Deck 13: Developing and Managing Brand and Product Categories

Question 1

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.

Answer 1

False

Question 2

Manufacturers' brands are also called national brands.

Answer 2

True

Question 3

Brand insistence is a company's first objective for newly introduced products.

Answer 3

False

Question 4

Branding helps firms build and maintain identity and competitive advantage for their products.

Question 5

Brand insistence,the ultimate stage in brand loyalty,leads consumers to refuse alternatives and to search extensively for the desired merchandise.

Question 6

Companies that offer mass-marketed goods and services are more likely to achieve monopoly position with their customers compared to those companies that manufacture luxury products.

Question 7

Private labels typically provide better profit margins than captive brands.

Question 8

The market shares for generic products increase during economic downturns but subside when the economy improves.

Question 9

A family brand is a single brand name that identifies several related products.

Question 10

Makers of generic products are dependent on brand loyalty for their marketing success.

Question 11

Karen prefers to buy Clemtec's cleaning products over other brands if they are easily available in the market.Karen is in the brand insistence stage of brand loyalty.

Question 12

Production of private-label goods helps manufacturers reach additional market segments.

Question 13

Food and household staples are common categories of generic products.

Question 14

A product that has attained a monopoly position with its consumers is in the brand preference stage of brand loyalty.

Question 15

Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search extensively for the desired merchandise.

Question 16

A national brand defines the image most people form when they think of a brand.

Question 17

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 18

National brands sold exclusively by a retail chain are called captive brands.

Question 19

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 20

Jack does not buy his shoes from any company other than Unparalleled,a leading shoe manufacturer,because of the comfort they offer and their unique style features.Jack is in the brand insistence stage of brand loyalty.

Question 21

Tide laundry detergent commands an extremely high market share.Purchasers of the product are extremely less sensitive to price changes.Based on this assessment,it can be said that Tide has high brand equity.

Question 22

Some firms register a brand name before they have manufactured the product in order to prevent competitors from using the name.

Question 23

A brand mark is defined as a part of a brand that can be spoken.

Question 24

The "brand relevance" dimension of the brand personality refers to a brand's ability to stand apart from its competitors.

Question 25

A strong brand identity can contribute to the consumers' perceptions of product quality.

Question 26

Family brands are the most effective aids in implementing market segmentation strategies.

Question 27

Brands with high equity often command comparatively large market shares.

Question 28

Brand names should contain words or phrases in general use,so that it is easier for the consumers to pronounce,recognize and remember the brand names.

Question 29

Kroger,a popular milk brand,is a market leader in Denmark.About 30 percent of its sales and earnings take place outside its home country.Kroger can be regarded as a global brand.

Question 30

The original owner of a brand name can claim exclusive rights to the name even when the brand name becomes a descriptive generic name for a class of products.

Question 31

A rise in perceived quality or public opinion about a brand enhances the brand's esteem.

Question 32

Companies that follow category management process define the category based on the target market's needs.

Question 33

Family brands cost more than individual brands to market.

Question 34

Marketers opt for family brand names to distinguish dissimilar products.

Question 35

A promotional outlay for a family brand benefits all items in the line.

Question 36

Product managers have profit responsibility for their product group and help the retailer's category buyer maximize sales for the whole category,not just the particular manufacturer's product.

Question 37

Small manufacturers usually assign a category manager to each major channel such as grocery stores or drugstores,instead of each retail chain.

Question 38

A brand is said to have high relevance if a large number of consumers feel the need for the benefits offered by the brand.

Question 39

A brand name should give buyers the correct connotation of the product's image.

Question 40

A brand name must qualify for legal protection.

Question 41

A market penetration strategy seeks to increase sales of existing products in existing markets.

Question 42

Marketers' emphasis on targeting smaller market segments has increased the importance of
packaging as a promotional tool.

Question 43

Line extension is the strategy of attaching unrelated products to a known brand name to gain instant recognition for the new offerings.

Question 44

When a company authorizes another organization to use its brand name,the company is practicing brand diversification.

Question 45

Product positioning refers to consumers' perceptions of a product's attributes,uses,quality,and advantages and disadvantages relative to competing brands.

Question 46

The practice of brand licensing expands a company's exposure in the marketplace.

Question 47

A market development strategy concentrates on developing new products for existing markets.

Question 48

A trademark is different from a trade name which is usually used to identify a company.

Question 49

Merrill Lynch's bull logo cannot be considered a part of the product's trade dress.

Question 50

The Columbia Sportswear Company decides to produce a line of jackets embroidered with the names of all of the NFL teams.For doing so,Columbia must first obtain an authorization from the teams and/or the league before using the trademarked names.This is an example of brand licensing.

Question 51

A product development strategy concentrates on finding new markets for existing products.

Question 52

Fears of product tampering have forced many firms to improve package designs.

Question 53

Firms can receive trademark protection only for the brand name and brand mark and not for the product features or packaging elements.

Question 54

A line extension involves the addition of new sizes,styles,flavors,or related products to an existing group of products.

Question 55

Brand extension is the strategy of developing individual offerings that appeal to different market segments while remaining closely related to the existing product line.

Question 56

The original objective of product packaging was to increase consumer awareness of the product.

Question 57

An excellent brand name or symbol in one country may prove disastrous in another.

Question 58

One of the problems associated with brand licensing is that brand names do not transfer well to all products.

Question 59

An effective label performs both promotional and informational functions.

Question 60

A product's package color,size and label shapes are all part of its trade dress.

Question 61

The screening and business analysis stages of new-product development,determine the product's financial and technical requirements.

Question 62

Concept testing is a marketing research project that attempts to measure consumer attitudes and perceptions about the new product idea.

Question 63

If potential buyers can observe an innovation's superiority in a tangible form,the adoption rate increases.

Question 64

A product diversification strategy focuses on developing entirely new products for new markets.

Question 65

Even if a new product tests well in the market and reaches the commercialization stage,it may still take a while to catch on with the general public.

Question 66

The number of product liability lawsuits has fallen in recent years thanks to better designed products and more detailed regulations.

Question 67

The consumer adoption process spans from awareness of a product to its acceptance or rejection after a purchase has been made.

Question 68

Product liability insurance has become an essential element for any new or existing product strategy.

Question 69

Companies test market their new-product offerings to measure consumer reactions under normal competitive conditions.

Question 70

A company sent free samples of their new shampoo to a researched list of potential customers.This strategy is most likely to accelerate the evaluation and trial stages of the consumer adoption process.

Question 71

A product development strategy might include flanker brands that are introduced into the market to increase the overall market share of the company.

Question 72

The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all members of a community or social system.

Question 73

Cannibalization is the loss of sales of an existing product due to competition from a new product introduced into the market by a competing firm.

Question 74

New product committee members spend less time conceiving and developing their own new-product ideas than reviewing and approving new-product plans that arise elsewhere in the organization.

Question 75

Consumer innovators are individuals who rely on the experiences of initial buyers before making trial purchases.

Question 76

In the awareness phase of the consumer adoption process,consumers make a trial purchase of an item to determine its usefulness.

Question 77

Compared to first adopters,later adopters rely more heavily on impersonal information sources while purchasing new products.

Question 78

A product can fulfill its mission of satisfying consumer needs only if it ensures safe operation.

Question 79

A venture team functions as an entity separate from the basic organization.

Question 80

A product manager often leads new product development programs,including creation of new product ideas and recommendations for improving existing products.