Question 1

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.

Accepted Answer

This statement accurately defines brand preference as a stage of brand loyalty where consumers choose a branded product based on previous experience over competitors' products.

Question 2

The highest level of brand loyalty is brand preference.

Accepted Answer

The highest level of brand loyalty is brand insistence, where customers are so loyal that they will accept no substitute.

Question 3

Buyers rarely identify the brand with the manufacturer.

Accepted Answer

Buyers often associate brands with their manufacturers as brands serve as a representation of the manufacturer's reputation, quality, and identity in the market.

Question 4

Two common categories of generic products are food items and household staples.

Accepted Answer

Generic products often encompass a wide range of categories including food items and household staples, as these are products consumers frequently purchase and seek cost-effective alternatives for.

Question 5

Which of the following items would seldom be test-marketed?
A) potato chips
B) postal system sorting equipment
C) cellular telephones
D) breakfast cereals

Accepted Answer

Postal system sorting equipment would seldom be test-marketed because it is a highly specialized product intended for a specific, institutional buyer (such as a national postal service) rather than the general consumer market. Test marketing is more commonly used for consumer goods like potato chips, cellular telephones, and breakfast cereals, where consumer preferences and behaviors can significantly impact the product's success.

Question 6

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.

Accepted Answer

Josh is not exhibiting brand insistence because he is willing to switch to a competitive brand if it's on sale. Brand insistence means a customer refuses to consider other brands and only purchases one brand consistently.

Question 7

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

Accepted Answer

Building a strong brand identity helps firms differentiate their products from competitors and increase customer loyalty, ultimately leading to a sustainable competitive advantage.

Question 8

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

Accepted Answer

Brand insistence refers to the stage where consumers demand a specific brand and are not willing to accept substitutes, which is typically a long-term goal achieved after building brand awareness, recognition, preference, and loyalty.

Question 9

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

Accepted Answer

This statement is true. Brand insistence occurs when consumers are so loyal to a brand that they refuse to consider other alternatives and will go to great lengths to find and purchase the desired merchandise. This is the highest level of brand loyalty.

Question 10

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

Accepted Answer

The Standards Council of Canada (SCC) is the crown corporation responsible for promoting efficient and effective standardization in Canada.

Question 11

Makers of generic products spend large sums of money for advertising yet do not create brand loyalty.

Accepted Answer

Generic product makers typically spend very little on advertising compared to brand-name counterparts, as their business model relies on offering lower prices rather than building brand loyalty through marketing.

Question 12

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

Accepted Answer

When a product reaches the brand insistence stage of brand loyalty, consumers are so loyal that they will accept no substitute, effectively giving the product a monopoly position with those consumers.

Question 13

Market shares held by generic products increase during economic upswings but decline when the economy worsens.

Accepted Answer

Generic products typically see an increase in market share during economic downturns as consumers look for more cost-effective options, and their market share may stabilize or slightly decrease during economic upswings when consumers are more willing to spend on branded products.

Question 14

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

Accepted Answer

Deanna has reached the level of brand loyalty, as she consistently purchases Diet Coke and does not consider other brands. Brand preference implies a favoring of one brand over others but does not exclude considering or purchasing other brands.

Question 15

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.

Accepted Answer

The brand insistence stage is when a consumer strongly prefers a specific brand and will not accept substitutes. The fact that Jack only buys shoes from Unparalleled indicates that he is in this stage of brand loyalty.

Question 16

Brand insistence is common in luxury products.

Accepted Answer

Brand insistence occurs when consumers are so loyal to a brand that they reject alternatives, which is common in luxury products due to their unique value propositions, status symbol, and quality assurance.

Question 17

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

Accepted Answer

During the business analysis stage of new product development, concept testing is commonly used to gather feedback on potential products. Focus groups and in-store polling are typical methods used in concept testing to evaluate consumer response to a product concept before it is marketed.

Question 18

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

Accepted Answer

A national brand is commonly recognized by the majority of individuals in a certain country, and usually has a widespread reputation and image associated with it.

Question 19

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

Accepted Answer

Test-marketing is conducted to verify that a product will perform well in a real-life business environment. This step allows companies to gather feedback and make necessary adjustments before a full-scale launch.

Question 20

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.

Accepted Answer

This is known as the mere-exposure effect, which states that familiarity with a product leads to a positive attitude towards it and increases the likelihood of purchasing it.

Quiz 11: Developing and Managing Brand and Product Strategies