Chapter 11

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

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 __________ 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

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

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

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

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

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.

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.

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. that he can be less concerned about competitors' actions. D. increased price sensitivity among loyal customers. E. less need for concern about product quality.

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.

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

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

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.

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

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

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as A. individual brands. B. family brands. C. corporate brands. D. traditional brands. E. registered brands.

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.

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

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

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

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

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy. A. specialty B. shopping C. convenience D. ritual E. impulse

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

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

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? A. private-label brand B. counterfeit brand C. premium brand D. national brand E. manufacturer brand

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

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

Why did PepsiCo reduce the weight of its water bottles by 20 percent? A. to save money on shipping B. to save money on materials C. to satisfy environmental groups D. to sell more bottles of water E. because PepsiCo was concerned about waste from its bottles

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