Chapter 11
Test Bank
1. A product is anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
2. Effective packaging and labels send consumers the signal “Buy me!”
3. A company’s product line consists of its various product mixes.
4. Brands enable customers to quickly differentiate one firm or product from another.
5. Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.
6. The more familiar customers are with a brand, the harder their decision-making process will be.
Topic: Branding Strategy
7. Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing expenditures, benefiting businesses like Coca-Cola.
8. Private-label brands are imitations often sold by street vendors.
9. For a company like Pepsi-Cola, brand dilution occurs when it sells more product than the competition.
10. In entertainment licensing, the major risk to licensees is that the brand will become overexposed.
11. A product label is just a required sticker on a package.
12. When purchasing a mobile phone, the product you are buying is more than just the phone.
13. A customized carved cedar wood sign for your house is an example of a convenience product.
14. For the average college student, a retirement account would be a shopping product.
15. Kellogg’s sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an
example of the breadth of the Kellogg’s product mix.
16. If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line
extension.
17. Sales of private-label brands continue to increase, particularly in big-box stores such as Costco and Trader Joe’s.
18. When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the holiday-themed box featuring green and white bells.
What Jaclyn is seeing is referred to as the secondary package.
19. Jenny traded in her old car for her heart’s desire, a new Lexus sedan. The Lexus is considered a specialty product.
20. Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike’s products.
21. A decrease in a company’s product depth will always hurt its marketing efforts.
22. A familiar brand name always helps the sales of a product.
23. Claire always liked Lands’ End raincoats, so when she was shopping for a winter coat, she ordered one from Lands’ End without thinking too much
about it. This demonstrates how brands facilitate purchases.
24. Brands are assets that can be legally protected through trademarks.
25. When Mars manufactures M&M’s, Snickers, and other confectionary products, or when Trek designs bicycles, each company’s core question is:
How do we produce this product in the least expensive manner?
Multiple Choice Questions
26. A product is __________ that can be offered through a voluntary marketing exchange.
27. The complete set of all products offered by a firm is called its
28. A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
29. For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university’s product
mix.
30. It is almost impossible to watch a sporting event on television without seeing Nike’s “swoosh” check mark, which is Nike’s
31. In 2015, Nike signed an 8-year, $1 billion apparel deal with the NBA. This is an example of a deal for _______ rights.
32. Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large
number of items in each product line.
33. Marketers with successful brands sometimes hesitate to expand their brands because
34. All of the following scenarios illustrate a reason why a firm would eliminate an item within a product line except
35. For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not
achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet
this expectation.
36. The decision to delete a product is never taken lightly because, generally, manufacturers
37. A university that has separate graduate and undergraduate admission offices recognizes that these are distinct
38. One important purpose of a brand is to
39. In addition to extensive online and outdoor advertising, Under Armour has intensified its ______ efforts by signing Washington Nationals baseball
star Bryce Harper to the biggest endorsement deal for an MLB player.
40. For a brand name to be effective, it needs to be
41. One key feature of the value of a strong brand is that
42. When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
43. Parents of young children have been known to drive out of their way so their kids will not see McDonald’s Golden Arches and plead with their
parents to stop. For McDonald’s, the Golden Arches reduce marketing costs because people (including young children)
44. Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
45. The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota’s hybrid car, the Prius, is
known for being economical, a good value, stylish, and good for the environment. Toyota has the advantage of
A. copyrights and trademarks.
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46. When Amanda shops for lipstick, she always buys Really Red by Cover Girl. This is an example of
47. The value of a brand is often calculated by assessing the
48. Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand,
which all enhance the brand’s
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
50. Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to
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
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
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
54. Sometimes brand names become synonymous with a product itself. If that happens, the brand
55. In the case of Band-Aid adhesive bandages, the brand name has
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
57. Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?
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.
59. In a competitive market, perceived value is determined by consumers mostly
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. In this situation, Nora is likely to purchase the store-brand sneakers because they offer
61. Matt was passionate about Hollister. It was the only place he’d buy his clothes. If anyone asked him about clothes, he would talk for what seemed
like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of
62. Jenna always buys Stacy’s brand pita chips. She does not even consider alternatives. Jenna is a __________ customer.
63. All of the following statements regarding brand loyalty are true
Feedback: The marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and
promotion campaigns to attract brand loyal customers. Loyal consumers simply do not need persuasion or an extra push to buy the firm’s brands.
64. For marketers, one of the benefits of having achieved brand loyalty is
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
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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
67. Frequent buyer/user award programs are used to
68. A tablet programmed with key customers’ birthdates, wine preferences, and food allergies is a(n) __________ tool.
69. Brands can be owned by
70. Adidas, Pepsi, Kitchen-Aid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.
71. Which of the following is the best example of a family brand?
72. The basic reason manufacturers spend time and money building their own brands is to
73. Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G
74. Brands that are owned by ___________ are called private-label brands.
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75. ________ is another term for private-label brands.
76. Private-label brands are developed and managed by
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
78. When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
79. Why is brand extension a popular marketing strategy?