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Indicate whether the statement is true or false.
1. Karen prefers to buy Chemtec’s cleaning products over other brands if they are easily available in the market.
Karen is in the brand insistence stage of brand loyalty.
a.
True
b.
False
2. The “brand relevance” dimension of the brand personality refers to a brand’s ability to stand apart from its
competitors.
a.
True
b.
False
3. A global brand is generally defined as one that sells at least 60 percent outside its home country.
a.
True
b.
False
4. The consumer adoption process spans from awareness of a product to its acceptance or rejection after a
purchase has been made.
a.
True
b.
False
5. A rise in perceived quality or public opinion about a brand enhances the brand’s esteem.
a.
True
b.
False
6. A product that has attained a monopoly position with its consumers is in the brand preference stage of brand
loyalty.
a.
True
b.
False
7. Product liability insurance has become an essential element for any new or existing product strategy.
a.
True
b.
False
8. A promotional outlay for a family brand benefits all items in the line.
a.
True
b.
False
9. Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search
extensively for the desired merchandise.
a.
True
b.
False
10. Marketers’ emphasis on targeting smaller market segments has increased the importance of packaging as a
promotional tool.
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a.
True
b.
False
11. Companies test market their new-product offerings to measure consumer reactions under normal competitive
conditions.
a.
True
b.
False
12. Companies that offer mass-marketed goods and services are more likely to achieve monopoly position with
their customers compared to those companies that manufacture luxury products.
a.
True
b.
False
13. A product’s package color, size and label shapes are all part of its trade dress.
a.
True
b.
False
14. Food and household staples are common categories of generic products.
a.
True
b.
False
15. The practice of brand licensing expands a company’s exposure in the marketplace.
a.
True
b.
False
16. The original owner of a brand name can claim exclusive rights to the name even when the brand name
becomes a descriptive generic name for a class of products.
a.
True
b.
False
17. Brand extension is the strategy of developing individual offerings that appeal to different market segments
while remaining closely related to the existing product line.
a.
True
b.
False
18. Compared to first adopters, later adopters rely more heavily on impersonal information sources while
purchasing new products.
a.
True
b.
False
19. A product manager often leads new product development programs, including creation of new product ideas
and recommendations for improving existing products.
a.
True
b.
False
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20. Even if a new product tests well in the market and reaches the commercialization stage, it may still take a
while to catch on with the general public.
a.
True
b.
False
21. In the awareness phase of the consumer adoption process, consumers make a trial purchase of an item to
determine its usefulness.
a.
True
b.
False
22. A strong brand identity can contribute to the consumers’ perceptions of product quality.
a.
True
b.
False
23. Manufacturers’ brands are also called national brands.
a.
True
b.
False
24. Fears of product tampering have forced many firms to improve package designs.
a.
True
b.
False
25. An effective label performs both promotional and informational functions.
a.
True
b.
False
26. A product can fulfill its mission of satisfying consumer needs only if it ensures safe operation.
a.
True
b.
False
27. Consumer innovators are individuals who rely on the experiences of initial buyers before making trial
purchases.
a.
True
b.
False
28. Product positioning refers to consumers’ perceptions of a product’s attributes, uses, quality, and advantages
and disadvantages relative to competing brands.
a.
True
b.
False
29. Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown
to the known category, which increases the probability that they will purchase it.
a.
True
b.
False
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30. Family brands cost more than individual brands to market.
a.
True
b.
False
31. Line extension is the strategy of attaching unrelated products to a known brand name to gain instant
recognition for the new offerings.
a.
True
b.
False
32. The market shares for generic products increase during economic downturns but subside when the economy
improves.
a.
True
b.
False
33. A product diversification strategy focuses on developing entirely new products for new markets.
a.
True
b.
False
34. The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all
members of a community or social system.
a.
True
b.
False
35. New-product committee members spend less time conceiving and developing their own new-product ideas
than reviewing and approving new-product plans that arise elsewhere in the organization.
a.
True
b.
False
36. National brands sold exclusively by a retail chain are called captive brands.
a.
True
b.
False
37. A brand name must qualify for legal protection.
a.
True
b.
False
38. A venture team functions as an entity separate from the basic organization.
a.
True
b.
False
39. Merrill Lynch’s bull logo cannot be considered a part of the product’s trade dress.
a.
True
b.
False
40. A brand name should give buyers the correct connotation of the product’s image.
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a.
True
b.
False
41. Brand insistence is a company’s first objective for newly introduced products.
a.
True
b.
False
42. A trademark is different from a trade name, which is usually used to identify a company.
a.
True
b.
False
43. If potential buyers can observe an innovation’s superiority in a tangible form, the adoption rate increases.
a.
True
b.
False
44. Branding helps firms build and maintain identity and competitive advantage for their products.
a.
True
b.
False
45. A brand mark is defined as a part of a brand that can be spoken.
a.
True
b.
False
46. Patients cannot sue a pharmaceutical company over the alleged defects of its products, if the FDA has
approved the use of the medication.
a.
True
b.
False
47. A national brand defines the image most people form when they think of a brand.
a.
True
b.
False
48. Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a
branded product when choosing it, if available, over competitors’ products.
a.
True
b.
False
49. Firms can receive trademark protection only for the brand name and brand mark and not for the product
features or packaging elements.
a.
True
b.
False
50. Private labels typically provide better profit margins than captive brands.
a.
True
b.
False
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51. Some firms register a brand name before they have manufactured the product in order to prevent competitors
from using the name.
a.
True
b.
False
52. Product managers have profit responsibility for their product group and help the retailer’s category buyer
maximize sales for the whole category, not just the particular manufacturer’s product.
a.
True
b.
False
53. Makers of generic products are dependent on brand loyalty for their marketing success.
a.
True
b.
False
54. Marketers opt for family brand names to distinguish dissimilar products.
a.
True
b.
False
55. The original objective of product packaging was to increase consumer awareness of the product.
a.
True
b.
False
56. Companies that follow category management process define the category based on the target market’s needs.
a.
True
b.
False
57. One of the problems associated with brand licensing is that brand names do not transfer well to all products.
a.
True
b.
False
58. Kroger, a popular milk brand, is a market leader in Denmark. About 30 percent of its sales and earnings take
place outside its home country. Kroger can be regarded as a global brand.
a.
True
b.
False
59. A company sent free samples of its new shampoo to a researched list of potential customers. This strategy is
most likely to accelerate the evaluation and trial stages of the consumer adoption process.
a.
True
b.
False
60. Concept testing is a marketing research project that attempts to measure consumer attitudes and perceptions
about the new product idea.
a.
True
b.
False
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61. A brand is said to have high relevance if a large number of consumers feel the need for the benefits offered
by the brand.
a.
True
b.
False
62. Tide laundry detergent commands an extremely high market share. Purchasers of the product are extremely
less sensitive to price changes. Based on this assessment, it can be said that Tide has high brand equity.
a.
True
b.
False
63. The Columbia Sportswear Company decides to produce a line of jackets embroidered with the names of all
of the NFL teams. For doing so, Columbia must first obtain an authorization from the teams and/or the league
before using the trademarked names. This is an example of brand licensing.
a.
True
b.
False
64. The screening and business analysis stages of new-product development, determine the product’s financial
and technical requirements.
a.
True
b.
False
65. A line extension involves the addition of new sizes, styles, flavors, or related products to an existing group
of products.
a.
True
b.
False
66. A product development strategy might include flanker brands that are introduced into the market to increase
the overall market share of the company.
a.
True
b.
False
67. Small manufacturers usually assign a category manager to each major channel such as grocery stores or
drugstores, instead of each retail chain.
a.
True
b.
False
68. Josh usually buys one brand of orange juice but, occasionally, will buy a competitive brand if it’s on sale.
Josh is exhibiting brand insistence.
a.
True
b.
False
69. An excellent brand name or symbol in one country may prove disastrous in another.
a.
True
b.
False
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70. Brand names should contain words or phrases in general use, so that it is easier for the consumers to
pronounce, recognize and remember the brand names.
a.
True
b.
False
71. Cannibalization is the loss of sales of an existing product due to competition from a new product introduced
into the market by a competing firm.
a.
True
b.
False
72. Brands with high equity often command comparatively large market shares.
a.
True
b.
False
73. Brand insistence, the ultimate stage in brand loyalty, leads consumers to refuse alternatives and to search
extensively for the desired merchandise.
a.
True
b.
False
74. Family brands are the most effective aids in implementing market segmentation strategies.
a.
True
b.
False
75. A market penetration strategy seeks to increase sales of existing products in existing markets.
a.
True
b.
False
76. The number of product liability lawsuits has fallen in recent years thanks to better designed products and
more detailed regulations.
a.
True
b.
False
77. When a company authorizes another organization to use its brand name, the company is practicing brand
diversification.
a.
True
b.
False
78. A family brand is a single brand name that identifies several related products.
a.
True
b.
False
79. A market development strategy concentrates on developing new products for existing markets.
a.
True
b.
False
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80. Production of private-label goods helps manufacturers reach additional market segments.
a.
True
b.
False
81. A product development strategy concentrates on finding new markets for existing products.
a.
True
b.
False
82. Tide detergent is available in a variety of formulations but Procter and Gamble should be concerned that any
addition to the Tide detergent product line could cannibalize sales of existing products.
a.
True
b.
False
83. Jack does not buy his shoes from any company other than Unparalleled, a leading shoe manufacturer,
because of the comfort they offer and their unique style features. Jack is in the brand insistence stage of brand
loyalty.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
84. A characteristic of a good brand name is that it should:
a.
avoid giving buyers the correct connotation of the product’s image.
b.
be easy to recognize and remember.
c.
always be an acronym.
d.
be difficult to pronounce.
85. With reference to the five characteristics of a product innovation, a product innovation is said to have a
greater _____, if it is superior to previous ideas reflected in terms of lower price, physical improvements, or
ease of use.
a.
associability
b.
compatibility
c.
relative advantage
d.
observability
86. Hormel Foods owns the brand, “Wholly Guacamole” but has chosen NOT to display the Hormel name or
logo on the packaging. Which term is most appropriate for the “Wholly Guacamole” brand?
a.
individual brand
b.
family brand
c.
captive brand
d.
manufacturer’s brand
87. Which of the following tasks least describes the role of a brand manager?
a.
making the product relevant to its target market
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b.
protecting the company’s trademark and brand
c.
ensuring that products are perceived as high in quality
d.
offering opportunities to enhance consumer brand loyalty
e.
being familiar with the kinds of emotions that push consumers to buy
88. Which of the following actions can the CPSC take to ensure product safety?
a.
Regulating packaging standards for milk products
b.
Approving safety standards for automobiles
c.
Inspecting production facilities of food manufacturers
d.
Ordering product recalls or redesign of faulty products
89. Which of the following product categories is NOT regulated by the Consumer Product Safety Commission?
a.
food
b.
bicycles
c.
furniture
d.
window blinds
90. Which of the following statements is true of category management?
a.
Category managers are responsible for the profitability of their product groups.
b.
Category managers help a retailer’s category buyer maximize sales for a particular manufacturer’s
product rather than the whole category.
c.
Category managers are usually assigned to a single brand rather than each retail chains.
d.
Category managers are oriented toward mass market advertising, not in-store merchandising.
91. When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of
the game scenarios. Addition of this link is most likely to influence which of the following characteristics of the
product innovation?
a.
Complexity
b.
Associability
c.
Possibility of trial use
d.
Compatibility
92. You launched the first ad campaign for your new nutrition bar just a few weeks ago, and are pleased to see hundreds
of requests for more information about its ingredients on the company’s Facebook page and Twitter account. The nutrition
bar is most likely in which stage of the consumer adoption process?
a.
Adoption
b.
Evaluation
c.
Awareness
d.
Interest
e.
Accelerated
93. Nivea works for Bonbon, a fair-trade chocolate company based in California. In addition to being
recognized for the delicious, low fat treats the company manufactures, Bonbon is also known for fair labor
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practices at its factories. When interviewed, 83% of the company’s loyal customers said when they couldn’t
find Bonbon products for purchase in local stores, they ordered them online rather than buy substitute products.
Which type of brand loyalty is illustrated here?
a.
brand insistence
b.
brand preference
c.
brand recognition
d.
brand name
e.
brand competition
94. A _____ strategy focuses on developing entirely new products for new markets.
a.
market penetration
b.
market development
c.
product development
d.
product diversification
95. Based on the Young & Rubicam’s BrandAsset Valuator model, _____ is a dimension of brand personality
that refers to a brand’s ability to stand apart from competitors.
a.
knowledge
b.
differentiation
c.
relevance
d.
competence
96. Firms may also choose to introduce new products into markets in which they have already established
positions to try to increase overall market share. These new offerings are called _____ brands.
a.
universal
b.
flanker
c.
conjoint
d.
congruous
97. At the _____ stage in the consumer adoption process, buyers consider the likely benefits of the product.
a.
awareness
b.
trial
c.
interest
d.
evaluation
98. The screening and business analysis stages generate extremely important information for new-product
development as:
a.
they collect information from different sources to generate new ideas.
b.
they turn the original concept into a product.
c.
they verify if the product will perform well in a real-life environment.
d.
they define the proposed product’s target market and customers’ needs and wants.
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99. A _____ is a symbol or a pictorial design that distinguishes a product from its competitors’ offerings.
a.
brand dress
b.
water mark
c.
brand mark
d.
category tag
100. A firm is most likely to opt for a family brand to market its products when the products are:
a.
sold only to a single large retail chain to protect the manufacturer’s reputation.
b.
sufficiently different so as not to compete directly with each other.
c.
sold in different geographic markets.
d.
similar in quality and are closely related to one another.
101. Daphne commonly purchases national brands that are sold exclusively by retail chains, and frequently buys
these items from Target. What type of brand is Daphne purchasing?
a.
family brand
b.
captive brand
c.
individual brand
d.
generic brand
e.
manufacturer’s brand
102. The term cannibalization refers to the:
a.
difference in expected and actual outcome from the implementation of a market penetration strategy.
b.
shrinking of a firm’s market share due to competition from rivals.
c.
decline in the brand loyalty for a product due to changing economic conditions.
d.
decline in the sales of an existing product due to competition from a new product by the same
manufacturer.
103. An apparel manufacturer decides to create a line of t-shirts depicting the most popular soft drinks on the
market. The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr. Pepper. The apparel
manufacturer will have to complete which of the following practices before creating this line of t-shirts?
a.
Line extension
b.
Brand extension
c.
Brand licensing
d.
Brand engagement
104. Which of the following entities is responsible for all phases of a development project, including screening
decisions, developing product specifications, and coordinating product testing?
a.
Brand extension team
b.
Business analysis task force
c.
Category management committee
d.
New-product department
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105. St. Ives and Dove beauty products, marketed by Unilever, are examples of _____ brands.
a.
family
b.
individual
c.
generic
d.
captive
106. The purpose of test marketing new-product offerings is to:
a.
separate ideas with commercial potential from those that will not meet company objectives.
b.
subject the product idea to additional study prior to its actual development.
c.
verify that the product will perform well in a real-life environment.
d.
evaluate the compatibility of the product with organizational resources.
107. The leaping jaguar symbol, featured on cars of a particular brand, is a part of the brand’s:
a.
service mark.
b.
trade dress.
c.
watermark.
d.
trade token.
108. The added value that a certain brand name gives to a product in the marketplace is called _____.
a.
brand identity
b.
brand relevance
c.
brand recognition
d.
brand equity
109. Loyola works for a coffee shop that wants to differentiate itself from local competitors in order to boost its
profits. Which of the following differentiation strategies would hurt the company rather than boost sales?
a.
hire more staff
b.
sell the coffee cups in which the beverages are served
c.
offer a wider selection of international coffees and teas
d.
provide customer incentives, including coupons and points
e.
renovate the coffee shop so it has more space than other coffee shops in the area
110. You are the manager for the consumer product adoption strategies department of your firm. Your job
requires you to manage the third stage of the five-stage consumer product adoption process. Which of the
following statements is true in regard to your job focus?
a.
You should focus on making sure buyers are aware of your product’s existence.
b.
You should focus on encouraging the current buyers of your product to become repeat buyers.
c.
You should focus on making sure buyers clearly understand your product’s benefits.
d.
You should focus on providing information about your product.
e.
You should focus on encouraging buyers to just try your product.
111. Which of the following is most likely to be the primary factor that attracts a consumer to a generic product?
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a.
Package design
b.
Brand name
c.
Low price
d.
Product quality
112. Which of the following is a common complaint among consumers regarding the widespread use of
universal product codes (UPC) in retail stores?
a.
prices are not displayed on product packaging
b.
UPC are useful in marketing research and compromise consumer privacy
c.
use of UPC codes resulted in layoffs in the retail industry
d.
UPC scanners are expensive and led to higher prices in grocery stores
113. Shawn is a category manager for Hormel Foods’ fresh meat division and is based in Bentonville, Arkansas.
One of his major responsibilities is to be a resource to Wal-Mart. Which of the following would most likely be
part of his responsibility as a category manager?
a.
tracking sales history for Hormel Food products and other fresh meat brands available from the point-
of-sale systems
b.
creating or designing point-of-sale displays
c.
hosting in-store product tastings at local Wal-Marts in the Bentonville area
d.
working with Hormel’s food suppliers to ensure fresh taste and high quality
114. Celwyn works for a cosmetics company known for its anti-animal testing policies. Recently, however, a
reputable newspaper reported that the company had tested their newest line of blush on rabbits.
Which of the following statements is most likely true about the company?
a.
The company’s customers will become even more loyal.
b.
The company’s relevance will increase as a result of this news report.
c.
The company’s esteem will decrease as a result of this news report.
d.
The company will become less differentiated from other cosmetics brands.
e.
The company’s esteem will increase as a result of the coverage by a reputable newspaper.
115. You work for a drug company and have been asked to advise company executives about the manufacturing
of generic versus branded pharmaceuticals. Which of the following arguments could you use if you were trying
to convince the executives that branded drugs are the way to go?
a.
Generic brands are easier to locate.
b.
Brand-name drugs cost less to manufacture.
c.
It costs more to market generic brands.
d.
Brand-name drugs are chemically identical to generic drugs.
e.
Customers sometimes feel more secure about purchasing brand-name drugs.
116. The Poison Prevention Packaging Act:
a.
requires firms to mandatorily inform customers regarding the dangers associated with the use of
products.
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b.
requires drug manufacturers to place their products in packages that are child resistant yet accessible
to all adults.
c.
bans those products that contain harmful chemicals.
d.
requires firms to publicize the testing procedures that go into the development of their product
packaging.
117. According to the Young & Rubicam’s BrandAsset Valuator model, brand relevance is a dimension of
brand personality that refers to:
a.
the extent of consumer awareness of a brand and understanding of what kind of product it stands for.
b.
the real and perceived appropriateness of a brand to a big consumer segment.
c.
the way in which brand equity is assigned to the brand by evaluating institutions.
d.
a brand’s ability to stand apart from competitors.
118. A company wishing to implement a market segmentation strategy for its products should strongly consider
using _____ branding.
a.
family
b.
captive
c.
generic
d.
individual
119. Which of the following factors has helped increase the importance of packaging as a marketing tool?
a.
Marketers’ emphasis on targeting large market segments
b.
Increased popularity of generic products
c.
Changes in consumer lifestyles and buying habits
d.
Global economic recessive trends
120. Which of the following is a method for subjecting a product idea to additional study before actual
development by involving consumers through focus groups, surveys, in-store polling, and similar strategies?
a.
Line extension
b.
Brainstorming
c.
Sample distribution
d.
Concept testing
121. What is the name of the legislative action that requires drug manufacturers to place their products in
packaging that is child resistant yet accessible to all adults, even ones who have difficulty opening containers.
a.
Poison Prevention Packaging Act
b.
Federal Drug Packaging Act
c.
Drug Safety Act
d.
Consumer Drug Protection Act
122. On a recent trip to the grocery store, Jackson noticed an in-store tasting event for a new line of yogurt-
based dips. The store was providing product sampling and a coupon for .50 off the purchase price. Jackson
tried the French Onion flavor and liked it so much he decided to purchase it for an upcoming party at his home.
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Which characteristic influencing adoption rates does this represent?
a.
possibility of trial use
b.
complexity
c.
relative advantage
d.
observability
123. According to the Young & Rubicam’s BrandAsset Valuator model, the _____ dimension of a brand
personality is a combination of perceived quality and consumer perceptions about its growing or declining
popularity.
a.
differentiation
b.
relevance
c.
esteem
d.
knowledge
124. The ______________ has the authority to recall products or ban products without a court hearing, but
doesn’t have jurisdiction over food products.
a.
Consumer Product Safety Commission
b.
Flammable Fabrics Act
c.
Food and Drug Administration
d.
Consumer Product Safety Act
e.
Fair Packaging and Labeling Act
125. International Business Machines decided to brand its products under its acronym IBM. From a marketing
perspective, this was a smart idea because as a brand name, IBM:
a.
is easy to pronounce, recognize, and remember.
b.
is easy to translate into any language.
c.
accurately describes the products it manufactures.
d.
can easily be expanded to suit innovative advertising campaigns.
126. Which of the following is most likely to be true of consumer innovators?
a.
They are unlikely to display brand loyalty toward products.
b.
As compared to later adopters, they rely less on impersonal information sources.
c.
They often act as opinion leaders from whom others seek advice.
d.
They are less mobile, and do not prefer changing jobs often.
127. Dawn, Joy, and Ivory are dish liquid brands manufactured by Procter & Gamble. All these brands can be
regarded as _____ brands.
a.
private
b.
family
c.
generic
d.
individual
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128. A _____ often leads new-product development programs, including creation of new-product ideas and
recommendations for improving existing products.
a.
product architect
b.
product manager
c.
category manager
d.
product analyst
129. Which of the following statements is true of venture teams?
a.
A venture team is disbanded after every meeting.
b.
A venture team functions as an integral part of the basic organization.
c.
A venture team’s flexible lifespan may extend over a number of years.
d.
A venture team is responsible for looking after all the legal aspects of introducing a new product in
the market.
130. Through your market research, you know that skiers who buy your brand of ski gloves rely on previous experiences
with the product before choosing it over alternatives. Your ski glove has reached the _____ stage of brand loyalty.
a.
Recognition
b.
Preference
c.
Insistence
d.
Ski use
e.
Ski reference
131. Which of the following is true of generic products?
a.
They are identified through a brand name owned by a wholesaler or retailer.
b.
They are identified through a brand name owned by a manufacturer or other producer.
c.
They are well known national brands sold exclusively through a joint venture between a
manufacturer and a retailer.
d.
They are characterized by plain labels, little or no advertising, and no brand names.
132. Liz Lange maternity wear and Shaun White’s apparel for boys are sold exclusively at Target. These brands
are examples of _____ brands.
a.
private
b.
national
c.
captive
d.
exclusive
133. In the context of the consumer diffusion process, “_____” constitute the final group of consumers that
make trial purchases of a new product.
a.
innovators
b.
late majority
c.
early purchasers
d.
laggards
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134. The term _____ is used by marketers to refer to the visual components that contribute to the overall look of
a brand.
a.
water mark
b.
brand token
c.
service mark
d.
trade dress
135. The Federal Trademark Dilution Act of 1995 deals with:
a.
unregistered trademarks in the marketplace and legal protection for generic names.
b.
the establishment of procedures for distinguishing generic names from genericized names.
c.
the regulation of cases of cybersquatting and Internet domain name impingement.
d.
the rights of a trademark holder to sue for trademark infringement.
136. The brand of petroleum marketed by BP took a hit when the firm was implicated in the 2010 Gulf of Mexico oil spill.
On which dimension of brand personality was BP primarily affected?
a.
Relevance
b.
Esteem
c.
Popularity
d.
Knowledge
e.
Competitiveness
137. The strategy of _____ refers to the introduction of new products into identifiable or established markets.
a.
market penetration
b.
product positioning
c.
market diversification
d.
product development
138. Kennedy enjoys shopping at Costco and likes to purchase the Kirkland brand of strawberry preserves.
However, on a recent shopping trip, the store did not have the Kirkland brand but a new organic brand, Clover
Patch. Kennedy decided to purchase the new brand and give it a try. Which term best describes Kennedy’s
level of brand loyalty for the Kirkland brand of strawberry preserves?
a.
brand preference
b.
brand recognition
c.
brand insistence
d.
brand persistence
139. The term “product positioning” refers to:
a.
a low cost market entry strategy in which two or more firms represent one another’s complementary
yet non-competing products in the markets.
b.
the process of developing entirely new products for new markets.
c.
consumers’ perceptions of a product’s attributes, uses, quality, as well as advantages and
disadvantages relative to competing brands.
d.
the process of developing a trade dress for a new product.
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140. The original objective of packaging was to:
a.
create a brand image of the product.
b.
indicate the quality of the product.
c.
protect products from physical damage.
d.
comply with government regulations.
141. Marcia’s company is at the commercialization stage of new product development. Before company
executives move forward with this stage, what advice can you give them?
a.
Focus on the cannibalization of existing products.
b.
Focus on the promotional mix rather than the distribution mix.
c.
The marketing mix should be planned before the selection of the target market.
d.
The launch date should coincide with a good economic situation to maximize sales.
e.
Target only opinion leaders because they are the ones who will spend the most money on the product.
142. Which of the following is a benefit of high levels of brand equity as discussed in the textbook?
a.
consumers are willing to pay more for the company’s products
b.
reduced levels of costs to produce the products
c.
easy access to sources of private equity
d.
reduced levels of government regulation
143. A company introduced a new low calorie version of one of its popular cold drinks. As a result, the sales of
the original cold drink started decreasing because consumers preferred its low calorie version. This situation is
known as:
a.
product encroachment.
b.
product centralization.
c.
cannibalization.
d.
polarization.
144. During which of the following stages of a new-product development process, ideas with commercial
potential are separated from those not meeting company objectives?
a.
Idea generation
b.
Business analysis
c.
Screening
d.
Test marketing
145. More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg’s Cracklin’ Oat Bran say that
it tastes like oatmeal cookies and makes “a great snack anytime.” Kellogg’s is implementing a strategy of _____
with this product.
a.
market penetration
b.
market development
c.
product development
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d.
product diversification
146. The ______ is a powerful regulatory agency that has assumed jurisdiction over the safety of every
consumer product except food, automobiles, and a few other products regulated by other agencies.
a.
DHSS
b.
FDA
c.
CPSC
d.
OSHA
147. Individuals who purchase new products almost as soon as these products reach the market are called _____.
a.
late adopters
b.
laggards
c.
consumer innovators
d.
hesitant buyers
148. The truck manufacturer for which Bonita works is being sued because the brakes in several new trucks
have failed and the trucks are being recalled. What is the manufacturer responsible for?
a.
better product test marketing
b.
concise screening process
c.
new-product departments
d.
product liability
e.
product interest
149. Annie’s Inc., which produces vinegar for cooking purposes, identified new uses for its product and started
promoting it as a fabric softener and a cleansing product. The company started selling the same product in
different packages modified for different types of uses. This strategy used by Annie’s to increase the sales of its
product is an example of a _____ strategy.
a.
brand extension
b.
line engagement
c.
market penetration
d.
product diversification
150. Jose is an avid runner and is training for his first marathon. He has several different brands of running
shoes but his favorites are Asics because they are lightweight and also support his feet. He’s going to purchase
another pair for his training and decides that from now on, he will only purchase the Asics brand. Which level
of brand loyalty is best described by this example?
a.
brand insistence
b.
brand recognition
c.
brand persistence
d.
brand preference
151. Aldi is a chain of discount supermarkets based in Germany. The company has recently started opening stores across
the United States. Based on this information, the product development strategy being pursued by Aldi is known as a
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_______ strategy.
a.
Market penetration
b.
Market development
c.
Product penetration
d.
Product development
e.
Diversification
152. A new product committee is a group in an organization that:
a.
helps the organization in identifying a suitable partner for a join venture.
b.
looks after all the legal aspects of the organization when it launches a new product in the market.
c.
coordinates and integrates the work of the firm’s functional departments on a specific project.
d.
reviews and approves new-product plans that arise elsewhere in the organization.
153. Apex Corp. has been manufacturing furniture for past several years. Now in order to grow its business, the
company has decided to manufacture curtains and bed sheets. The strategy being used by the company to target
new markets is referred to as a _____.
a.
product association strategy
b.
market simulation strategy
c.
market engagement strategy
d.
product diversification strategy
154. The Gillette Company is a leader in the market for razors/blades/shaving systems for men and women. Its
product development history goes back to the introduction of the first safety razor. Since then, it has regularly
led the market in introducing products to meet the needs of its customers. The following list outlines some of its
major product introductions:
• safety razor
• twin-bladed razor
• twin-bladed disposable razor
• pivoting-head razor
• pivoting-head disposable razor
• razor designed specifically for women
• triple-blade razor
• battery-powered razor
Gillette’s introduction of the twin-bladed disposable razor would be considered which of the following:
a.
new product
b.
line extension
c.
brand licensing
d.
universal product code (UPC)
e.
trade dress
155. Dayer’s, a popular ice cream brand, added new flavors to its existing line of ice creams to attract kids. This
is an example of _____.
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a.
brand extension
b.
line extension
c.
brand engagement
d.
line engagement
156. Responding to moviegoers’ recently renewed interest in the 3D format, Panasonic introduced the world’s
first 3D home entertainment system. This strategy used by Panasonic is an example of a _____.
a.
market engagement strategy
b.
market simulation strategy
c.
product development strategy
d.
product association strategy
157. A _____ is a brand for which the owner claims exclusive legal protection.
a.
water mark
b.
field symbol
c.
trademark
d.
category code
158. Kenmore is a well-known brand of appliances sold exclusively by Sears. Kenmore is best described as a(n) ____
brand.
a.
Manufacturer’s
b.
Generic
c.
Captive
d.
Individual
e.
Equity
159. The Gillette Company has a long history of developing shaving-related products for men and women. In
addition, it continuously produces products that feature improvements to existing technologies, including three-
bladed disposable razors and ergonomically superior handle designs.
To maintain its success in new product development, Gillette regularly organizes several small focus groups
comprising people who shave in order to gain insights into what these individuals look for in a
razor/blades/shaving system. At which step of the new-product development process is Gillette when it
conducts these focus groups?
a.
idea generation step
b.
commercialization step
c.
development step
d.
business analysis step
e.
screening step
160. Marilyn is a grandmother to 3 and lives in Oklahoma City. She still uses her DVD player but her grand
kids are wanting to watch shows on Netflix when they visit her house. She does have high speed Internet
access but does not yet have a Netflix account. However, she plans to subscribe to Netflix in the next several
weeks. Netflix has over 40 million paid subscribers in the United States representing approximately 30% of
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total United States households. Netflix continues to add several million subscribers every quarter. Which
category of “adopter” would best describe Marilyn?
a.
early majority
b.
consumer innovator
c.
early adopter
d.
laggard
161. A product is said to have achieved brand preference when:
a.
the product becomes familiar to the consumer.
b.
the marketers start selling the product at a discount.
c.
the consumer sees or recognizes the product and chooses it over its competitors.
d.
the product has attained monopoly position with its customers.
162. A “_____” carries an item’s brand name or symbol, the name and address of the manufacturer or
distributor, information about the product’s composition and size, and recommended uses.
a.
brand mark
b.
label
c.
brand token
d.
watermark
163. A _____ brand refers to a brand name owned by a manufacturer or a producer.
a.
private
b.
generic
c.
national
d.
captive
164. Which of the following products is most likely to achieve the status of brand insistence?
a.
Cars
b.
Soaps
c.
Milk
d.
Toothpastes
165. There are six phases in the new product development process. All of these phases would benefit from planning and
scheduling tools like PERT (Program Evaluation and Review Technique) or CPM (Critical Path Method), except:
a.
Idea Generation
b.
Screening
c.
Business Analysis
d.
Commercialization
e.
None of the above. These tools would be helpful in all of the phases.
166. The strategy of attaching a popular brand name to a new product in an unrelated product category is known
as _____.
a.
brand licensing
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b.
brand reinforcement
c.
brand engagement
d.
brand extension
167. Companies that adopt category management system start the process by:
a.
setting performance standards and measuring actual results against the standard.
b.
defining the category based on the target market’s needs.
c.
staffing the sales force, including the national sales teams assigned to major retailers.
d.
identifying consumer groups and the store clusters with the greatest sales potential.
168. You work in brand management for a manufacturer of beauty products. It is your responsibility to maximize sales of
all of your brands for the national retail chains selling them. Your job title is most likely:
a.
Category manager
b.
Retail manager
c.
National account manager
d.
Category analyst
e.
Brand manager
169. A new product innovation that is consistent with the values and experiences of potential adopters and
attracts new buyers at a relatively rapid rate is said to have high _____.
a.
complexity
b.
observability
c.
compatibility
d.
transparency
170. If Sunbeam were to develop a new coffee machine and brand it as “The Coffee Maker,” the company
would not be able to register the term as its trademark because:
a.
the trademark must contain the company’s name to be registered.
b.
using “the” in the trademark makes it exclusive to a particular manufacturer.
c.
the term describes a particular type of product.
d.
the trademark should always be an acronym.
171. A product is generally regarded as a global brand if:
a.
it is sold exclusively by a single retail chain worldwide.
b.
it sells at least 20 percent outside its home country.
c.
it can market its products with the same brand name in all its international markets.
d.
it is easily recognized across the world by its unique trademark.
172. The first step in the new-product development process is:
a.
screening.
b.
development.
c.
idea generation.
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d.
business analysis.
173. A major manufacturer of men’s shaving products has developed a prototype of an electric shaver featuring a
vacuum attachment to capture virtually all hair. It’s targeted to men who have facial hair – beards, mustaches, or
goatees who like a trimmed appearance but dislike all the hairs that fall into the sink or bathroom counter top.
The engineers create several prototypes and have members of their marketing research team gauge consumer
response to the new product by conducting personal interviews with men who have facial hair. The company
hopes that if the product is favorably received, the new product will be more successful in the marketplace.
This is an example of:
a.
concept testing
b.
screening
c.
test marketing
d.
commercialization
174. The Florida Orange Juice Growers and their ad agency utilized the slogan, “It’s not just for breakfast
anymore” to motivate consumers to drink more orange juice by having current orange juice drinkers enjoy the
beverage throughout the day hoping this would increase demand and sales of orange juice. This strategy is
called
a.
market penetration
b.
product development
c.
market development
d.
product diversification
175. Which of the following terms refers to a series of stages consumers go through in learning about a new
product, trying it, and deciding whether to purchase it again?
a.
Product life cycle
b.
Adoption process
c.
Product development process
d.
Diffusion process
176. A(n) _____ gathers a group of specialists from different areas in an organization to work together in
developing new products.
a.
quality circle
b.
venture team
c.
new-product department
d.
market development committee
177. Dali stationery and office supplies is a market leader in China. The company wants to expand its business
and is setting up retail chains in other Asian countries. Which of the following new-product development
strategies is being used by the company in the above scenario?
a.
Market development strategy
b.
Market penetration strategy
c.
Product development strategy
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d.
Product diversification strategy
178. The numerical bar code system used to record product and price information is called the _____.
a.
uniform serial number
b.
unitized product locator
c.
unique label identifier
d.
universal product code
179. The process by which new goods or services are accepted in the marketplace is known as the _____
process.
a.
extension
b.
referencing
c.
diffusion
d.
polarization
180. Your company is looking to hire someone who will oversee a new product line. This individual will be
responsible for ensuring that the products are meeting the needs of consumers and will engage in new product
planning and development. Which of the following positions is your company hiring?
a.
analyst
b.
category manager
c.
brand manager
d.
product manager
e.
brand manager
181. As a marketer tasked with developing the packaging of the food products your company makes, you are
concerned with all of the following except:
a.
leakproof seals
b.
packaging to prevent shoplifting
c.
utensils used to eat the product
d.
tamper-resistant packaging
e.
cost effectiveness
182. The _____ strategy seeks to increase sales of existing products in existing markets.
a.
product development
b.
market innovation
c.
product diversification
d.
market penetration
183. A company’s ability to market a product successfully at a higher price compared to its competitors is
directly related to its:
a.
market capitalization.
b.
product relevance.
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c.
brand equity.
d.
market share.
184. Colin owns a dog food business, but wants to develop a canine fashion line as a way of expanding his
portfolio and increasing sales and profits. One of the things customers love about Colin’s company is that all of
the products are manufactured locally, creating jobs for young people. Though he does not have a lot of money
and hopes that he won’t have to hire new staff, he thinks he might have to. Rather than developing a canine
fashion line, which of the following alternatives can you suggest to Colin?
a.
Colin should use cannibalization strategy.
b.
Colin should use a market penetration strategy.
c.
Colin should outsource his company’s jobs to cut costs.
d.
Colin should consider selling his business to a larger pet food company.
e.
Colin should hire a marketing company to help him promote his products.
185. Marta’s company wants to revamp its potato chips brand to compete with Lay’s potato chips. She has been
researching consumer preferences so that she can market her company’s chips accordingly. What type of
strategy is Marta using?
a.
product diversification strategy
b.
product development strategy
c.
market development strategy
d.
product positioning strategy
e.
market penetration strategy
186. Jimmy Buffet is a popular singer, songwriter, entertainer and business owner of Margaritaville Holdings.
The company operates restaurants and hotels and also engages in contracted relationships with other companies
who use the Margaritaville name on their products. Margaritaville foods are now available in the local grocery
store including items such as trail mix and frozen shrimp. Margaritaville is utilizing ________ to expand their
exposure in the marketplace.
a.
brand licensing
b.
market penetration
c.
line extensions
d.
category extensions
187. _____ have profit responsibility for their product group and help retailers in maximizing the sales for the
whole group of products not just the particular manufacturer’s product.
a.
Research analysts
b.
Early purchasers
c.
Boundary spanners
d.
Category managers
188. At the _____ stage in the consumer adoption process, potential buyers begin to seek information about the
product.
a.
trial
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b.
evaluation
c.
interest
d.
adoption
189. A popular clothing brand in Switzerland decided to launch a new line of home furniture under the same
brand name. This strategy being used by the company to launch its new offerings is called _____.
a.
line engagement
b.
brand reinforcement
c.
line extension
d.
brand extension
190. The _____ stage in brand loyalty leads consumers to refuse alternatives and search extensively for the
desired merchandise.
a.
brand recognition
b.
brand insistence
c.
brand awareness
d.
brand preference
191. A company has introduced a new product in the market. The company distributes free samples of this
product to people so that they can try it. This product is at the _____ stage of brand loyalty.
a.
brand insistence
b.
brand association
c.
brand preference
d.
brand recognition
192. The Kirkland brand is owned by Costco, and the products can only be purchased at Costco stores. Costco
contracts with manufacturers to produce and package products under the Kirkland name. Kirkland can be
regarded as a(n):
a.
family brand.
b.
individual brand.
c.
generic brand.
d.
private brand.
193. A _____ strategy concentrates on finding new markets for existing products.
a.
market penetration
b.
market development
c.
product development
d.
product diversification
194. The strategy of developing individual offerings to appeal to different market segments while remaining
closely related to the existing product line is called _____.
a.
line engagement
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b.
line extension
c.
brand extension
d.
brand engagement
195. A memo from your firm’s legal counsel reviews the branding elements that can receive trademark protection under
United States law. You have just developed a unique shape for the bottle of a new body wash. Can this be trademarked?
a.
Yes, as long as it incorporates the brand name.
b.
Yes, because unique shapes can be trademarked.
c.
No, because only names and logos can be trademarked.
d.
No, because packaging elements cannot be trademarked.
e.
Yes, as long as it is labeled with the brand logo.
196. When people see Coca Cola on the shelves of their local supermarkets, they remember fond childhood
memories of drinking Coke and fun Christmas commercials with polar bears and Santa Claus. Though other
cola beverages may win blind taste tests over Coca Cola, consumers tend to have an emotional relationship with
Coke, which gives the product a competitive edge on the market.
Which of the following aspects of a product is described here?
a.
brand
b.
trademark
c.
brand name
d.
brand mark
e.
product appeal
197. Dell manufactures and markets computers and several related products, such as laptops, desktops,
notebooks, and printers, all under the Dell name. These products are examples of _____ brands.
a.
family
b.
captive
c.
individual
d.
private label
198. Consumers at the _____ level of brand loyalty, rely on previous experiences with the product when
choosing it, if available, over competitors’ products.
a.
brand awareness
b.
brand association
c.
brand preference
d.
brand recognition
199. A key element in the success of Google is that the company’s search engine is perceived as appropriate to people all
over the globe. An enormous number of consumers feel a need for Google’s benefits. Based on this information, which
dimension of brand personality is best illustrated by Google?
a.
Differentiation
b.
Esteem
c.
Knowledge
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d.
Relevance
e.
Commitment
200. Category managers are usually assisted by associates called
a.
analysts
b.
product managers
c.
category specialists
d.
category killers
201. According to the Young & Rubicam’s BrandAsset Valuator model, the _____ is a dimension of brand
personality that refers to the extent of consumer awareness of a brand and the understanding of what a good or
service represents.
a.
knowledge
b.
esteem
c.
recognition
d.
differentiation
202. Tiffany enjoys shopping at Aldi because it’s a smaller store that stocks the basic necessities in addition to a
great selection of gourmet or specialty items. She has 3 kids who eat cereal almost every morning for breakfast
and sometimes as a snack. She’s found that the “Millville Fruit Rounds” available only at Aldi’s are a great
value and her kids prefer them to Froot Loops. What type of brand are the “Millville Fruit Rounds”?
a.
private brand
b.
generic brand
c.
individual brand
d.
manufacturer’s brand
203. Ramon is a sales representative for a medical device company and works with orthopedic surgeons.
During his discussions with surgeons about their work and the type of tools or devices that would help them
perform better, he began to receive several interesting suggestions that Ramon passed along to the new product
development team. What stage in the new-product development process does this represent?
a.
idea generation
b.
screening
c.
development
d.
test marketing
204. Your company recently released an ad campaign to promote its new tablet. Shortly thereafter, your
company publishes a series of blogs and articles about the product and sets up hotlines so people can call in to
find out more information about the product and its release date. At which stage of the adoption process are
consumers operating?
a.
trial
b.
interest
c.
evaluation
d.
awareness
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e.
adoption
205. At the _____ stage of brand loyalty, marketers use advertising as a means to increase consumer awareness
of a brand.
a.
brand recognition
b.
brand preference
c.
brand insistence
d.
brand equity
Indicate one or more answer choices that best complete the statement or answer the question.
206. Safety standards in the United States toy industry have risen during the years you have worked in the field. A
coworker comments that this is entirely because of federal government laws and agencies, but you know differently.
Choose the additional reason(s) for increased safety standards.
a.
Higher standards set voluntarily by manufacturers
b.
State government laws and agencies
c.
More product liability lawsuits
d.
United States firms hiring more lawyers
e.
More plentiful raw materials
Match each item with the correct statement below.
a.
trade dress
b.
brand preference
c.
brand insistence
d.
generic product
e.
family brand
f.
brand equity
g.
product diversification
h.
trademark
i.
brand extension
j.
consumer innovator
k.
brand name
l.
private brand
m.
brand manager
n.
universal product code (UPC)
o.
cannibalization
p.
product liability
q.
captive brand
r.
brand mark
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s.
line extension
t.
label
207. _____ is the second level of brand loyalty at which buyers rely on previous experiences with the product
when choosing it, if available, over competitors’ products.
208. _____ is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search
extensively for the desired merchandise.
209. A(n) _____ is characterized by plain labels and no advertising.
210. A brand offered by a wholesaler or a retailer is called a(n) _____.
211. A(n) _____ is a single brand name that identifies several related products.
212. A(n) _____ is a national brand sold exclusively by a retail chain.
213. The term _____ refers to the added value a certain brand name gives to a product in the marketplace.
214. A(n) _____ consists of words or numbers that can be spoken, and identifies and distinguishes a firm’s
offerings from those of its competitors.
215. A(n) _____ is a symbol or a pictorial design that distinguishes a product.
216. A(n) _____ is a brand for which the owner claims exclusive legal protection.
217. The term _____ refers to the visual components that contribute to the overall look of a brand.
218. A(n) _____ is a branding component that carries an item’s brand name or symbol, the name and address of
the manufacturer or distributor, information about the product, and recommended uses.
219. The _____ is a numerical bar code system used to record product and price information.
220. _____ is the strategy of attaching a popular brand name to a new product in an unrelated product category.
221. _____ is the practice of developing individual offerings that appeal to different market segments while
remaining closely related to the existing product line.
222. A(n) _____ strategy focuses on developing entirely new products for new markets.
223. _____ refers to loss of sales of an existing product due to competition from a new product in the same line.
224. A person who purchases new products as soon as they are available in the market is called a(n) _____.
225. A marketer responsible for an individual product or product line is called a(n) _____.
226. _____ refers to the responsibility of manufacturers and marketers for injuries and damages caused by their
products.
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227. What are generic products? Give an example of a generic product.
228. Identify and describe the organizational entities used in new product development.
229. Differentiate between brand extension and line extension strategies.
230. How does a category manager help retailers to maximize the sales of their products?
231. How do family brands differ from individual brands?
232. What are the three main objectives of packaging?
233. Describe brand licensing. What are the problems associated with licensing?
234. Differentiate between a manufacturer’s brand and a private brand. Give examples for each.
235. Discuss the four dimensions of brand personality as described by the Young & Rubicam Brand Asset
Valuator model.
236. List out the steps that companies follow in the category management process.
237. Briefly describe the four new-product development strategies.
238. What is a label? How does it assist in the marketing of the product?
239. Explain how a strong brand identity benefits firms in marketing their products.
240. How does a new-product committee differ from a venture team?
241. Discuss the role of federal and state legislation in regulating product safety.
242. Describe the stages involved in the consumer adoption process.
243. Discuss the steps involved in the new product development process.
244. List out the characteristics of product innovation that influence its adoption rate.
245. What is a brand? Why is branding important?
246. Briefly describe the three stages of brand loyalty.
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