Deck 7: Product Decisions

Question 1

When a company uses "house of brands" strategy,the brands introduced by the company are known as:

A)co-brands.
B)corporate parent brands.
C)ingredient brands.
D)distinct product brands.

Answer 1

D

Question 2

HP LaserJet series is an example of:

A)corporate parent brand.
B)ingredient brand.
C)co-brand.
D)distinct product brand.

Answer 2

A

Question 3

________ are also known as "umbrella" brands.

A)Sub-brands
B)Distinct product brands
C)Corporate parent brands
D)Ingredient brands

Answer 3

C

Question 4

Which of the following is most likely to be the reason due to which the Logitech brand transferred well from mice to trackballs?

A)simplicity of the product
B)transferability of the symbol
C)transferability of the associations
D)high level of brand awareness

Question 5

Which of the following is a component of brand equity?

A)product cost
B)profit margin
C)perceived quality
D)sales volume

Question 6

Company names which are brands and have meaning to customers are known as:

A)corporate parent brands.
B)corporate brands.
C)sub-brands.
D)co-brands.

Question 7

The main variable that determines the extent to which brand equity can be transferred to the extension is called:

A)association.
B)adaptability.
C)match.
D)fit.

Question 8

Often,individual brand names are separate and distinct from the corporate brand.For example,Crest is not marketed with the Proctor & Gamble name.These brands are known as:

A)distinct product brands.
B)umbrella brands.
C)ingredient brands.
D)co-brands.

Question 9

The huge success of Heinz Ketchup's plastic squeeze bottles is an example of differentiation on the basis of:

A)product features.
B)product quality.
C)packaging.
D)product design.

Question 10

In cases where the individual brand name is associated with the corporate brand name,it is known as:

A)ingredient brands.
B)corporate parent brands.
C)distinct product brands.
D)co-brands.

Question 11

Which of the following is essential to building a strong brand?

A)Increase the sales volume of the products falling under the brand.
B)Assign responsibility for brand development activities.
C)Reduce the production cost of the products falling under the brand.
D)Increase the profit margin for the products falling under the brand.

Question 12

The strongest measure of a brand's value is:

A)brand awareness.
B)perceived quality.
C)brand associations.
D)brand loyalty.

Question 13

If a company is using "branded house" strategy,it will introduce:

A)co-brands.
B)corporate parent brands.
C)ingredient brands.
D)distinct product brands.

Question 14

When a company dramatically changes its product's packaging,most likely,it's main objective is to:

A)reduce costs.
B)differentiate its products from its competitors.
C)increase the production output.
D)increase shelf presence.

Question 15

Which of the following is one of the main considerations for the fit of an extension to the parent brand category?

A)transferability of the associations
B)the simplicity of the logo
C)the extent to which people are aware of the brand
D)the amount of money invested in brand building

Question 16

Brand loyalty is a component of:

A)brand equity.
B)brand awareness.
C)perceived quality.
D)brand associations .

Question 17

Patents and trademarks are valuable to products and services dimensions.Which dimension of brand equity do they fall under?

A)brand associations
B)other brand assets
C)perceived quality
D)brand awareness

Question 18

Often,two independent companies will cooperate to have both brands highlighted in a product.These are known as:

A)corporate parent brands.
B)distinct product brands.
C)brand extensions.
D)co-brands.

Question 19

Ingredient branding is a special case of:

A)co-branding.
B)sub-branding.
C)umbrella branding.
D)distinct product branding.

Question 20

When a company uses "house of brands" strategy,the brands introduced by the company are known as:

A)co-brands.
B)corporate parent brands.
C)ingredient brands.
D)distinct product brands.

Question 21

Which of the following describes how a local firm could defend its local market against a global company?

A)It should reduce its price and begin competing on price differentiation.
B)It should emphasize its home country or ethnic origin.
C)It should increase advertising expenditures and continue with the same message as before.
D)It should increase its research and development expenditure and enhance its product.

Question 22

With reference to global marketing,identify the example that best explains the term "consumer convergence."

A)Population growth rates have stabilized and the population over age 65 is increasing.
B)The increasing numbers of women working outside the home has led to more nontraditional meals and increased need for convenience.
C)Aging populations,falling birth rates,and increased female employment are common in industrialized countries.
D)Upscale consumers in Paris have more in common with their counterparts in New York than with many other French people.

Question 23

Which of the following types of brands carries no name at all?

A)generics
B)value brands
C)private labels
D)national brands

Question 24

Which of the following types of brands are also known as store brands?

A)generics
B)value brands
C)private labels
D)national brands

Question 25

With reference to global marketing,identify the example that best explains the term "cultural convergence."

A)Teenagers in Tokyo,London,and San Francisco dress and talk similarly and buy the same kinds of products.
B)Population growth rates have stabilized and the population over age 65 is increasing.
C)Aging populations,falling birth rates,and increased female employment are common in industrialized countries.
D)The increasing numbers of women working outside the home has led to more nontraditional meals and increased need for convenience.

Question 26

Identify the smallest consumer segment.

A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics

Question 27

A study has identified four different segments of consumers that exist with respect to their attitudes towards global brands.Identify the largest segment.

A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics

Question 28

Which of the following examples best describe co-branding in high-tech markets?

A)the "Human Network" campaign by Cisco system
B)the "Intel Inside" promotion
C)SAP sponsoring Grand Prix Formula One racing
D)the "iPod people" campaign by Apple Inc.

Question 29

A company is typically considered as a(n)________ when it uses a supplier's component in its own finished product.

A)broker
B)distributor
C)original equipment manufacturer
D)value-added seller

Question 30

Identify one of the dimensions of brand personality.

A)competitiveness
B)playfulness
C)conservativeness
D)ruggedness

Question 31

Identify the consumer segment who judge all products by the same criteria and do not give the global dimension any additional weight beyond other characteristics.

A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics

Question 32

Which of the following statements is true regarding the mature stage of high-tech products?

A)customer knowledge is low
B)perceived brand differences are small
C)marketing tactics are promotion oriented
D)marketing tactics are not given priority

Question 33

Coke and Sony are well-known,heavily supported,and distributed by global companies.They are examples of:

A)national brands.
B)value brands.
C)private labels.
D)generic brands.

Question 34

Identify the consumer segment that are highly interested in global brands and are less concerned about the companies' social responsibility.

A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics

Question 35

Well-known,heavily supported brands made and distributed by large,often global companies are known as:

A)generics.
B)value brands.
C)private labels.
D)national brands.

Question 36

Which of the following is one of the objections to global marketing perspective?

A)It increases the cost of the product.
B)It is difficult to implement.
C)It reduces profit margin of the product.
D)It requires systematic analysis of customers in each market.

Question 37

In high-technology companies,there is an inordinate focus on the technology and product features rather than the customer and the benefits sought because:

A)products sell better with focus on technology than with focus on customers.
B)high-technology companies are usually founded and run by engineers.
C)these companies invest huge amounts in innovation and have the ability to create entire product classes.
D)they believe that customers are not aware of the technological innovations that they are capable of.

Question 38

Which of the following brands is most likely to carry a retailer's chain name?

A)generics
B)value brands
C)private labels
D)national brands

Question 39

Which of the following statements is true regarding a private label brand?

A)It is sometimes called as an exclusive brand.
B)It is usually the low-priced option in the category.
C)Stores often make lower margins on private-label brands.
D)Retail stores devote huge marketing funds to support private labels.

Question 40

For global brand ranking purposes,Interbrand has defined global brands as brands selling at least ________ outside of their home country.

A)5%
B)10%
C)20%
D)50%

Question 41

When companies reposition their products and themselves as "green," they are trying to indicate that:

A)they are socially and environmentally conscious.
B)their products are of best quality.
C)they provide the best "value" for money.
D)their products are for upper class customers.

Question 42

Identify the approach that develops perceptual maps based only on customer-based judgments of brand similarity.

A)cluster analysis
B)preference regression
C)multidimensional scaling
D)canonical correlation

Question 43

According to the Brand Asset Valuator (BAV)model,which of the following is one of the key dimensions of brand equity?

A)sophistication
B)excitement
C)competence
D)differentiation

Question 44

According to the Boston Consulting Group (BCG)matrix,when the market growth of a product is low but the relative market share is high,it is known as a:

A)cash cow.
B)dog.
C)star.
D)problem child.

Question 45

Some companies manufacture and sell both their own brand as well as a private-label brand.What is the greatest risk to the company by pursuing this strategy?

A)lack of cost control
B)cannibalizing its own brand
C)poor capacity utilization
D)competition with a leading brand

Question 46

________ is one of the two approaches to measuring brand equity and these represent how customers have actually responded to the brand.

A)Response measures
B)Intermediate measures
C)Psychological measures
D)Behavioral measures

Question 47

Which of the following is one of the two largest markets for private-label grocery items outside the United States?

A)South Africa
B)Brazil
C)China
D)Australia

Question 48

According to the Boston Consulting Group (BCG)matrix,when both market growth and relative market share of a product is high,it is known as a:

A)cash cow.
B)dog.
C)star.
D)problem child.

Question 49

A perceptual map that contains both brand spatial locations as well as consumer perceptions of their ideal brand is known as:

A)joint space.
B)multidimensional scaling.
C)biplots.
D)markov chain.

Question 50

Which of the following products need cash to maintain their market leadership position but they are also generating some because of the high margins they can maintain?

A)cash cows
B)dogs
C)stars
D)problem children

Question 51

Which of the following best describes the strategy where product variants are developed to appeal to different segments of the market or to satisfy customers' needs for variety?

A)production line strategy
B)product line strategy
C)customer line strategy
D)competitor line strategy

Question 52

In the BCG matrix,identify the category of products that are net users of cash because they need money to make product improvements to compete in the lucrative,high-growth segment.

A)cash cows
B)dogs
C)stars
D)problem children

Question 53

Products falling under one category of the BCG matrix are most likely to be eliminated.Identify this category.

A)cash cows
B)dogs
C)stars
D)problem children

Question 54

When the elements of a product line appeal to different segments of the market with different characteristics,a ________ approach can be used for analyzing such a product line.

A)portfolio
B)market segment
C)market share
D)market growth

Question 55

According to the Boston Consulting Group (BCG)matrix,when the market growth of a product is high but the relative market share is low,it is known as a:

A)cash cow.
B)dog.
C)star.
D)problem child.

Question 56

Which of the following is a good example of brand repositioning?

A)increasing the market share by reducing the price of the product
B)adding a health claim to orange juice
C)adding additional features to a product
D)increasing distribution

Question 57

According to the Boston Consulting Group (BCG)matrix,when both market growth and the relative market share of a product is low,it is known as a:

A)cash cow.
B)dog.
C)star.
D)problem child.

Question 58

Which of the following statements is true regarding the early stages of the product life cycle?

A)competition is generic
B)there are several competitors
C)products are positioned against a particular competitor
D)positioning decisions focus more on differentiating benefits and features

Question 59

Which of the following approaches to measuring brand equity are measures of how the brand is represented psychologically in the minds of the customers?

A)response measures
B)intermediate measures
C)psychological measures
D)behavioral measures

Question 60

Greenwashing refers to:

A)making false claims regarding the product quality.
B)introducing environmental friendly products.
C)misleading consumers about a product's environmental benefits.
D)competing in the market on the basis of price alone.

Question 61

Identify the approach to mass customization where customizers talk to customers to help determine their needs,identify the exact product meeting those needs,and then make the customized product for them.

A)collaborative customizers
B)adaptive customizers
C)cosmetic customizers
D)transparent customizers

Question 62

Every time you visit a Web site,information about you is collected by that and can be ultimately used to target specific messages.Some of this information is collected by what is called a:

A)javascript.
B)cache.
C)cookie.
D)html.

Question 63

Marketing managers can fully control their brands.

Question 64

When the corporate brand is carried with individual product names it is known as co-branding.

Question 65

Mass customization is also known as:

A)one-to-one marketing.
B)stealth marketing.
C)event marketing.
D)guerilla marketing.

Question 66

Differences between nations are often less than differences within nations.

Question 67

Brand names separate from the corporate brand are known as corporate parent brands.

Question 68

________ refers to a process whereby a company takes a product or service that is widely marketed and perhaps offered in many different configurations and develops a system for customizing it to each customer's specifications.

A)Greenwashing
B)Cannibalization
C)Customerization
D)Cloning

Question 69

As high-tech products proliferated,branding became an important segment of their marketing strategy.

Question 70

Brands increase information search costs.

Question 71

________ provide each customer with unique products or services without telling them that the products have been customized for them.

A)Collaborative customizers
B)Adaptive customizers
C)Cosmetic customizers
D)Transparent customizers

Question 72

Patents and trademarks are considered as brand assets.

Question 73

________ present a standard product differently to each customer.

A)Collaborative customizers
B)Adaptive customizers
C)Cosmetic customizers
D)Transparent customizers

Question 74

A key issue with brand extensions is whether the new product with the successful brand name can potentially harm the "parent" brand if the extension is a flop.

Question 75

Brands provide expectations of quality,risk reduction,and prestige.

Question 76

When two independent companies cooperate to have both brands highlighted in a product it is known as corporate parent branding.

Question 77

High awareness among the target audience is only a necessary but not a sufficient condition for high equity.

Question 78

Ingredient branding is a special case of corporate parent branding.

Question 79

________ takes place when the sales for a new element of a product line are not entirely new rather it is taken away from an existing element of the line.

A)Greenwashing
B)Cannibalization
C)Customerization
D)Cloning

Question 80

________ offer one standard but a customizable product that is designed so users can alter it to their own specifications.

A)Collaborative customizers
B)Adaptive customizers
C)Cosmetic customizers
D)Transparent customizers