Question 1

Consumers recommend brands to their families and friends because of one or more salient attributes.

Accepted Answer

Consumers recommend brands to their families and friends because of one or more salient attributes that they find appealing, such as good quality, great value for money, excellent customer service, or impressive performance. Word of mouth referrals are one of the most powerful forms of advertising and can significantly impact a brand's reputation and success.

Question 2

Brand parity is a strong weapon that might dissuade consumers from looking for a cheaper product or for special deals or incentives to purchase other brands.

Accepted Answer

The answer of Brand parity is a strong weapon that...

Question 3

Brand equity is the perception that most brands within a product category are relatively similar or have no distinct differences.

Accepted Answer

Brand equity is the added value or strong associations that a brand has, which sets it apart from competitors within a product category. It is the opposite of brands having no distinct differences.

Question 4

The goal of branding is to build awareness of the brand name.

Accepted Answer

The answer of The goal of branding is to build...

Question 5

Brand parity is the perception that there are significant differences among brands within a product category.

Accepted Answer

Brand parity is the perception that there are few or no significant differences among brands within a product category.

Question 6

Brand equity is not as important in international markets because fewer brands are available.

Accepted Answer

Brand equity is actually more important in international markets because there are often more brands available, which means there is more competition. A strong brand can help a company stand out and differentiate itself from competitors.

Question 7

Brand equity is a set of characteristics that are unique to a brand that make it seem different and better.

Accepted Answer

Brand equity encompasses the value and perception that a brand holds in the minds of its consumers, which is derived from a variety of factors including the brand's personality, reputation, quality, and other unique characteristics. These elements contribute to a brand's perceived value and differentiation from competitors.

Question 8

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 revenue premium method measures brand equity by comparing the revenue of a branded product to that of a similar private label brand, highlighting the added value of the brand.

Question 9

Developing a strong brand begins with discovering why consumers buy a brand as well as repurchase the brand.

Accepted Answer

Developing a strong brand starts with understanding why consumers choose and continue to choose a brand over others. This helps to create a unique brand identity that resonates with consumers and promotes brand loyalty.

Question 10

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

The method described is market value, which involves estimating the value of a brand by evaluating the premium price that it can command and subtracting the value of its physical assets. This approach reflects the perceived value of a brand in the market and its potential to generate future profits, making it a useful measure of brand equity. Financial value refers to the monetary value of a brand's assets and liabilities on a balance sheet, while revenue premium and consumer value are not specific methods for measuring brand equity.

Question 11

Trust represents a customer's belief in the efficacy and reliability of a brand.

Accepted Answer

Trust is a customer's belief in the efficacy and reliability of a brand.

Question 12

Social media does not play a role in brand building because it involves consumers interacting with each other.

Accepted Answer

Social media plays a significant role in brand building as it allows brands to interact with consumers and create a strong online presence. Consumers also interact with each other on social media, which can further influence the brand's reputation and reach.

Question 13

To establish a strong brand image, a brand name must be prominently promoted in repetitious ads or it should be associated with one of the product's benefits.

Accepted Answer

The answer of To establish a strong brand image, a...

Question 14

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 referred to as revenue premium, which measures the additional amount consumers are willing to pay for a branded product compared to an unbranded product. This represents the value of the brand to consumers and helps to quantify brand equity.

Question 15

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 known as financial value because it uses financial analysis to measure the worth of a brand based on its potential future cash flows. It takes into account the unique strength and characteristics of the brand to determine its financial value, which is then discounted to determine its net present value.

Question 16

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

The method described is based on input from consumers, indicating a focus on the value to consumers, making "consumer value" the most appropriate choice. Financial value, market value, and revenue premium are all measures that could be used to approach brand equity, but they do not necessarily rely on consumer input.

Question 17

Brand metrics measure the impact of advertising on a brand's image.

Accepted Answer

The answer of Brand metrics measure the impact of advertising...

Question 18

Brand equity is not as important in business-to-business markets because pricing is typically the primary decision variable.

Accepted Answer

Brand equity is just as important in business-to-business markets as it is in consumer markets. It can impact the perception of the company, influence customer loyalty and repeat business, and differentiate the company from competitors. While pricing is important in B2B markets, it is not the only decision variable and having a strong brand can help support premium pricing strategies.

Question 19

A recent trend in brand building has been to incorporate social media.

Accepted Answer

Incorporating social media has become a popular strategy for brand building in recent years. It allows companies to connect with their audience on a more personal level and create a sense of community around their brand. Social media platforms also provide an opportunity for companies to receive feedback from customers and address any concerns or issues in real-time.

Question 20

Attitudinal measures associated with branding are used to track the following, except:
A) awareness.
B) recall.
C) purchases.
D) recognition.

Accepted Answer

Attitudinal measures associated with branding are used to track awareness, recall, and recognition of a brand. Purchases are not an attitudinal measure but rather a behavioral measure of branding effectiveness.

Quiz 2: Corporate Image and Brand Management