MGKT 370 Ch. 11

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 The "swoosh" is a brand symbol associated with Nike. The firm has invested a great deal of time and money in making the swoosh one of the most recognizable brand symbols in the world."

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.

B. Graduate and undergraduate programs at most universities are distinct product lines, with each product line including multiple degrees.

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 is the number of items in a product line. Zappos promises its customers a huge selection, and so must maintain great product line depth.

"Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product? A. convenience B. unsought C. shopping D. luxury E. routine

C Shopping products/services are products or services for which consumers will spend a fair amount of time comparing alternatives.

"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. A. specialty B. convenience C. unsought D. shopping E. sought

D Since Meg spent significant time comparing alternatives, this would be considered a shopping product.

"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. A. positioning B. licensing C. association D. equity E. solvency

D This is the definition of brand equity.

T/F A product label is just a required sticker on a package.

FALSE A label is much more than that. It can help sell the product; it also provides key information, which is sometimes regulated by the government.

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

FALSE A private-label brand is a retailer or store brand, developed by retailers to be sold only within their own stores.

T/F For a company like Pepsi-Cola, brand dilution occurs when it sells more product than the competition.

FALSE Brand dilution refers to overuse of the brand for brand extensions, such that brand equity becomes weaker

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

FALSE Even if the overall brand name is familiar, it won't help sales of individual products unless consumers know what products are available under that name and the brand has a positive image."

T/F Manufacturers, wholesalers, and retailers can all own brands.

TRUE This is correct; any kind of firm in the supply chain can own brands.

"When a company launches a new product line 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 refers to the use of the same brand name for a new product line.

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

C Brands are assets that can produce profits if brand equity is built successfully.

"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 A brand extension refers to the use of the same brand name in a different product line.

"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 The perceived value of a good or service is the relationship between its benefits and its costs. By reducing the cost, the value will be seen to be greater.

A The perceived value of a good or service is the relationship between its benefits and its costs. By reducing the cost, the value will be seen to be greater.

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

A This is a co-branding arrangement, in which two brands lend their names to a cooperative venture.

"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 A firm can use its own corporate name to brand all its product lines and products, referred to as a family brand.

"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.

B Companies invest in brands to build brand equity, which is a corporate asset.

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

C Associated services are related to the nonphysical aspects of the product such as product warranties.

"Nora is deciding whether to purchase brand-name sneakers or a less expensive 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 Since Nora's past experience with name brands has been marginal, she might prefer to buy the store brand, which is less expensive and might therefore provide better value.

"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 The product mix is the complete set of all the firms' offerings."

"A toothpaste tube is an example of a ________ package. A. primary B. secondary C. brand positioning D. private-label E. convenience

E A toothpaste tube is a primary package.

T/F The more familiar customers are with a brand, the harder their decision-making process will be.

FALSE Familiarity with a brand makes the decision making easier, not harder.

T/F A decrease in a company's product depth will always hurt its marketing efforts.

FALSE From time to time, it is necessary to delete products within a product line to realign the firm's resources. Firms often must prune their product lines to eliminate unprofitable or low margin items and refocus their marketing efforts on their more profitable items.

T/F A product is anything that is of value to a consumer and can be offered through a voluntary exchange.

TRUE

T/F 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 The secondary package is the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners. The packaging is used to attract the consumer's attention.

T/F When purchasing a mobile phone, the product you are buying is more than just the phone.

TRUE The three components of a product are the core customer value, the actual product, and the associated services. In this case the associated services include the cellular service.

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

A Private-label brands are also referred to as retailer or store brands.

T/F Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products.

TRUE A firm's product mix breadth represents a count of the number of product lines offered by the firm.

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

A An unsought product or service is a product consumers either do not normally think of buying or do not know about.

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

B Any firm in the supply chain—manufacturer, retailer, distributor, and so on—can own a brand.

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

B Firms invest in developing new products, and they will not walk away from that investment lightly.

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

B If Jake gives the toothbrush the same brand name as his existing toothpaste, this is a brand extension, adding a new product line (toothbrushes) to his existing brand.

"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 an element of A. social marketing. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

B Matt's word-of-mouth behavior is an outcome of his brand loyalty.

"_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes. A. The core customer value B. Brand equity C. Brand associations D. Brand loyalty E. The product mix

C Brand associations reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, slogan, or famous personality. These brand associations often result from a firm's advertising and promotional efforts.

"Procter & Gamble is a huge national brand manufacturer. By owning its 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 its marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C Brand ownership gives the owner greater control over its marketing strategy—the ability to position the brand and to establish the marketing mix.

"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 Brands owned by retailers are called store brands, house brands, own brands, or private-label brands.

"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 (customer relationship management) programs often include reward programs aimed at loyal customers.

"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 products are those which are used together—for example, chips and dip, or toothbrushes and toothpaste. It can often make sense to extend a brand to offer a complementary product under the same brand name.

"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 Efforts to change the brand's focus or image are referred to as brand repositioning or rebranding.

"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 For Andy, popcorn is a specialty product—he is willing to spend time finding his favorite brand. For Joanne, it is a convenience good—she doesn't care about brands and so is unlikely to comparison shop.

"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.

D Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product. In addition, benefits may transfer back to the core brand and increase its sales.

"Which of the following statements regarding brand loyalty is not true? A. The marketing costs of reaching loyal customers are typically very high. B. Brand loyal customers are unlikely to switch to competitor's brands. C. Brand loyal customers generate positive word of mouth. D. Firms tend to reward brand loyal customers with extra benefits. E. Brand loyal customers do not need persuasion to buy the firm's brands.

E The marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and promotion campaigns to attract brand loyal customers. Loyal consumers simply do not need persuasion or an extra push to buy the firm's brands.

T/F Brands are assets that can be legally protected through trademarks.

TRUE Brands are assets that can be legally protected through trademarks and copyrights and thus constitute a unique form of ownership."

T/F Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases.

TRUE Brands are often easily recognized by consumers, and because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions, especially about their purchases.

"A _______ refers to the use of the same brand in a different product line. A. line extension B. brand extension C. product mix extension D. co-brand E. brand license

B This is the definition of brand extension.

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

C Efforts to change the brand's focus or image are referred to as brand repositioning or rebranding.

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 For the university, these would be product lines. Within each product line would be specific majors.

T/F A company's product line consists of its various product mixes.

FALSE This is backward. A company's product mix consists of its various product lines.

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

B Associated services are the nonphysical aspects of the product such as product warranties.

"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 This was a brand extension, using the Crest brand name for a new product line

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

D The terms manufacturer's brand and national brand both refer to brands owned and managed by manufacturers.

"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 Secondary packaging—the wrapper or exterior carton that contains the primary package—fills many roles, including all of those listed here. It is therefore of value to the consumer.

"Jenna always buys Stacy's brand pita 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 Since Jenna does not consider other brands, she is brand loyal.

"Which of the following products actually lost market share due to its attempt at sustainable packaging? A. Doritos B. Oke Doke popcorn C. Lay's potato chips D. Pringles E. Sun Chips

E Sometimes sustainable packaging changes (or any change for that matter) can backfire, though, such as when PepsiCo replaced its Sun Chips bags with new 100 percent compostable bags. While the bags would save a tremendous amount of waste in landfills, they were also extremely noisy and crinkly. Customers balked and Sun Chips lost market share.

"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. The brand name, logo, packaging, and slogan are all important in creating brand awareness.

E The brand name, logo, packaging, and slogan are all important in creating brand awareness.

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

E This is the definition of brand dilution.

"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 Brand-loyal customers are already convinced of the brand's value. It is not necessary to spend large sums of money to build awareness and preference for the brand among these customers.

"Marketers spend billions of dollars annually attempting to build effective brands. One 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 capitalize on promotional expenditures. E. reduces the need for product line depth. Brands are intended to differentiate a firm's offerings from those of its competition.

B Brands are intended to differentiate a firm's offerings from those of its competition.

"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 Familiarity with brands helps consumers make purchase decisions because they are aware of what the brands stand for, and can use this information to make an appropriate choice.

"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. by trying out different products. E. through brand association and brand licensing.

B The perceived value of a good or service is the relationship between its benefits and its costs. In a competitive market, these benefits and costs will be easiest to evaluate in comparison to competitive offerings.

"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 If brand extensions are not executed carefully, they can dilute the core brand by damaging its associations and equity.

"Marketers selling milk, bread, and other consumer staples know that 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 Milk, bread, and other consumer staples are convenience goods for most shoppers. They will not compare many alternatives, but will simply purchase what they need.

__________ 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 is the number of items in a product line. Firms make strategic decisions about the appropriate product line depth based on their resources and objectives.

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 All of these are reasons why firms might decide to delete a product from a product line, except the desire to capture new markets.

T/F A customized carved cedar wood sign for your house is an example of a convenience product.

FALSE A specialty product is one toward which customers show a strong preference, such that they will spend time and effort searching for the best suppliers. A customized product such as the cedar sign is a specialty product.

T/F Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

FALSE Brand equity 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.

T/F Sales of private-label brands continue to decline in the United States, particularly in big-box stores such as Costco.

FALSE In the past, sales of store brands were limited. But in recent years, as the size of retail firms has increased through growth and consolidation, more retailers have the scale economies to develop private-label merchandise and use this merchandise to establish a distinctive identity. Both Costco and Trader Joe's have based their brand identities around their store brands.

T/F For the average college student, a retirement account would be a shopping product.

FALSE Most college students are not thinking of preparing for retirement, so a retirement account would be an unsought product.

T/F 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.

FALSE Product line depth (not breadth) equals the number of products within a product line, as in this question

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

FALSE The licensor is the party granting the license, while the licensee is the one using the license to produce products using the licensed characters. For licensors, the major risk is the dilution of the brand.

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 This is a brand extension, not a line extension. A brand extension is the use of the same brand name in a different product line. Phones and gaming systems are different product lines.

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 The "actual product" is made up of the brand name, quality level, packaging, and features and design. The product warranty is one of the associated services included in the augmented product.

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 The augmented product includes associated services such as a warranty and a customer service line dedicated to product support."

"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 The manufacturer is concerned with understanding the core value that the customer seeks.

"Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes 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 Shoes are typically a shopping good, where consumers compare alternatives.

"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

B Some firms might agree that it doesn't make sense to spend so much money on a Super Bowl ad; however, the Super Bowl offers a huge TV audience and, with it, a major opportunity to build brand awareness.

"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. it allows the firm to 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 Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product.

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

D Brand awareness, brand loyalty, brand associations, and perceived value are the four primary criteria used to evaluate brand equity.

"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 Brand names that become synonymous with the product must protect against the use of the brand name in a generic fashion, or they may lose their trademark on the name.

"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 Keeping track of customers' preference enhances the relationship and increases brand loyalty, all part of customer relationship management (CRM).

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's brand

A Private-label brands are products developed by retailers.

"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.

A Strong brands protect the firm somewhat from competition because the brand differentiates the firm's products, making customers more loyal

"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 the ingredients

A The package might protect against damage to the product, but that is not a function of the label.

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 A brand can facilitate purchasing because the customer can quickly recognize it and decide whether or not to purchase it based on brand associations

"How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces? A. They did not notice the change. B. They were happy the company reduced the product size, rather than increase the price. C. They stopped buying Chobani altogether. D. They organized a boycott of the product. E. They used social media to complain about the change.

E When the costs of producing a product rise significantly, manufacturers are faced with either raising prices, something customers don't usually like, or reducing the amount of product sold in a package. Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces without changing the price. As soon as these newer, smaller packages hit store shelves, customers took to Twitter and Facebook and immediately began complaining about the change, further raising awareness of the packaging change.

"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 A brand name should be memorable and easy to recognize, in general.

"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 is the use of the same brand name within the same product line, and represents an increase in a product line's depth.

"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 being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been A. rebranded. B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

A Head & Shoulders has been rebranded (also referred to as brand repositioning) to give it a health-oriented image. While it is possible that it may have been reformulated, it is equally likely that the rebranding consists strictly of changes in positioning and marketing communications.

"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. umbrella brands.

A Old Spice and Iams are individual brands, separate brand names for different product lines.

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 is the use of the same brand name within the same product line, and represents an increase in a product line's depth.

A A line extension is the use of the same brand name within the same product line, and represents an increase in a product line's depth.

"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.

B Companies whose brand names become synonymous with the product—like Kleenex, Clorox bleach, and Scotch tape—must be vigilant in protecting their brand names because if they are used so generically, over time, the brand itself can lose its trademark status.

"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 The primary package is the package the consumer uses (for example, a toothpaste tube), while the secondary package is used by retailers to display the product (for example, the box the toothpaste tube comes in)

"The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created A. brand ownership. B. a brand extension. C. brand loyalty. D. brand dilution. E. a brand association.

E Brand associations reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, slogan, or famous personality.

"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 Frequent buyer programs and similar loyalty programs are often part of a CRM (customer relationship management) program.

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

E Private-label brands are brands developed by retailers.

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

E This is the definition of a licensed brand. A long-standing staple of licensing has been major league sports teams that play in the NBA, NFL, or NHL as well as various collegiate sports teams.

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 This is the definition of a product. It does not have to be a tangible item; it can also be a service, or a combination of a good and associated services.

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

TRUE Good packaging and labeling can grab the consumer's attention and encourage the consumer to buy.

"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. depth.

A Brand awareness is familiarity with the brand and what it stands for.

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 McDonald's, 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 The Golden Arches are a brand symbol for McDonald's. The company has invested in ensuring that consumers recognize the symbol and associate it with the brand.

"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. Brands can be legally protected through copyrights and trademarks.

A Brands can be legally protected through copyrights and trademarks.

"Where on a product's packaging would one most likely find nutrient content and country of origin? A. inside the secondary package B. inside the primary package C. on the company website D. on the label E. on the store shelf display

D Product labels may highlight specific ingredients, vitamin content, nutrient content, and country of origin.

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 is a subset of the product mix, a collection of associated items that consumers either use together or consider to be related to each other."

A A product line is a subset of the product mix, a collection of associated items that consumers either use together or consider to be related to each other.

"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. comingled brands. C. undifferentiated brands. D. approximated brands. E. unlicensed brands.

A This is an example of brand dilution—the weakening of the core brand due to extensive or inappropriate extensions.

"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. reduce product packaging. E. meet government regulations.

C Brands help consumers know what products are available under that name

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 If GE could not achieve first, second, or third place in a market, it would eliminate a product line, which decreases the product mix breadth.

"According to your text, _______ packaging is product packaging that is ecologically responsible. A. recycled B. environmental C. responsible D. sustainable E. green

D An interesting recent development in packaging is a move to "sustainable packaging." Sustainable packaging is product packaging that is ecologically responsible.

"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.

D Brand dilution (the weakening of brand equity) can occur when brands are extended too much or in inappropriate ways.

"Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can be obtained only 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 Once a brand has established strong associations with its name, the firm may be able to spend less on promoting new products since consumers already recognize the brand and know what it stands for.

"What U.S. government agency has the 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 The U.S. Food and Drug Administration is the primary federal agency responsible for reviewing food and package labels.

T/F Brands enable customers to quickly differentiate one firm or product from another.

TRUE As consumers become familiar with brands, they can more quickly differentiate between various offerings.

T/F Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered a specialty product.

TRUE Luxury cars are specialty products because customers are willing to spend more effort to select just the right one.

T/F Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing expenditures, benefiting businesses like Coca-Cola.

TRUE The costs of reaching loyal customers are lower, and their positive word of mouth reaches potential customers and reinforces the perceived value of current customers, all at no cost to the firm.