Ch. 11/12

product line

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

primary; secondary

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

family brand

A firm can use its own corporate name to brand all its product lines and products is ______

product lines

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.

national

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

equity

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.

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

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.

retailers

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

profitability

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

product line

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

decreasing product mix breadth

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. A. increasing product line depth B. decreasing product line depth C. decreasing product mix breadth D. increasing product mix breadth E. introducing brand extensions

that he can be less concerned about competitors' actions

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 A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. that he can be less concerned about competitors' actions. D. increased price sensitivity among loyal customers. E. less need for concern about product quality.

it can protect the brand from competition

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.

complementary goods

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.

perceived value

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.

could lose its trademark status

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.

false

T/F: A familiar brand name always helps the sales of a product.

true

T/F: Effective packaging and labels send the signal: "Buy me."

false

T/F: 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 (it is dilution of the brand)

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

false

T/F: Private-label brands are imitations often sold by street vendors.

build brand equity

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.

product mix

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.

eliminating competition

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.

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.

brand extension

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.

facilitates purchases

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.

line extension

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

protecting against damage to the product

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 ingredients

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

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 to spend over $2 million for a Super Bowl ad

product line depth

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.

store

________ is another term for private-label brands.

product line depth

__________ is the number of items within a product line.