Question 1

Brand equity is the result of a firm's ability to:
A)create differences that consumers find meaningful between their brands and other brands
B)maintain high levels of customer service coupled with competitive pricing
C)expend resources on advertising and promotion
D)capitalise on a niche-market,thereby securing a unique position in relation to competitors

Accepted Answer

Brand equity is the value a brand adds to a product or service beyond its functional benefits. This added value is created through brand differentiation, which means creating differences that customers find meaningful between a brand and competitors. This is why Option A is the best choice. Option B refers to customer service and pricing, which are important but do not necessarily create brand equity. Option C emphasizes advertising and promotion, which are important for building brand awareness but do not guarantee brand equity. Option D mentions niche marketing, which is one way to differentiate a brand but does not necessarily lead to brand equity.

Question 2

Identify the incorrect statement concerning the positioning grid.
A)It provides a visual representation of the positions of various products in a competitive set.
B)Where more than two attributes are to be considered,multidimensional grids are produced.
C)It indicates how products within a category compare on the level of as many attributes as are relevant.
D)It identifies gaps that may exist either because of technical constraints or lack of prospective customers.

Accepted Answer

C

Question 3

Identify the incorrect statement concerning positioning.
A)It comprises both competitive and customer needs considerations.
B)This concept is applicable only for an existing brand.
C)It is essentially concerned with differentiation.
D)Generally,it is more difficult for marketers to position services than goods successfully.

Accepted Answer

Positioning is not applicable only for an existing brand. It can be used during the development of a new brand as well.

Question 4

Volvo's emphasis on safety,Toyota's emphasis on reliability,and the Holden Monaro's promise of old magic and style in motoring highlights which determinant attribute?
A)features
B)manufacturing process
C)benefits
D)endorsements

Accepted Answer

The determinant attribute being highlighted here is the benefits of the product. Volvo emphasizes safety, Toyota emphasizes reliability, and the Holden Monaro emphasizes old magic and style in motoring, all of which are benefits that the products offer to the consumers.

Question 5

Marketing decision-makers,while seeking to win a particular position in a customer's mind,endow their product with various kinds of attributes.The speed of a computer system,the roominess of a car,and a product's or service's being user-friendly are examples of which type of categorisation based on such attributes?
A)simple physically based attributes
B)complex physically based attributes
C)essentially abstract attributes
D)price

Accepted Answer

The attributes mentioned, such as speed, roominess, and user-friendliness, are complex physically based attributes since they can be measured or perceived through physical characteristics of the product or service. Option A, simple physically based attributes, would refer to basic physical features such as color or dimension. Option C, essentially abstract attributes, would be more intangible characteristics such as trustworthiness or reputation. Option D, price, is not mentioned as an attribute in the given description.

Question 6

Which positioning concept is illustrated by a clothing manufacturer claiming that their shirts are made from pure organic cotton?
A)price/quality
B)endorsements
C)ingredients
D)features

Accepted Answer

The positioning concept illustrated here is ingredients, as the clothing manufacturer is emphasizing the use of a specific type of material (organic cotton) in their product.

Question 7

Which of the following examples best illustrates perceptual positioning?
A)Kellogg's breakfast cereal in new chocolate and honey flavours
B)Volvo's latest SUV featuring 225 horsepower and a mileage of 18 miles per gallon
C)L'Oreal's new range of water resistant lipstick in fruit flavours
D)Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

Accepted Answer

Perceptual positioning involves creating a specific image or identity for a product in the consumer's mind. Colgate's toothpaste emphasizes enhanced freshness and sparkly teeth, which are perceptual benefits that influence how consumers perceive the product.

Question 8

'At Fidelity,you're not just buying a fund,a stock,or a bond-you're buying a better way to manage it.' Identify the determinant attribute being used here.
A)parentage
B)comparison
C)ingredients
D)pro-environment

Accepted Answer

The determinant attribute used here is "parentage," which implies that by choosing Fidelity, customers are not just purchasing financial products but are also gaining access to a superior management approach or heritage associated with the brand.

Question 9

In order to employ factor analysis,the researcher must:
A)Collect information about how consumers perceive the positioning of existing products in relation to product dimensions.
B)Analyse the perceptual attributes of competing products and compare them with the product under study.
C)Conduct focus groups to understand how consumers interact with one another while discussing the benefits of a product.
D)Identify the salient attributes consumers use to evaluate products in the category under study.

Accepted Answer

In order to employ factor analysis, the researcher must identify the salient attributes that consumers use to evaluate products in the category under study. Factor analysis is a statistical method used to identify underlying factors that explain the correlations among a set of variables. In order to use this technique effectively, the researcher must know which variables (or attributes) are most relevant to the research question at hand. Choice A pertains to perceptual mapping, while Choice B pertains to comparative analysis. Choice C pertains to focus groups, a qualitative research method not directly related to factor analysis.

Question 10

Identify a limitation of physical positioning.
A)It ignores the early stages of identifying new product offerings.
B)Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics.
C)They are rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data.
D)Customers' attitudes toward a product are often based on social or psychological attributes.

Accepted Answer

The answer of Identify a limitation of physical positioning.
A)It ignores...

Question 11

Physical positioning helps in all of the following ways except:
A)It enables buyers to evaluate industrial goods and services on the basis of what it does rather than on what it is.
B)It contributes to a better marketing-research and R&D interface by determining key physical product characteristics.
C)It helps define the structure of competition by revealing the degree of competitiveness between various brands.
D)It may indicate the presence of meaningful product gaps and thus reveal opportunities for a new product entry.

Accepted Answer

Physical positioning primarily focuses on how a product is perceived in the market in relation to its competitors, based on attributes such as quality, price, and use. It does not directly enable buyers to evaluate industrial goods and services based on their functionality rather than their nature. This evaluation process is more related to product design and marketing strategies that highlight the product's features and benefits, rather than positioning itself.

Question 12

A bank positions itself using its deposit safety attribute.Why would this positioning not create an impact in the consumer's mind?
A)Because consumers can consider only those attributes of which they are aware.
B)Because the positioning effort was kept too simple and complexity was not included.
C)Because the importance attached to the deposit safety attribute is large and uniform across various consumers.
D)Because all the alternative brands are perceived to be about equal on that dimension.

Accepted Answer

If all the alternative brands are perceived to be about equal on the deposit safety attribute, then positioning a bank solely on this attribute will not create an impact in the consumer's mind. The other options do not provide a valid explanation for the lack of impact.

Question 13

A firm is considering introducing a new product category in a highly competitive environment.The marketers obtain customer perceptions of the new product concept relative to likely alternatives on various determinant attributes the new product may contain.Based on this,infer what step of the positioning process is the firm at?
A)determining customers' most preferred combination of determinant attributes
B)examining the fit between preferences of market segments and current position of product
C)determining product's current location in the product space and intensity
D)identifying relevant set of competitive products serving a target market

Accepted Answer

The answer of A firm is considering introducing a new...

Question 14

Which of the following is a characteristic of physical positioning?
A)large number of dimensions
B)consumer orientation
C)represents impact of product specs
D)represents impact of communication

Accepted Answer

Physical positioning represents the impact of product specs.

Question 15

A company with a broad target aimed at gaining a competitive advantage through lower costs will use a:
A)differentiation-based focus strategy
B)differentiation strategy
C)cost leadership strategy
D)cost-based focus strategy

Accepted Answer

A cost leadership strategy is focused on achieving a competitive advantage by becoming the lowest-cost producer or provider in the industry. This allows the company to undercut competitors' prices and/or earn higher profit margins while maintaining comparable prices to competitors. A broad target market can help the company achieve economies of scale and lower costs through mass production or distribution, which can be passed on to customers in the form of lower prices.

Question 16

In entrepreneurial start-ups,there are two ongoing issues that are essential if whatever brand value that's been built is to be maintained and grown.These are:
A)brand recall and brand reinforcement
B)brand equity and brand loyalty
C)brand reinforcement and brand revitalisation
D)brand awareness and brand positioning

Accepted Answer

Brand reinforcement ensures that the brand remains relevant and consistent in the minds of consumers, while brand revitalization involves updating or refreshing the brand to maintain its appeal and competitiveness. Both are crucial for maintaining and growing brand value in entrepreneurial start-ups.

Question 17

'British Leyland was formed through a series of mergers involving a number of British car manufacturers.It did not have a clear identity because it was new and manufactured a variety of brands,including Rover,Triumph and Austin-Morris.' Which constraint associated with an intense position does this example illustrate?
A)Repositioning may result in alienating the product's current users despite the success with its newly targeted group.
B)Success in repositioning efforts may well ensure losing the current group of users.
C)The dilution of an existing intense position as a result of consolidation.
D)The temptation to overexploit the position by using the brand name on line extensions and new products.

Accepted Answer

The example illustrates the dilution of an existing intense position as a result of consolidation. The merger of several car manufacturers under the British Leyland umbrella created a new company with a variety of brands and no clear identity, diluting the intense positions previously held by each individual manufacturer.

Question 18

Identify the limitation of product positioning analysis.
A)It does not tell the marketer which positions are most appealing to customers.
B)It does not include a tool to identify gaps where an opportunity for developing a new product exists.
C)It does not include a tool indicating how products within a category compare on the level of as many attributes as are relevant.
D)It does not indicate how alternative products are positioned relative to one another in customers' minds.

Accepted Answer

Product positioning analysis primarily focuses on understanding how a product is perceived in the market relative to competitors. However, it does not inherently provide insights into which positions might be most appealing to customers, leaving marketers to deduce this through additional research or analysis.

Question 19

Customers are surveyed and asked their preferences among various real or hypothetical product configurations,each with attributes that are systematically varied.This is an example of:
A)conjoint analysis
B)cluster analysis
C)logit analysis
D)discriminant analysis

Accepted Answer

This is because conjoint analysis is a research technique used in market research to determine how people value different attributes (features) that make up an individual product or service. It involves surveying customers and systematically varying the attributes of a product to determine their preferences.

Question 20

'Some people will pay considerably more for Bayer aspirin than for an unadvertised private label aspirin,even though they are essentially the same product.' What does this statement signify?
A)Consumers often know a lot about the essential physical attributes of many products,especially household products.
B)Consumers generally understand the physical attributes well enough to use them as a basis for choosing between alternatives.
C)Consumers often evaluate goods and services on factors other than physical properties,including their past experiences.
D)Consumers can typically evaluate a product better on the basis of what it is than what it does.

Accepted Answer

The statement suggests that consumers sometimes make purchasing decisions based on factors other than the physical attributes of a product, such as the brand name or previous experiences with the product.

Quiz 7: Differentiation and Brand Positioning

Brand equity is the result of a firm's ability to:

Identify the incorrect statement concerning the positioning grid.

Identify the incorrect statement concerning positioning.

Volvo's emphasis on safety,Toyota's emphasis on reliability,and the Holden Monaro's promise of old magic and style in motoring highlights which determinant attribute?

Which positioning concept is illustrated by a clothing manufacturer claiming that their shirts are made from pure organic cotton?

Which of the following examples best illustrates perceptual positioning?

'At Fidelity,you're not just buying a fund,a stock,or a bond-you're buying a better way to manage it.' Identify the determinant attribute being used here.

In order to employ factor analysis,the researcher must:

Identify a limitation of physical positioning.

Physical positioning helps in all of the following ways except:

A bank positions itself using its deposit safety attribute.Why would this positioning not create an impact in the consumer's mind?

Which of the following is a characteristic of physical positioning?

A company with a broad target aimed at gaining a competitive advantage through lower costs will use a:

In entrepreneurial start-ups,there are two ongoing issues that are essential if whatever brand value that's been built is to be maintained and grown.These are:

Identify the limitation of product positioning analysis.

Customers are surveyed and asked their preferences among various real or hypothetical product configurations,each with attributes that are systematically varied.This is an example of:

'Some people will pay considerably more for Bayer aspirin than for an unadvertised private label aspirin,even though they are essentially the same product.' What does this statement signify?