Question 1

The hallmark of an optimal brand portfolio is ________.
A)the ability of each brand in it 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

Accepted Answer

The hallmark of an optimal brand portfolio is the ability of each brand in it to maximize equity in combination with all the other brands in it. This means that each brand should contribute to the overall strength and value of the portfolio, rather than competing with each other or diluting the overall brand image. A strong brand portfolio should also be able to target different customer segments and capture different market opportunities, while maintaining consistency and coherence in its overall brand strategy.

Question 2

Two advantages of ________ are that they can facilitate new product acceptance,as well as provide positive feedback to the parent brand and company.
A)product licensing
B)brand extensions
C)brand architecture
D)brand audits
E)brand dilutions

Accepted Answer

Brand extensions refer to introducing a new product under an existing brand name. This can help in the acceptance of the new product as consumers already have a positive association with the parent brand. Additionally, a successful brand extension can provide positive feedback to the parent brand and company as it can increase brand awareness and loyalty.

Question 3

A ________ is a set of all brand lines that a particular seller makes available to buyers.
A)brand platform
B)brand image
C)cobrand
D)brand extension
E)brand mix

Accepted Answer

A brand mix is the complete set of all brands and brand lines offered by a company. It includes all product and service categories, as well as all different brands within each category.

Question 4

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.
A)brand line
B)cobrand
C)generic brand
D)licensed product
E)subbrand

Accepted Answer

A brand line is a group of products that are sold under the same brand name and consist of both original products and line and category extensions. The other options are not correct in this context as cobranding refers to two or more brands partnering together, generic brands are unbranded products, licensed products are products that use another company's brand or character, and subbrands are extensions of the main brand with their own unique name and identity.

Question 5

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

Accepted Answer

The iPod Shuffle is a subbrand of the parent brand iPod.

Question 6

Starbucks introduced ice creams in the same flavors as the Frappucinos it sold in its coffee shops.This is an example of ________.
A)brand dilution
B)cobranding
C)brand variants
D)category extension
E)brand harmonization

Accepted Answer

Category extension occurs when a company introduces products in a new category but under the same brand name. In this case, Starbucks introduced ice creams (a new category) in the same flavors as its Frappucinos (an existing category) under its brand name.

Question 7

When a firm uses an established brand to introduce a new product,it is called a ________.
A)brand harmonization
B)brand valuation
C)brand extension
D)brand positioning
E)brand parity

Accepted Answer

When a firm uses an established brand to introduce a new product, it is called a brand extension. Brand harmonization refers to the alignment of brand elements and strategies across different markets and products. Brand valuation is the process of assigning a monetary value to a brand. Brand positioning refers to the way a brand is perceived by consumers in relation to its competitors. Brand parity refers to the similarity of perceived quality between competing brands.

Question 8

________ is the job of estimating the total financial worth of the brand.
A)Brand tracking
B)Brand auditing
C)Brand equity
D)Brand valuation
E)Brand harmonization

Accepted Answer

Brand valuation is the process of estimating the total financial worth of the brand, which includes both tangible and intangible assets such as brand recognition, brand loyalty, and brand reputation. This is important for companies to understand the overall value and potential of their brand, as well as for potential investors or buyers.

Question 9

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

Accepted Answer

The introduction of Diet Coke by the Coca Cola Company is an example of line extension, where a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Question 10

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

Accepted Answer

A family brand is a type of parent brand that is associated with multiple products through brand extensions.

Question 11

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

Accepted Answer

The customer equity approach primarily focuses on the current financial value derived from customers, potentially overlooking the future value or "option value" of brands and how they can influence future revenues and costs.

Question 12

Consumers may evaluate the same product differently depending on how it is branded.

Accepted Answer

This statement is true. The way a product is branded can influence a consumer's perception of its value, quality, and suitability for their needs. Branding can create emotional associations and a sense of identity, leading consumers to feel more positively or negatively about the product.

Question 13

________ 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

Accepted Answer

The answer of ________ are a means of understanding where,how...

Question 14

Clarity,relevance,distinctiveness,and consistency are factors that influence the ________ of the brand value chain.
A)program multiplier
B)brand multiplier
C)market multiplier
D)customer multiplier
E)profit multiplier

Accepted Answer

These factors influence the program multiplier, which assesses the effectiveness of marketing programs in building brand value.

Question 15

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

Accepted Answer

The situation where a company puts its brand name on too many variations of a product is called a line-extension trap. This can lead to brand dilution as the company's name becomes associated with too many different types of products, some of which may not be of the same quality or consistency expected from the brand. Cadbury is an example of a company that fell into this trap by putting their name on products such as mashed potatoes and soups, which had nothing to do with their core business of chocolates and candies.

Question 16

________ 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

Accepted Answer

Flanker brands are designed to compete with and protect the more important flagship brands. They are positioned to appeal to a different target market or meet different needs, while still being associated with the flagship brand. This helps the flagship brand maintain its desired positioning and profitability.

Question 17

A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.
A)brand architecture
B)brand position
C)brand portfolio
D)brand extension
E)brand image

Accepted Answer

A brand portfolio refers to the set of all brands and brand lines offered by a particular firm in a particular category. It includes various brand names, logos, and identities managed by a single company. It helps in defining the overall strategy and approach of the company towards its product offerings.

Question 18

Brands today play a number of important roles that improve consumers' lives and enhance the financial value of firms.

Accepted Answer

Brands provide a sense of trust, reliability, and quality to consumers, and also serve as a valuable asset for firms in terms of recognition, loyalty, and financial performance.

Question 19

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

Accepted Answer

A separate family brand name strategy allows the company to introduce new products without tying its reputation to a specific product. This reduces the risk of damage to the overall brand if a product fails or experiences negative publicity. With licensing and category extension, the company's reputation is still tied to a specific product or category. Blanket family name and brand revitalization strategies also tie the company's reputation to specific products or the overall brand.

Question 20

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

Accepted Answer

Cannibalizing is when sales of a new product come at the expense of existing products within the same brand. In this case, the revenue from the brand extension may be coming from consumers switching from the parent brand's offerings, meaning the extension is cannibalizing sales from the parent brand. Diluting refers to the weakening of a brand's image or identity, which may not necessarily be the case here. Reinforcing and revamping both imply positive effects on the parent brand, which may not be the case if there is cannibalization happening. Eroding refers to a gradual decline in brand value, which may be more extreme than what is happening in this scenario.

Quiz 9: Creating Brand Equity

The hallmark of an optimal brand portfolio is ________.

Two advantages of ________ are that they can facilitate new product acceptance,as well as provide positive feedback to the parent brand and company.

A ________ is a set of all brand lines that a particular seller makes available to buyers.

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.

Apple's iPod Shuffle is an example of ________.

Starbucks introduced ice creams in the same flavors as the Frappucinos it sold in its coffee shops.This is an example of ________.

When a firm uses an established brand to introduce a new product,it is called a ________.

________ is the job of estimating the total financial worth of the brand.

The introduction of diet coke by the Coca Cola Company is an example of ________.

A parent brand that is associated with multiple products through brand extensions is also called a(n) ________.

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.

Consumers may evaluate the same product differently depending on how it is branded.

________ are a means of understanding where,how much,and in what ways brand value is being created to facilitate day-to-day decision making.

Clarity,relevance,distinctiveness,and consistency are factors that influence the ________ of the brand value chain.

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.

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.

A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.

Brands today play a number of important roles that improve consumers' lives and enhance the financial value of firms.

A major advantage of a ________ strategy is that the company does not tie its reputation to the product.

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.