Deck 10: Developing and Managing Brand and Product Strategies

Question 1

At what level of brand loyalty is advertising often used heavily to promote a product?

A) brand recognition
B) brand preference
C) brand insistence
D) brand equity

Answer 1

A

Question 2

What is the added value called that a certain brand name gives to a product in the marketplace?

A) brand knowledge
B) brand esteem
C) brand recognition
D) brand equity

Answer 2

D

Question 3

The Kirkland brand is owned by Costco, and the products can be purchased only at Costco stores.Costco contracts with manufacturers to produce and package products under the Kirkland name.What is this arrangement called?

A) family branding
B) individual branding
C) generic branding
D) private labelling

Answer 3

D

Question 4

Lipton markets tea, herbal tea, and iced tea under the Lipton name.What is this strategy?

A) family branding
B) extension branding
C) individual product branding
D) private label branding

Question 5

Which of the following is NOT an aspect or dimension of Young & Rubicam's Brand Asset Valuator model?

A) differentiation
B) relevance
C) esteem
D) price

Question 6

What type of brand is Colgate toothpaste an example of?

A) a family brand
B) an individual brand
C) a generic brand
D) a private brand

Question 7

Jim stops at the local convenience store on his way home to buy laundry detergent.He goes in thinking he'll purchase his usual brand, but ends up buying another because it is on sale.What stage of brand loyalty is Jim at?

A) brand insistence
B) brand awareness
C) brand preference
D) brand recognition

Question 8

Which of the following best describes global brand equity?

A) It is a global brand that sells at least 20 percent of the products outside the home country.
B) It is difficult to evaluate as not every foreign company tracks market share.
C) It includes two components, traditional sales and Internet sales.
D) It is of interest only when companies are involved in mergers, partnerships, or strategic alliances.

Question 9

How might a company be able to market a product successfully at a higher price?

A) by its patented trademark
B) by its brand mark
C) by its brand equity
D) by its trade name

Question 10

When does brand recognition occur as a stage of brand loyalty?

A) when the product becomes familiar to the consumer
B) when the product is inexpensive
C) when the consumer sees or recognizes the product and chooses it over its competition
D) when the product is first introduced or test-marketed

Question 11

What level of brand loyalty are luxury items often representative of?

A) brand comprehension
B) brand insistence
C) brand recognition
D) brand preference

Question 12

The Debbie Travis line of paints and home décor products is available only through Canadian Tire stores.What is this type of product distribution strategy?

A) declining life cycle branding
B) unique branding
C) captive branding
D) exclusive branding

Question 13

What has a product that has achieved the status of brand insistence also achieved?

A) price competitiveness to keep its status
B) a monopoly position with its consumers
C) a distinctive "identity character"
D) movement from the unknown to the known category

Question 14

What is the primary factor that attracts a consumer to a generic product?

A) package design
B) family branding
C) low price
D) ease of distribution

Question 15

Laura wants a particular brand of golf ball, but her local pro shop is sold out.Instead, she buys a substitute.How can Laura's behaviour be described?

A) as brand awareness
B) as brand insistence
C) as brand preference
D) as brand recognition

Question 16

A firm elects to use family branding.What should the products be?

A) similar in quality, or the firm risks harming its overall product image
B) sufficiently different so as not to compete directly with each other
C) sold in different geographic markets so customers do not realize the relationship
D) sold only to a single, large retail chain to protect the manufacturer's reputation

Question 17

Dawn, Joy, and Ivory are dish liquid brands manufactured by Proctor & Gamble.What is the branding strategy for these products?

A) private branding
B) family branding
C) generic branding
D) individual branding

Question 18

What type of brand should a company strongly consider when it wishes to emphasize a market segmentation strategy for its products?

A) family branding
B) captive branding
C) generic branding
D) individual branding

Question 19

How does Young & Rubicam's Brand Asset Valuator model identify the dimension of brand personality called "relevance"?

A) as the extent of consumer awareness of a brand and the understanding of what kind of product it stands for
B) as the real and perceived appropriateness of a brand to a big consumer segment
C) as the way in which brand equity is assigned to the brand by evaluating institutions
D) as a brand's ability to stand apart from competitors

Question 20

How are generic products characterized?

A) by having a brand name owned by a manufacturer or other producer
B) by plain labels, little or no advertising, and no brand names
C) by being national brands sold exclusively by a single retail chain
D) by possessing a brand name owned by a wholesaler or retailer

Question 21

What is a characteristic of a good brand name?

A) It should avoid any specific connotation relative to product content.
B) It should be short and descriptive of the product or characteristics.
C) It should possess generic potential.
D) It should be pronounced the same in every language.

Question 22

International Business Machines decided to brand its products under its acronym IBM.From a marketing perspective, why was this brand name a smart idea?

A) because IBM is easy to pronounce, recognize, and remember
B) because IBM is easy to translate into any language
C) because IBM accurately describes the products it manufactures
D) because IBM is a public domain name

Question 23

The makers of Sucrets throat lozenges recently changed from a traditional "little metal box" packaging to a plastic bubble-pack that is the same physical size as the tin box.What is a potential danger of this decision?

A) It will raise the cost of the product.
B) There are occasional shortages of this packaging material.
C) The product may not be adequately protected.
D) Consumers may prefer the old reusable package.

Question 24

What was the original purpose of packaging?

A) controlling costs
B) identifying products and communicating usage
C) protecting products from physical damage
D) complying with government regulations

Question 25

What is a brand name that has been given legal protection known as?

A) a patent
B) a copyright
C) a trademark
D) a royalty

Question 26

What is the difference between a trademark and a brand?

A) A trademark gives the manufacturer a claim to exclusive legal protection.
B) A trademark identifies the company that makes it.
C) A trademark allows the product to be used in the global marketplace.
D) A trademark is that part of a brand that can be vocalized.

Question 27

In Young & Rubicam's Brand Asset Valuator model, what is the extent of consumer awareness of a brand and the understanding of what the good or service represents called?

A) knowledge
B) esteem
C) recognition
D) equity

Question 28

Which of the following is an example of a brand name that has become the generic name for a product class?

A) Xerox
B) Yo-Yo
C) Coke
D) Jell-O

Question 29

Which of the following is NOT a main role of packaging in today's marketplace?

A) assisting in marketing the product
B) promoting recycling to consumers
C) protecting the product from physical damage, spoilage, and theft
D) being cost-effective

Question 30

What does the Trade-marks Office provide for trademark holders?

A) unique product wrapping
B) ideas for packaging that identifies the product
C) monitoring for trademark infringement
D) registration for trademarks

Question 31

If Sunbeam were to develop a new coffee machine and brand it "The Coffee Maker," why would the company NOT be able to register the term as its trademark?

A) because Sunbeam already manufactures a coffee maker under a different product name
B) because there is already a competitive product with the same name registered overseas
C) because to be registered it must contain the company's name
D) because registered trademarks cannot contain words that are in general use

Question 32

What is Bic's application of its name to disposable razors and utility lighters an example of?

A) brand extension
B) line extension
C) brand licensing
D) brand preference

Question 33

What does trade dress refer to?

A) visual cues used in branding that create an overall look for a product
B) a promotional philosophy of targeting all sales efforts to the trade
C) the general size of the packaging used by a product, regardless of how plain
D) uniforms worn by company employees while doing their jobs

Question 34

Which of the following is NOT a brand name that became generic over time?

A) Nylon
B) Coca-Cola
C) Aspirin
D) Escalator

Question 35

In Young & Rubicam's Brand Asset Valuator model, what is the measure of the real and perceived appropriateness of a brand to a large consumer segment called?

A) brand equity
B) relevance
C) esteem
D) price

Question 36

Which of the following is NOT a responsibility of a category manager?

A) setting performance standards and measuring actual results against the standard
B) finding growth opportunities
C) staffing the national sales teams
D) determining the marketing mix of the product assortment within the category

Question 37

What are category managers responsible for?

A) research and development of the growing category
B) the profitability of their product groups
C) distribution channels rather than brands
D) mass-market advertising and not in-store merchandising

Question 38

Which of the following is NOT accomplished by packaging created for the purpose of marketing assistance?

A) enhancing shelf visibility
B) offering convenience for the consumer
C) changing consumer behaviour
D) locating new markets for existing products

Question 39

What is a trade name?

A) the pictorial design of the product, but not the brand name
B) a vocalized brand consisting of words or letters
C) company identification
D) a brand for which the owner claims exclusive legal protection

Question 40

What is the leaping jaguar hood ornament featured on cars of the same name an example of?

A) the company's private brand
B) the company's trade dress
C) the company's brand identity
D) the company's individual mark

Question 41

What is locating new markets for existing products called?

A) market penetration
B) market development
C) product development
D) product diversification

Question 42

An apparel manufacturer decides to create a line of T-shirts depicting the most popular soft drinks on the market.The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr.Pepper.What would this venture involve?

A) line extension
B) brand extension
C) brand licensing
D) brand marking

Question 43

Welch's uses commercials promoting the health benefits of grape juice to target seniors and get them to purchase a product they had seldom consumed in the past.What new product development strategy is this an example of?

A) market penetration
B) market development
C) product development
D) product diversification

Question 44

General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics.What product development strategy is this acquisition an example of?

A) market penetration
B) market development
C) product development
D) product diversification

Question 45

Why does the complexity of an innovation affect its adoption rate?

A) because consumers are slow to adopt products they find difficult to use
B) if the product is inconsistent with the values of potential adopters
C) when a free or discounted trial is provided to delay the product acceptance
D) when the superiority of the product is visible to the consumer

Question 46

What can potential buyers do that might increase the rate of adoption?

A) measure compatibility
B) acknowledge the complexity
C) decline a trial use
D) observe tangible advantages

Question 47

Which of the following is one of the five categories describing adopters of new products?

A) strivers
B) sluggards
C) brand loyalists
D) early majority

Question 48

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios.What was Microsoft increasing by adding this link to its website?

A) product compatibility
B) product complexity
C) possibility of trial use
D) comparison of AOE III to its competitors

Question 49

What is the introduction of brand new products into readily identifiable or established markets referred to as?

A) product development strategy
B) product positioning strategy
C) product diversification strategy
D) product improvement strategy

Question 50

What does the product development strategy of product positioning refer to?

A) consumers' perceptions of a product's attributes, uses, and quality, advantages and disadvantages
B) the attempt to increase sales of some existing products in some existing markets
C) a strategy that specifically concentrates on finding completely new markets for currently existing products
D) the introduction of new products into identifiable or established markets

Question 51

Potential consumers experience a series of stages beginning with learning about a new product, trying it, and deciding whether or not to purchase it regularly.What are these series of stages known as?

A) consumer product life cycle
B) adoption process
C) total product usage or rejection
D) classification of shopping products

Question 52

Which of the following actions is NOT one of the stages of consumer adoption?

A) awareness of the product and seeking out information
B) evaluation of the likely benefits
C) providing feedback to the company via relationship marketing
D) trial purchase and evaluation leading to acceptance or rejection

Question 53

More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg's Cracklin' Oat Bran say it tastes like oatmeal cookies and makes "a great snack anytime." What strategy is Kellogg's implementing with this product?

A) market penetration
B) market development
C) product development
D) product diversification

Question 54

What is experienced by potential users when a new product innovation is consistent with the values and experiences of potential adopters?

A) a greater level of compatibility
B) a greater level of complexity
C) a greater level of possibility of trial use
D) a greater level of observability

Question 55

Why can product positioning be important to a new product development strategy?

A) because its results are shown by strong brand recognition, but not by brand insistence
B) because it is never used with family brands, only individual brands
C) because it reflects consumers' perceptions of the product's advantages and disadvantages
D) because the product is at eye level on the shelf, which allows an advantageous position

Question 56

What is product cannibalization?

A) the expected outcome from the implementation of market penetration
B) the erosion of a competitor's market share
C) the erosion of an equity brand due to the brand strategy of a competitor
D) the erosion of sales due to other products in the same product line

Question 57

Who is a consumer innovator?

A) an individual who develops a new idea for a consumer product
B) an individual who produces a new consumer product
C) an individual who is among the first to purchase a new product
D) an individual who finds a new use for an old product

Question 58

How can marketers accelerate the adoption process?

A) by paying retailers and wholesalers to heavily promote the product
B) by test-marketing the product first
C) by manipulating one of the characteristics of a product innovation
D) by introducing the product into a foreign market first

Question 59

Which of the following is an example of a market penetration strategy for new product development?

A) Procter & Gamble sells its current traditional products in new overseas market segments.
B) Ford Motor Company introduces an electric car.
C) Black & Decker sells small home appliances.
D) Morton Salt advertises a way to use salt and vinegar to make a homemade metal polish.

Question 60

In keeping with its corporate strategy of "building a global luxury accessories business," Ralph Lauren introduced a new line of footwear.In business terms, how would the actions of Ralph Lauren be described?

A) as market penetration
B) as market development
C) as product development
D) as product diversification

Question 61

What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives?

A) idea generation
B) business analysis
C) screening
D) evaluation

Question 62

Which of the following is a crown corporation that oversees the standards system in Canada?

A) Federal Standards Council
B) NAFTA Council
C) Standards Council of Canada
D) Council for Standards in Canada

Question 63

Aspirin has been used for almost a century to treat pain, as well as to reduce inflammation and fever.Recent studies indicate that the regular use of low-dosage aspirin can reduce the incidence of heart attacks and strokes.Bayer Company is trying to capitalize on this new finding and increase sales to potential customers by which of the following strategies?

A) Market Penetration
B) Market Development
C) Product Development
D) Product Diversification

Question 64

When does a new product innovation possess relative advantage?

A) when it is consistent with the values and experiences of potential adopters
B) when it appears far superior to previous ideas
C) when it allows potential buyers limited initial use before purchase
D) when it is relatively easy to understand

Question 65

What is the purpose of test-marketing?

A) to subject the product idea to additional study prior to its actual development
B) to verify that the product will perform well in a real-life business environment
C) to separate ideas with commercial potential from those that will not meet company objectives
D) to evaluate the compatibility of the product with organizational resources

Question 66

What are product managers also known as?

A) product directors
B) trade-name managers
C) brand managers
D) product line directors

Question 67

The highest level of brand loyalty is brand preference.

Question 68

Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown to the known category, which increases the probability that they will purchase it.

Question 69

Brand insistence is common in luxury products.

Question 70

Josh usually buys one brand of orange juice but, occasionally, will buy a competitive brand if it's on sale.Josh is exhibiting brand insistence.

Question 71

What is the approximate new-product failure rate?

A) 25 percent
B) 37 percent
C) 66 percent
D) 80 percent

Question 72

What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next?

A) phased development
B) a parallel approach
C) PERT (program evaluation and review technique)
D) CPM (critical path method)

Question 73

A product has attained a monopoly position with its consumers when the brand loyalty stage of brand insistence has been achieved.

Question 74

A cereal company sent free samples of a new cereal to a researched list of potential customers.Which of the following BEST describes the stage in the consumer adoption process that was accelerated?

A) Awareness
B) Interest
C) Evaluation
D) Adoption

Question 75

Which of the following items would seldom be test-marketed?

A) potato chips
B) postal system sorting equipment
C) cellular telephones
D) breakfast cereals

Question 76

Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a branded product when choosing it, if available, over competitors' products.

Question 77

What type of marketing research project is undertaken during the business analysis stage of the new product development process and often uses focus groups and in-store polling to gather data?

A) telephone screening
B) idea generation
C) sample distribution
D) concept testing

Question 78

Buyers rarely identify the brand with the manufacturer.

Question 79

Deanna purchases only Diet Coke; in fact, she never considers any other brands.Deanna has reached the level of brand preference.

Question 80

What is a new product committee?

A) a task force of experts assigned to generate new product ideas
B) a group of experts permanently assigned to generate, evaluate, and implement new product projects
C) the employees, suppliers, and customers that are a part of the relationship marketing process
D) the most common arrangement for activities related to developing a new product