Deck 11: Creating Brand Equity

Question 1

The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

A) copyright
B) trademark
C) slogan
D) brand
E) logo

Answer 1

D

Question 2

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the BrandAsset^® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario?

A) knowledge
B) energized differentiation
C) esteem
D) advantage
E) presence

Answer 2

C

Question 3

How does the American Marketing Association (AMA) define the term brand?

Answer 3

A brand, according to the AMA, is "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

Question 4

What valuable functions can brands perform for a firm?

Question 5

When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________.

A) brand knowledge
B) ethnocentric bias
C) self-serving bias
D) cognitive dissonance
E) brand identity

Question 6

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________.

A) the imported brand will not survive the competition from Maytag
B) Maytag has a positive customer brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Maytag washing machine has better features than the imported brand

Question 7

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

Question 8

The first step in the strategic brand management process is ________.

A) measuring consumer brand loyalty
B) identifying and establishing brand positioning
C) planning and implementing brand marketing
D) measuring and interpreting brand performance
E) growing and sustaining brand value

Question 9

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset^® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario?

A) energized differentiation
B) relevance
C) esteem
D) knowledge
E) advantage

Question 10

Assume you are a marketing manager and want to adopt strategic brand management. List the four main steps that you would most likely go through to accomplish this task.

Question 11

When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________.

A) promise
B) personality
C) identity
D) position
E) revitalization

Question 12

According to the BrandAsset^® Valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand?

A) esteem
B) energized differentiation
C) relevance
D) knowledge
E) presence

Question 13

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

Question 14

Identify the four pillars of brand equity, according to BrandAsset^® Valuator model.

A) relevance, performance, bonding, and advantage
B) presence, performance, advantage, and bonding
C) energized differentiation, relevance, esteem, and knowledge
D) brand salience, brand feelings, brand imagery, and brand performance
E) energized differentiation, esteem, brand feelings, and brand salience

Question 15

Brand ________ is the added value endowed to products and services.

A) loyalty
B) equity
C) preference
D) identity
E) licensing

Question 16

BENGAY aspirin, Cracker Jack cereal, Frito-Lay lemonade, and Fruit of the Loom laundry detergent are examples where consumers' ________ dictated that the extensions were inappropriate for the brand.

A) brand knowledge
B) brand equity
C) brand stature
D) power grid
E) brand salience

Question 17

________ brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand.

A) Mission-driven
B) Customer-based
C) Product-driven
D) Service-driven
E) Function-based

Question 18

The challenge for marketers in building a strong brand is ________.

A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge
B) pricing the product at a point that maximizes sales volume
C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience
D) minimizing the impact of customer brand equity
E) avoiding the usage of an established brand to introduce a new product in the market

Question 19

Branding is ________.

A) all about creating unanimity between products
B) the process of performing market research and selling products or services to customers
C) endowing products and services with the power of a brand
D) the process of comparing competing brands available in the market
E) use of online interactive media to promote products and brands

Question 20

Which of the following is a marketing advantage of strong brands?

A) no vulnerability to marketing crises
B) more elastic consumer response to price increases
C) guaranteed profits
D) additional brand extension opportunities
E) more inelastic consumer response to price decreases

Question 21

According to BrandAsset^® Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value.

A) stature
B) parity
C) strength
D) personality
E) architecture

Question 22

According to BrandAsset^® Valuator model, leadership brands show ________.

A) high levels of energy, differentiation, relevance, knowledge, and esteem
B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
D) low levels on energy, differentiation, relevance, knowledge, and esteem
E) high knowledge - evidence of past performance - a lower level of esteem, and even lower relevance, energy, and differentiation

Question 23

Which of the following levels of the BrandDynamics Pyramid pertains to consumer's needs?

A) advantage
B) relevance
C) bonding
D) performance
E) presence

Question 24

According to the BrandAsset^® Valuator model, strong new brands show ________.

A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
C) high knowledge - evidence of past performance - a lower level of esteem, and even lower relevance, energy, and differentiation
D) high levels on energy, differentiation, relevance, knowledge, and esteem
E) low levels on energy, differentiation, relevance, knowledge, and esteem

Question 25

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message "Nothing else beats this brand"?

A) bonding
B) relevance
C) advantage
D) performance
E) presence

Question 26

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer me something?"

A) advantage
B) presence
C) relevance
D) bonding
E) performance

Question 27

According to the BrandAsset^® Valuator model, which of the components of brand equity measures the breadth of a brand's appeal?

A) differentiation
B) relevance
C) esteem
D) knowledge
E) value

Question 28

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address the question "Do I know about this brand?"

A) relevance
B) presence
C) performance
D) advantage
E) bonding

Question 29

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?"

A) performance
B) bonding
C) advantage
D) relevance
E) presence

Question 30

Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid?

A) presence
B) bonding
C) relevance
D) performance
E) advantage

Question 31

Brand salience ________.

A) is customers' emotional responses and reactions with respect to the brand
B) is how often and how easily customers think of the brand under various purchase or consumption situations
C) is how well the product or service meets customers' functional needs
D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs
E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it

Question 32

Starbucks uses social-media engagement to respond, listen to and connect with fans, which is important to them because it builds loyalty, which is one aspect of the ________ pillar of the BrandAsset^® Valuator.

A) energized differentiation
B) esteem
C) relevance
D) knowledge
E) strength

Question 33

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer something better than the others?"

A) performance
B) presence
C) advantage
D) bonding
E) relevance

Question 34

According to Young and Rubicam's BrandAsset^® Valuator, a brand's ________ measures how well the brand is regarded and respected.

A) differentiation
B) energy
C) relevance
D) esteem
E) knowledge

Question 35

________, which combines the BrandAsset^® Valuator dimensions of energized differentiation and relevance, is a leading indicator that predicts future growth and value.

A) Brand stature
B) A brand's power grid
C) Brand presence
D) Brand bonding
E) Brand strength

Question 36

A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid.

A) advantage
B) relevance
C) presence
D) performance
E) bonding

Question 37

According to BrandAsset^® Valuator model, declining brands show ________.

A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
B) high relevance - appropriateness of brand's appeal - a lower level of energy and differentiation, and even lower knowledge
C) high levels on energy, differentiation, relevance, knowledge, and esteem
D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
E) high knowledge - evidence of past performance - a lower level of esteem, and even lower relevance, energy, and differentiation

Question 38

High levels of brand ________, or the extent to which consumers feel they are "in sync" with the Fox News brand and engagement in Fox News programs, often leads to greater recall of the ads Fox News runs.

A) salience
B) feelings
C) judgments
D) resonance
E) imagery

Question 39

If a consumer who is trying to decide between alternatives believes that a particular brand delivers acceptable product performance and can be shortlisted, she is in the ________ level of the BrandDynamics Pyramid.

A) presence
B) relevance
C) performance
D) advantage
E) bonding

Question 40

According to BrandAsset^® Valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________.

A) position
B) image
C) depth
D) knowledge
E) strength

Question 41

Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference?

A) performance and imagery
B) judgment and feelings
C) resonance and salience
D) imagery and judgment
E) salience and feelings

Question 42

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty?

A) salience
B) imagery
C) feelings
D) judgments
E) resonance

Question 43

Brand imagery is a consumer's emotional response and reaction with respect to the brand.

Question 44

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions?

A) resonance
B) salience
C) imagery
D) performance
E) feelings

Question 45

Brand salience describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.

Question 46

The quantity, rather than quality, of a marketer's investment in brand building is the critical factor in building brand equity.

Question 47

With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it.

A) imagery
B) judgment
C) resonance
D) salience
E) performance

Question 48

With respect to the "six brand building blocks," brand ________ signifies how well the product or service meets customers' functional needs.

A) judgment
B) imagery
C) salience
D) performance
E) resonance

Question 49

Advertising agency Young and Rubicam (Y&R) developed a model of brand equity called BrandAsset^® Valuator (BAV). What is the intent of the BAV model? List and briefly characterize the four key components (pillars) of brand equity.

Question 50

Describe the three ingredients of customer-based brand equity.

Question 51

With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"?

A) resonance
B) imagery
C) performance
D) salience
E) judgment

Question 52

Brand equity arises from unanimity in consumer response.

Question 53

One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.

Question 54

Under the BrandZ model of brand strength, customers who are bonded to the brand believe "nothing else beats it."

Question 55

According to the BrandZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.

Question 56

The creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid. What are the six components of the brand resonance pyramid?

Question 57

According to BrandAsset^® Valuator (BAV) model, knowledge is one of the key components of brand equity.

Question 58

With respect to the "six brand building blocks," brand ________ are customers' emotional responses and reactions with respect to the brand.

A) imagery statements
B) judgments
C) performances
D) feelings
E) resonances

Question 59

With respect to the "six brand building blocks," brand ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.

A) imagery
B) judgment
C) resonance
D) salience
E) performance

Question 60

With respect to the "six brand building blocks," brand ________ focuses on customers' own personal opinions and evaluations.

A) salience
B) performance
C) imagery
D) judgment
E) resonance

Question 61

Define brand equity.

Question 62

The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario?

A) the associations indirectly transferred to the brand by linking it to a place or thing
B) the product and all accompanying marketing activities and supporting marketing programs
C) the initial choices for the brand elements or identities making up the brand
D) the profitability associated with brand development
E) the service and all accompanying marketing activities and programs

Question 63

If consumers can easily recall and recognize a brand element, the brand element is said to be ________.

A) meaningful
B) protectable
C) adaptable
D) transferable
E) memorable

Question 64

How does consumer knowledge play a role in the success of new products associated with existing brands?

Question 65

According to the BrandZ model of brand strength, brand building involves a series of five sequential steps. What are those five sequential steps?

Question 66

Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing brand ________.

A) alliance
B) essence
C) harmonization
D) parity
E) bonding

Question 67

Which of the following is a defensive criterion for choosing brand elements?

A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance

Question 68

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand?

A) the product and all accompanying marketing activities and supporting marketing programs
B) the service and all accompanying marketing activities and programs
C) the initial choices for the brand elements or identities making up the brand
D) associations indirectly transferred to the brand by linking it to some other entity
E) the profitability associated with brand development

Question 69

The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ is about mixing and matching marketing activities to maximize their individual and collective effects.

A) Personalized marketing
B) Mass customization
C) Globalized marketing
D) Relationship marketing
E) Integrated marketing

Question 70

Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario?

A) the profitability associated with brand development
B) associations indirectly transferred to the brand by linking it to a person
C) the product and all accompanying marketing activities and supporting marketing programs
D) the initial choices for the brand elements or identities making up the brand
E) associations indirectly transferred to the brand by linking it to a place

Question 71

Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand.

A) elements
B) value propositions
C) perceptions
D) images
E) extensions

Question 72

A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand.

A) community
B) channel
C) association
D) personality
E) cluster

Question 73

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special.

A) the tangibility of a product
B) a product's shape
C) a slogan
D) a patent
E) a copyright

Question 74

________ branding consists of activities and processes that help inform and inspire employees about brands.

A) Internal
B) Personal
C) Individual
D) External
E) Co-

Question 75

If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________.

A) memorable
B) meaningful
C) likeable
D) transferable
E) adaptable

Question 76

Brand equity has four components - energized differentiation, relevance, esteem, and knowledge. How are these components combined to produce brand strength and brand stature?

Question 77

AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray?

A) choosing the right moment to capture employees' attention and imagination
B) furnishing energizing and informative internal communication
C) bringing the brand alive for employees
D) linking internal and external marketing
E) understanding how brand communities work

Question 78

What is positive customer-based brand equity?

Question 79

Distinguish between brand equity and brand valuation.

Question 80

Explain the concept of brand knowledge.