49) The Doritos advertising effort of “Live Mas,” which is Spanish for “Live More,” is meant to
suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and
this promotional effort, then Doritos has created
A) brand ownership.
B) a brand extension.
C) brand loyalty.
D) brand dilution.
E) a brand association.
50) Firms spend millions of dollars annually to build brand equity, recognizing that brand equity
contributes to
A) product mix breadth.
B) corporate stakeholder relations.
C) profitability.
D) brand liability.
E) perceived brand personality.
51) All of the following are included in the main criteria used for determining how “good” a
brand is, or how much equity it has except
A) brand awareness.
B) brand loyalty.
C) brand associations.
D) brand conceptualization.
E) perceived value.
52) If many consumers in the marketplace are familiar with a brand and what it stands for and
have an opinion about the brand, the brand has considerable
A) awareness.
B) equity.
C) extension.
D) integration.
E) depth.
53) 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
A) meet their self-actualization needs.
B) make purchase decisions.
C) consider repositioning their opinions.
D) pursue generic alternatives.
E) negotiate discounts.
54) 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.
55) In the case of Band-Aid adhesive bandages, the brand name has
A) successfully employed private-label branding.
B) distinctive brand substitutability.
C) grown through private-label branding.
D) become synonymous with the product itself.
E) avoided brand extensions.
56) Salina is working to create greater brand awareness for her company’s new line of fitness
trackers. To increase brand awareness, the least important information that should be included in
promotions is
A) the brand name.
B) the logo.
C) the packaging.
D) the slogan.
E) the product history.
57) Why would a firm spend over $2 million for a 30-second ad on television during the Super
Bowl?
A) because of the annual competition for the most creative Super Bowl ad
B) because the Super Bowl offers an opportunity to create significant brand awareness
C) because the Super Bowl is a significant opportunity to be associated with global marketing
D) because Super Bowl ads generate brand loyalty
E) there is no good reason
58) 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.
A) perceived value
B) brand awareness
C) brand loyalty
D) generic positioning
E) brand extension
59) In a competitive market, perceived value is determined by consumers mostly
A) by quantitative analysis of brand personalities.
B) in relation to the value of its close competitors.
C) by weighing primary versus secondary benefits.
D) by trying out different products.
E) through brand association and brand licensing.
60) Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand.
She has purchased other shoes with the same brand name in the past but was only marginally
satisfied—despite the cost. In this situation, Nora is likely to purchase the store-brand sneakers
because at less the cost, they offer
A) better brand recognition.
B) higher brand loyalty.
C) greater perceived value.
D) a better brand image.
E) more product line depth.
61) Matt is passionate about Hollister. It is the only place he’ll buy his clothes. He hasn’t shopped
anywhere else in the last few years and will often write positive reviews on his blog about
Hollister’s merchandise. From a strictly marketing perspective, Matt’s positive reviews reflect
A) social marketing.
B) brand loyalty.
C) self-actualization.
D) motivation.
E) brand extension.
62) Jenna always buys Stacy’s brand pita chips. She does not even consider alternatives. Jenna is
a ________ customer.
A) price-sensitive
B) brand-persuasion-oriented
C) brand-association-oriented
D) brand-extension-oriented
E) brand-loyal
63) All of the following statements regarding brand loyalty are true except
A) the marketing costs of reaching loyal customers are typically very high.
B) brand-loyal customers are unlikely to switch to competitor’s brands.
C) brand-loyal customers generate positive word of mouth.
D) firms tend to reward brand loyal customers with extra benefits.
E) brand-loyal customers do not need persuasion to buy the firm’s brands.
64) For marketers, one of the benefits of having achieved brand loyalty is
A) recognition through industry awards.
B) lower marketing costs associated with reaching loyal customers.
C) increased price sensitivity among loyal customers.
D) greater concern about competitors’ actions.
65) For luxury carmakers, the lowest-end models in their product lines often represent only a
small portion of their sales. Yet these models are critically important when it comes to attracting
new customers and, potentially, establishing their lifelong
A) awareness of the brand.
B) perceived value of the brand.
C) loyalty to the brand.
D) product identification of the brand.
E) association of the brand.
66) Imagine that you are the marketing manager of a hotel chain that wants to implement a
customer reward and loyalty program. You research the firm Sabre Hospitality Solutions, which
offers its services to global and boutique hotel chains to develop and execute these types of
programs. Sabre Hospitality Solutions is a company that focuses on
A) customer relationship management.
B) building brand awareness.
C) building brand associations.
D) increasing perceived value.
E) increasing brand equity.
67) Frequent buyer/user award programs can be used to
A) increase price sensitivity.
B) decrease co-branding costs.
C) lower licensing fees.
D) expand product line depth.
E) maintain contact with loyal customers.
68) A tablet programmed with key customers’ birthdates, wine preferences, and food allergies is
a(n) ________ tool.
A) SKU
B) PDQ
C) IMF
D) CRM
E) GATT
69) Brands can be owned by
A) manufacturers only.
B) any firm in the supply chain.
C) retailers only.
D) wholesalers and retailers only.
E) private-label generic retailers only.
70) Kraft, Nike, KitchenAid, and Sony are considered famous ________ brands because they are
owned and managed by the manufacturer.
A) national
B) retailer
C) international
D) premium
E) family
71) Which of the following is the best example of a family brand?
A) Cadillac, GMC, and Chevrolet
B) Kraft Macaroni & Cheese and Kraft Mayo
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
72) 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.
73) Coca-Cola is a huge national brand manufacturer. By owning its own brands, Coca-Cola
A) can monopolize store brands.
B) has greater opportunity to dictate retail pricing.
C) retains greater control over its marketing strategy.
D) can increase brand dilution.
E) can eliminate any local competition.
74) Brands that are owned by ________ are called private-label brands.
A) manufacturers
B) wholesalers
C) supply chain specialists
D) retailers
E) manufacturer’s reps
75) ________ is another term for private-label brands.
A) Store brands
B) Off brands
C) Manufacturer’s brands
D) National brands
E) Experiential brands
76) Private-label brands are developed and managed by
A) manufacturers.
B) wholesalers.
C) supply chain specialists.
D) manufacturer’s representatives.
E) retailers.
77) 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) umbrella brands.
78) When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was
engaged in
A) corporate branding.
B) brand extension.
C) brand licensing.
D) brand association.
E) perceived value branding.
79) Why is brand extension a popular marketing strategy?
A) It separates out the cost of brand extension from brand intention.
B) It allows the firm to discontinue complementary products.
C) It allows the firm to spend less on creating brand awareness and associations.
D) It avoids the problem of brand dilution.
E) It guarantees success for a new product.
80) All of the following are potential benefits of brand extension except
A) allowing the perception of a brand with a quality image to be carried over to the new product.
B) lowering marketing costs.
C) boosting sales of the core brand.
D) spending less on creating brand awareness and associations.
E) eliminating competition.
81) 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.
82) 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 in order to create greater brand awareness.
A) co-brand
B) brand extension
C) premium brand
D) joint brand
E) natural brand
83) Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand
name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo
to 68 different products, from sunglasses to guitars. Ferrari might be at risk of which of the
following?
A) brand awareness
B) perceived value
C) brand extension
D) brand dilution
E) line extension
84) 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
A) brand dilution.
B) comingled brands.
C) undifferentiated brands.
D) approximated brands.
E) unlicensed brands.
85) Harley-Davidson’s cake decorating kit tried to appeal to the brand’s unparalleled consumer
loyalty, but it was considered too tame by their consumer base. This is an example of
A) corporate branding.
B) brand extraction.
C) brand collusion.
D) brand personality destruction.
E) brand dilution.
86) A ________ refers to the use of the same brand in a different product line.
A) line extension
B) brand extension
C) product mix extension
D) co-brand
E) brand license
87) Marketers with luxury brands use brand extension cautiously in order to avoid
A) brand licensing fees.
B) exclusive co-branding arrangements.
C) diluting the core brand.
D) private-label branding disputes.
E) product line extension limitations.
88) Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an
example of
A) co-branding.
B) brand extraction.
C) brand collusion.
D) a generic brand.
E) brand dilution.