978-0133866339 Chapter 02 Part 4

Unlock access to all the studying documents.

View Full Document

133) When customers purchase only one brand and consider no other brand, regardless of price

differences, which exists?

A) brand involvement.

B) brand specialty.

C) brand loyalty.

D) brand parity.

Question Tag: Definition (Concept)

Objective: 2-6

134) The perception that all brands are essentially the same is:

A) brand equity.

B) brand parity.

C) flanker branding.

D) the private label problem.

Question Tag: Definition (Concept)

Objective: 2-6

135) Charles sees only minor differences among the various brands of high definition televisions.

This is an example of:

A) brand equity.

B) brand parity.

C) flanker branding.

D) the private label problem.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 2-6

136) The perception that a brand is different and better is:

A) brand equity.

B) brand parity.

C) flanker branding.

D) the private label advantage.

Question Tag: Definition (Concept)

Objective: 2-6

137) When a customer believes Craftsman makes the best and most reliable tools, this is an

example of:

A) brand parity.

B) brand equity.

C) brand cooperation.

D) brand decision.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 2-6

138) Which is not true concerning brand equity?

A) It allows the company to charge a higher price.

B) It reduces name retention.

C) It is helpful in business-to-business markets.

D) It is helpful in international markets.

Question Tag: Critical Thinking

Objective: 2-6

139) Brand equity offers the following benefits, except:

A) allows manufacturers to charge more for their brands.

B) creates higher gross margins.

C) shields companies from lawsuits.

D) captures additional shelf space in retail stores.

Question Tag: Critical Thinking

Objective: 2-6

140) Which of the following measures returns on branding investments?

A) brand infringement

B) brand parity

C) brand equity

D) brand metrics

Question Tag: Definition (Concept)

Objective: 2-6

141) Attitudinal measures associated with branding are used to track the following, except:

A) awareness.

B) recall.

C) purchases.

D) recognition.

Question Tag: Definition (Concept)

Objective: 2-6

142) When brand equity is measured using estimates of the future cash flows of a brand based on

its unique strength and characteristics, which will then be discounted to determine a net present

value, the method is:

A) financial value.

B) market value.

C) revenue premium.

D) consumer value.

Question Tag: Definition (Concept)

Objective: 2-6

143) When brand equity is measured using stock valuation with an estimate of the portion of the

value allocated to brand equity and not physical assets, the method is:

A) financial value.

B) market value.

C) revenue premium.

D) consumer value.

Question Tag: Definition (Concept)

Objective: 2-6

144) When brand equity is measured using a comparison of a branded product to the same

product without a brand name, such as a private label, the method is:

A) financial value.

B) market value.

C) revenue premium.

D) consumer value.

Question Tag: Definition (Concept)

Objective: 2-6

145) When brand equity is measured using the value of a brand based on input from consumers,

such as familiarity, purchase considerations, customer satisfaction, and willingness to seek out

the brand, the method is:

A) financial value.

B) market value.

C) revenue premium.

D) consumer value.

Question Tag: Definition (Concept)

Objective: 2-6

146) In measuring brand equity companies can use a method called revenue premium, which

compares a branded product’s revenue to:

A) the industry’s average.

B) a private label brand.

C) a firm’s primary competitors.

D) the industry leader.

Question Tag: Definition (Concept)

Objective: 2-6

147) Consumers recommend brands to their families and friends because of one or more salient

attributes.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 2-6

148) Developing a strong brand begins with discovering why consumers buy a brand as well as

repurchase the brand.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

149) To establish a strong brand image, a brand name must be prominently promoted in

repetitious ads or it should be associated with one of the product’s benefits.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 2-6

150) The goal of branding is to build awareness of the brand name.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

151) Trust represents a customer’s belief in the efficacy and reliability of a brand.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

152) Social media does not play a role in brand building because it involves consumers

interacting with each other.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 2-6

153) A recent trend in brand building has been to incorporate social media.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

154) Brand parity is the perception that there are significant differences among brands within a

product category.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

155) Brand equity is the perception that most brands within a product category are relatively

similar or have no distinct differences.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

156) Brand equity is a set of characteristics that are unique to a brand that make it seem different

and better.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

157) Brand equity is not as important in business-to-business markets because pricing is

typically the primary decision variable.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

158) Brand equity is not as important in international markets because fewer brands are

available.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

159) Brand parity is a strong weapon that might dissuade consumers from looking for a cheaper

product or for special deals or incentives to purchase other brands.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 2-6

160) Brand metrics measure the impact of advertising on a brand’s image.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

161) Measuring brand equity using the financial value method estimates the future cash flows of

a brand based on its unique strength and characteristics, which will then be discounted to

determine a net present value.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

162) Brand equity using the stock market value method estimates the future cash flows of a

brand based on its unique strengths that are then discounted to determine a net present value.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

163) The stock market approach to estimate brand equity involves determining the financial

value of the company through stock valuation with an estimate of the portion of the value

allocated to brand equity and not physical assets.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

164) The revenue premium approach to estimate brand equity involves determining the financial

value of the company through stock valuation with an estimate of the portion of the value

allocated to brand equity and not physical assets.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

165) The revenue premium approach to estimating brand equity compares a branded product to

the same product without a brand name, such as a private label brand.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

166) The revenue premium method of estimating brand equity attempts to measure the value of a

brand based on input from consumers through measures such as familiarity, quality, purchase

considerations, customer satisfaction, and willingness to seek out the brand.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

167) The revenue premium and stock market methods of estimating brand equity attempts to

measure the value of a brand based on input from consumers through measures such as

familiarity, quality, purchase considerations, customer satisfaction, and willingness to seek out

the brand.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 2-6

168) Although brand equity can be measured using various metrics, CEOs and other corporate

leaders often want real, hard numbers.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 2-6

169) When developing a strong brand name, what are some typical questions that should be

asked?

Question Tag: Critical Thinking

Objective: 2-6

170) Identify the steps in building a high level of brand equity.

Question Tag: Definition (Concept)

Objective: 2-6