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73) If consumers can easily recall and recognize a brand element, the brand element is said to be
________.
A) meaningful
B) protectable
C) adaptable
D) transferable
E) memorable
74) Which of the following is a defensive criterion for choosing brand elements?
A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance
75) With respect to powerful brand elements, ________ is an extremely efficient means to build
brand equity. This element functions as a useful "hook" to help consumers grasp what the brand
is and what makes it special.
A) the tangibility of a product
B) a product's shape
C) a slogan
D) a patent
E) a copyright
76) The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately
describe modern marketing programs. ________ is about mixing and matching marketing
activities to maximize their individual and collective effects.
A) Personalized marketing
B) Mass customization
C) Globalized marketing
D) Relationship marketing
E) Integrated marketing
77) Mark feels that Shell delivers on its promises to supply the best gasoline possible to the
public. His experiences with Shell have always been good resulting in positive brand contact.
Mark is most likely experiencing brand ________.
A) alliance
B) essence
C) harmonization
D) parity
E) bonding
78) ________ branding consists of activities and processes that help inform and inspire
employees about brands.
A) Internal
B) Personal
C) Individual
D) External
E) Co-
79) AT&T's business campaign not only helped to change public perceptions of the company, it
also signaled to employees that AT&T was determined to be a leader in telecommunication
services. Which principle of internal branding does this example portray?
A) choosing the right moment to capture employees' attention and imagination
B) furnishing energizing and informative internal communication
C) bringing the brand alive for employees
D) linking internal and external marketing
E) understanding how brand communities work
80) A brand ________ is a specialized group of consumers and employees whose identification
and activities focus around the brand.
A) community
B) channel
C) association
D) personality
E) cluster
81) Names that become synonymous with product categories like Kleenex, Kitty Litter, Jell-O,
and Xerox, need to ensure they retain their brand names remain ________ so they can retain
their trademark rights and avoid becoming generic.
A) meaningful
B) likable
C) protectable
D) transferable
E) adaptable
82) One of the selection criteria for creating a successful brand element is that it should be
protectable.
83) 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.
84) Brands are built only by advertising.
85) To achieve integrated marketing, marketers need a variety of different marketing activities
that consistently reinforce the brand promise.
86) Brand equity can be built by linking the brand to sources, such as channels of distribution as
well as to
other brands.
87) A brand promise will not be delivered unless everyone in a company lives the brand.
88) Modifying a brand to suit group-level or individual needs is called staking.
89) A brand community can be a constant source of inspiration and feedback for product
improvements or innovations.
90) The indirect approach to assessing brand equity assesses the actual impact of brand
knowledge on consumer response to different aspects of marketing.
91) Spending on product research, development, and design constitutes investment in the brand
value development process.
92) When change is necessary, marketers should vigorously preserve and defend sources of
brand equity.
93) An important part of reinforcing brands is providing uniform and unchanging marketing
support.
94) List the six criteria used in creating brand elements.
95) 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.
96) Identify the three important principles for internal branding.
97) 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.
98) How can marketers reinforce brand equity?
99) A brand ________ can be defined as any information-bearing experience a customer or
prospect has with the brand, the product category, or the market that relates to the marketer's
product or service.
A) value
B) personality
C) trait
D) character
E) contact
100) The ________ determines the marketing program's ability to affect the customer mindset
and is a function of the quality of the program investment.
A) customer multiplier
B) market multiplier
C) shareholder value
D) program multiplier
E) price elasticity
101) A structured approach to assessing the sources and outcomes of brand equity and the
manner in which marketing activities create the financial worth of the brand is called ________.
A) the brand value chain
B) the brand portfolio
C) the brand life cycle
D) brand partitioning
E) brand positioning
102) Competitive superiority and channel support are factors that influence the ________
multiplier of the brand value chain.
A) program
B) customer
C) brand
D) profit
E) market
103) Clarity, relevance, distinctiveness, and consistency are factors that influence the ________
multiplier of the brand value chain.
A) program
B) brand
C) market
D) customer
E) profit
104) ________ 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
105) Brand ________ is the job of estimating the total financial worth of the brand.
A) tracking
B) auditing
C) equity
D) valuation
E) harmonization
106) The brand audit can be used to set strategic direction for the brand.
107) Brand equity is essentially the same as brand valuation.
108) When Interbrand uses competitive benchmarking and a structured evaluation of the brand's
clarity, commitment, protection, responsiveness, relevance, differentiation, consistency,
presence, and understanding to determine the likelihood the brand will realize forecasted Brand
Earnings, it is calculating Brand Value.
109) Identify and describe the four value stages of the brand value chain.
110) Describe the function of brand-tracking studies.
111) Describe the meaning and function of a brand audit.
112) According to Millward Brown, how is brand predisposition measured?
113) Provide an example of brand revitalization. Evaluate its success and note any factors that
contributed to or possibly hurt its success.
114) Apple's iPod shuffle is an example of ________.
A) a subbrand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand
115) When a firm uses an established brand to introduce a new product, it is called a brand
________.
A) harmonization
B) valuation
C) extension
D) positioning
E) parity
116) 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
117) 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
118) A ________ consists of all products — original as well as line and category extensions —
sold under a particular brand.
A) brand line
B) co-brand
C) generic brand
D) licensed product
E) subbrand
119) 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
120) Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its coffee
shops. This is an example of ________.
A) brand dilution
B) co-branding
C) brand variants
D) category extension
E) brand harmonization
121) A ________ is a set of all brand lines that a particular seller makes.
A) brand platform
B) brand image
C) co-brand
D) brand extension
E) brand mix
122) A brand ________ is the set of all brands and brand lines a particular firm offers for sale to
buyers in a particular category.
A) architecture
B) position
C) portfolio
D) extension
E) image
123) 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
124) ________ 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
125) 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
126) 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
127) 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
128) When a parent brand covers a new product within a product category it currently serves, it
is called a line extension.
129) A firm's branding strategy is also called the brand architecture.
130) When Honda expanded its brand into such areas as automobiles, snow blowers, and marine
engines, it was pursuing a strategy called line extension.
131) Increasing shelf presence and retailer dependence in the store is one of the reasons for
introducing multiple brands in a category.
132) Flankers are brands that may be kept around despite dwindling sales because they manage
to maintain their profitability with virtually no marketing support.
133) The role of a relatively high-priced brand in a portfolio is often to attract customers to the
brand franchise or to "build traffic."
134) Brand extensions can reduce the costs of introductory launch campaigns and make it easier
to convince retailers to stock and promote a new product.
135) 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.
136) Intrabrand shifts in a company's sales are always undesirable.
137) In Hershey Kisses candy, Hershey would be considered a branded variant.
138) Marketers must judge each potential brand extension by how effectively the brand
leverages existing brand equity from the parent brand, as well as how effectively, in turn, it
contributes to the parent brand's equity.
139) Research indicates that high-quality brands stretch farther than average-quality brands,
although both types of brands have boundaries.
140) Cash cows, or fighter brands, include products like Busch Bavarian and Intel Celeron,
which are positioned with respect to the competitors' brands so that more important and
profitable flagship brands can retain their desired positioning.
141) A brand that is seen as prototypical of a product category is easy to extend outside the
category.
142) A successful extension cannot only contribute to the parent brand image but also enable a
brand to be extended even farther.
143) United Technologies is a good example of a house of brands strategy because it uses
individual or separate family brand names including Otis elevators, Carrier heaters and air
conditioners, Hamilton Sundstrand aerospace and industrial, and Sikorsky helicopters.
144) The most effective advertising strategy for an extension emphasizes the parent brand.
145) 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?
146) There are a number of specific roles brands can play as part of a brand portfolio. List and
briefly describe the four roles.
147) In what ways can brand extensions improve the odds of new-product success?
148) The decision as to how to brand new products is critical. When a firm introduces a new
product, it has three main choices. What are those choices?
149) 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.
150) Define brand variants.
151) 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?
152) What is a licensed product? Why have corporations seized on licensing?
153) 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?
154) 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
155) Which of the following is NOT a weakness of a customer equity perspective (relative to a
brand equity perspective)?
A) It offers limited guidance for go-to-market strategies.
B) It has quantifiable measures of financial performance.
C) It ignores the advantages of creating a strong brand.
D) It overlooks the option value of brands.
E) It does not fully account for social network effects or word-of-mouth.
156) Customer equity is synonymous with brand equity.
157) Customer lifetime value is affected by revenue and by the costs of customer acquisition,
retention, and cross-selling.
158) 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.
159) Identify and describe three things that affect customer lifetime value.
160) Compare and contrast brand equity and customer equity.
