Deck 11: Product,Branding,and Packaging Decisions

Question 1

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.

Answer 1

True

Question 2

For a company like Pepsi-Cola,brand dilution occurs when they dilute their product.

Answer 2

False

Question 3

Sales of private-label brands continue to decline in the U.S.,particularly in big-box stores such as Costco.

Answer 3

False

Question 4

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

Question 5

Harold is a loyal Coca-Cola customer.Loyal customers like Harold are typically less price sensitive than other consumers,benefiting businesses like Coca-Cola.

Question 6

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.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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.

Question 13

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

Question 14

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

Question 15

A product is __________ that can be offered through a voluntary marketing exchange.

A) the combination of a firm's marketing mix
B) the brand associations
C) the category depth
D) a tangible item
E) anything of value to consumers

Question 16

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

Question 17

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

Question 18

Effective packaging and labels send the signal: "Buy me."

Question 19

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

Question 20

In retailing,effective packaging sends this message:

A) More packaging means more product.
B) Buy me!
C) I have more features than the competition.
D) I am cheaper than the competition.
E) There is nothing toxic inside.

Question 21

A firm's product mix breadth is its

A) number of items per product line.
B) depth divided by profitability.
C) number of categories that are mutually exclusive.
D) number of product lines.
E) brand equity multiplied by its capacity utilization.

Question 22

For many years,General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position,it would exit the market.This strategy often resulted in the company __________ when certain product lines failed to meet this expectation.

A) increasing product line depth
B) decreasing product line depth
C) decreasing product mix breadth
D) increasing product mix breadth
E) introducing brand extensions

Question 23

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop.For McDonalds,the Golden Arches reduce marketing costs because people (including young children)

A) have memorized the McDonald's menu.
B) prefer yellow to other colors.
C) know what the Golden Arches brand symbol means.
D) recognize increases in product line depth.
E) are sensitive to brand repositioning.

Question 24

For a major university,undergraduate studies,graduate studies,and professional programs would be __________ within the university's product mix.

A) brand associations
B) family brands
C) co-brands
D) product lines
E) private label brands

Question 25

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line?

A) The firm decided to refocus marketing efforts elsewhere.
B) The firm must respond to evolving markets.
C) The product undermined its own brand.
D) The product being eliminated is unprofitable.
E) The firm has decided to capture new markets.

Question 26

The decision to delete a product is never taken lightly because,generally,manufacturers have

A) offered the product line to other firms for purchase.
B) made substantial investments in brand development and manufacturing.
C) promised consumers they will maintain the product.
D) used brand repositioning to improve results.
E) federal standards that must be met when taking products off the market.

Question 27

The complete set of all products offered by a firm is called its

A) product line.
B) product categories.
C) product mix.
D) product breadth.
E) product line depth.

Question 28

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark,which is Nike's

A) name.
B) symbol.
C) design.
D) term.
E) theme.

Question 29

__________ is the number of items within a product line.

A) Brand equity
B) Product line breadth
C) Product line depth
D) Product mix depth
E) Product mix breadth

Question 30

A __________ is a name,symbol,design,or term that identifies a seller's good or service as distinct from those of other sellers.

A) SKU
B) product line
C) supply chain
D) commodity
E) brand

Question 31

For a brand name to be effective,it needs to be

A) easy for consumers to recognize and remember.
B) a catchy,tongue-twisting phrase.
C) a visual image containing human characters.
D) generic,so it can be applied to as many products as possible.
E) associated with a sports or movie superstar.

Question 32

Firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because

A) brands protect corporate copyrights.
B) consumer loyalty can be bought for less now compared to the past.
C) brand equity can only be obtained by means of product line depth.
D) people already know what the brand means.
E) well-known brands are less likely to introduce brand extensions.

Question 33

Marketers spend billions of dollars annually attempting to build effective brands.The basic benefit of a brand is that it

A) creates a basis for effective packaging.
B) provides a way for a firm to differentiate its product offerings from competitors.
C) offers consumers promotional parity.
D) allows manufacturers to ignore promotional expenditures.
E) reduces the need for product line depth.

Question 34

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

A) brand associations.
B) product / service lines.
C) product mixes.
D) brands.
E) augmented services.

Question 35

Zappos is a successful online shoe company.One of the difficulties in running a shoe company is the need to have significant __________,a large number of items in each product line.

A) brand equity
B) product line breadth
C) product line depth
D) product mix depth
E) product mix breadth

Question 36

When consumers associate a brand with a certain level of quality and familiar attributes allowing consumers to make quick decisions,the brand

A) establishes novelty.
B) is the only one the consumer will consider.
C) reduces delivery costs.
D) facilitates purchasing.
E) creates brand dilution.

Question 37

Marketers with successful brands sometimes hesitate to expand their brands because

A) Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name.
B) it is costly to maintain many product lines,and might weaken the firm's reputation.
C) it is often difficult to get additional marketing communications coverage for the brand.
D) manufacturing divisions usually control brand expansion and are often in conflict with the marketing division.
E) the current economy can only support a limited number of product options.

Question 38

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

A) product line
B) product mix
C) product mix breadth
D) line extension
E) brand extension

Question 39

One key feature of the value of a brand is that

A) it often protects the firm from competition and price competition.
B) it no longer needs to be supported by advertising and promotion.
C) if it becomes a generic name,the brand is worth even more.
D) it cannot be successfully imitated by a retailer's own brand.
E) competitors will typically abandon a sector altogether rather than compete.

Question 40

One important purpose of a brand is to

A) sell advertising space.
B) minimize product line depth needed to be effective.
C) increase consumer recognition and awareness of product offerings.
D) protect product packaging.
E) meet government regulations.

Question 41

__________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

A) Brand positioning
B) Brand licensing
C) Brand association
D) Brand equity
E) Brand solvency

Question 42

Salina is working to create greater brand awareness for her company's new line of personal digital assistants.To increase brand awareness,the LEAST important information that should be included in promotions is

A) the brand name.
B) the logo.
C) the packaging.
D) the slogan.
E) the product history.

Question 43

Jenna always buys Stacy's brand pita bread chips.She does not even consider alternatives.Jenna is a __________ customer.

A) price sensitive
B) brand persuasion oriented
C) brand association oriented
D) brand extension oriented
E) brand loyal

Question 44

A __________ is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.

A) franchise brand
B) joint venture brand
C) shared brand
D) common use brand
E) licensed brand

Question 45

Brands are assets that can be legally protected through

A) copyrights and trademarks.
B) financial reporting.
C) brand extensions.
D) generic branding.
E) corporate branding strategies.

Question 46

Matt was passionate about Abercrombie & Fitch.It was the only place he'd buy his clothes.If anyone asked him about clothes,he would talk for what seemed like hours about why he only shopped there.From a strictly marketing perspective,this word of mouth is part of

A) social insistence.
B) brand loyalty.
C) self-actualization.
D) motivation.
E) brand extension.

Question 47

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand,the brand has considerable

A) awareness.
B) equity.
C) extension.
D) integration.
E) co-branding.

Question 48

Sometimes brand names become synonymous with a product itself.If that happens,the firm

A) has achieved brand nirvana.
B) could lose its trademark.
C) should try co-branding in order to avoid brand dilution.
D) should consider a new packaging strategy.
E) easily eliminates all competition.

Question 49

Whether they like them or not,most U.S.automobile customers are familiar with and have an opinion about American-made cars.This familiarity makes it easier for consumers to

A) meet their self-actualization needs.
B) make purchase decisions.
C) consider repositioning their opinions.
D) pursue generic alternatives.
E) negotiate discounts.

Question 50

The value of a brand is often calculated by assessing the

A) difference between brand equity and brand liability.
B) corporate profitability divided by the monthly brand earnings.
C) earning potential of the brand over the next 12 months.
D) effect of brand dilution if it occurred.
E) average product line depth.

Question 51

Nora is deciding whether to purchase brand name sneakers or a store brand.She has purchased other shoes with the same brand name in the past but was only marginally satisfied.In this situation,Nora is likely to purchase the store brand sneakers because they offer

A) more brand awareness.
B) higher degrees of brand loyalty.
C) greater perceived value.
D) a better brand image.
E) more product line depth.

Question 52

Firms spend millions of dollars annually to build brand equity,recognizing brand equity contributes to

A) product mix breadth.
B) corporate stakeholder relations.
C) profitability.
D) brand liability.
E) perceived brand personality.

Question 53

In the case of Band-Aid adhesive bandages,the brand name has

A) successfully employed private label branding.
B) distinctive brand substitutability.
C) grown through private label branding.
D) become synonymous with the product itself.
E) avoided brand extensions.

Question 54

In a competitive market,perceived value is determined by consumers mostly

A) by quantitative analysis of brand personalities.
B) in relationship to the value of competitors' offerings.
C) by weighing primary versus secondary benefits.
D) through investment in product tracking systems.
E) through brand association and brand licensing.

Question 55

For marketers,one of the benefits of having achieved brand loyalty is

A) recognition through industry awards.
B) lower marketing costs associated with reaching loyal customers.
C) increased price sensitivity among loyal customers.
D) greater concern about competitors' actions.
E) few worries about copyright infringement.

Question 56

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available.Laura's brand loyalty means she is

A) relatively insensitive to price.
B) uninformed about the product category.
C) product category committed.
D) a brand equity investor.
E) a savvy consumer.

Question 57

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

A) Because of the annual competition for the most creative Super Bowl ad.
B) Because the Super Bowl offers an opportunity to create significant brand awareness.
C) Because the Super Bowl is a significant opportunity to be associated with global marketing.
D) Because Super Bowl ads generate brand loyalty.
E) There is no good reason to spend over $2 million for a Super Bowl ad.

Question 58

Which of the following is NOT one of the four criteria used for determining how "good" a brand is?

A) brand awareness
B) brand loyalty
C) brand associations
D) brand conceptualization
E) brand perceived value

Question 59

Many former Enron professionals who had nothing to do with the corporate scandal have found that listing employment with Enron hurt their chances of being hired elsewhere.For these people,the Enron name has

A) no brand associations.
B) unspent brand loyalty.
C) private label impact.
D) brand dilution.
E) negative brand equity.

Question 60

Relatively few consumers like to go to the dentist.Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer.

A) perceived value
B) brand awareness
C) brand loyalty
D) generic positioning
E) brand extension

Question 61

The basic reason manufacturers spend time and money building their own brands is to

A) create brand awareness.
B) build brand equity.
C) offset the power of private label manufacturers.
D) create positioning possibilities for their generic product lines.
E) to maximize product line depth.

Question 62

Private-label brands are developed and managed by

A) manufacturers.
B) wholesalers.
C) supply chain specialists.
D) manufacturer's reps.
E) retailers.

Question 63

Brand extension is a popular marketing strategy because

A) it separates out the cost of brand extension from brand intention.
B) it allows the firm to discontinue complementary products.
C) the firm can spend less on creating brand awareness and associations.
D) it avoids the problem of brand dilution.
E) it guarantees success for a new product.

Question 64

Procter & Gamble is a huge national brand manufacturer.By having leading brands like Tide and Crest,P&G

A) can monopolize store brands.
B) has greater opportunity to dictate retail pricing.
C) has greater control over marketing strategy.
D) can increase brand dilution.
E) can eliminate any local competition.

Question 65

One of the categories of products for which brand extension is especially logical is

A) generic goods.
B) generic services.
C) commodities.
D) complementary goods.
E) licensed brands.

Question 66

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company-Procter & Gamble.Old Spice and Iams are known as

A) individual brands.
B) family brands.
C) corporate brands.
D) traditional brands.
E) registered brands.

Question 67

Brands can be owned by

A) manufacturers only.
B) any firm in the supply chain.
C) retailers only.
D) wholesalers and retailers only.
E) only private label generic retailers.

Question 68

Lionel Smith Ltd.is a traditional men's clothing store.Every fall the owner sends an embossed invitation (much like a wedding invitation)to his regular customers,inviting them to a private reception showing the new fall line of clothes.For Lionel Smith Ltd.,one of the benefits of having established a loyal customer base is

A) recognition through industry awards.
B) lower marketing costs associated with reaching loyal customers.
C) he can be less concerned about competitors' actions.
D) increased price sensitivity among loyal customers.
E) less need for concern about product quality.

Question 69

Jake developed a toothpaste using only natural ingredients,and he has been quite successful selling the product in health food stores and some grocery stores.He has recently developed a toothbrush using bamboo and natural components.Jake is considering a __________,giving the toothbrush the same brand name as the toothpaste in order to have greater brand awareness.

A) co-brand
B) brand extension
C) premium brand
D) joint brand
E) natural brand

Question 70

________ is another term for private-label brands.

A) Store brands
B) Off brands
C) Manufacturer brands
D) National brands
E) Experiential brands

Question 71

Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of ___________ in the supply chain.

A) manufacturers
B) wholesalers
C) supply chain specialists
D) retailers
E) manufacturer's reps

Question 72

One of the major tools used by marketers to meet the needs of loyal customers is

A) SKU.
B) PDQ.
C) IMF.
D) CRM.
E) GATT.

Question 73

Another name for a manufacturer's brand is a(n)__________ brand.

A) systematic
B) extended
C) national
D) premium
E) private-label

Question 74

When Procter & Gamble added teeth whitening products under the Crest brand,the firm was engaged in

A) corporate branding.
B) brand extension.
C) brand licensing.
D) brand association.
E) perceived value branding.

Question 75

The potential benefits of brand extension do NOT include

A) allowing the perception of a brand with a quality image to be carried over to the new product.
B) lowering marketing costs.
C) boosting sales of the core brand.
D) spending less on creating brand awareness and associations.
E) diluting brand equity.

Question 76

Which of the following is the best example of a family brand?

A) Cadillac,GMC,and Chevrolet
B) Tostitos Multigrain Scoops and Tostitos Chunky Salsa
C) Kellogg's Special K and Famous Amos Chocolate Chip Cookies
D) Lifesavers Soda,Coca Cola,and Diet Coke
E) KFC / Taco Bell Fast Foods

Question 77

Brands that are owned by ___________ are called private-label brands.

A) manufacturers
B) wholesalers
C) supply chain specialists
D) retailers
E) manufacturer's reps

Question 78

Frequent buyer / user award programs are used to

A) increase price sensitivity.
B) decrease co-branding costs.
C) lower licensing fees.
D) expand product line depth.
E) maintain contact with loyal customers.

Question 79

Brand dilution occurs when

A) customers see the "fit" between products sharing the same brand name.
B) there are too few products and product categories.
C) new brands compete with existing brands.
D) customer perceptions about the core brand are adversely affected.
E) brand names seem too old-fashioned or familiar.

Question 80

A personal digital assistant programmed with key customers' birthdates,wine preferences,and food allergies is a(n)__________ tool.

A) SKU
B) PDQ
C) IMF
D) CRM
E) GATT