of-mouth
Some brands become so predominant in a particular product market that they become synonymous with the product itself over time. Which of the following brands is an example of this situation?
Kleenex
When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos brand (under which it sells taco chips). What advantages did this strategy provide Frito-Lay?
The Tostitos brand already had brand associations that helped to sell salsa. Frito-Lay could introduce the product to the market more quickly. Frito-Lay could spend less on developing consumer brand awareness.
If the makers of a luxury good with high consumer acceptance extend their brand name to a line of less expensive products such as clothing featuring the brand logo, what is the most likely result?
The brand acceptance will carry over to the new product.
What are the common forms of royalty payments in brand licensing?
Up-front, lump-sum licensing fees Payments based on the value of licensed merchandise sales
If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do?
add items to its product line
Examples of communication media that firms use to create brand awareness include which of the following?
advertising and publicity
What does a brand need in order to be somewhat protected from competition from other firms and price competition?
an established track record in the market, a loyal customer base
Which of the following is NOT one of the categories of consumer products that buyers use for their personal use?
associated products
One consumer research exercise asks consumers to say the first things that occur to them when they hear a brand name. For example, for the brand "Coca-Cola," someone might respond, "Red and white cans, sweet, carbonated." These are examples of brand ________
associations
Products are complex, with multiple components. The term "_________ product" (also known as associated services) refers to the nonphysical aspects of the product, such as financing and support.
augmented
If a brand has a high degree of brand equity _______, it means that most consumers are familiar with the brand and what it stands for even if they do not use the brand
awareness
Marketers can assess the level of brand ______ by measuring the extent to which consumers in a market are familiar with a brand, know what it stands for, and have an opinion about it.
awareness
What are the four aspects analysts examine to evaluate brand equity?
brand awareness, brand associations, brand loyalty, perceived value
Which of the following help to increase a brand's equity?
brand awareness, customer loyalty, and perceived value
Consumer packaged goods companies sell products across many different product lines. These companies have significant ______ in their product mixes.
breadth
Which of the following are components of the actual product?
brand name, features/design
A firm's product mix _______ represents the number of product lines offered by the firm.
breadth
Consumer packaged goods companies sell products across many different product lines. These companies have significant ______ in their product mixes
breadth
To capture new or evolving markets, a firm may increase ______ to compete in new product areas
breadth
Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to _______
build brand awareness
Marketers invest in developing a strong brand identity to help establish ______.
buyer loyalty
What is the term used when a company's products are so closely related that sales of one brand take away sales from the other brand?
cannibalization
If a company's products are too closely related, sales of one brand may __________ , or take away sales from the other brand, with no net sales, profit, or market share increase.
cannibalize
What are products that household buyers use for their own use called?
consumer products
What makes the search for shopping goods different from the search for specialty goods?
consumers are willing to consider alternative brands and features with shopping goods
Another name for a store brand is a(n) ______ brand
private label
A _______ is something that a customer values and that can be bought or sold voluntarily
product
Which of the following are components of the augmented product?
product support, warranties
Jack and his wife were in need of a new a mattress. They compared mattresses at a few local stores, learning about different brands, before making a purchase. In Jack's case, a mattress is most likely a(n) ______ product.
shopping
Debbie is considering having Botox treatments and knows it is a very serious process. On the advice of three of her friends who have each visited Dr. Parsons several times in the past two years for Botox treatments, Debbie makes an appointment with Parsons. She considers the selection to be a(n) ______ good/service.
specialty
Firms tend to spend ______ to market to loyal customers compared to marketing to new customers.
substantially less
Which of the following describes the core customer value of a product?
the basic benefits consumers are seeking
Which of the following refers to the basic problem-solving benefits that consumers seek in a product?
the core customer value
Brands have value as corporate assets and the "value of the brand" refers to ______
the earning potential of the brand over the next year
How do brands improve consumers' shopping experience?
they indicate a certain level of quality, they make it easier to decide which products to buy, they help shoppers distinguish between similar products
Brands are typically legally protected through
trademarks and copyrights