Question 1

When brand equity is measured using a comparison of a branded product to the same product without a brand name, such as a private label, the method is:
A) financial value
B) market value
C) revenue premium
D) consumer value

Accepted Answer

This method is called revenue premium, as it measures the additional amount consumers are willing to pay for a branded product over an unbranded or generic product. It is a reflection of the brand's perceived value and the loyalty and trust it has built with its customers. Financial value and market value are more comprehensive measures of a brand's overall worth, while consumer value focuses more on the value the product brings to the customer's life.

Question 2

When customers purchase only one brand and consider no other brand, regardless of price differences, which exists?
A) brand involvement
B) brand specialty
C) brand loyalty
D) brand parity

Accepted Answer

Brand loyalty refers to the behavior of customers who consistently purchase a particular brand and are reluctant to switch to other brands, even when there may be price differences.

Question 3

Which measures returns on branding investments?
A) brand infringement
B) brand parity
C) brand equity
D) brand metrics

Accepted Answer

Brand metrics measure the effectiveness of branding investments by tracking key performance indicators (KPIs) such as brand awareness, brand perception, and brand loyalty.

Question 4

When brand equity is measured using the value of a brand based on input from consumers, such as familiarity, purchase considerations, customer satisfaction, and willingness to seek out the brand, the method is:
A) financial value
B) market value
C) revenue premium
D) consumer value

Accepted Answer

When brand equity is measured based on input from consumers, such as familiarity, purchase considerations, customer satisfaction, and willingness to seek out the brand, the method is referred to as consumer value. This approach focuses on the perceived value of the brand by the target audience, which can give an idea of the brand's market position and potential for growth.

Question 5

The following statements about private labels are true, except:
A) quality levels of many private label products have improved
B) prices for private labels are going up in many markets
C) consumers still perceive private labels as being inferior to manufacturer's brands
D) some firms have begun advertising private labels

Accepted Answer

While private labels may have been seen as inferior in the past, many consumers now perceive private label brands as being equal or even superior in quality to manufacturer's brands. The other options listed are true statements about private labels.

Question 6

Private brands are:
A) new brands sold in the same category
B) the joint venture of two or more brands in a new good or service
C) the use of established brand names on goods and services not related to the company's core brand
D) proprietary brands marketed by an organization and normally distributed exclusively within the organization's outlets

Accepted Answer

Private brands, also known as store brands, are proprietary brands marketed by an organization and are normally distributed exclusively within the organization's outlets. They are created and owned by the retailer or supermarket chain and are often cheaper alternatives to national brands. Examples include Target's Archer Farms and Walmart's Great Value.

Question 7

When brand equity is measured using stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets, the method is:
A) financial value
B) market value
C) revenue premium
D) consumer value

Accepted Answer

Stock valuation with an estimate of the portion of the value allocated to brand equity is known as market value. This method determines the value of a company based on its market capitalization, which is the total value of all its outstanding shares. The market value method takes into consideration not only tangible assets but also the company's reputation, customer loyalty, and other intangible assets that contribute to its brand equity.

Question 8

Attitudinal measures associated with branding can be used to track all of the following, except:
A) awareness
B) recall
C) purchase intentions
D) recognition

Accepted Answer

Purchase intentions are behavioral measures, not attitudinal measures, which focus on awareness, recall, and recognition.

Question 9

Manufacturers are using all of the following methods to respond to inroads made by private labels, except:
A) focusing on a few core brands
B) increasing advertising expenditures
C) introducing new products and new versions of current products
D) reducing prices to meet private label pricing

Accepted Answer

Manufacturers typically avoid reducing prices to meet private label pricing as it can erode brand value and profitability. Instead, they focus on strategies like enhancing brand appeal and innovation.

Question 10

When brand equity is measured using estimates of the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value, the method is:
A) financial value
B) market value
C) revenue premium
D) consumer value

Accepted Answer

This method is referred to as financial value, as it involves assessing the potential monetary worth of the brand based on its future cash flows. Market value involves determining the value of a brand based on its value in the marketplace, such as stock price or market capitalization. Revenue premium is a measure of the price premium that a brand can command over similar products. Consumer value is a measure of the perceived value of a brand to consumers.

Question 11

The perception that all brands are essentially the same is called:
A) brand equity
B) brand parity
C) flanker branding
D) the private label problem

Accepted Answer

Brand parity refers to the perception that all brands within a particular product category are essentially the same. This can create challenges for marketers who must find ways to differentiate their brand and create a unique value proposition for customers.

Question 12

The perception that a brand is different and better is called:
A) brand equity
B) brand parity
C) flanker branding
D) the private label advantage

Accepted Answer

Brand equity refers to the value and strength of a brand. It is the perception that a brand is different and better than its competitors, and this perception can lead to increased loyalty, higher prices, and greater market share.

Question 13

In measuring brand equity companies can use a method called revenue premium, which compares a branded product's revenue to:
A) the industry's average
B) a private label brand
C) a firm's primary competitors
D) the industry leader

Accepted Answer

The answer of In measuring brand equity companies can use...

Question 14

Charles sees only minor differences among the various brands of high definition televisions. This is an example of:
A) brand equity
B) brand parity
C) flanker branding
D) the private label problem

Accepted Answer

Brand parity refers to when consumers see little difference in quality or attributes among different brands in a product category. In this scenario, Charles sees only minor differences among the various brands of high definition televisions, indicating brand parity.

Question 15

A proprietary brand marketed by an organization and distributed within the organization's outlets is a:
A) private label
B) flanker brand
C) co-brand
D) complementary brand

Accepted Answer

A private label is a brand that is owned and marketed by a particular organization and sold exclusively through its own outlets. It is usually lower-priced than established brands and is designed to appeal to cost-conscious consumers. Therefore, option A is the correct answer. Flanker brands are used to differentiate a product line from others in the same company, co-branding involves two or more companies cooperating to create a new brand, and complementary brands refer to products that are designed to be used together.

Question 16

Which is not true concerning brand equity?
A) it allows the company to charge a higher price
B) it reduces name retention
C) it is helpful in business-to-business markets
D) it is helpful in international markets

Accepted Answer

Brand equity increases name retention rather than reducing it. It strengthens customer loyalty towards the brand and makes it easier for customers to remember and recognize the brand. A, C, and D are true statements.

Question 17

When a customer believes Black and Decker makes the best and most reliable tools, this is an example of:
A) brand parity
B) brand equity
C) brand cooperation
D) brand decision

Accepted Answer

This is an example of brand equity, meaning that Black and Decker has a strong brand image and reputation in the customer's mind. This leads to greater customer loyalty, willingness to pay a premium for the brand, and positive word-of-mouth recommendations. Brand parity refers to a situation where multiple brands in a category offer similar levels of quality and performance. Brand cooperation and brand decision are not recognized marketing terms.

Question 18

Private labels are attractive to retail stores because:
A) they are priced higher than national brands
B) they do not require any advertising
C) they tend to have higher margins than national brands
D) consumers are becoming more loyal to private brands

Accepted Answer

Private labels tend to have higher margins than national brands, making them a more profitable option for retail stores. Option A is incorrect because private labels are typically priced lower than national brands. Option B is incorrect because retail stores still need to advertise their private labels to attract customers. Option D may be true, but it is not the main reason why private labels are attractive to retail stores.

Question 19

Brand equity offers the following benefits, except:
A) allows manufacturers to charge more for their brands
B) creates higher gross margins
C) shields companies from lawsuits
D) captures additional shelf space in retail stores

Accepted Answer

Brand equity offers many benefits, such as allowing manufacturers to charge more for their brands, creating higher gross margins, and capturing additional shelf space in retail stores. However, it does not shield companies from lawsuits. In fact, strong brand equity can sometimes attract lawsuits from competitors who feel their own brands are being harmed.

Question 20

Over the past few years, each of the following are changes that have occurred in the area of private branding, except:
A) increase in prices to equal national brands
B) improved quality
C) increased advertising of private brands
D) increased quality of in-store displays of private brands

Accepted Answer

While there have been improvements in the quality of private brands, increased advertising, and better in-store displays, there has not been an increase in prices to equal national brands. In fact, one of the advantages of private brands is often their lower price point compared to national brands.

Quiz 2: Corporate Image and Brand Management

When brand equity is measured using a comparison of a branded product to the same product without a brand name, such as a private label, the method is:

When customers purchase only one brand and consider no other brand, regardless of price differences, which exists?

Which measures returns on branding investments?

When brand equity is measured using the value of a brand based on input from consumers, such as familiarity, purchase considerations, customer satisfaction, and willingness to seek out the brand, the method is:

The following statements about private labels are true, except:

Private brands are:

When brand equity is measured using stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets, the method is:

Attitudinal measures associated with branding can be used to track all of the following, except:

Manufacturers are using all of the following methods to respond to inroads made by private labels, except:

When brand equity is measured using estimates of the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value, the method is:

The perception that all brands are essentially the same is called:

The perception that a brand is different and better is called:

In measuring brand equity companies can use a method called revenue premium, which compares a branded product's revenue to:

Charles sees only minor differences among the various brands of high definition televisions. This is an example of:

A proprietary brand marketed by an organization and distributed within the organization's outlets is a:

Which is not true concerning brand equity?

When a customer believes Black and Decker makes the best and most reliable tools, this is an example of:

Private labels are attractive to retail stores because:

Brand equity offers the following benefits, except:

Over the past few years, each of the following are changes that have occurred in the area of private branding, except: