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116) Through ________, a service firm orients and motivates its customer-contact employees
and supporting service people to work as a team to provide customer satisfaction.
A) service inseparability
B) social marketing
C) service variability
D) internal marketing
E) corporate image marketing
117) ________ means that service quality depends on the quality of buyer-seller interaction
during the service encounter.
A) Interactive marketing
B) Service differentiation
C) Service productivity
D) Corporate image marketing
E) Traditional external marketing
118) Service companies can differentiate their offering by ________.
A) having a lower price than their competitors
B) designing a superior delivery process
C) offering a stellar physical environment in which the product is delivered
D) developing innovative features
E) adopting a recognizable image
119) Service companies can differentiate their service delivery by ________.
A) using symbols and logos
B) instituting a hierarchical organizational structure
C) offering innovative product features
D) de-emphasizing branding
E) having more able and reliable customer-contact people
120) Apollo Couriers, a company providing international express mail services, has a proactive
customer communications team. The primary job of this team is to identify situations that led to
customer dissatisfaction, and then provide quick remedies to fix the problems. To a great
extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has
benefitted from ________.
A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding
121) Service productivity can be increased by hiring new employees who will work harder, by
giving up some quality, or by ________.
A) using technology more effectively
B) outsourcing portions of the process to other firms
C) creating more self-serve opportunities for customers
D) reducing the number of products offered
E) increasing the price on some of the product line
122) Services are growing more slowly in the world economy as a percentage of gross world
product than in the U.S. economy, as a percentage of gross domestic product.
123) Service inseparability means that the quality of services depends on who provides them, as
well as when, where, and how they are provided.
124) In a service business, the customer and the front-line service employee interact to co-
create the service.
125) At a hotel renowned for its superior service, one registration-desk employee may be
cheerful and efficient, whereas another may be irritable and slow. This exemplifies service
consistency.
126) Service companies can differentiate their service delivery by having more able and
reliable customer-contact people.
127) Product quality is harder to define and judge than service quality.
128) Good service recovery can turn angry customers into loyal ones.
129) As competition and costs increase, and as productivity and quality decrease, what are the
three major marketing tasks facing service companies in contemporary times?
130) Define interactive marketing. Why is it considered an important skill for service
marketers?
131) What are the key service characteristics a company must consider when designing
marketing programs? Briefly describe each characteristic.
132) Distinguish between the service profit chain and internal marketing.
133) How can service providers use a differentiated offer, delivery, and image to avoid
competing solely on price?
134) ________ represent(s) consumers' perceptions and feelings about a product and its
performance.
A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes
135) Brand ________ is the differential effect that knowing the brand name has on customer
response to the product and its marketing.
A) differentiation
B) knowledge
C) equity
D) personality
E) relevance
136) BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded
tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________.
A) an aggressive brand personality
B) high brand equity
C) no brand commitment
D) negative brand equity
E) low brand relevance
137) Which of the following is one of the four consumer perception dimensions used by ad
agency Young & Rubicam to measure brand strength?
A) brand conformance
B) brand consistency
C) brand convenience
D) brand extension
E) brand relevance
138) Brand ________ refers to how consumers feel if a brand meets their needs.
A) differentiation
B) equity
C) dilution
D) esteem
E) relevance
139) Brand ________ refers to how highly consumers regard and respect the brand.
A) esteem
B) conformance
C) differentiation
D) relevance
E) knowledge
140) After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept
every promise it made when he booked the room, meeting all his needs. He added that it was a
"thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand
Asset Valuator, this reflects brand ________.
A) valuation
B) esteem
C) relevance
D) differentiation
E) knowledge
141) Which of the following is true with regard to brand equity?
A) Brand equity refers to how much consumers know about the brand.
B) High brand equity provides a company with many competitive advantages.
C) A brand has positive brand equity if consumers react less favorably to it than to an
unbranded version.
D) Positive brand equity derives from low brand esteem.
E) The total financial value of a brand can be easily measured.
142) The fundamental asset underlying brand equity is ________, the value of customer
relationships that the brand creates.
A) the customer mix
B) customer equity
C) the product experience
D) service variability
E) the service encounter
143) Which of the following is the lowest level on which marketers can position their brands in
target customers' minds?
A) beliefs and values
B) product benefits
C) product attributes
D) after-sale services
E) brand equity
144) The strongest brands are positioned on ________.
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes
145) Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances
the cause of democratizing technology. Gainville, an expert in fostering customer community,
engages customers at a deep, emotional level, and has been ranked one of the Breakaway
Brands by the brand consultancy, Kendell Associates. Gainville is most likely positioned on
________.
A) basic product attributes
B) short-term benefits
C) service variability
D) self-image enhancement
E) strong beliefs and values
146) A good brand name should most likely be ________.
A) trendy
B) complex
C) long
D) conventional
E) distinctive
147) An increasing number of retailers and wholesalers have created their own ________, also
called store brands.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer's brand
148) Costco's Kirkland Signature products are an example of a ________.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer's brand
149) Which of the following is true with regard to store brands?
A) Store brands have been declining in popularity and strength for more than two decades.
B) Store brands are also known as national brands.
C) Store brands are created and owned by resellers of a product or service.
D) Increasing consumer distrust toward store brands has led to a store-brand slump.
E) Store brands are growing far slower than manufacturer's brands.
150) Some companies obtain the rights to use the names or symbols previously created by other
manufacturers for a fee. This process is known as ________.
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing
151) ________ occurs when two established brand names of different companies are used on
the same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
152) Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased from
competitors.
C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
153) ________ occurs when a company introduces additional items in a given product category
under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
A) Line extension
B) Megabranding
C) Interactive marketing
D) Internal marketing
E) Co-branding
154) ________ involves the use of a successful brand name for new or modified products in a
new category.
A) A line extension
B) A product line
C) A brand extension
D) Co-branding
E) Cannibalization
155) Symmonds Inc., a company manufacturing breakfast cereals, has extended its special
Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich
spreads, butter, and doughnuts. This is an example of ________.
A) line extension
B) brand extension
C) licensing
D) co-branding
E) cannibalization
156) Which of the following is a potential drawback of multibranding?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very profitable.
E) Multibranding causes companies to refrain from product diversification.
157) Which of the following strategies involves weeding out weaker brands and focusing
marketing dollars only on brands that can achieve the number one or number two market share
positions with good growth prospects in their categories?
A) megabrand strategies
B) niche marketing strategies
C) social marketing strategies
D) co-branding
E) licensing
158) While advertising campaigns can help create name recognition, brand knowledge, and
perhaps even some brand preference, brands are not maintained by advertising but by
________.
A) brand differentiation
B) line extensions
C) brand experiences
D) brand sponsorships
E) brand awareness
159) The total financial value of a brand is brand value.
160) Attributes are the most desirable level for brand positioning because competitors can
easily copy attributes.
161) The strongest brands do not engage customers on a deep, emotional level.
162) A company should strive to build a brand name that becomes identified with the product
category, as Scotch Tape did.
163) Co-branding occurs when retailers and wholesalers create their own store brands.
164) Line extension refers to extending an existing brand name to new product categories.
165) Multibranding offers a way to establish different features that appeal to different customer
segments, lock up more reseller shelf space, and capture a larger market share.
166) Briefly explain the concept of brand equity.
167) What are the desirable qualities for a brand name?
168) What is a private brand?
169) What are the different brand sponsorship options available to manufacturers?
170) A company has four choices when it comes to developing brands. Describe them.
