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128. c
129. d
130. a
131. a
132. a
133. d
134. b
135. a
136. a
137. c
138. c
139. a
140. e
141. a
142. a
143. c
144. e
145. d
146. a
147. e
148. d
149. c
150. a
151. d
152. b
153. c
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179. a
180. c
181. c
182. b
183. b
184. c
185. c
186. d
187. a
188. b
189. a
190. d
191. d
192. c
193. a
194. e
195. b
196. a
197. b
198. a
199. d
200. a
201. c
202. e
203. e
204. e
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230. c
231. d
232. b
233. b
234. e
235. a
236. b
237. d
238. c
239. d
240. e
241. d
242. d
243. a
244. c
245. d
246. e
247. a
248. d
249. a
250. d
251. b
252. a
253. b
254. c
255. d
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channels and similar manufacturing facilities, but each is promoted as a distinctive product, adding depth to the product
line.
367. Brand loyalty is a customer’s favorable attitude toward a specific brand. If brand loyalty is strong enough, customers
may purchase this brand consistently when they need a product in that product category. Customer satisfaction with a
brand is themost common reason for loyalty to that brand.
There are three degrees of brand loyalty: recognition, preference, and insistence. Brand recognition occurs when a
customer is aware that the brand exists and views it as an alternative purchase if the preferred brand is unavailable or if
the other available brands are unfamiliar. This is the mildest form of brand loyalty. The term loyalty is clearly used very
loosely here.
Brand preference is a stronger degree of brand loyalty. A customer definitely prefers one brand over competitive offerings
and will purchase this brand if it is available. However, if the brand is not available, the customer will accept a substitute
brand rather than expending additional effort finding and purchasing the preferred brand.
When brand insistence occurs, a customer strongly prefers a specific brand, will accept no substitute, and is willing to
spend a great deal of time and effort to acquire that brand. If a brand-insistent customer goes to a store and finds the brand
unavailable, he or she will seek the brand elsewhere rather than purchase a substitute brand. Brand insistence is the
strongest degree of brand loyalty; it is a brander’s dream. However, it is the least common type of brand loyalty.
368. A well-managed brand is an asset to an organization. The value of this asset is often referred to as brand equity.
Brand equity is the marketing and financial value associated with a brand’s strength in a market. Besides the actual
proprietary brandassets, such as patents and trademarks, four major elements underlie brand equity:brand name
awareness, brand loyalty, perceived brand quality, and brandassociations.
Being aware of a brand leads to brand familiarity, which in turn results in a level ofcomfort with the brand. A familiar
brand is more likely to be selected than an unfamiliar brand because the familiar brand often is viewed as more reliable
and of more acceptable quality. The familiar brand is likely to be in a customer’s consideration set, whereas the unfamiliar
brand is not.
369. Private distributor brands also called private brands, store brands, or dealer brands are initiated and owned by re
sellers—wholesalers or retailers. The major characteristic of private brands is that the manufacturers are not identified on
the products. Retailers and wholesalers use private distributor brands to develop more efficient promotion, generate higher
gross margins, and change store image. Private distributor brands give retailers or wholesalers freedom to purchase
products of a specified quality at the lowest cost without disclosing the identities of the manufacturers. Familiar retailer
brand names include Sears’s Kenmore andJCPenney’s Arizona. Many successful private brands are distributed nationally.
Kenmore appliances are as well-known as most manufacturer brands. Sometimes retailers with successful private
distributor brands start manufacturing their own products to gain more control over product costs, quality, and design in
the hope of increasing profits. Sales of private labels have grown considerably as the quality of store brands has increased.
More than 40 percent of shoppers consider themselves frequent buyers of store brands, which accounts for more than
$108 billion in revenue at supermarkets,drugstores, and mass merchandisers.
370. Co-branding is the use of two or more brands on one product. Marketers employ co-branding to capitalize on the
brand equity of multiple brands. Co-branding is popular in several processed-food categories and in the credit card
industry. The brands used for co-branding can be owned by the same company. For example, Kraft’s Lunchables product
teams the Kraft cheese brand with Oscar Mayer lunchmeats, another Kraft-owned brand. The brands also may be owned
by different companies. Credit card companies such as American Express, Visa, and MasterCard, for instance, team up
with other brands such as General Motors, AT&T, and many airlines.
Effective co-branding capitalizes on the trust and confidence customers have in the brands involved. The brands should
not lose their identities, and it should be clear to customers which brand is the main brand. Nike and Apple successfully
teamed up to release a co-branded running shoe, the Nike +. It syncs with an iPod to track running performance. The co–
branded shoe and iPod accessories helped boost sales for both brands. It is important for marketers to understand that
when a co-branded product is unsuccessful, both brands are implicated in the product failure. To gain customer
acceptance, the brands involved must represent a complementary fit in the minds of buyers. Trying to link a brand such as
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Harley-Davidson with a brand such as Healthy Choice will not achieve co-branding objectives because customers are not
likely to perceive these brands as compatible.
371. A marketer should design a brand so that it can be protected easily through registration. To protect its exclusive
rights to a brand, a company must ensure that the brand is not likely to be considered an infringement on any brand
already registered with the U.S. Patent and Trademark Office.
A marketer should guard against allowing a brand name to become a generic term used to refer to a general product
category. Generic terms cannot be protected as exclusive brand names. For example, aspirin, escalator, and shredded
wheat—all brand names at one time—eventually were declared generic terms that refer to product classes. Thus, they
could no longer be protected. To keep a brand name from becoming a generic term, the firm should spell the name with a
capital letter and use it as an adjective to modify the name of the general product class, as in Kool-Aid Brand Soft Drink
Mix. Including the word brand just after the brand name is also helpful. An organization can deal with this problem
directly by advertising that its brand is a trademark and should not be used generically. The firm also can indicate that the
brand is a registered trademark by using the registered symbol.
372. Sellers benefit from branding because each company’s brands identify its products,which makes repeat purchasing
easier for customers. Branding helps a firm to introduce a new product that carries the name of one or more of its existing
products because buyers are already familiar with the firm’s existing brands. It facilitates promotional efforts because the
promotion of each branded product indirectly promotes all other similarly branded products. Branding also fosters brand
loyalty. To the extent that buyers become loyal to a specific brand, the company’s market share for that product achieves a
certain level of stability, allowing the firm to use its resources more efficiently. Once a firm develops some degree of
customer loyalty for a brand, it can maintain a fairly consistent price rather than continually cutting the price to attract
customers.
373. During the maturity phase, the producers who remain in the market are likely to change their promotional and
distribution efforts. Advertising and dealer-oriented promotions are typical during this stage of the product life cycle.
Marketers also must take into account that as the product reaches maturity, buyers’ knowledge of it attains a high level.
Consumers are no longer inexperienced generalists; instead, they are experienced specialists. Marketers of mature
products sometimes expand distribution into global markets. Often the products have to be adapted to fit differing needs
of global customers more precisely.
Because many products are in the maturity stage of their life cycles, marketers must know how to deal with these products
and be prepared to adjust their marketing strategies. There are many approaches to altering marketing strategies during the
maturity stage. To increase the sales of mature products, marketers may suggest new uses for them. Arm & Hammer has
boosted demand for its baking soda by this method, providing multiple uses for this product. Because frozen yogurt has
reached the maturity phase, Ben & Jerry’s has released new flavors and yogurt types to appeal to changing consumer
tastes.
374. The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying
behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products. However, not
all buyers behave in the same way when purchasing a specific type of product. Thus, a single product might fit into
several categories. To minimize complexity, marketers think in terms of how buyers generally behave when purchasing a
specific item. Examining the four traditional categories of consumer product scan provide further insight.
A convenience product is normally marketed through many retail outlets, such as gas stations, drugstores, and
supermarkets. Because sellers experience high inventory turnover, per-unit gross margins can be relatively low. Producers
of convenience products, such as Wrigley’s chewing gum, expect little promotional effort at the retail level and thus must
provide it themselves with advertising and sales promotion. Packaging and displays are also important because many
convenience items are available only on a self-service basis at the retail level, and thus the package plays a major role in
selling the product.
Shopping products are expected to last a fairly long time and are more expensive than convenience products. These
products, however, are still within the budgets of most consumers and are purchased less frequently than convenience
items. Shopping products are distributed via fewer retail outlets than convenience products. Because shopping products
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for a considerable length of time. Accessory equipment does not become part of the final physical product but is used in
production or office activities. Examples include file cabinets, fractional-horsepower motors, calculators, and tools.
Compared with major equipment, accessory items usually are much cheaper, purchased routinely with less negotiation,
and treated as expense items rather than capital items because they are not expected to last as long.
Raw materials are the basic natural materials that actually become part of a physical product. They include minerals,
chemicals, agricultural products, and materials from forests and oceans.
Component parts become part of the physical product and are either finished items ready for assembly or products that
need little processing before assembly. Although they become part of a larger product, component parts often can be
identified and distinguished easily. Spark plugs, tires, clocks, brakes, and head lights are all component parts of an
automobile.
Process materials are used directly in the production of other products. Unlike component parts, however, process
materials are not readily identifiable. For example, a salad dressing manufacturer includes vinegar in its salad dressing.
MRO supplies are maintenance, repair, and operating items that facilitate production and operations but do not become
part of the finished product. Paper, pencils, oils, cleaning agents, and paints are in this category.
378. The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying
behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products.
Convenience products are relatively inexpensive, frequently purchased items for which buyers exert only minimal
purchasing effort. They range from bread, soft drinks, and chewing gum to gasoline and newspapers. The buyer spends
little time planning the purchase or comparing available brands or sellers. Even a buyer who prefers a specific brand will
generally choose a substitute if the preferred brand is not conveniently available. A convenience product is normally
marketed through many retail outlets, such as 7-Eleven, ExxonMobil, and supermarkets.
Shopping products are items for which buyers are willing to expend considerable effort in planning and making the
purchase. Buyers spend much time comparing stores and brands with respect to prices, product features, qualities,
services, and perhaps warranties. Shoppers may compare products at a number of outlets. Appliances, bicycles, furniture,
stereos, cameras, and shoes exemplify shopping products. These products are expected to last a fairly long time and are
purchased less frequently than convenience items. Shopping products require fewer retail outlets than convenience
products.
Specialty products possess one or more unique characteristics, and generally buyers are willing to expend considerable
effort to obtain them. Buyers actually plan the purchase of a specialty product; they know exactly what they want and will
not accept a substitute. Examples of specialty products include a Mont Blanc pen and a one–of-a-kind piece of baseball
memorabilia, such as a ball signed by Babe Ruth. When searching for specialty products, buyers do not compare
alternatives. They are concerned primarily with finding an outlet that has the preselected product available.
Unsought products are products purchased when a sudden problem must be solved, products of which customers are
unaware, and products that people do not necessarily think of purchasing. Emergency medical services and automobile
repairs are examples of products needed quickly to solve a problem.
379.
Before establishing branding policies, a firm must decide whether to brand its products at all. If a company’s product is
homogeneous and is similar to competitors’ products, it may be difficult to brand in a way that will generate brand
loyalty. Raw materials such as coal, sand, and farm produce are hard to brand because of the homogeneity of such
products and their physical characteristics. If a firm chooses to brand its products, it may use individual branding, family
branding, or a combination.
Individual branding is a policy of naming each product differently. Nestlé S.A. is the world’s largest food and nutrition
company. Nestlé uses individual branding for many of its 6,000 different brands, such as NESCAFÉ coffee, PowerBar
nutritional food, Maggi soups, and Haagen-Dazs ice cream. A major advantage of individual branding is that if an
organization introduces an inferior product, the negative images associated with it do not contaminate the company’s
other products. An individual branding policy also may facilitate market segmentation when a firm wishes to enter many
segments of the same market. Separate, unrelated names can be used, and each brand can be aimed at a specific segment.
When using family branding, all of a firm’s products are branded with the same name or at least part of the name, such as
Kellogg’s Frosted Flakes, Kellogg’s Rice Krispies, and Kellogg’s Corn Flakes. In some cases, a company’s name is
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