Chapter 14—Branding and Packaging
ESSAY
1. Explain the differences between brand marks and trademarks.
2. Why are brand names and brand marks important to the overall success of a product?
3. How do sellers benefit from the use of brand names and brand marks?
4. How can marketers use social media to build brand loyalty? Explain the three degrees of brand loyalty.
5. What is the relationship between brand loyalty and brand equity?
6. What is brand equity, and what are the major elements that underlie brand equity?
ANS:
7. Identify the advantages for a retailer of having a private distributor brand, and then explain how a
manufacturer can benefit by producing private distributor brands.
8. Discuss the issues marketers should consider when selecting a brand name. Give specific examples.
9. What steps should a marketer take to protect a brand name from use by others?
10. Discuss the branding policies marketers can use. What are the advantages and disadvantages of each?
11. What is co-branding? Explain what makes co-branding effective.
12. What functions do packages perform? Why are packaging considerations important to marketers?
13. How will sustainability issues impact the design of a package?
14. In what ways can packaging be used strategically?
15. What are the major functions of a label?
MULTIPLE CHOICE
16. The part of a brand that can be spoken including letters, numbers, and words is the
a.
brand.
b.
brand mark.
c.
brand name.
d.
trade name.
e.
trademark.
17. Kleenex Boutique is a ____ of tissues made by the Kimberly-Clark Corporation.
a.
brand mark
b.
brand identification
c.
brand name
d.
trademark
e.
trade name
18. McDonald’s golden arches are a classic example of a
a.
brand.
b.
brand symbol.
c.
brand name.
d.
brand mark.
e.
trademark.
19. A distinguishing factor between a brand name and a brand mark is that a brand name
a.
creates customer loyalty.
b.
consists of words.
c.
identifies only one item in the product mix.
d.
is registered with the U.S. Patent and Trademark Office.
e.
implies an organization’s name.
20. Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____.
a.
brand mark; trade name
b.
brand name; trade name
c.
trade name; brand
d.
brand name; trademark
e.
brand mark; trademark
21. Brands provide all of the following benefits for buyers except that they do not
a.
foster brand loyalty.
b.
help identify specific products.
c.
help buyers evaluate the quality of products.
d.
offer psychological rewards.
e.
reduce perceived risk of purchase.
22. A trademark signifies
a.
that the owner has exclusive use of a brand and others are prohibited from using it.
b.
that a product was manufactured by a particular company.
c.
the full and legal name of an organization.
d.
the level of quality of a product based on its legally protected rights.
e.
the inventive use of a brand name or brand mark to identify a company’s products.
23. iPod is the ____ of the MP3 player made by Apple, Inc.
a.
trade name
b.
brand mark
c.
trade label
d.
brand
e.
identifier
24. The full and legal name of an organization is called the
a.
trademark.
b.
legal title.
c.
organizational name.
d.
brand name.
e.
trade name.
25. Jeff went to his local supermarket to purchase cola, chips, dip, and salsa for the weekend’s gathering to
watch the football game. As far as the cola goes, Jeff thinks they all taste the same and buys either
Coke or Pepsi, whichever is on sale. However, for the chips, he likes to buy Doritos White Corn when
the store has them. While at the store, he picks up Coke and Santidas Corn chips because the store did
not have the Doritos. When he gets to the salsa aisle he finds that his favorite brand, Pace’s is out of
stock. Rather than buy a different brand, he goes to another store to find the Paces. Jeff’s brand
loyalty on this shopping trip can be described as ___ for the cola, ___ for the chips, and ___ for the
salsa.
a.
recognition; preference; loyalty
b.
recognition; preference; insistence
c.
awareness; preference; insistence
d.
preference; awareness; insistence
e.
awareness; insistence; preference
26. Joe is an athlete who plays a variety of sports that all require various athletic shoes. He has a favorable
attitude toward Nike shoes. This favorable attitude is called brand
a.
loyalty.
b.
recognition.
c.
preference.
d.
insistence.
e.
equity.
27. The weakest level of brand loyalty is brand
a.
recognition.
b.
insistence.
c.
equity.
d.
trial.
e.
preference.
28. The three levels of brand loyalty from strongest to weakest are
a.
preference, insistence, recognition.
b.
insistence, recognition, preference.
c.
insistence, preference, recognition.
d.
recognition, preference, insistence.
e.
insistence, preference, indifference.
29. When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out,
he exhibits brand
a.
loyalty.
b.
insistence.
c.
preference.
d.
acknowledgement.
e.
recognition.
30. Riley prefers to buy Pantene Shampoo for Colored Hair, however, if that is not in stock, she will buy
L’Oreal or Garnier Fructis. Riley’s level of brand loyalty can be described as ___.
a.
recognition.
b.
acceptance.
c.
preference.
d.
insistence.
e.
acknowledgement.
31. Melissa needs some spaghetti sauce and always buy Ragu. However, her local supermarket is out of
Ragu and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand
____ for Ragu and brand ____ for Prego.
a.
insistence; recognition
b.
insistence; preference
c.
loyalty; preference
d.
preference; recognition
e.
preference; loyalty
32. A customer must have a particular brand and will accept no substitutes. This is termed brand
a.
preference.
b.
loyalty.
c.
insistence.
d.
recognition.
e.
requirement.
33. What degree of brand loyalty is the strongest and most desired by marketers?
a.
Preference
b.
Requirement
c.
Awareness
d.
Insistence
e.
Recognition
34. Recently Jose went to a neighborhood grocery store to pick up a few items. When he looked for Old
Spice Ultra deodorant, it was unavailable. Although there were a number of deodorant brands
available, he did not buy any deodorant. Jose’s behavior indicates that he most likely has what level of
brand loyalty toward Old Spice Ultra deodorant?
a.
Recognition
b.
Resistance
c.
Preference
d.
Insistence
e.
No brand loyalty
35. The value, measured in either marketing or financial terms, associated with a brand’s strength in a
market is referred to as brand
a.
loyalty.
b.
value.
c.
share.
d.
equity.
e.
association.
36. Elements that help create brand equity include all of the following except brand
a.
quality.
b.
associations.
c.
loyalty.
d.
recognition.
e.
awareness.
37. Brand name awareness is an important element of brand equity because a familiar brand is more likely
to be in a customer’s ____ than an unfamiliar brand.
a.
inept set
b.
loyalty set
c.
preference group
d.
brand group
e.
consideration set
38. Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from
another company at a premium price because outright purchase is
a.
more challenging strategically.
b.
less time consuming.
c.
less risky.
d.
less expensive.
e.
less expensive and less risky.
39. The talking gecko used by Geico Insurance facilitates the development of
a.
brand associations.
b.
brand quality.
c.
product preference.
d.
brand loyalty.
e.
product equity.
40. Which of the following products is an example of a manufacturer brand?
a.
Great Value Corn Flakes
b.
JC Penney jeans
c.
Kmart tires
d.
Sony TVs
e.
Safeway tomato sauce
41. Private distributor, generic, and manufacturer are the three types of
a.
equity.
b.
brands.
c.
producers.
d.
packaging.
e.
trade names.
42. A ____ brand usually requires a producer to become involved in distribution, promotion, and pricing
decisions.
a.
dealer
b.
manufacturer
c.
private distributor
d.
store
e.
wholesaler
43. Another common name for a private distributor brand is a ____ brand.
a.
home
b.
manufacturer
c.
generic
d.
store
e.
label
44. Private distributor brands are owned by
a.
manufacturers only.
b.
manufacturers and retailers.
c.
wholesalers only.
d.
manufacturers and wholesalers.
e.
wholesalers or retailers.
45. Old Navy sells only Old Navy labeled clothing in its retail stores. The Old Navy brand is not sold in
any other outlet. Old Navy is a ____ brand.
a.
generic
b.
reseller
c.
manufacturer
d.
distribution
e.
private distributor
46. Craftsman tools, sold and branded by Sears, is an example of a ____ brand.
a.
manufacturer
b.
generic
c.
wholesaler
d.
private distributor
e.
regional
47. The major characteristic of a private brand is that
a.
only retailers initiate and own the brand.
b.
manufacturers are not identified on the product.
c.
producers become involved with the marketing mix.
d.
producers price the product.
e.
wholesalers encourage producers to make the product available.
48. Private distributor brands are owned by retailers and do not identify the manufacturer of the product.
Which of the following is an example of a private distributor brand?
a.
Green Giant corn
b.
Dell computers
c.
Sears Kenmore washers
d.
Little Debbie snack cakes
e.
Nike Air Jordan basketball shoes
49. Traditionally, the main advantage of a private brand over a manufacturer brand was the ____; now
this advantage is _____.
a.
better price; gradually diminishing
b.
better price; significantly greater
c.
more accessible distribution; gradually diminishing
d.
better quality; gradually increasing
e.
better quality; gradually diminishing
50. Kellogg’s Rice Krispies, a ____ brand, is likely to be found next to Crispy Rice, a ____ brand that has
very similar coloring and styling for its package.
a.
generic; store
b.
manufacturer; private
c.
dealer; private distributor
d.
producer; house
e.
distributor; store
51. Of the different types of brands, the one that has experienced the steadiest growth is
a.
manufacturer.
b.
producer.
c.
generic.
d.
private distributor.
e.
imitator.
52. Many manufacturers that produce their own brand
a.
also produce generic versions of their products.
b.
sell only to outlets bearing their brand name.
c.
receive most of their profits from service work.
d.
use low prices to build their perceived brand quality.
e.
also produce products for private distributor brands.
53. A product that is simply labeled with the product category is considered a
a.
private brand.
b.
no-name product.
c.
generic brand.
d.
poor quality item.
e.
lean manufacturer brand.
54. A package of aluminum foil at Kroger supermarket has only a white package with black letters stating
“aluminum foil.” This product is an example of a ____ brand.
a.
manufacturer’s
b.
private distributor’s
c.
no-name
d.
generic
e.
no–frills
55. While shopping at a landscaping store, Jessie sees a green bag labeled “potting soil.” This is an
example of
a.
streamline packaging.
b.
generic branding.
c.
store branding.
d.
individual branding.
e.
category-consistent packaging.
56. At one time, generic brands represented about 10 percent of all retail grocery sales. Today they
account for
a.
considerably less.
b.
about 35 percent.
c.
about the same.
d.
up to 20 percent.
e.
approximately 25 percent.
57. A ____ brand type is considered the least protectable under existing trademark regulations.
a.
descriptive
b.
fanciful
c.
generic
d.
symbolic
e.
suggestive
58. Which of the following should be the least important concern for marketers when selecting a brand
name?
a.
Choosing a name that is easy to say and recall
b.
Positively suggesting the product’s major benefits
c.
Designing a name that can be used in all different types of media
d.
Developing an advertising campaign to introduce the name
e.
Checking to see if the name is already trademarked by another company
59. The Anderson Advertising Agency was developing a name for their client’s new paper towel product.
They finally settled on the name, “Soaker.” Regarding the factors that marketers consider when
selecting a brand name, which one does this best fulfill?
a.
Compatibility with other products in the line
b.
Flexibility to be used in various types of media
c.
Using fabricated names that cannot be duplicated
d.
Indicating the product’s major benefits
e.
Keeping the brand name easy to remember
60. Which of the following is a primary factor specific to services in choosing a brand name?
a.
The service brand is usually the same as the company name so it must be flexible enough
to fit several services.
b.
The name must convey an image of great customer service because this is more important
for services than for goods.
c.
The name should be distinctive and set the company apart from potential competitors.
d.
Shortness and conciseness are extremely important when choosing brand names for
services so that they can easily be remembered.
e.
Service brands are much more difficult to protect legally, so marketers must focus on
creating brands with made-up words or a combination of letters and numbers.
61. What is the most protectable brand type as determined by a series of court decisions?
a.
Generic
b.
Suggestive
c.
Descriptive
d.
Arbitrary
e.
Fanciful
62. The brand name Hamburger Helper would most likely be considered
a.
arbitrary.
b.
generic.
c.
suggestive.
d.
descriptive.
e.
fanciful.
63. Through a series of court decisions, a hierarchy of brand protection based on brand type has been
created. These brand types include all but which of the following?
a.
Arbitrary
b.
Descriptive
c.
Fanciful
d.
Generic
e.
Symbolic
64. Besides generic names, what other types of names are very difficult to protect?
a.
Names created by the company
b.
Surnames and geographic names
c.
Arbitrarily chosen names not related to the product
d.
Arbitrarily chosen names related closely to the product
e.
Names that contain shapes and colors
65. The well-known brand AT&T (American Telephone and Telegraph) would most likely be classified as
a.
fanciful.
b.
generic.
c.
descriptive.
d.
suggestive.
e.
arbitrary.
66. Of the following choices, which would be the easiest brand name to legally protect?
a.
Tarzink Yogurt
b.
Learn and Grow Daycare
c.
Scout Camping Supplies
d.
Sullivan Water Filtering Systems
e.
Western County Distributors
67. Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks
domestically for ____ years with indefinite renewals.
a.
two
b.
thirty
c.
eighteen
d.
five
e.
ten
68. Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection?
a.
Brand Protection Act
b.
Lanham Act
c.
Trademark Infringement Act
d.
Trademark Law Revision Act
e.
U.S. Patent and Trademark Act
69. Many brand names have become so common that they are now generic terms for a particular product
category. Which of the following is the best example of this?
a.
Mrs. Butterworths
b.
Charmin
c.
Bic
d.
Crispix
e.
Kleenex
70. The amount of annual losses companies suffer from counterfeit products is estimated to be
a.
$500−$800 million.
b.
$3−$5 billion.
c.
$30−$50 billion.
d.
$250−$350 billion.
e.
$600−$800 billion.
71. The most recent act passed by Congress that addresses the protection of trademarks is the
a.
Lanham Act.
b.
Trademark Law Revision Act.
c.
Counterfeit Protection Act.
d.
U.S. Patent and Trademark Act.
e.
Fair Trademark and Brand Name Usage Act.
72. Which of the following types of products would be the most difficult to brand?
a.
Oatmeal
b.
Soap
c.
DVD players
d.
Automobiles
e.
Tax preparation services
73. When a cellphone manufacturer uses a policy of naming each of its phone products differently, such as
the Neon, the Star, the Fanfare, and the Illusion, this strategy is called ____ branding.
a.
brand-extension
b.
family
c.
differentiated
d.
individual
e.
new-product
74. R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem.
This is an example of which type of branding policy?
a.
Generic
b.
Individual
c.
Family
d.
Line family
e.
Brand extension
75. A major advantage of using individual branding is that
a.
the promotion of one of the company’s brands will also promote the company’s other
brands.
b.
this branding policy will prevent the overextension of a brand name to products that are
completely unrelated to the original.
c.
a poor quality product will not contaminate all of the company’s other products with
negative images.
d.
a specific brand name for each product will help the company grow during times of
economic recession.
e.
the quality of one of the company’s products will help increase the perceived quality image
of the company’s other related products.
76. When ____ branding is used, each of a firm’s products is branded with at least part of the same name.
a.
individual
b.
trademark
c.
family
d.
selective
e.
brand-extension
77. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____
branding.
a.
brand-extension
b.
individual
c.
family
d.
selective
e.
licensed
78. If the company who produces Garnier Fructis shampoo and conditioner were to introduce Garnier
Fructis dryer sheets with the same scent, this would be called ____ branding.
a.
brand-extension
b.
licensed
c.
family
d.
individual
e.
new-product
79. Gorton’s sells Gorton’s Fish Sticks, Gorton‘s Fish Fillets, and Gorton Grilled Fish. This is an example
of
a.
family branding.
b.
shared naming.
c.
individual branding.
d.
brand extension.
e.
single branding.
80. Lysol Basin, Tub, and Tile Cleaner and Lysol Disinfectant Spray exemplify
a.
private branding.
b.
product brand marks.
c.
family branding.
d.
individual branding.
e.
wholesaler branding.
81. Duncan Hines Brownie Mix has revised its packaging with the words “Real Hershey’s Chocolate In
the Mix” on its box. This is an example of ____ .
a.
Brand extension
b.
Brand licensing
c.
Family branding
d.
Co-branding
e.
Cohort branding
82. When a product tries to capitalize on the brand equity of two separate brands, marketers are using
a.
licensing.
b.
dual-branding.
c.
partnerships.
d.
brand extension.
e.
co-branding.
83. Which of the following issues is least important in using co-branding effectively?
a.
The brands involved should represent a complementary fit in a customer’s mind.
b.
The brands that are teamed together should not lose their individual identities.
c.
The brands involved should be owned by different companies.
d.
Co-branding should be done in a way so that it is obvious which brand is the main brand
or key brand.
e.
Co-branding should take advantage of the distribution capabilities of the brands involved.
84. When Disney characters appear on apparel made by another company, this would be an example of
a.
brand licensing.
b.
brand extensions.
c.
dual-branding.
d.
co-branding.
e.
cooperative branding.
85. A Sony laptop that has an “Intel” logo on its keyboard is an example of
a.
brand extension.
b.
brand licensing.
c.
co-branding.
d.
individual branding.
e.
line family branding.
86. To use co-branding effectively, which one of the following is probably least important?
a.
The brands involved should represent a complementary fit in a customer’s mind.
b.
The brands that are teamed together should not lose their individual identities.
c.
The brands involved should be owned by two or more organizations.
d.
To avoid confusion on the part of customers, co-branding should be done in a way so that
it is obvious which brand is the main brand or key brand.
e.
The co-branded product should be able to benefit from the distribution system of both
brands involved.
87. A co-branded product from Sony and Martha Stewart would likely fail because
a.
neither of these brands is very well known to consumers.
b.
their products are not complementary.
c.
they are both food products.
d.
this co-branding will not provide product differentiation.
e.
the market segment for this product is too vast
88. Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be
considered a poor decision in this type of branding.
a.
Co-branding
b.
Individual branding
c.
Family branding
d.
Product branding
e.
Wholesaler branding
89. If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets
under the Ralph Lauren name⎯this arrangement is an example of
a.
brand extension.
b.
brand licensing.
c.
product continuation.
d.
private branding.
e.
individual branding.
90. If Subway made an agreement allowing another company to use its brand name on a new supermarket
ready-to-eat sandwich, this would be called
a.
co-branding.
b.
brand extension.
c.
brand licensing.
d.
trademark licensing.
e.
cooperative branding.
91. In a brand licensing arrangement, the licensee is responsible for
a.
providing the brand name to another organization for use in promoting products.
b.
collecting the royalties from sales of the licensed products.
c.
half of the financial losses in the event that the licensed brand is a failure.
d.
the production, but not the marketing of the licensed product.
e.
the manufacturing, marketing, and financing of the licensed product.
92. Brand licensing agreements can fail for many reasons but usually not because of
a.
poor timing in the marketplace.
b.
a lack of manufacturing control of the licensed product.
c.
a strong match between the product and the licensed brand.
d.
using the wrong types of distribution channels to market the product.
e.
licensing the brand to too many unrelated products.
93. Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to
market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross
revenues. This is
a.
brand licensing.
b.
character exploiting.
c.
co-branding.
d.
family branding.
e.
trademark leasing.
94. Haley is a graphic artist who is currently working on the development of a new container for mustard
and mayonnaise. She is also developing its graphic design. Haley is likely working on the product’s
a.
licensing.
b.
labeling.
c.
promotion.
d.
packaging.
e.
direct media.
95. The most important function of packaging is
a.
offering convenience to customers.
b.
protecting the product and maintaining its functionality.
c.
covering the product.
d.
communicating information to the customer.
e.
attracting the attention of the customer.
96. Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____
function of packaging.
a.
protection
b.
reusability
c.
cost effectiveness
d.
safety
e.
convenience
97. When designing a package, which characteristic is least important?
a.
An association with the company’s brand mark
b.
Cost-effectiveness
c.
Environmental responsiveness