Chapter 11

Brands are assets that can be legally protected through A. copyrights and trademarks. B. financial reporting. C. brand extensions. D. generic branding. E. corporate branding strategies.

A. copyrights and trademarks.

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. A. core customer value B. associated services C. augmented products D. product support E. quality level

A. core customer value

Brands can be owned by A. manufacturers only. B. any firm in the supply chain. C. retailers only. D. wholesalers and retailers only. E. only private label generic retailers.

B. any firm in the supply chain.

When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in A. corporate branding. B. brand extension. C. brand licensing. D. brand association. E. perceived value branding.

B. brand extension.

For marketers, one of the benefits of having achieved brand loyalty is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. increased price sensitivity among loyal customers. D. greater concern about competitors' actions. E. few worries about copyright infringement.

B. lower marketing costs associated with reaching 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 A. meet their self-actualization needs. B. make purchase decisions. C. consider repositioning their opinions. D. pursue generic alternatives. E. negotiate discounts.

B. make purchase decisions.

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct A. brand associations. B. product/service lines. C. product mixes. D. brands. E. augmented services.

B. product/service lines.

Marketers spend billions of dollars annually attempting to build effective brands. The basic benefit of a brand is that it A. creates a basis for effective packaging. B. provides a way for a firm to differentiate its product offerings from competitors. C. offers consumers promotional parity. D. allows manufacturers to ignore promotional expenditures. E. reduces the need for product line depth.

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

Another name for brand repositioning is A. strategic brand alteration. B. change management. C. rebranding. D. perception tracking. E. brand scaling.

C. rebranding.

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

False

For a company like Pepsi-Cola, brand dilution occurs when they dilute their product. True False

False

When a company launches a new product with an existing brand name this is known as A. a brand extension. B. a line extension. C. a multi-brand. D. a new brand. E. co-branding.

A. 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. a line extension B. a brand extension C. a copycat brand D. a premium brand E. a multi-brand

A. a line extension

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension

A. product line

When a salesperson approaches you to sell a cemetery plot, this is considered what type of product? A. unsought product B. shopping product C. convenience product D. line extension E. secondary product

A. unsought product

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.

B. Because the Super Bowl offers an opportunity to create significant brand awareness.

In retailing, effective packaging sends this message: A. More packaging means more product. B. Buy me! C. I have more features than the competition. D. I am cheaper than the competition. E. There is nothing toxic inside.

B. Buy me!

Which of the following is the best example of a family brand? A. Cadillac, GMC, and Chevrolet B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies D. Lifesavers Soda, Coca Cola, and Diet Coke E. KFC/Taco Bell Fast Foods

B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa

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 A. lower advertising costs. B. appeal to a different market segment. C. reinforce the Toyota brand image. D. exploit brand loyalty to Toyota. E. lower product development costs.

B. appeal to a different market segment.

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 part of A. social insistence. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

B. brand loyalty.

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. to maximize product line depth.

B. build brand equity.

Sometimes brand names become synonymous with a product itself. If that happens, the firm A. has achieved brand nirvana. B. could lose its trademark. C. should try co-branding in order to avoid brand dilution. D. should consider a new packaging strategy. E. easily eliminates all competition.

B. could lose its trademark.

__________ is the number of items within a product line. A. Brand equity B. Product line breadth C. Product line depth D. Product mix depth E. Product mix breadth

C. Product line depth

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. A. specialty B. shopping C. convenience D. ritual E. impulse

C. convenience

Marketers with luxury brands use brand extension cautiously in order to avoid A. brand licensing fees. B. exclusive co-branding arrangements. C. diluting the core brand. D. private label branding disputes. E. product line extension limitations.

C. diluting the core brand.

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. A. brand equity B. product line breadth C. product line depth D. product mix depth E. product mix breadth

C. product line depth

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.

C. product mix.

Brand extension is a popular marketing strategy because A. it separates out the cost of brand extension from brand intention. B. it allows the firm to discontinue complementary products. C. the firm can spend less on creating brand awareness and associations. D. it avoids the problem of brand dilution. E. it guarantees success for a new product.

C. the firm can spend less on creating brand awareness and associations.

__________ 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. A. Brand positioning B. Brand licensing C. Brand association D. Brand equity E. Brand solvency

D. Brand equity

Firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can only be obtained by means of product line depth. D. people already know what the brand means. E. well-known brands are less likely to introduce brand extensions.

D. people already know what the brand means.

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. A. brand associations B. family brands C. co-brands D. product lines E. private label brands

D. product lines

Brands that are owned by ___________ are called private-label brands. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D. retailers

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes of the core brand. A. Corporate branding B. Brand extraction C. Brand collusion D. Brand personality destruction E. Brand dilution

E. Brand dilution

Effective packaging and labels send the signal: "Buy me." True False

True

Harold is a loyal Coca-Cola customer. Loyal customers like Harold are typically less price sensitive than other consumers, benefiting businesses like Coca-Cola. True False

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 False

True

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

True

Which of the following is NOT part of the "actual product" level of the product offer? A. product warranty B. features C. design D. quality E. brand name

A. product warranty

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 A. rebranded. B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

A. rebranded.

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is A. relatively insensitive to price. B. uninformed about the product category. C. product category committed. D. a brand equity investor. E. a savvy consumer.

A. relatively insensitive to price.

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. A. co-brand B. brand extension C. premium brand D. joint brand E. natural brand

B. brand extension

In a competitive market, perceived value is determined by consumers mostly A. by quantitative analysis of brand personalities. B. in relationship to the value of competitors' offerings. C. by weighing primary versus secondary benefits. D. through investment in product tracking systems. E. through brand association and brand licensing.

B. in relationship to the value of competitors' offerings.

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. A. specialty B. shopping C. convenience D. ritual E. impulse

B. shopping

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

C. decreasing product mix breadth

Another name for a manufacturer's brand is a(n) __________ brand. A. systematic B. extended C. national D. premium E. private-label

C. national

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. A. secondary; primary B. generic; private label C. primary; secondary D. corporate; manufacturer's E. co-branded; licensed

C. primary; secondary

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

C. profitability.

One of the advantages of selling specialty goods and services is that when consumers want them, they will A. question the price. B. consider many alternatives. C. search for them. D. perceive greater performance risk. E. expect them to be offered conveniently.

C. search for them.

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. A. SKU B. PDQ C. IMF D. CRM E. GATT

D. CRM

One of the major tools used by marketers to meet the needs of loyal customers is A. SKU. B. PDQ. C. IMF. D. CRM. E. GATT.

D. CRM.

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. A. shopping; specialty B. convenience; shopping C. convenience; specialty D. specialty; convenience E. unique; universal

D. specialty; convenience

Which of the following is NOT true regarding secondary packaging? A. It can provide information to consumers not found on the primary packaging. B. It is important to the retailer in terms of convenience in handling. C. It can be an important positioning tool to convey the brand image. D. It can allow for cost efficiencies due to larger order and shipment sizes. E. It is of little value to the average consumer.

E. It is of little value to the average consumer.

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line? A. The firm decided to refocus marketing efforts elsewhere. B. The firm must respond to evolving markets. C. The product undermined its own brand. D. The product being eliminated is unprofitable. E. The firm has decided to capture new markets.

E. The firm has decided to capture new markets.

A product is __________ that can be offered through a voluntary marketing exchange. A. the combination of a firm's marketing mix B. the brand associations C. the category depth D. a tangible item E. anything of value to consumers

E. anything of value to consumers

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

False

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

False

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

False

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

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. True False

False

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

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. True False

False

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

False

Sales of private-label brands continue to decline in the U.S., particularly in big-box stores such as Costco. True False

False

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

False

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

True

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

A. Protecting against damage to the product

________ is another term for private-label brands. A. Store brands B. Off brands C. Manufacturer brands D. National brands E. Experiential brands

A. Store brands

Marketers with successful brands sometimes hesitate to expand their brands because A. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. B. it is costly to maintain many product lines, and might weaken the firm's reputation. C. it is often difficult to get additional marketing communications coverage for the brand. D. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division. E. the current economy can only support a limited number of product options.

B. it is costly to maintain many product lines, and might weaken the firm's reputation.

The decision to delete a product is never taken lightly because, generally, manufacturers have A. offered the product line to other firms for purchase. B. made substantial investments in brand development and manufacturing. C. promised consumers they will maintain the product. D. used brand repositioning to improve results. E. federal standards that must be met when taking products off the market.

B. made substantial investments in brand development and manufacturing.

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

B. symbol.

The value of a brand is often calculated by assessing the A. difference between brand equity and brand liability. B. corporate profitability divided by the monthly brand earnings. C. earning potential of the brand over the next 12 months. D. effect of brand dilution if it occurred. E. average product line depth.

C. earning potential of the brand over the next 12 months.

Nora is deciding whether to purchase brand name sneakers or a 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 A. more brand awareness. B. higher degrees of brand loyalty. C. greater perceived value. D. a better brand image. E. more product line depth.

C. greater perceived value.

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) A. have memorized the McDonald's menu. B. prefer yellow to other colors. C. know what the Golden Arches brand symbol means. D. recognize increases in product line depth. E. are sensitive to brand repositioning.

C. know what the Golden Arches brand symbol means.

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? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

D. Food and Drug Administration

In the case of Band-Aid adhesive bandages, the brand name has A. successfully employed private label branding. B. distinctive brand substitutability. C. grown through private label branding. D. become synonymous with the product itself. E. avoided brand extensions.

D. 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? A. brand awareness B. brand loyalty C. brand associations D. brand conceptualization E. brand perceived value

D. brand conceptualization

Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of ___________ in the supply chain. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D. retailers

A __________ is a name, symbol, design, or term that identifies a seller's good or service as distinct from those of other sellers. A. SKU B. product line C. supply chain D. commodity E. brand

E. brand

Jenna always buys Stacy's brand pita bread chips. She does not even consider alternatives. Jenna is a __________ customer. A. price sensitive B. brand persuasion oriented C. brand association oriented D. brand extension oriented E. brand loyal

E. brand loyal

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. diluting brand equity.

E. diluting brand equity.

A __________ is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. A. franchise brand B. joint venture brand C. shared brand D. common use brand E. licensed brand

E. licensed brand

Frequent buyer/user award programs are used to A. increase price sensitivity. B. decrease co-branding costs. C. lower licensing fees. D. expand product line depth. E. maintain contact with loyal customers.

E. maintain contact with loyal customers.

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 A. no brand associations. B. unspent brand loyalty. C. private label impact. D. brand dilution. E. negative brand equity.

E. negative brand equity.

Private-label brands are developed and managed by A. manufacturers. B. wholesalers. C. supply chain specialists. D. manufacturer's reps. E. retailers.

E. retailers.

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 A. an associated service. B. the actual product. C. product style. D. the product position. E. the core value.

A. an associated service.

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? A. associated services B. actual product C. product style D. product position E. product concept

A. 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? A. augmented product B. core customer value C. actual product D. modified product E. core product

A. 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 A. awareness. B. equity. C. extension. D. integration. E. co-branding.

A. awareness.

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 A. brand dilution. B. co-mingled brands. C. undifferentiated brands. D. approximated brands. E. unlicensed brands.

A. brand dilution.

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.

A. brand 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

A. line extension

Procter & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G A. can monopolize store brands. B. has greater opportunity to dictate retail pricing. C. has greater control over marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C. has greater control over marketing strategy.

Efforts to change a brand's focus to target new markets or change the image of a brand are called A. co-branding. B. brand extraction. C. brand collusion. D. brand repositioning. E. brand dilution.

D. brand repositioning.

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.

D. complementary goods.

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. customer perceptions about the core brand are adversely affected. E. brand names seem too old-fashioned or familiar.

D. customer perceptions about the core brand are adversely affected.

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

True

Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of A. co-branding. B. brand extraction. C. brand collusion. D. a generic brand. E. brand dilution.

A. co-branding.

For a brand name to be effective, it needs to be A. easy for consumers to recognize and remember. B. a catchy, tongue-twisting phrase. C. a visual image containing human characters. D. generic, so it can be applied to as many products as possible. E. associated with a sports or movie superstar.

A. easy for consumers to recognize and remember.

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 A. individual brands. B. family brands. C. corporate brands. D. traditional brands. E. registered brands.

A. individual brands.

One key feature of the value of a brand is that A. it often protects the firm from competition and price 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.

A. it often protects the firm from competition and price competition.

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. A. perceived value B. brand awareness C. brand loyalty D. generic positioning E. brand extension

A. perceived value

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? A. private-label brand B. counterfeit brand C. premium brand D. national brand E. manufacturer brand

A. private-label brand

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. he can be less concerned about competitors' actions. D. increased price sensitivity among loyal customers. E. less need for concern about product quality.

C. he can be less concerned about competitors' actions.

One important purpose of a brand is to A. sell advertising space. B. minimize product line depth needed to be effective. C. increase consumer recognition and awareness of product offerings. D. protect product packaging. E. meet government regulations.

C. increase consumer recognition and awareness of product offerings.

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.

D. facilitates purchasing.

A firm's product mix breadth is its A. number of items per product line. B. depth divided by profitability. C. number of categories that are mutually exclusive. D. number of product lines. E. brand equity multiplied by its capacity utilization.

D. number of product lines.

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 A. the brand name. B. the logo. C. the packaging. D. the slogan. E. the product history.

E. the product history.