BUS 346 Chapter 11 – Flashcards
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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. Select one: a. product mix breadth b. product line depth c. brand equity d. product mix depth e. product line breadth
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b. product line depth
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Brand extension is a popular marketing strategy because Select one: a. the firm can spend less on creating brand awareness and associations. b. it allows the firm to discontinue complementary products. c. it separates out the cost of brand extension from brand intention. d. it avoids the problem of brand dilution. e. it guarantees success for a new product.
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a. the firm can spend less on creating brand awareness and associations.
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In a competitive market, perceived value is determined by consumers mostly Select one: a. through brand association and brand licensing. b. by weighing primary versus secondary benefits. c. by quantitative analysis of brand personalities. d. by trying out different products. e. in relationship to the value of competitors' offerings.
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e. in relationship to the value of competitors' offerings.
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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. Select one: a. brand extension b. generic positioning c. brand loyalty d. brand awareness e. perceived value
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e. perceived value
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A product is __________ that can be offered through a voluntary marketing exchange. Select one: a. a tangible item b. the category depth c. anything of value to consumers d. the combination of a firm's marketing mix e. the brand associations
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c. anything of value to consumers
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In the case of Band-Aid adhesive bandages, the brand name has Select one: a. successfully employed private label branding. b. grown through private label branding. c. avoided brand extensions. d. become synonymous with the product itself. e. distinctive brand substitutability.
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d. become synonymous with the product itself.
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A toothpaste tube is an example of a ________ package. Select one: a. primary b. private-label c. convenience d. brand positioning e. secondary
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a. primary
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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? Select one: a. a multi-brand b. a premium brand c. a copycat brand d. a brand extension e. a line extension
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e. a line extension
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Brand extension is a popular marketing strategy because Select one: a. it guarantees success for a new product. b. it separates out the cost of brand extension from brand intention. c. it avoids the problem of brand dilution. d. it allows the firm to discontinue complementary products. e. the firm can spend less on creating brand awareness and associations.
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e. 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? Select one: a. to sell more bottles of water b. to satisfy environmental groups c. to save money on shipping d. because PepsiCo was concerned about waste from its bottles e. to save money on materials
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d. because PepsiCo was concerned about waste from its bottles
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When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a ________ product. Select one: a. unsought b. shopping c. sought d. specialty e. convenience
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b. shopping
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One key feature of the value of a strong brand is that Select one: a. it cannot be successfully imitated by a retailer's own brand. b. it can protect the firm from competition. c. it no longer needs to be supported by advertising and promotion. d. competitors will typically abandon a sector altogether rather than compete. e. if it becomes a generic name, the brand is worth even more.
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b. it can protect the firm from competition.
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For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. Select one: a. family brands b. co-brands c. private label brands d. brand associations e. product lines
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e. product lines
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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. Select one: a. premium brand b. co-brand c. natural brand d. brand extension e. joint brand
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d. brand extension
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The basic reason manufacturers spend time and money building their own brands is to Select one: a. create positioning possibilities for their generic product lines. b. build brand equity. c. maximize product line depth. d. offset the power of private label manufacturers. e. create brand awareness.
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b. build brand equity.
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Why did PepsiCo reduce the weight of its water bottles by 20 percent? Select one: a. to sell more bottles of water b. to save money on materials c. to save money on shipping d. because PepsiCo was concerned about waste from its bottles e. to satisfy environmental groups
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d. because PepsiCo was concerned about waste from its bottles
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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 Select one: a. lower advertising costs. b. exploit brand loyalty to Toyota. c. appeal to a different market segment. d. lower product development costs. e. reinforce the Toyota brand image.
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c. appeal to a different market segment.
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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? Select one: a. manufacturer brand b. premium brand c. private-label brand d. national brand e. counterfeit brand
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c. private-label brand
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It is almost impossible to watch a sporting event on television without seeing Nike's swoosh check mark, which is Nike's Select one: a. theme. b. name. c. symbol. d. design. e. term.
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c. symbol.
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Brands that are owned by ___________ are called private-label brands. Select one: a. manufacturers b. retailers c. manufacturer's reps d. wholesalers e. supply chain specialists
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b. retailers
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Where on a product's packaging would one most likely find nutrient content and country of origin? Select one: a. on the store shelf display b. inside the secondary package c. on the company website d. inside the primary package e. on the label
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e. on the label
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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 & Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been Select one: a. reformulated. b. rebranded. c. licensed to a premium shampoo manufacturer. d. extended as a brand. e. co-branded.
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b. rebranded.
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The decision to delete a product is never taken lightly because, generally, manufacturers have Select one: a. used brand repositioning to improve results. 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. made substantial investments in product development and manufacturing.
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e. made substantial investments in product development and manufacturing.
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The potential benefits of brand extension do NOT include Select one: a. boosting sales of the core brand. b. spending less on creating brand awareness and associations. c. allowing the perception of a brand with a quality image to be carried over to the new product. d. lowering marketing costs. e. eliminating competition.
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e. eliminating competition.
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Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. Select one: a. price sensitive b. brand loyal c. brand extension oriented d. brand association oriented e. brand persuasion oriented
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b. brand loyal
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________ is another term for private-label brands. Select one: a. Store brands b. Experiential brands c. National brands d. Manufacturer brands e. Off brands
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a. Store brands
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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) Select one: a. are sensitive to brand repositioning. b. prefer yellow to other colors. c. know what the Golden Arches brand symbol means. d. have memorized the McDonald's menu. e. recognize increases in product line depth.
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c. know what the Golden Arches brand symbol means.
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A university that has separate graduate and undergraduate admission offices recognizes that these are distinct Select one: a. brands. b. augmented services. c. product lines. d. brand associations. e. product mixes.
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c. product lines.
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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 Select one: a. more brand awareness. b. greater perceived value. c. a better brand image. d. more product line depth. e. higher degrees of brand loyalty.
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b. greater perceived value.
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Private-label brands are developed and managed by Select one: a. manufacturers. b. wholesalers. c. retailers. d. supply chain specialists. e. manufacturer's reps.
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c. retailers.
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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 Select one: a. commingled brands. b. approximated brands. c. unlicensed brands. d. undifferentiated brands. e. brand dilution.
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e. brand dilution.
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One key feature of the value of a strong brand is that Select one: a. it no longer needs to be supported by advertising and promotion. b. if it becomes a generic name, the brand is worth even more. c. competitors will typically abandon a sector altogether rather than compete. d. it can protect the firm from competition. e. it cannot be successfully imitated by a retailer's own brand.
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d. it can protect the firm from competition.
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Brand dilution occurs when Select one: a. new brands compete with existing brands. b. there are too few products and product categories. c. customers see the fit between products sharing the same brand name. d. brand names seem too old-fashioned or familiar. e. brands are overextended and customer perceptions about the core brand are adversely affected.
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e. brands are overextended and customer perceptions about the core brand are adversely affected.
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Why did PepsiCo reduce the weight of its water bottles by 20 percent? Select one: a. to satisfy environmental groups b. because PepsiCo was concerned about waste from its bottles c. to save money on shipping d. to save money on materials e. to sell more bottles of water
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b. because PepsiCo was concerned about waste from its bottles
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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? Select one: a. brand associations b. brand loyalty c. brand awareness d. brand conceptualization e. perceived value
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d. brand conceptualization
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One of the advantages of selling specialty goods and services is that when consumers want them, they will Select one: a. question the price. b. expect them to be offered conveniently. c. perceive greater performance risk. d. search for them. e. consider many alternatives.
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d. search for them.
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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 Select one: a. relatively insensitive to price. b. a brand equity investor. c. a savvy consumer. d. product category committed. e. uninformed about the product category.
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a. relatively insensitive to price.
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When a company launches a new product line with an existing brand name, this is known as Select one: a. co-branding. b. a multi-brand. c. a brand extension. d. a line extension. e. a new brand.
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c. a brand extension.
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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? Select one: a. core customer value b. core product c. augmented product d. actual product e. modified product
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c. augmented product
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The basic reason manufacturers spend time and money building their own brands is to Select one: a. offset the power of private label manufacturers. b. create positioning possibilities for their generic product lines. c. create brand awareness. d. maximize product line depth. e. build brand equity.
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e. build brand equity.
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Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to Select one: a. brand liability. b. perceived brand personality. c. corporate stakeholder relations. d. profitability. e. product mix breadth.
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d. profitability.
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What is wrap rage? Select one: a. frustration of a customer when a package is oddly shaped and cannot be easily gift wrapped b. the reaction of a salesperson when the secondary packaging does not bear a bar code c. a reaction by environmentalists when nonrecyclable materials are used for the secondary packaging d. customer anger when the outside wrapping does not accurately portray what is inside the package e. frustration by a customer when the packaging makes it difficult to get at the product
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e. frustration by a customer when the packaging makes it difficult to get at the product
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Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. Select one: a. brand persuasion oriented b. brand extension oriented c. brand association oriented d. brand loyal e. price sensitive
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d. brand loyal
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Another name for a manufacturer's brand is a __________ brand. Select one: a. private-label b. premium c. systematic d. national e. extended
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d. national
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Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it Select one: a. provides a way for a firm to differentiate its product offerings from competitors. b. offers consumers promotional parity. c. reduces the need for product line depth. d. creates a basis for effective packaging. e. allows manufacturers to capitalize on promotional expenditures.
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a. provides a way for a firm to differentiate its product offerings from competitors.
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Which of the following is NOT one of the important functions of labels on products and packages? Select one: a. promoting the brand or complementary brands b. providing consumer information to assist in purchasing c. protecting against damage to the product d. listing ingredients e. identifying the brand and building brand image
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c. protecting against damage to the product
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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 Select one: a. brand dilution. b. private label impact. c. negative brand equity. d. no brand associations. e. unspent brand loyalty.
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c. negative brand equity.
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When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand Select one: a. establishes novelty. b. facilitates purchasing. c. is the only one the consumer will consider. d. creates brand dilution. e. reduces delivery costs.
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b. facilitates purchasing.
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Which of the following is NOT true regarding secondary packaging? Select one: a. It can be an important positioning tool to convey the brand image. b. It is of little value to the average consumer. c. It can provide information to consumers not found on the primary packaging. d. It can allow for cost efficiencies due to larger order and shipment sizes. e. It is important to the retailer in terms of convenience in handling. Feedback
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b. It is of little value to the average consumer.
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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? Select one: a. product concept b. actual product c. product position d. product style e. associated services
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e. 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. Select one: a. increasing product line depth b. increasing product mix breadth c. decreasing product line depth d. introducing brand extensions e. decreasing product mix breadth
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e. decreasing product mix breadth
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One of the major tools used by marketers to meet the needs of loyal customers is Select one: a. PDQ. b. SKU. c. CRM. d. GATT. e. IMF.
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c. CRM.
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Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product? Select one: a. brand extension b. line extension c. rebranding d. brand dilution e. co-branding
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b. line extension
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One of the categories of products for which brand extension is especially logical is Select one: a. licensed brands. b. commodities. c. generic services. d. generic goods. e. complementary goods.
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e. complementary goods.
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A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. Select one: a. product mix breadth b. product mix c. product line d. line extension e. brand extension
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c. product line
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For marketers, one of the benefits of having achieved brand loyalty is Select one: a. recognition through industry awards. b. lower marketing costs associated with reaching loyal customers. c. increased price sensitivity among loyal customers. d. few worries about copyright infringement. e. greater concern about competitors' actions.
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b. lower marketing costs associated with reaching loyal customers.
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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? Select one: a. counterfeit brand b. manufacturer brand c. private-label brand d. premium brand e. national brand
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c. private-label brand
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About 30% of packaged goods have lost content recently. How have consumers reacted? Select one: a. As long as the price is also reduced, they don't seem to mind. b. In a few cases, consumer outrage has caused manufacturers to go back to the original packaging. c. Most of the changes have gone unnoticed by consumers. d. Consumers have demanded that companies reduce their prices accordingly. e. A number of lawsuits are pending.
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c. Most of the changes have gone unnoticed by consumers.
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One of the advantages of selling specialty goods and services is that when consumers want them, they will Select one: a. search for them. b. consider many alternatives. c. expect them to be offered conveniently. d. question the price. e. perceive greater performance risk.
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a. search for them.
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A toothpaste tube is an example of a ________ package. Select one: a. private-label b. convenience c. primary d. secondary e. brand positioning
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c. primary
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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. Select one: a. joint venture b. shared c. franchise d. common use e. licensed
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e. licensed
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Procter & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G Select one: a. has greater opportunity to dictate retail pricing. b. can increase brand dilution. c. can eliminate any local competition. d. has greater control over marketing strategy. e. can monopolize store brands.
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d. has greater control over marketing strategy.
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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 Select one: a. pursue generic alternatives. b. make purchase decisions. c. consider repositioning their opinions. d. negotiate discounts. e. meet their self-actualization needs.
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b. make purchase decisions.
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__________ is the number of items within a product line. Select one: a. Product line depth b. Brand equity c. Product line breadth d. Product mix breadth e. Product mix depth
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a. Product line depth
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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? Select one: a. Consumer Product Safety Administration b. Interstate Commerce Commission c. Food and Drug Administration d. Federal Communications Commission e. Federal Trade Commission
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c. Food and Drug Administration
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Marketers with luxury brands use brand extension cautiously to avoid Select one: a. diluting the core brand. b. exclusive co-branding arrangements. c. private label branding disputes. d. product line extension limitations. e. brand licensing fees.
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a. diluting the core brand.
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A product is __________ that can be offered through a voluntary marketing exchange. Select one: a. a tangible item b. the brand associations c. the category depth d. the combination of a firm's marketing mix e. anything of value to consumers
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e. anything of value to consumers
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When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a Select one: a. line extension. b. brand extension. c. licensed brand. d. premium brand. e. copycat brand.
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b. brand extension.
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In a competitive market, perceived value is determined by consumers mostly Select one: a. in relationship to the value of competitors' offerings. b. by weighing primary versus secondary benefits. c. by quantitative analysis of brand personalities. d. by trying out different products. e. through brand association and brand licensing.
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a. in relationship to the value of competitors' offerings.
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For a brand name to be effective, it needs to be a. generic, so it can be applied to as many brands as possible b. a catchy, tongue-twisting phrase c. easy for consumers to recognize and remember d. associated with a sports or movie superstar e. a visual image containing human characters
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c. easy for consumers to recognize and remember
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One important purpose of a brand is to a. increase consumer recognition and awareness of product offerings b. meet government regulations c. sell advertising space d. inform product packaging e. minimize product line depth needed to be effective
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a. increase consumer recognition and awareness of product offerings.
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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. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division. c. it is costly to maintain many product lines, and it might weaken the brand's meaning. d. the current economy can only support a limited number of product options. e. it is often difficult to get additional marketing communications coverage for the brand.
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c. it is costly to maintain many product lines, and it might weaken the brand's meaning.
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Brands are assets that can be legally protected through a. brand extensions. b. generic branding c. corporate branding strategies d. financial reporting e. copyrights and trademarks
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e. copyrights and trademarks
