61) Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ of
the brand
value chain.
A) program multiplier
B) brand multiplier
C) market multiplier
D) customer multiplier
E) profit multiplier
62) ________ are a means of understanding where, how much, and in what ways brand value is
being created to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies
63) ________ is the job of estimating the total financial worth of the brand.
A) Brand tracking
B) Brand auditing
C) Brand equity
D) Brand valuation
E) Brand harmonization
64) Apple’s ipod shuffle is an example of ________.
A) a sub-brand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand
65) When a firm uses an established brand to introduce a new product, it is called a ________.
A) brand harmonization
B) brand valuation
C) brand extension
D) brand positioning
E) brand parity
66) A parent brand that is associated with multiple products through brand extensions is also
called a(n)________.
A) category brand
B) subbrand
C) extension brand
D) family brand
E) line brand
67) The introduction of diet coke by the Coca Cola Company is an example of ________.
A) line extension
B) brand harmonization
C) category extension
D) brand dilution
E) co-branding
68) A ________ consists of all products original as well as line and category extensions sold
under a particular brand.
A) brand line
B) cobrand
C) generic brand
D) licensed product
E) subbrand
69) A major advantage of a ________ strategy is that the company does not tie its reputation to
the product.
A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization
70) Starbucks introduced ice creams in the same flavors as the frappucinos it sold in its coffee
shops. This is an example of ________.
A) brand dilution
B) cobranding
C) brand variants
D) category extension
E) brand harmonization
71) A ________ is a set of all brand lines that a particular seller makes.
A) brand platform
B) brand image
C) cobrand
D) brand extension
E) brand mix
72) A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers
in a particular category.
A) brand architecture
B) brand position
C) brand portfolio
D) brand extension
E) brand image
73) The hallmark of an optimal brand portfolio is ________.
A) the ability of each brand to maximize equity in combination with all the other brands in it
B) the ability of each brand to maximize its individual equity in isolation
C) maximum brand overlap
D) the eventual reduction of brand differentiation to create a unified brand appearance
E) maximum internal competition within the firm
74) ________ brands are positioned with respect to competitors’ brands so that more important
(and more profitable) flagship brands can retain their desired positioning.
A) Flanker
B) Attacker
C) Defender
D) Cash cow
E) Simulation
75) Two advantages of ________ are that they can facilitate new-product acceptance and provide
positive feedback to the parent brand and company.
A) product licensing
B) brand extensions
C) brand architecture
D) brand audits
E) brand dilutions
76) According to Ries and Trout, Cadbury suffered from ________ when the company allowed
its brand to become diluted by putting their name on such variants as mashed potatoes, powdered
milk, and soups, apart from chocolates and candies.
A) liquidity trap
B) cognitive dissonance
C) branding fallout
D) cannibalization
E) line-extension trap
77) Even if sales of a brand extension are high and meet targets, the revenue may be coming
from consumers switching to the extension from existing parent-brand offerings in effect
________ the parent brand.
A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) revamping
78) In its focus on bottom-line financial value, the ________ approach often overlooks the
“option value” of brands and their potential to affect future revenues and costs.
A) brand equity
B) brand value chain
C) customer tracking
D) customer equity
E) brand extension
79) Consumers may evaluate identical products differently depending on how they are branded.
80) Physical goods, services, and stores can be branded, but ideas and people cannot.
81) One of the advantages of having a strong brand is the ability to have a more elastic consumer
response to price decreases of the brand.
82) Brand equity arises from unanimity in consumer response.
83) The quantity, rather than quality, of a marketer’s investment in brand building is the critical
factor in building brand equity.
84) According to brand asset valuator (BAV) model, knowledge is one of the key components of
brand equity.
85) According to the BRANDZ model, “Bonded” consumers at the lower levels of the pyramid
build stronger relationships with and spend more on the brand than those at the top.
86) Under the BRANDZ model of brand strength, customers who are bonded to the brand
believe “nothing else beats it.”
87) Brand salience describes the extrinsic properties of the product or service, including the ways
in which the brand attempts to meet customers’ psychological or social needs.
88) Brand imagery is a consumer’s emotional response and reaction with respect to the brand.
89) One of the selection criteria for creating a successful brand element is that it should be
protectable.
90) If a brand element has the characteristic of being memorable, the brand is credible and
suggestive of the type of person who might use the brand.
91) Brands are built only by advertising.
92) To achieve integrated marketing, marketers need a variety of different marketing activities
that consistently reinforce the brand promise.
93) Brand equity can be built by linking the brand to sources, such as channels of distribution as
well as to
other brands.
94) The brand promise will not be delivered unless everyone in the company lives the brand.
95) Modifying a brand to suit group-level or individual needs is called staking.
96) A brand community can be a constant source of inspiration and feedback for product
improvements or innovations.
97) The indirect approach to assessing brand equity assesses the actual impact of brand
knowledge on consumer response to different aspects of marketing.
98) Spending on product research, development, and design constitutes investment in the brand
value development process.
99) The brand audit can be used to set strategic direction for the brand.
100) Brand equity is essentially the same as brand valuation.
101) When change is necessary, marketers should vigorously preserve and defend sources of
brand equity.
102) An important part of reinforcing brands is providing uniform and unchanging marketing
support.
103) When a parent brand covers a new product within a product category it currently serves, it
is called a line extension.
104) A firm’s branding strategy is also called the brand architecture.
105) When Honda expanded its brand into such areas as automobiles, snowblowers, and marine
engines, it was pursuing a strategy called line extension.
106) Increasing shelf presence and retailer dependence in the store is one of the reasons for
introducing
multiple brands in a category.
107) Flankers are brands that may be kept around despite dwindling sales because they manage
to maintain their profitability with virtually no marketing support.
108) The role of a relatively high-priced brand in the portfolio is often to attract customers to the
brand franchise or to “build traffic”.
109) Brand extensions can reduce the costs of introductory launch campaigns and make it easier
to convince retailers to stock and promote a new product.
110) Brand differentiation occurs when consumers no longer associate a brand with a specific
product or highly similar products and start thinking less of the brand.
111) Intrabrand shifts in a company’s sales are always undesirable.
112) Marketers must judge each potential brand extension by how effectively it leverages
existing brand equity from the parent brand, as well as how effectively, in turn, it contributes to
the parent brand’s equity.
113) Research indicates that high-quality brands stretch farther than average-quality brands,
although both types of brands have boundaries.
114) A brand that is seen as prototypical of a product category is easy to extend outside the
category.
115) A successful extension cannot only contribute to the parent brand image but also enable a
brand to be extended even farther.
116) The most effective advertising strategy for an extension emphasizes the parent brand.
117) Customer lifetime value is affected by revenue and by the costs of customer acquisition,
retention, and cross-selling.
118) Both brand equity and customer equity emphasize the importance of customer loyalty and
the notion that we create value by having as many customers as possible pay as high a price as
possible.
119) What valuable functions can brands perform for a firm?
120) Describe the three ingredients of customer-based brand equity.
121) Advertising agency Young and Rubicam (Y&R) developed a model of brand equity called
Brand Asset Valuator (BAV). What is the intent of the BAV model? List and briefly characterize
the four key components (pillars) of brand equity.
122) The creation of significant brand equity involves reaching the top or pinnacle of the brand
pyramid. What are the six components of the brand resonance pyramid?
123) Identify and describe the four value stages of the brand value chain.
124) Describe the function of brand tracking studies.
125) Describe the meaning and function of a brand audit.
126) As a branding manager, you have recommended to your board of directors a corporate
policy of
umbrella branding. What are the advantages that your company might gain from this?
127) There are a number of specific roles brands can play as part of a brand portfolio. List and
briefly describe the four roles.
128) In what ways can brand extensions improve the odds of new-product success?
129) Assume you are a marketing manager and want to adopt strategic brand management. List
the four main steps that you would most likely go through to accomplish this task.
130) How does the American Marketing Association (AMA) define the term brand?
131) Define brand equity.
132) What is positive customer-based brand equity?
133) Explain the concept of brand knowledge.
34) How does consumer knowledge play a role in the success of new products associated with
existing brands?
135) Brand equity has four components—energized differentiation, relevance, esteem, and
knowledge. How are these components combined to produce brand strength and brand stature?
136) According to the BRANDZ model of brand strength, brand building involves a series of
five sequential steps. What are those five sequential steps?
137) List the six criteria used in creating brand elements.
138) As a brand manager you would like to have your brand (brand name) be protectable.
Explain what you mean by “protectable” and give an illustration.
139) Identify the three important principles for internal branding.
140) Given that the power of a brand resides in the minds of consumers and how it changes their
response to marketing, there are two basic approaches to measuring brand equity. Briefly,
describe each of these approaches.
141) Distinguish between brand equity and brand valuation.
142) How can marketers reinforce brand equity?
143) The decision as to how to brand new products is especially critical. When a firm introduces
a new
product, it has three main choices. What are those choices?
144) Nichepro Technologies, who were mainly into producing personal computers and laptops,
have now decided to produce Nichepro health care products. Explain the branding strategy
advocated by the company.
145) Define brand variants.
146) Kellogg’s uses its corporate brand name with its individual product brands as with Kellogg’s
rice krispies, Kellogg’s raisin bran, and Kellogg’s corn flakes. Which branding strategy is being
used by the company?
147) What is a licensed product? Why have corporations seized on licensing?
148) Tide laundry detergent maintains the same market share it had 50 years ago because of the
sales contributions from its various line extensions. It can be said that Tide employs a preemptive
cannibalization strategy in generating line extensions. What does this mean?