Question 1

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

Brand extension is the use of an established brand to introduce a new product. It allows for leveraging the brand's reputation and recognition to create awareness and acceptance for the new product.

Question 2

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

Diet Coke is a line extension because it is a variation of the original Coca-Cola product, offering a different version (diet) under the same brand name.

Question 3

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 is the complete set of brands and brand lines that a company offers for sale within a particular category or market. It includes all the products or services offered by a company under different brand names or brand lines. It helps companies to diversify their product range, maximize their market share, and target different segments of customers with different needs and preferences. The brand portfolio strategy should be aligned with the company’s overall marketing goals and brand architecture.

Question 4

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

Accepted Answer

An optimal brand portfolio is one in which each brand is able to maximize its equity while also complementing and enhancing the equity of other brands in the portfolio. This creates synergy and helps to maximize overall brand value for the company. B, C, D, and E are not characteristics of an optimal brand portfolio.

Question 5

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

Accepted Answer

Brand extensions can help introduce new products to the market with a head start by leveraging the parent brand's equity and reputation. This can lead to a more favorable reception and acceptance by consumers. Additionally, a successful brand extension can provide positive feedback to the parent brand and company, enhancing its overall image and reputation.

Question 6

Apple's ipod shuffle is an example of ________.
A) a sub-brand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand

Accepted Answer

The iPod Shuffle is a sub-brand of the Apple iPod family. It is a smaller, more affordable version of the iPod that offers limited storage and features. As a sub-brand, it benefits from the established reputation of the parent brand while providing a unique identity and positioning in the marketplace.

Question 7

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 for the company to create a new brand name for a new product, rather than tying it to an existing product or the company's overall reputation. This can be advantageous if the new product fails or is unsuccessful, as it does not reflect negatively on the company or its other products.

Question 8

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 parent brand that is associated with multiple products through brand extensions is also called a family brand.

Question 9

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 concentrates on the current financial value derived from customers, potentially neglecting the future revenue and cost implications associated with the brand's "option value" or its ability to open up future opportunities.

Question 10

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

Accepted Answer

Brand mix refers to the set of all brand lines that a particular seller makes. A brand line is a group of products within a brand that are closely related in terms of usage, customer segments, and/or price range. A brand mix can include multiple brand lines, each with its own brand image and product offerings.

Question 11

________ 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 job of estimating the total financial worth of the brand. Brand tracking is the continuous monitoring of a brand's performance. Brand auditing assesses a brand's current position and potential, while brand equity is the value a brand adds to a product. Brand harmonization refers to the process of aligning all aspects of a brand's identity.

Question 12

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

The answer of Clarity, relevance, distinctiveness, and consistency are factors...

Question 13

________ 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 capture market share and protect the flagship brand's desired positioning by targeting specific consumer segments or niche markets. They compete with other brands in the same market segment, rather than directly with the flagship brand. This allows the flagship brand to maintain its premium positioning and pricing while still capturing additional revenue from customers who may not be willing or able to pay for the flagship brand.

Question 14

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 includes all products, both original and those that are part of line and category extensions, sold under a specific brand.

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 description matches the concept of a "line-extension trap". This is a situation where a brand puts its name on too many variants or product lines, leading to dilution of brand identity and loss of brand loyalty. Cadbury's move to put its name on products beyond chocolates and candies is a classic example of falling into a line-extension trap.

Question 16

Physical goods, services, and stores can be branded, but ideas and people cannot.

Accepted Answer

Ideas and people can be branded, such as personal branding or branding of concepts and movements.

Question 17

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

This is an example of category extension, which involves using the brand name to enter a new product category. In this case, Starbucks is extending its brand from coffee drinks to ice cream.

Question 18

________ 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,...

Question 19

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 means that sales of the brand extension are taking away sales from the parent brand, which ultimately decreases the revenue for the parent brand. Therefore, even if the sales of the brand extension meet targets, it may not necessarily be a positive outcome for the parent brand as a whole.

Question 20

Consumers may evaluate identical products differently depending on how they are branded.

Accepted Answer

Branding can impact consumer perception and influence their decision making. Two identical products may have different branding strategies that can lead to consumers perceiving one as more valuable or desirable than the other.

Quiz 9: Creating Brand Equity

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

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

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

The hallmark of an optimal brand portfolio is ________.

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

Apple's ipod shuffle is an example of ________.

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

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.

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

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

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

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

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

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.

Physical goods, services, and stores can be branded, but ideas and people cannot.

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

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

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.

Consumers may evaluate identical products differently depending on how they are branded.