Flashcards About Chapter 11 s
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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. lower marketing costs associated with reaching loyal customers. b. that he can be less concerned about competitors' actions. c. recognition through industry awards. d. increased price sensitivity among loyal customers. e. less need for concern about product quality.
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b. that he can be less concerned about competitors' actions.
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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. exploit brand loyalty to Toyota. b. reinforce the Toyota brand image. c. appeal to a different market segment. d. lower advertising costs. e. lower product development costs
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c. appeal to a different market segment.
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Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is most likely a. product category committed. b. relatively insensitive to price. c. a savvy consumer. d. a brand equity investor. e. uninformed about the product category.
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b. relatively insensitive to price.
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When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in a. brand association. b. corporate branding. c. brand licensing. d. brand extension. e. perceived value branding
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d. brand extension.
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One of the major tools used by marketers to meet the needs of loyal customers is a. PDQ. b. CRM. c. SKU. d. GATT. e. IMF.
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b. CRM.
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Brand extension is a popular marketing strategy because a. it separates out the cost of brand extension from brand intention. b. it avoids the problem of brand dilution. c. it guarantees success for a new product. d. the firm can spend less on creating brand awareness and associations. e. it allows the firm to discontinue complementary products.
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d. the firm can spend less on creating brand awareness and associations.
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Why did PepsiCo reduce the weight of its water bottles by 20 percent? a. to save money on materials b. to save money on shipping c. to sell more bottles of water d. to satisfy environmental groups e. because PepsiCo was concerned about waste from its bottles
answer
e. because PepsiCo was concerned about waste from its bottles
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Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has a. negative brand equity. b. unspent brand loyalty. c. brand dilution. d. private label impact. e. no brand associations.
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a. negative brand equity.
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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. consider repositioning their opinions. b. make purchase decisions. c. negotiate discounts. d. pursue generic alternatives. e. meet their self-actualization needs.
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b. make purchase decisions.
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A toothpaste tube is an example of a ________ package. a. private-label b. brand positioning c. convenience d. primary e. Secondary
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d. primary
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For marketers, one of the benefits of having achieved brand loyalty is a. greater concern about competitors' actions. b. increased price sensitivity among loyal customers. c. recognition through industry awards. d. lower marketing costs associated with reaching loyal customers. e. few worries about copyright infringement.
answer
d. lower marketing costs associated with reaching loyal customers.
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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 to have greater brand awareness. a. brand extension b. joint brand c. natural brand d. premium brand e. Co-brand
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a. brand extension
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Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of a. brand dilution. b. Co-branding. c. a generic brand. d. brand collusion. e. brand extraction.
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b. Co-branding.
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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. are sensitive to brand repositioning. b. prefer yellow to other colors. c. recognize increases in product line depth. d. know what the Golden Arches brand symbol means. e. have memorized the McDonald's menu.
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d. know what the Golden Arches brand symbol means.
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Brands can be owned by a. any firm in the supply chain. b. only private label generic retailers. c. retailers only. d. manufacturers only. e. wholesalers and retailers only.
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a. any firm in the supply chain.
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One key feature of the value of a strong brand is that a. it cannot be successfully imitated by a retailer's own brand. b. competitors will typically abandon a sector altogether rather than compete. c. it can protect the firm from competition. d. it no longer needs to be supported by advertising and promotion. e. if it becomes a generic name, the brand is worth even more.
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c. it can protect the firm from competition.
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One of the advantages of selling specialty goods and services is that when consumers want them, they will a. question the price. b. perceive greater performance risk. c. consider many alternatives. d. expect them to be offered conveniently. e. search for them.
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e. search for them.
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__________ is the number of items within a product line a. Product mix breadth b. Product line breadth c. Product mix depth d. Product line depth e. Brand equity
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d. Product line depth
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For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. a. co-brands b. family brands c. product lines d. private label brands e. brand associations
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c. product lines
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A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. a. common use b. shared c. licensed d. franchise e. joint venture
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c. licensed
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When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? a. unsought product b. line extension c. convenience product d. shopping product e. secondary product
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a. unsought product
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When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. a. associated services b. quality level c. augmented products d. core customer value e. product support
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d. core customer value
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For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. a. co-brands b. family brands c. private label brands d. brand associations e. product lines
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e. product lines
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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. approximated brands. b. unlicensed brands. c. brand dilution. d. commingled brands. e. undifferentiated brands.
answer
c. brand dilution.
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The basic reason manufacturers spend time and money building their own brands is to a. create positioning possibilities for their generic product lines. b. build brand equity. c. offset the power of private label manufacturers. d. create brand awareness. e. maximize product line depth.
answer
b. build brand equity.
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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. national brand c. counterfeit brand d. manufacturer brand e. premium brand
answer
a. private-label brand
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About 30% of packaged goods have lost content recently. How have consumers reacted? a. Most of the changes have gone unnoticed by consumers. b. As long as the price is also reduced, they don't seem to mind. c. In a few cases, consumer outrage has caused manufacturers to go back to the original packaging. d. A number of lawsuits are pending. e. Consumers have demanded that companies reduce their prices accordingly.
answer
a. Most of the changes have gone unnoticed by consumers.
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The decision to delete a product is never taken lightly because, generally, manufacturers have a. made substantial investments in product development and manufacturing. b. federal standards that must be met when taking products off the market. c. offered the product line to other firms for purchase. d. promised consumers they will maintain the product. e. used brand repositioning to improve results.
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a. made substantial investments in product development and manufacturing.
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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. Consumer Product Safety Administration b. Federal Trade Commission c. Interstate Commerce Commission d. Federal Communications Commission e. Food and Drug Administration
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e. Food and Drug Administration
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Marketers with luxury brands use brand extension cautiously to avoid a. private label branding disputes. b. exclusive co-branding arrangements. c. brand licensing fees. d. diluting the core brand. e. product line extension limitations.
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d. diluting the core brand.
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The potential benefits of brand extension do NOT include a. eliminating competition. b. lowering marketing costs. c. allowing the perception of a brand with a quality image to be carried over to the new product. d. spending less on creating brand awareness and associations. e. boosting sales of the core brand.
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a. eliminating competition.
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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. the core value. b. the product position. c. the actual product. d. an associated service. e. product style.
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d. an associated service.
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Brands can be owned by a. wholesalers and retailers only. b. retailers only. c. manufacturers only. d. only private label generic retailers. e. any firm in the supply chain.
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e. any firm in the supply chain.
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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. co-branding. e. a new brand.
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a. a brand extension.
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Which of the following is the best example of a family brand? a. Tostitos Multigrain Scoops and Tostitos Chunky Salsa b. Lifesavers Soda, Coca Cola, and Diet Coke c. KFC/Taco Bell Fast Foods d. Cadillac, GMC, and Chevrolet e. Kellogg's Special K and Famous Amos Chocolate Chip Cookies
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a. Tostitos Multigrain Scoops and Tostitos Chunky Salsa
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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 premium brand c. a copycat brand d. a brand extension e. a multi-brand
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a. a line extension
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Marketers with luxury brands use brand extension cautiously to avoid a. product line extension limitations. b. private label branding disputes. c. diluting the core brand. d. brand licensing fees. e. exclusive co-branding arrangements.
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c. diluting the core brand.
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A toothpaste tube is an example of a ________ package. a. convenience b. private-label c. secondary d. brand positioning e. primary
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e. primary
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Another name for a manufacturer's brand is a __________ brand. a. premium b. systematic c. private-label d. extended e. national
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e. national
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Brand extension is a popular marketing strategy because a. the firm can spend less on creating brand awareness and associations. b. it avoids the problem of brand dilution. c. it separates out the cost of brand extension from brand intention. d. it allows the firm to discontinue complementary products. e. it guarantees success for a new product.
answer
a. the firm can spend less on creating brand awareness and associations.
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What is wrap rage? a. the reaction of a salesperson when the secondary packaging does not bear a bar code b. frustration by a customer when the packaging makes it difficult to get at the product c. frustration of a customer when a package is oddly shaped and cannot be easily gift wrapped d. a reaction by environmentalists when nonrecyclable materials are used for the secondary packaging e. customer anger when the outside wrapping does not accurately portray what is inside the package
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b. frustration by a customer when the packaging makes it difficult to get at the product
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Efforts to change a brand's focus to target new markets or change the image of a brand are called a. brand collusion. b. brand dilution. c. co-branding. d. brand extraction. e. brand repositioning.
answer
e. brand repositioning.
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Which of the following is NOT one of the important functions of labels on products and packages? a. providing consumer information to assist in purchasing b. listing ingredients c. promoting the brand or complementary brands d. protecting against damage to the product e. identifying the brand and building brand image
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d. protecting against damage to the product
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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 multi-brand c. a brand extension d. a premium brand e. a copycat brand
answer
a. a line extension
question
Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has a. brand dilution. b. negative brand equity. c. private label impact. d. no brand associations. e. unspent brand loyalty.
answer
b. negative brand equity.
question
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. used brand repositioning to improve results. c. federal standards that must be met when taking products off the market. d. promised consumers they will maintain the product. e. made substantial investments in product development and manufacturing.
answer
e. made substantial investments in product development and manufacturing.
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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. product style c. product concept d. product position e. actual product
answer
a. associated services
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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 mix breadth b. increasing product line depth c. introducing brand extensions d. decreasing product line depth e. decreasing product mix breadth
answer
e. decreasing product mix breadth
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Which of the following is NOT one of the important functions of labels on products and packages? a. identifying the brand and building brand image b. protecting against damage to the product c. providing consumer information to assist in purchasing d. promoting the brand or complementary brands e. listing ingredients
answer
b. protecting against damage to the product
question
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. undifferentiated brands. b. brand dilution. c. commingled brands. d. approximated brands. e. unlicensed brands.
answer
b. brand dilution.
question
For marketers, one of the benefits of having achieved brand loyalty is a. greater concern about competitors' actions. b. increased price sensitivity among loyal customers. c. recognition through industry awards. d. lower marketing costs associated with reaching loyal customers. e. few worries about copyright infringement.
answer
d. lower marketing costs associated with reaching loyal customers.
question
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. national brand b. private-label brand c. premium brand d. counterfeit brand e. manufacturer brand
answer
b. private-label brand
question
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 associations c. brand conceptualization d. perceived value Incorrect e. brand loyalty
answer
c. brand conceptualization
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__________ is the number of items within a product line. a. Product mix depth b. Product line depth c. Brand equity d. Product line breadth e. Product mix breadth
answer
b. Product line depth
question
Why did PepsiCo reduce the weight of its water bottles by 20 percent? a. because PepsiCo was concerned about waste from its bottles b. to save money on shipping c. to save money on materials Incorrect d. to sell more bottles of water e. to satisfy environmental groups
answer
. because PepsiCo was concerned about waste from its bottles
question
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. product position b. product concept c. product style d. actual product e. associated services
answer
e. associated services
question
Brands are assets that can be legally protected through a. corporate branding strategies. b. financial reporting. c. generic branding. d. copyrights and trademarks. e. brand extensions.
answer
d. copyrights and trademarks.
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The value of a brand is often calculated by assessing the a. corporate profitability divided by the monthly brand earnings. b. average product line depth. c. difference between brand equity and brand liability. d. earning potential of the brand over the next 12 months. e. effect of brand dilution if it occurred.
answer
d. earning potential of the brand over the next 12 months.
question
Marketers with luxury brands use brand extension cautiously to avoid a. exclusive co-branding arrangements. b. private label branding disputes. c. diluting the core brand. d. product line extension limitations. e. brand licensing fees.
answer
c. diluting the core brand.
question
Which of the following is NOT true regarding secondary packaging? a. It is important to the retailer in terms of convenience in handling. b. It can provide information to consumers not found on the primary packaging. c. It is of little value to the average consumer. d. It can be an important positioning tool to convey the brand image. Incorrect e. It can allow for cost efficiencies due to larger order and shipment sizes.
answer
c. It is of little value to the average consumer.
question
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? a. convenience product b. secondary product c. unsought product d. shopping product e. line extension
answer
. unsought product
question
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. product mix depth b. product line depth c. product mix breadth d. brand equity e. product line breadth
answer
b. product line depth
question
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 Select one: a. reinforce the Toyota brand image. b. lower product development costs. c. lower advertising costs. d. appeal to a different market segment. e. exploit brand loyalty to Toyota.
answer
d. appeal to a different market segment.
question
Efforts to change a brand's focus to target new markets or change the image of a brand are called Select one: a. brand collusion. b. brand extraction. c. brand repositioning. d. co-branding. e. brand dilution.
answer
c. brand repositioning.
question
Sometimes brand names become synonymous with a product itself. If that happens, the brand a. could lose its trademark status. b. should consider a new packaging strategy. c. easily eliminates all competition. d. should try co-branding to avoid brand dilution. e. has achieved brand stabilization.
answer
a. could lose its trademark status.
question
Efforts to change a brand's focus to target new markets or change the image of a brand are called a. brand collusion. b. brand extraction. c. brand repositioning. d. co-branding. e. brand dilution.
answer
c. brand repositioning.
question
The basic reason manufacturers spend time and money building their own brands is to a. offset the power of private label manufacturers. b. create positioning possibilities for their generic product lines. c. maximize product line depth. d. create brand awareness. e. build brand equity.
answer
e. build brand equity.
question
Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because a. brand equity can only be obtained by means of product line depth. b. people already know what the brand means. c. brands protect corporate copyrights. d. consumer loyalty can be bought for less now compared to the past. e. well-known brands are less likely to introduce brand extensions.
answer
b. people already know what the brand means.
