Ch. 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 (customer relationship management)

What U.S. government agency has 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 the best example of a family brand?

Tostitos Multigrain Scoops and Tostitos Chunky salsa

When a company launches a new product 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

Toyota, a well-established, reputable brand, recently introduced a new line of vehicles under the Scion brand, targeted at young car buyers. Toyota probably used the new brand to

appeal to a different market segment

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 did PepsiCo reduce the weight of its water bottles by 20 percent?

because PepsiCo was concerned about waste from its bottles

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 be associated with global marketing

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

___ occurs when the brand extension adversely affects consumer perceptions

brand dilution

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 have 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

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

brand loyal

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 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

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 brand is to

build brand equity

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

co-branding

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

complementary goods

Marketers selling milk, bread, and other consumer staples, know 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's corporate strategy was to be 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

What is wrap rage?

frustration by a customer when the packaging makes it difficult to get at the product

Proctor & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G

has greater control over marketing strategy

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 lams pet nutrition are made by the same company- Procter & Gamble. Old Spice and Lams are known as

individual brands

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

Which of the following is NOT true regarding secondary packaging?

it is of little value to the average consumer

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 McDonalds, 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 and 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

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

made substantial investments in product development and manufacturing

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

About 30% of packaged goods have lost content recently. How have consumers reacted?

most of the changes have gone unnoticed by consumers

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

national

Many former Enron professionals who had nothing to do with the corporate scandal have found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has

negative brand equity

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 toothpaste tube is an example of a ___ package

primary

A ___ package is the one a customer 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

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

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

product lines

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

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 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. The 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, which was being promoted as a glamorous health-oriented product. She had always thought of Head and Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been

rebranded

Another name for brand repositioning is

rebranding

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is most likely

relatively insensitive to price

Brands that are owned by ___ are called private-label brands

retailers

Private-label brands are developed and managed by

retailers

One of the advantages of selling specialty goods and services is that when consumers want them, they will

search for them

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. They overcome 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

___ is another term for private-label brands

store brands

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

symbol

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd. one of the benefits of having established a loyal customer base is

that he can be less concerned about competitors' actions

Brand extension is a popular marketing strategy because

the firm can spend less on creating brand awareness and associations

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

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