370 #11

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.

CRM

One of the major tools used by marketers to meet the needs of loyal customers is

CRM

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

False

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

False

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

False

A familiar brand name always helps the sales of a product

False

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

False

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

False

For a company like Pepsi-Cola, brand dilution occurs when it sells more product than the competition

False

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

False

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.

False

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

False

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.

False

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

False

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

False

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

False

What 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?

Food and Drug Administration

Which of the following is not true regarding secondary packaging?

It is of little value to the average consumer.

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.

Product line depth

__________ is the number of items within a product line.

Product line depth

________ is another term for private-label brands.

Store brands

Which of the following products actually lost market share due to its attempt at sustainable packaging?

Sun Chips

According to your text, _______ packaging is product packaging that is ecologically responsible.

Sustainable

Which of the following scenarios is not a reason a firm would eliminate an item within a product line?

The firm has decided to capture new markets.

Which of the following statements regarding brand loyalty is not true?

The marketing costs of reaching loyal customers are typically very high.

How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces?

They used social media to complain about the change.

Which of the following is the best example of a family brand?

Tostitos Multigrain Scoops and Tostitos Chunky Salsa

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

True

Brands are assets that can be legally protected through trademarks.

True

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

True

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.

True

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

True

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

True

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

True

Manufacturers, wholesalers, and retailers can all own brands.

True

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

True

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

True

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

True

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 association.

When a company launches a new product line with an existing brand name, this is known as

a brand extension.

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 line extension

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

an associated service.

Brands can be owned by

any firm in the supply chain.

A product is __________ that can be offered through a voluntary marketing exchange.

anything of value to consumers

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?

associated services

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?

augmented product

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

awareness

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

because the Super Bowl offers an opportunity to create significant brand awareness

In the case of Band-Aid adhesive bandages, the brand name has

become synonymous with the product itself.

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?

brand conceptualization

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

brand dilution.

A _______ refers to the use of the same brand in a different product line.

brand extension

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.

brand extension

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in

brand extension.

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a

brand extension.

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

brand loyalty

Efforts to change a brand's focus to target new markets or change the image of a brand are called

brand repositioning.

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer.

brand-loyal

Brand dilution occurs when

brands are overextended and customer perceptions about the core brand are adversely affected.

The basic reason manufacturers spend time and money building their own brands is to

build brand equity.

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of

co-branding.

One of the categories of products for which brand extension is especially logical is

complementary goods.

A toothpaste tube is an example of a ________ package.

convenience

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.

convenience

Brands are assets that can be legally protected through

copyrights and trademarks

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer.

core customer value

Sometimes brand names become synonymous with a product itself. If that happens, the brand

could lose its trademark status.

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation.

decreasing product mix breadth

Marketers with luxury brands use brand extension cautiously in order to avoid

diluting the core brand.

The value of a brand is often calculated by assessing the

earning potential of the brand over the next 12 months.

For a brand name to be effective, it needs to be

easy for consumers to recognize and remember.

The potential benefits of brand extension do not include

eliminating competition.

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.

equity

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand

facilitates purchasing.

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

greater perceived value.

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G

has greater control over its marketing strategy.

The decision to delete a product is never taken lightly because, generally, manufacturers ...

have made substantial investments in product development and manufacturing.

In a competitive market, perceived value is determined by consumers mostly

in relationship to the value of competitors' offerings.

One important purpose of a brand is to

increase consumer recognition and awareness of product offerings.

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

individual brands.

Brand extension is a popular marketing strategy because

it allows the firm to spend less on creating brand awareness and associations.

One key feature of the value of a strong brand is that

it can protect the firm from competition.

Marketers with successful brands sometimes hesitate to expand their brands because ...

it is costly to maintain many product lines, and it might weaken the brand's meaning.

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)

know what the Golden Arches brand symbol means.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.

licensed

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?

line extension

For marketers, one of the benefits of having achieved brand loyalty is

lower marketing costs associated with reaching loyal customers.

Frequent buyer/user award programs are used to

maintain contact with loyal customers.

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

make purchase decisions

Another name for a manufacturer's brand is a(n) __________ brand.

national

Where on a product's packaging would one most likely find nutrient content and country of origin?

on the label

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

people already know what the brand means.

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.

perceived value

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.

primary; secondary

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing?

private-label brand

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix.

product lines

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct ...

product lines.

The complete set of all products offered by a firm is called its

product mix

Which of the following is not part of the "actual product" level of the product offer?

product warranty

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

profitability.

Which of the following is not one of the important functions of labels on products and packages?

protecting against damage to the product

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it

provides a way for a firm to differentiate its product offerings from competitors.

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

rebranded

Another name for brand repositioning is

rebranding

Brands that are owned by ___________ are called private-label brands.

retailers

Private-label brands are developed and managed by

retailers

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?

shopping

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.

shopping

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.

shopping

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 __________ good while for Joanne it is a __________ good.

specialty; convenience

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's ....

symbols

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

the product history

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?

unsought product

_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes.

Brand associations

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Brand dilution