171) A proprietary brand marketed by an organization and distributed within the organization’s
outlets is a(n):
A) private label.
B) flanker brand.
C) co-brand.
D) complementary brand.
Question Tag: Definition (Concept)
Objective: 2-7
172) Private brands are:
A) new brands sold in the same category.
B) the joint venture of two or more brands in a new good or service.
C) the use of established brand names on goods and services not related to the company’s core
brand.
D) proprietary brands marketed by an organization and normally distributed exclusively within
the organization’s outlets.
Question Tag: Definition (Concept)
Objective: 2-7
173) Over the past few years, each of the following are changes that have occurred in the area of
private branding, except:
A) increase in prices to equal national brands.
B) improved quality.
C) increased advertising of private brands.
D) increased quality of in-store displays of private brands.
Question Tag: Definition (Concept)
Objective: 2-7
174) Private labels are attractive to retail stores because:
A) they are priced higher than national brands.
B) they do not require any advertising.
C) they tend to have higher margins than national brands.
D) consumers are becoming more loyal to private brands.
Question Tag: Definition (Concept)
Objective: 2-7
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175) The following statements about private labels are true, except:
A) quality levels of many private label products have improved.
B) prices for private labels are going up in many markets.
C) consumers still perceive private labels as being inferior to manufacturer’s brands.
D) some firms have begun advertising private labels.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 2-7
176) Manufacturers are using the following methods to respond to inroads made by private
labels, except:
A) focusing on a few core brands.
B) increasing advertising expenditures.
C) introducing new products and new versions of current products.
D) reducing prices to meet private label pricing.
Question Tag: Definition (Concept)
Objective: 2-7
177) Manufacturers are using all the following methods to respond to inroads made by private
labels, except:
A) modifying the brand’s position in the marketplace.
B) expanding product offerings.
C) using alternative promotional methods.
D) improving in-store displays and packaging.
Question Tag: Definition (Concept)
Objective: 2-7
178) Private brands are proprietary brands marketed by an organization and normally distributed
within the organization’s outlets.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-7
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179) In recent years, loyalty toward retail stores has been declining, while loyalty toward
individual brands has been increasing.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-7
180) Many retailers are treating private labels more like national brands and investing more
money into in-store displays, but less money into marketing and advertising.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 2-7
181) Manufacturers seeking to defend against strong private label brands can respond by
focusing on core brands, advertising more, or expanding product offerings.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 2-7
182) Why have private labels been more successful in recent years?
Question Tag: Critical Thinking
Objective: 2-7
183) Traditionally, a package provided each of the following functions, except:
A) allow customers to see the product.
B) provide for ease of shipping, moving, and handling.
C) protect the contents.
D) provide for easy placement on store shelves.
Question Tag: Definition (Concept)
Objective: 2-8
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184) New trends in packaging include the following, except:
A) prevent tampering.
B) meet consumer needs for speed, convenience, and portability.
C) contemporary and striking design.
D) designed for ease of use.
Question Tag: Definition (Concept)
Objective: 2-8
185) Labels on packages serve the following purposes, except:
A) provide legal requirements in terms of content.
B) provide consumers with pricing per unit information.
C) another marketing opportunity to reach consumers.
D) provide warranty and guarantee information.
Question Tag: Definition (Concept)
Objective: 2-8
186) Which is the most recent new trend in packaging and labeling?
A) Providing warranty information
B) Meeting legal requirements
C) Adding QR codes
D) Protecting product content
Question Tag: Definition (Concept)
Objective: 2-8
187) Brand infringement occurs when:
A) an internet domain is used that is similar to a brand name.
B) individuals purchase domain names just for the purpose of selling them later to famous
individuals or companies.
C) a company creates a brand name that closely resembles a popular or successful brand name.
D) the brand name is used in advertisements by competitors.
Question Tag: Definition (Concept)
Objective: 2-8
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188) Domain squatting occurs when:
A) an internet domain is used that is similar to a brand name.
B) individuals purchase domain names just for the purpose of selling them later to famous
individuals or companies.
C) a company creates a brand name that closely resembles a popular or successful brand name.
D) the brand name becomes a generic term for the product category.
Question Tag: Definition (Concept)
Objective: 2-8
189) Using a standardized global brand offers all of the following advantages, except:
A) lower marketing costs.
B) meets the need of individual cultures within different countries.
C) transference of best practices from one country to another.
D) a higher perceived quality because it is sold in different countries.
Question Tag: Critical Thinking
AACSB Category: Diverse and multicultural work environments
Objective: 2-8
190) Global brands perform best with:
A) highly visible products, such as clothing and furniture.
B) high-profile, low-involvement products.
C) high-profile, high-involvement products.
D) low-involvement everyday products.
Question Tag: Definition (Concept)
Objective: 2-8
191) A product’s package is the first opportunity for a brand to make an impression on a
consumer before a purchase is made.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 2-8
192) Marketing surveys have revealed that less than 10 percent of purchases are planned prior to
reaching a store, which increases the importance of in-store displays.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 2-8
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193) Packaging today needs to meet the needs of consumers for speed, convenience, and
portability.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-8
194) Because a label on a package must meet legal requirements it does not represent a good
opportunity to reach consumers with a marketing message.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 2-8
195) The placement of QR codes for consumers to access with mobile devices represents a new
trend in packaging and labeling.
Question Tag: Definition (Concept)
Objective: 2-8
196) Brand infringement occurs when a company creates a a product that looks identical to a
current brand.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-8
197) Buying domain names on the internet that may be important to famous people or businesses
with the idea of making money from selling the domain name to them is called internet brand
infringement.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-8
198) In expanding internationally, an adaptation strategy means using the same brand name and
products across all countries.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 2-8
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199) In international markets, an adaptation strategy reduces costs.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 2-8
200) What are the primary purposes of packaging?
Question Tag: Synthesis
Objective: 2-8
45