Question 1

Co-branding capitalises on the trust that customers have in both companies involved, especially when the brands complement one another in the mind of the buyer.

Accepted Answer

Co-branding is a marketing strategy where two or more brands come together to create a product or service. It can be beneficial when the brands complement each other and have a shared target audience, leading to increased trust among customers.

Question 2

Brand equity helps give a brand the power to capture and maintain a consistent market share, which provides stability to an organisation's sales volume.

Accepted Answer

Brand equity represents the added value that a brand gives to a product or service beyond the functional benefits. This added value can help a brand to capture and maintain a consistent market share, thereby providing stability to an organisation's sales volume. Therefore, the statement is true.

Question 3

A brand name should indicate the product's major benefits.

Accepted Answer

A brand name should be chosen to communicate the major benefits of the product. This helps the consumer understand the product’s features and functions, and it also helps the marketer to differentiate and promote the brand.

Question 4

To gain customer acceptance, the two brands involved in co-branding must represent a complementary fit in the minds of buyers.

Accepted Answer

To be successful, co-branding must involve two brands that are complementary and provide added value to customers. The combination of the two brands should create a positive association in the minds of buyers and enhance their perception of the products or services being offered. Therefore, it is true that the two brands involved in co-branding must represent a complementary fit in the minds of buyers for customer acceptance.

Question 5

The four major elements that underlie brand equity are brand name awareness, brand loyalty, perceived brand quality and brand associations.

Accepted Answer

This statement is true. Brand name awareness, brand loyalty, perceived brand quality, and brand associations are considered the four key elements that contribute to brand equity.

Question 6

Golden Circle is an example of a manufacturer brand.

Accepted Answer

Golden Circle is a manufacturer brand because it produces and sells its own products, rather than selling products made by other companies.

Question 7

Brand names should be different from the company name to avoid confusion.

Accepted Answer

Brand names can be the same as the company name to create a strong, unified identity and make it easier for customers to remember and recognize the brand.

Question 8

The brands used for co-branding are never owned by the same company.

Accepted Answer

The brands used for co-branding can be owned by the same company.

Question 9

A brand extension occurs when all of a firm's products are branded with all or part of the same name.

Accepted Answer

A brand extension occurs when a firm uses an established brand name to introduce a new product in a different product category.

Question 10

Brand licensing gives a company the ability to gain increased revenue and low-cost or free promotional exposure.

Accepted Answer

Brand licensing allows a company to license its brand to other companies who then pay a royalty for the rights to use the brand name and associated trademarks. This can result in increased revenue for the brand owner and can also provide low-cost or free promotional exposure as the licensed products are promoted and marketed by the licensee.

Question 11

Brand preference is a degree of brand loyalty that occurs when a customer definitely prefers one brand over competitive offerings and will purchase the preferred brand if available.

Accepted Answer

This statement accurately describes brand preference.

Question 12

A house brand indicates only the product category.

Accepted Answer

A house brand is a brand owned by a retailer, rather than a manufacturer. It typically indicates only the product category, such as "store brand" or "generic brand".

Question 13

Black and Gold brand butter is an example of a manufacturer brand.

Accepted Answer

Black and Gold is a private label brand, typically associated with generic or store brands, not a manufacturer brand.

Question 14

Cadbury's Freddo Frog is an example of brand association.

Accepted Answer

Cadbury's Freddo Frog is a popular chocolate brand among children and is often associated with the company's brand image.

Question 15

Brand insistence is the degree of loyalty that occurs a customer strongly prefers a specific brand, will accept no substitute and is willing to spend a great deal of time and effort to acquire that brand.

Accepted Answer

Brand insistence refers to the highest level of brand loyalty where the customer is strongly attached to a particular brand, will not consider any substitute and is willing to go to great lengths to acquire that brand.

Question 16

Co-branding is the use of no more than two brands on one product.

Accepted Answer

Co-branding involves the use of two or more brands on one product.

Question 17

Brand equity is a customer's favourable attitude towards a specific brand and, depending on its strength, represents the likelihood of consistent purchase of the brand when the need for a product in this product category arises.

Accepted Answer

The answer of Brand equity is a customer's favourable attitude...

Question 18

Co-branding does not involve brands owned by different companies.

Accepted Answer

Co-branding involves brands owned by different companies working together to create a new product or service that combines the strengths and attributes of each brand.

Question 19

Brand recognition exists when a customer is aware that the brand exists and views it as an alternative purchase if his preferred brand is unavailable or if he is unfamiliar with the other available brands.

Accepted Answer

This is the correct definition of brand recognition, where customers are aware of a brand's existence and consider it as an option if their preferred brand is not available or unknown to them.

Question 20

Although difficult to measure, brand loyalty represents the value of a brand to an organisation.

Accepted Answer

The answer of Although difficult to measure, brand loyalty represents...

Quiz 8: The Power of Branding