Chapter 7 Quiz

When Dollar Shave Club stresses price as an advantage over competitors, which strategy is it using to create competitive advantage?

Differentiating on an existing attribute

What consumer emotion did Ally Bank tap into to create its initial position as an alternative to traditional banks?

Distrust of financial institutions

What is the first step in conducting a customer value analysis?

Identify the relevant attributes and benefits that customers value.

________ are visual representations of consumer perceptions and preferences.

Perceptual maps

Which of the following best describes this car company's value proposition?

We sell the safest, most durable station wagon.

To build a strong brand and avoid the commodity trap, marketers must start with the belief that it is possible to differentiate an offering by creating ________.

a sustainable competitive advantage

________ refers to the products or sets of products with which a brand competes and which function as close substitutes.

category membership

Differentiation through brand power is of particular value in ________ product categories.

commoditized

When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________.

comparing to exemplars

________ is an offering's ability to perform in one or more ways that competitors cannot or will not match.

competitive advantage

To reveal the company's strengths and weaknesses relative to those of various competitors, marketing managers can conduct a(n) ________.

customer value analysis

By its nature, vodka is difficult to differentiate on attributes of the physical product. How has Grey Goose gained the ability to charge premium prices?

effective branding

Which component of value relates to an offering's performance from the customer's perspective?

functional value

Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the competitive frame of reference is quick-serve restaurants like McDonald's, what is the POD?

health

When TOMS chose to differentiate itself from traditional shoe manufacturers by its "buy one, give one" social responsibility program, it used which strategy to create competitive advantage?

introducing a new attribute

A positioning statement clearly articulates the offering's target customers and the ________ that will provide customers with a reason to choose the company's offering.

key benefit

________ is based on deep metaphors that connect to people's memories, associations, and stories.

narrative branding

Points of ________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands.

parity

Philip Morris bought Miller Brewing and launched low-calorie beer at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when it conveyed the fact that the beer contained one third less calories and hence it is less filling?

points of difference

Which of the following terms is most closely associated with the statement: "attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand"?

points of difference

Unlike the value proposition, which articulates all benefits and costs of the offering, the ________ zeroes in on the key benefits that will provide consumers with a reason to choose the company's offering.

positioning

Suppliers who are dependable in their on-time delivery, order accuracy, and order-cycle time are most likely to be differentiated based on ________.

reliability

When BMW first made its strong competitive push into the U.S. market in the early 1980s, it positioned the brand as the only automobile that offered both luxury (competing with Cadillac) and performance (competing with the Corvette), which is known as ________ because it uses points of difference and points of parity across categories.

straddle positioning

________ is the perceived value of the bundle of functional, psychological, and monetary benefits customers expect from a given market offering because of the product, service, and image.

total customer benefit

Which of the following ways to convey a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership?

Comparing to exemplars

When the National Grape Cooperative reinforces the Welch's brand credentials by focusing on its local sourcing of ingredients, it is using ________ as a point of difference.

brand authenticity

Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's category membership by ________.

announcing category benefits

Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?

desireability

When Monster introduced its energy drink line in a larger 16-ounce can, the purpose was to ________.

differentiate itself from category leader Red Bull