MKTG chapter 12

Assume Kellogg's is planning to produce and market a line of DVDs. Which of the following brand strategies would Kellogg's be LEAST likely to use?

A family brand with the Kellogg's name.

Alka-Seltzer recently brought back the animated character Speedy Alka-Seltzer as its spokesperson. "Speedy" best illustrates which of the following for the Alka-Seltzer brand?

A trade character (correct)

Which of the following is the most likely reason the advertiser ran the Rollerblade ad below?

Because the brand is in danger of becoming 'generic' and the ad emphasizes the equity associated with brand ownership.

Which is the following product endorsers is not a traditional branding trade character? The Pillsbury Doughboy Bill Cosby (correct) The Michelin Man Tony the Tiger

Bill Cosby

The totality of synaptic associations in a consumer's mind that hold all the feelings, images, sensations, experiences, and other content representing a brand is called:

Brand Schema (correct) Rationale: The totality of association in the consumer's mind for a brand is called the brand schema and it is responsible for determining the brand's image and position in the consumer's mind.

The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the:

Brand name Rationale: The brand name is a brand identifier that is verbalized.

Corrs the soft drink violated ___________ when it named its soft drink and used a logo font very similar to that of Coors beer.

Brand trademark law and regulations

Which of the following is a major benefit of branding to marketers?

Branding can aid in developing loyalty to the Firm's products. Branding makes it easier to introduce new products. Branding helps create barrier against successful imitation by competitors. Branding makes it possible for Firms to charge higher prices

The general purpose of the branding strategy called "over-branding" is to:

Change a brand's name gradually over time.

Which of the following features are generally part of the affective brand?

Emotions and higher level associations

Distributors' brands are owned, supported, and promoted by the manufacturer.

False distributors brands are owned by and marketed by middlemen

When all or most of a firm's product mix features the same brand name, the branding strategy is called:

Family branding

Cannibalization of sales is most likely greater with which of the following branding strategies?

Flanker branding. (correct)

Which of the following firms engage extensively in brand licensing?

Harley-Davidson

Coke insists that wait-staff in restaurants selling only Pepsi products ask patrons if "Pepsi will be OK?" when the customer requests a "Coke." This is done primarily to:

Help prevent the 'Coke' brand from being declared 'generic.'

One of the advantages of using family branding is that the strategy:

Makes it less expensive to introduce new, related products.

Manufacturers of national brands generally will also produce products under private labels. This is done because:

Manufacturers of national brands often cannot sell all their output under their own brands.

Middlemen stock and sell producers' brands for all of the following reasons except:

Margins tend to be higher than for private label brands. Rationale: Margins for producers' brands generally are lower than for private label brands due to the higher costs of packaging, promoting, and supporting these brands.

Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because

The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use

The biggest potential drawback to the co-branding strategy is:

The risk of damaging a brand name if the cooperative endeavor fails. The possibility that the new co-branded product does not "fit" with the consumers' the image of either partnering brand.

A major drawback to Whirlpool for producing private label version of its appliances for retailers, such as Sears, who also sell the Whirlpool brand is that some of Whirlpool's sales of its own brand will probably be cannibalized.

True

The credit card industry is generally regarded as the first industry to extensively employ the co-branding strategy.

True

When new products are being introduced, marketers must structure or influence consumers' basic knowledge or understanding of the benefits delivered by the brand. Marketing managers therefore are focusing on structuring aspects of the core values of the physical brand.

True

The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the brand name.

True Rationale: The brand name is brand identifier that is verbalized.

Modern branding, as we commonly know it today, actually began:

With the American west, and ranches' horses and cattle

Procter & Gamble produce and market Zest, Safeguard, Camay, and Lava brand bar soaps, among other personal care products. Zest is a refreshing "morning wake-up" soap. Safeguard is positioned as antibacterial. Camay is a gentle cleansing soap. Lava is for tough cleaning jobs. These different brands illustrate the use of:

a multiple brand strategy

Examine the image. "Tony the Tiger" best illustrates which of the following?

a trade character Rationale: Trade characters are animated brand marks used to identify a specific Firm's brand.

When producers of beer brands, such as Coors Light, Bud Light, and Miller Lite depict their brands being consumed in festive party settings they are attempting to structure or manage the ________ level of brand.

affective

The failure of 'New Coke' illustrates the danger of ignoring the importance of the _______________ with respect to its contribution to the consumer's overall brand image.

affective brand

BIC introduced its line of disposable pens in 1959. It subsequently introduced lines of disposable lighters and razors in the 1970s. BIC apparently used which branding strategy to launch these later products?

brand extension

There are many products sold that bear the Harley-Davidson brand, however Harley-Davidson does not manufacture these products. Instead, Harley-Davidson allows other manufacturers to use its brand name in return for royalties on the sales of these products. Harley-Davidson is apparently employing a ______________ strategy.

brand licensing

BIC introduced its line of disposable pens in 1959. It subsequently introduced lines of disposable lighters and razors in the 1970s. BIC apparently used the multiple-branding strategy to launch these later products.

false Rationale: False. BIC used a brand-extension strategy.

Firms are engaging in brand extension strategies when they launch new products bearing the firm's family brand into the same product line as its existing products.

false Rationale: False. Brand extension occurs when firms launch new products.

Firms that have well-known brands that are highly differentiated have little ability to charge higher prices than those charged by competitors.

false Rationale: False. Just the opposite is true. Highly differentiated brands generally have superior value that connotes the ability to charge higher prices.

Manufacturers of national brands generally will also produce products under private labels. This is done because the Sherman Anti-Trust Act and other Federal laws require manufacturers to accept private label contracts in order to preserve industry competition and provide consumers with a better choice of products.

false Rationale: False. Manufacturers of national brands take on private label contracts because they often cannot sell all their output under their own brands.

Procter and Gamble makes extensive use of multiple branding for items in most of its product lines. This strategy makes it easier and cheaper to launch new products due to the common image associated with all P&G brands

false Rationale: False. Multiple branding makes it more difficult to launch new brands because there is no apparent link between the brands that support a common image.

Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because the producer does not want consumers to forget that Vaseline is a petroleum jelly.

false Rationale: False. The producer is linking the brand with the name of the product category in an attempt to forestall the Vaseline brand from becoming declared as generic.

From a consumer's point of view, a major benefit of branding (i.e. the fact that products carry identifiable brands) is that it increases price competition for products.

false Rationale: Price competition tends to be reduced by branding because individual brands can develop differentiated positions that make it harder for consumers to directly compare prices.

Cannibalization of sales is most likely to be greater with the brand extension strategy.

false Rationale: False. Cannibalization is likely to greatest when using flanker branding since these brands exist in same the same product line.

When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing a flanker brand

false Rationale: False. It was introducing a line extension.

Retailers such as Kroger market their own private label brands primarily to encourage consumers to comparison shop.

false Rationale: False. Private label brands typically provide added value to customers and generate substantial revenue for retailers.

The makers of Rollerblade ran a series of ads with the headline "What's in a name? Everything." Based solely on the headline, the ad probably was attempting to rejuvenate sales for the declining brand.

false Rationale: False. The ad was intended to remind consumers that the Rollerblade brand is trademarked and should not be confused with other brands of inline skate.

When automotive dealers emphasize the quality of their friendly and expert service at dealerships, comfortable and clean waiting rooms at service facilities, liberal financing options, and no pressure sales, they are attempting to influence customers' perceptions of the core values level of brand.

false Rationale: Marketers are attempting to structure perceptions of the enhanced brand.

The affective brand consists of the basic benefits, features, and quality delivered by the product.

false Rationale: The affective brand captures the consumer's emotions and usage associations.

The failure of 'New Coke' illustrates the danger of ignoring the importance of the enhanced brand with respect to its contribution to the consumer's overall brand image.

false Rationale: The failure of New Coke is traced to research failing to recognize the importance of the affective brand.

When all or most of the product items in a firm's product mix bear the same brand name, the branding strategy is called brand extension.

false Rationale: This is a family branding strategy. Brand extension is a special case of family branding in which the family brand is employed on new products in new and generally unrelated product categories.

Keurig is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Keurig name and carries on the Keurig reputation for high quality. Keurig uses _____ branding.

family

The advantages of brand extension as a strategy are most closely related to those of _______.

family branding

A _____ is any brand identifier that is given legal protection because, under the law, it has been developed and supported by one seller.

trademark Rationale: Firms can trademark any name, design, symbol, sound or other descriptor that uniquely identifies their brands.

A major advantage of using family branding is that it makes it less expensive to introduce new, related products.

true

A major potential drawback to the co-branding strategy is the risk of damaging a brand name if the cooperative endeavor fails

true

A major potential drawback to the co-branding strategy is the risk that consumers may not perceive that the new co-branded product does not fit their images of one or both partnering brands.

true

Brands capture the meanings, images, sensations and experiences that people associate with a person, place or idea.

true

Coke insists that wait-staff in restaurants selling only Pepsi products ask patrons if "Pepsi will be OK?" when the customer requests a "Coke." This is done primarily to help prevent the "Coke" brand from becoming declared as generic.

true

Harley-Davidson's positive brand equity allows it to employ brand licensing as a means of increasing its revenue base.

true

Keurig is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Keurig name and carries on the Keurig reputation for high quality. Keurig uses "family" branding.

true

One of the difficulties with using family branding is that the strategy requires a great emphasis on consistent quality.

true

Positive brand equity allows firms to launch new products more easily.

true

Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name. Tara Foods evidently produces private label brands.

true

The advantages of brand extension as a strategy are most closely related to those of family branding.

true

The brand names Acura, Quick Metal, Duracell, and Compaq were developed by a technique with which words and part-words (called morphemes) were combined and tested to create the names.

true

The general purpose of the branding strategy called "over-branding" is to change a brand's name gradually over time.

true

The physical brand consists of the core values delivered by the brand plus the physical characteristics of the brand.

true

There are many products sold that bear the Harley-Davidson brand, however Harley-Davidson does not manufacture these products. Instead, Harley-Davidson allows other manufacturers to use its brand name in return for royalties on the sales of these products. Harley-Davidson is apparently employing a brand licensing strategy.

true

When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing what is called a line extension

true

When marketers select key elements of the physical, enhanced, and affective brand levels to emphasize in their promotions, they are attempting to structure the "position" of the brand in consumer's minds.

true

When producers of beer brands, such as Coors Light, Bud Light, and Miller Lite depict their brands being consumed in festive party settings they are attempting to structure or manage the affective level of brand.

true

A trademark is any brand identifier that is given legal protection because, under the law, it has been developed and adopted by one seller.

true Rationale: Firms can trademark any name, design, symbol, sound or other descriptor that uniquely identifies their brands.

A brand's image (brand image) is primarily a function of:

• The core brand • The physical brand • The enhanced brand • The affective brand

Which of the following is not correct? Good brand names should:

Exploit verbal traps

: A brand's image is primarily a function of consumers' perceptions of the physical brand

False Rationale: All levels of brand impact brand image. No single level can be singled out as the primary driver of image.

The presence of a known brand on a product helps the consumer in a number of ways, including providing immediate knowledge of the price charged for the brand.

False Rationale: Branding does not provide immediate knowledge of prices. Prices are set by resellers using a number of criteria. Branding can, however, suggest a probable price range to be expected.

Procter & Gamble produce and market Zest, Safeguard, Camay, and Lava brand bar soaps, among other personal care products. Zest is a refreshing "morning wake-up" soap. Safeguard is positioned as antibacterial. Camay is a gentle cleansing soap. Lava is for tough cleaning jobs. These different brands illustrate the use of "family branding."

False Rationale: Using different brand names on products within a line illustrates "multiple branding."

Assume Kellogg is planning to produce and market a line of DVDs. It would be best for Kellogg to employ its family brand to take advantage of consumers' familiarity with its products and reputation.

False Rationale: Using the family brand probably is a mistake since Kellogg is not known for DVDs and consumers may not be receptive to the new product.

Which answer is correct? Positive brand equity can:

Increase the "share of mind" space enjoyed by the branded product. Be used by firms to launch new products more easily. Charge higher prices and not lose market share.

Distributors' brands are owned and primarily marketed (promoted) by:

Intermediaries (middlemen)

How might Whirlpool benefit if appliances it manufactured were sold at Sears under the Kenmore brand name?

It would allow Whirlpool to use its production resources more effectively. It would allow Whirlpool to increase plant capacity. It would allow Whirlpool to generate additional sales volume. It would allow Whirlpool to utilize its working capital more effectively.

Which of the following best explains why the Kroger supermarket chain markets its own line of canned fruits and vegetables under the Kroger private label?

Kroger can sell its brands at prices below those of producers' brands and still earn satisfactory profits.

Firms are engaging in brand extension strategies when they:

Launch new products bearing their family brand into a different product category. (correct)

When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing what is called a:

Line Extension

Procter and Gamble makes extensive use of multiple branding for items in most of its product lines. Which of the following is least likely to be an advantage of this strategy?

Makes it easier and cheaper to launch new products due to the common image associated with all P&G brands.

From a consumer's point of view, branding:

Means getting comparable quality with each purchase.

According to Strutton and Thompson, which of the following levels do exist within a brand?

Metaphysical brand characteristics

According to the characteristics of a good brand name, is "Betty Crocker" a good name for cake mixes? Assume that you have never heard of this brand before.

No, because it suggests nothing about the product. (correct)

One of the difficulties with using family branding is that the strategy:

Requires a great emphasis on consistent quality.

Jill is a very deliberate buyer. She is very risk averse and is always careful to ensure that she makes the best decision possible for her precious dollars. Jill prefers to buy known brands because:

She knows what to expect in terms of quality and performance. It saves her time and makes the decision process easier

Which industry first extensively employed the strategy known as "co-branding"?

The credit card industry

The distinct lettering that identifies a brand is generally referred to as:

The logo or logotype Rationale: The distinctive lettering is the logo or logotype. The logo is part of the overall brand mark.

Which answer is not correct: Brands tell customers:

The price of a product

When automotive dealers emphasize the quality of their friendly and expert service at dealerships, comfortable and clean waiting rooms at service facilities, liberal financing options, and no pressure sales, they are attempting to influence customers' perceptions of the _____________ level of brand.

enhanced

When new products are being introduced, marketers must structure or influence consumers' basic knowledge or understanding of the benefits delivered by the brand. Marketing managers therefore are focusing on structuring aspects of the ___________.

extended brand

Alka-Seltzer recently brought back the animated character Speedy Alka-Seltzer as its spokesperson. "Speedy" best illustrates the brand mark form of brand identifier for the Alka-Seltzer brand?

false

Modern branding, as we commonly know it today, actually began with Henry Ford and his Model T.

false

The distinct lettering that identifies a brand is generally referred to as the brand mark.

false

The totality of synaptic associations in a consumer's mind that hold all the feelings, images, sensations, experiences, and other content representing a brand is called brand position.

false Rationale: The totality of association in the consumer's mind for a brand is called the brand schema and it is responsible for determining the brand's image and position in the consumer's mind.

Middlemen stock and sell producers' brands mainly because their margins tend to be higher than for their own private label brands. Type: True or False

false Rationale: This is False. Margins are typically higher for the retailer's own private label brands.

Jill is a very deliberate buyer. She is very risk averse and is always careful to ensure that she makes the best decision possible for her precious dollars. Jill prefers to buy known brands because it makes it easier to compare prices.

false Rationale: False because branding tends to make direct price comparisons harder since individual brands can be differentiated from one another in terms of benefits, features, services, promotional associations, etc.

When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing a:

line extension

Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name. Tara evidently produces __________ .

middlemen's brands

When marketers select key elements of the physical, enhanced, and affective brand levels to emphasize in their promotions, they are attempting to structure the ______________ of the brand in consumer's minds.

position Rationale: Marketers attempt to create the brand's position when emphasizing key characteristics and association for brand in their promotions.