Question 1

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

Accepted Answer

Brand equity is the value that a brand adds to a product or service. It is a measure of the brand's overall strength and value in the market, which goes beyond just sales figures. It is not calculated by subtracting sales of generic brands from sales of branded items.

Question 2

A company's product line consists of its various product mixes.

Accepted Answer

A company's product line refers to a group of related products under a single brand sold by the same company, while product mix (or product assortment) refers to the total variety of products that the company offers.

Question 3

For the average college student,a retirement account would be a shopping product.

Accepted Answer

A retirement account is not a shopping product, as it is a financial product designed for long-term saving and investing for retirement. It should be carefully considered and chosen based on factors such as fees, investment options, and tax implications, rather than treated like a product that can be easily compared and purchased like a piece of clothing or electronic device.

Question 4

A customized carved cedar wood sign for your house is an example of a convenience product.

Accepted Answer

A customized carved cedar wood sign for your house is considered a specialty product, not a convenience product, because it is unique and customers are willing to make a special effort to purchase it.

Question 5

Brands enable customers to quickly differentiate one firm or product from another.

Accepted Answer

Brands are unique identifiers that help customers identify and differentiate one product or firm from another. They help build trust and loyalty with customers by providing consistency in quality and experience.

Question 6

Effective packaging and labels send consumers the signal "Buy me!"

Accepted Answer

Effective packaging and labels are designed to catch the attention of consumers and entice them to make a purchase, making the statement "Buy me!" true.

Question 7

Private-label brands are imitations often sold by street vendors.

Accepted Answer

Private-label brands are actually products made by a manufacturer and sold under a retailer's brand name. They are not sold by street vendors as imitations.

Question 8

Jenny traded in her old car for her heart's desire,a new Lexus sedan.The Lexus is considered a specialty product.

Accepted Answer

A specialty product is one that is not a necessity, but is desired by a specific market segment. In this case, the Lexus sedan is desired by those who are willing to pay a premium price for luxury, performance, and status.

Question 9

Sales of private-label brands continue to increase,particularly in big-box stores such as Costco and Trader Joe's.

Accepted Answer

The statement is true.

Question 10

A product label is just a required sticker on a package.

Accepted Answer

A product label is not just a required sticker on a package. It provides important information about the product such as ingredients, nutritional information, and warnings. It is also used for branding and marketing purposes.

Question 11

When Jaclyn selects a case of Sprite at the grocery store for her party,she is attracted by the holiday-themed box featuring green and white bells.What Jaclyn is seeing is referred to as the secondary package.

Accepted Answer

The case of Sprite is the primary package, while the holiday-themed box is the secondary package.

Question 12

In entertainment licensing,the major risk to licensees is that the brand will become overexposed.

Accepted Answer

The answer of In entertainment licensing,the major risk to licensees...

Question 13

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems),this would be an example of a line extension.

Accepted Answer

This would be an example of brand extension, as it involves taking an existing brand name (Xbox) and applying it to a new product category (mobile phones) outside of its current gaming systems category.

Question 14

For a company like Pepsi-Cola,brand dilution occurs when it sells more product than the competition.

Accepted Answer

Brand dilution occurs when a company's brand loses value or reputation due to the introduction of too many products or products of lower quality, not necessarily related to selling more products than the competition.

Question 15

When purchasing a mobile phone,the product you are buying is more than just the phone.

Accepted Answer

When purchasing a mobile phone, you are also buying the accompanying accessories, warranty, customer service, operating system, pre-installed apps, and potentially a data plan.

Question 16

Harold is a loyal Coca-Cola customer.Loyal customers like Harold require lower marketing expenditures,benefiting businesses like Coca-Cola.

Accepted Answer

Loyal customers like Harold are more likely to continue purchasing Coca-Cola without the need for additional marketing efforts, ultimately benefiting the company with lower marketing expenditures.

Question 17

The more familiar customers are with a brand,the harder their decision-making process will be.

Accepted Answer

Familiarity with a brand generally simplifies the decision-making process for customers because they rely on their previous experiences and trust in the brand, reducing the effort needed to evaluate alternatives.

Question 18

Kellogg's sells many different breakfast cereals,including Corn Flakes,Rice Krispies,Frosted Flakes,Raisin Bran,and Special K.This is an example of the breadth of the Kellogg's product mix.

Accepted Answer

The answer of Kellogg's sells many different breakfast cereals,including Corn...

Question 19

A product is anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

Accepted Answer

This is the definition of a product as per the marketing concept.

Question 20

Nike sells shoes,clothing,and athletic gear.These represent the breadth of Nike's products.

Accepted Answer

Nike offers a wide range of products including shoes, clothing, and athletic gear, thus representing the breadth of their product offerings.

Quiz 11: Product,branding,and Packaging Decisions