Marketing Integrated Advertising

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Integrated Advertising, Promotion, and Marketing Communications, 8e, Global Edition

(Clow/Baack)

Chapter 2 Corporate Image and Brand Management

1) When Domino’s Pizza sought to increase sales and return customers, one key tactic was to:

A) raise prices.

B) enter new markets.

C) change the brand.

D) buy the largest competing pizza chain.

Answer: C

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

2) The feelings consumers and businesses have about a brand is:

A) the result of its advertising program impact.

B) brand equity.

C) brand image.

D) brand persona.

Answer: C

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

3) The brand image of an automobile manufacturer such as Porsche, Mazda, Toyota, or Ford

might be based on each of the following except:

A) evaluations of vehicles.

B) whether the company is foreign or domestic.

C) economic conditions.

D) customer views of company advertising and the local dealership.

Answer: C

Difficulty: Easy

Skill: Application

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

4) Which is not part of a brand image?

A) Tangible elements

B) Intangible elements

C) What the company stands for as well as how it is known in the marketplace

D) Governmental regulations that affect the company

Answer: D

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

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LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

5) Each of the following items is a tangible component of a brand image except:

A) goods and services sold.

B) retail outlets where the product is sold.

C) advertising, promotions, and other forms of communication.

D) competing businesses.

Answer: D

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

6) Which is an intangible element of a brand image?

A) A corporate name and logo

B) Ideals and beliefs of corporate personnel

C) Employees

D) Packaging and labeling

Answer: B

Difficulty: Difficult

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

7) In the mind of the consumer, a strong brand image is linked to:

A) perceptions of economic conditions.

B) ratings by financial advisors.

C) reduction of search time in purchase decisions.

D) finding substitute goods when making purchases.

Answer: C

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

8) From a consumer’s perspective, a strong brand image provides each of the following except:

A) assurance regarding purchase decisions in unfamiliar settings.

B) purchase alternatives.

C) a reduction in search time.

D) social acceptance of purchases.

Answer: B

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

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9) From a consumer’s perspective, a strong brand image generates which element when

customers purchase goods or services with which they have little experience?

A) Memorable reference

B) Positive assurance

C) Immediate feedback

D) Increased purchasing options

Answer: B

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

10) Feeling good after making a purchase from a company with a strong and positive image is an

example of:

A) an impulse buy.

B) psychological reinforcement.

C) cognitive dissonance.

D) brand metrics.

Answer: B

Difficulty: Difficult

Skill: Critical Thinking

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

11) When you know other people have purchased the same brand that you are buying, the feeling

is called:

A) social acceptance.

B) reliability.

C) cognitive dissonance.

D) brand recognition.

Answer: A

Difficulty: Moderate

Skill: Application

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

12) From the perspective of the corporation, a strong brand image is related to each of the

following except:

A) ability to attract quality employees.

B) higher level of brand parity.

C) positive word-of-mouth recommendations by customers.

D) higher level of channel power.

Answer: B

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

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13) From the perspective of the corporation, a strong brand image is related to each of the

following except:

A) being able to charge a higher price.

B) increased competition.

C) more frequent purchases by customers.

D) more favorable ratings by financial observers.

Answer: B

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

14) From the company’s perspective, a quality brand image enhances the introduction of a new

product because:

A) the company can charge a lower price for the new product.

B) a new distribution channel can be established.

C) customers normally transfer their trust in and beliefs about the corporation to a new product.

D) the competition does not know how to respond.

Answer: C

Difficulty: Difficult

Skill: Critical Thinking

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

15) A corporate or brand image reflects the feelings consumers and businesses have about the

overall organization, as well as its individual products.

Answer: TRUE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

16) A corporate or brand image summarizes what the company or brand stands for as well as

how it is known in the marketplace.

Answer: TRUE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

17) Effective marketing communications are based on a clearly defined brand image.

Answer: TRUE

Difficulty: Moderate

Skill: Critical Thinking

AACSB: Written and oral communication

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

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18) What a firm’s employees believe about a brand’s image is more important than what

consumers think.

Answer: FALSE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

19) The most important component of a brand image is the price.

Answer: FALSE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

20) Perceptions of a brand’s image are based solely on price and quality.

Answer: FALSE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

21) A brand image contains both visible and intangible elements.

Answer: TRUE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

22) An organizational policy to actively recruit minority employees would be an element of a

company’s image.

Answer: TRUE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Diverse and multicultural work environments

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

23) From a company’s perspective, a brand’s image can provide psychological reinforcement and

social acceptance of a purchasing decision.

Answer: FALSE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

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24) A positive brand image can reduce search time when a consumer is making a buying

decision.

Answer: TRUE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

25) While a brand’s image plays a key role in marketing to consumers, it is not significant when

selling to other businesses.

Answer: FALSE

Difficulty: Difficult

Skill: Application

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

26) Brand image is especially valuable to a company that is expanding internationally because it

reduces risk and uncertainty on the part of the buyer.

Answer: TRUE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Reflective thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

27) A strong brand image cannot affect the price a company can charge for its products.

Answer: FALSE

Difficulty: Moderate

Skill: Critical Thinking

AACSB: Analytical thinking

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

28) A well-developed, favorable image creates loyal customers who might generate positive

word-of-mouth endorsements about the company and its products.

Answer: TRUE

Difficulty: Easy

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

29) A brand’s image has little or no effect on other business activities, such as recruiting

employees.

Answer: FALSE

Difficulty: Moderate

Skill: Definition (Concept)

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

30) From a consumer’s perspective, what are the benefits of a strong brand image?

Answer:

1. Assurance regarding purchase decisions of familiar products in unfamiliar settings

2. Assurance concerning purchases where there is little previous experience

3. Reduction of search time in purchase decisions

4. Psychological reinforcement and social acceptance of purchase decisions

Difficulty: Moderate

Skill: Synthesis

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?

31) What are the benefits of a strong brand image in the eyes of the company?

Answer:

1. Extension of positive consumer feelings to new products

2. The ability to charge a higher price or fee

3. Consumer loyalty leading to more frequent purchases

4. Positive word-of-mouth endorsements

5. The ability to attract quality employees

6. More favorable ratings by financial observers and analysts

Difficulty: Difficult

Skill: Synthesis

AACSB: Application of knowledge

LO: 2.1 How does a brand’s image affect consumers, other businesses, and the company itself?