Question 1

A company's major enduring asset is ________.
A) its leadership
B) its brand
C) its culture
D) its shareholders
E) its workers

Accepted Answer

A company's brand is often considered its major enduring asset because it represents the company's identity, reputation, and value in the marketplace, which can endure over time.

Question 2

A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.
A) brand partition
B) brand position
C) brand portfolio
D) brand concept
E) brand image

Accepted Answer

A brand portfolio is the complete set of brands and brand lines that a company offers within a specific category. It includes all the brands that the firm markets under a particular product category. Brand partition refers to a process of dividing a product portfolio into two or more smaller portfolios. Brand position explains how a brand is perceived in the market in comparison to competitors. Brand concept is the idea behind a brand that sets it apart from other brands in the market. Brand image is the overall perception that a consumer has about a particular brand.

Question 3

According to Ries and Trout,Cadbury suffered from the ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes,powdered milk,and soups,as well as chocolates and candies.
A) "greed is good" trap
B) "pyramid principle"
C) "branding fallout" concept
D) "image syndrome"
E) "line-extension" trap

Accepted Answer

The term "line-extension" trap refers to the mistake of extending a brand name to too many variations or product lines, which could dilute the brand value and confuse customers. Cadbury's decision to use their brand name on products like mashed potatoes, powdered milk, and soups indicates that they fell into the line-extension trap.

Question 4

________ are a means of understanding where,how much,and in what ways brand value is being created,to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies

Accepted Answer

The answer of ________ are a means of understanding where,how...

Question 5

When a firm uses an established brand to introduce a new product,it is called a________.
A) subbrand
B) brand value
C) brand extension
D) brand mix
E) brand posture

Accepted Answer

When a firm uses an established brand to introduce a new product, it is called a brand extension. This strategy allows the firm to leverage the existing brand equity and recognition to launch a new product in the market. It also helps the firm to save on marketing expenses as the brand is already established and recognized by the customers.

Question 6

Even if sales of a brand extension are high and meet targets,the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.
A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) feeding back to

Accepted Answer

Cannibalizing means that the sales of the brand extension are coming at the expense of the existing parent-brand offerings, which means the overall revenue of the parent brand is being reduced or eaten away. Therefore, it is the best choice. Diluting means watering down the brand's identity or value proposition, reinforcing means complementing the parent-brand offerings, eroding means gradually wearing away the brand's market position or reputation, and feeding back to does not make sense in this context.

Question 7

A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create brand value is called ________.
A) the brand value chain
B) the brand portfolio
C) the brand life cycle
D) brand partitioning
E) brand positioning

Accepted Answer

The structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create brand value is called the brand value chain. The other options mentioned in the question - brand portfolio, brand life cycle, brand partitioning, and brand positioning - all refer to different concepts related to branding but do not describe the structured approach of assessing brand equity and value creation.

Question 8

________ brands are positioned with respect to competitors' brands so that more important (and more profitable)flagship brands can retain their desired positioning.
A) Flanker
B) Attacker
C) Defender
D) Blitzkrieg
E) Individual

Accepted Answer

Flanker brands are designed to protect and support a company's flagship brand by occupying a specific market segment and reducing the threat of competition. By positioning the flanker brand in a way that is complementary to the flagship brand, the company can maintain its profitable positioning while still appealing to a broader range of customers. This improves the overall brand portfolio and can help the company capture a larger market share.

Question 9

________ is the job of estimating the total financial value of the brand.
A) Brand tracking
B) Brand auditing
C) Brand equity
D) Brand valuation
E) Brand partitioning

Accepted Answer

Brand valuation is the process of estimating or determining the total financial value of a brand. This involves analyzing various aspects of the brand, such as its market position, reputation, and potential future earnings, to arrive at a monetary value. This information is usually used by businesses for financial reporting, mergers and acquisitions, licensing agreements, and other purposes.

Question 10

The first step in the brand valuation process is ________.
A) the brand strength assessment
B) quantification of the role of branding
C) calculation of the net present value of the earnings forecast
D) the division of markets in which the brand is sold into mutually exclusive customer segments
E) financial analysis of the company's earnings before interest and taxes

Accepted Answer

The answer of The first step in the brand valuation...

Question 11

The hallmark of an optimal brand portfolio is ________.
A) the ability of each brand to maximize equity in combination with all the other brands in it
B) the ability of each brand to maximize its individual equity in isolation
C) maximal brand overlap
D) the eventual reduction of brand differentiation to create a unified brand appearance
E) none of the above

Accepted Answer

An optimal brand portfolio is one in which each brand is able to maximize its equity in combination with all the other brands in it. This means that each brand should be differentiated enough to stand on its own, yet cohesive enough to work synergistically with other brands in the portfolio. Maximal brand overlap (choice C) would be counterproductive to creating a well-optimized brand portfolio. The eventual reduction of brand differentiation (choice D) is also not desirable, as it would diminish the uniqueness and value proposition of each brand. Choice B is only partially correct, as maximizing individual brand equity is important but not the sole factor in creating an optimal brand portfolio.

Question 12

Marketers introduce multiple brands in a category for all of the following reasons EXCEPT ________.
A) to increase shelf presence and retailer dependence in the store
B) to attract consumers seeking variety who may otherwise have switched brands
C) to increase internal competition within the firm
D) to yield economies of scale in advertising, sales, and merchandising
E) to reduce manufacturing costs and complexity

Accepted Answer

Introducing multiple brands typically increases manufacturing costs and complexity rather than reducing them.

Question 13

In its focus on bottom-line financial value,the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs.
A) brand equity
B) brand value chain
C) customer value
D) customer equity
E) brand extension

Accepted Answer

The customer equity approach focuses on the financial value of customers, often overlooking the potential future benefits and costs associated with brand options.

Question 14

A parent brand that is associated with multiple products through brand extensions can also be called a ________.
A) category brand
B) subbrand
C) extension brand
D) family brand
E) line brand

Accepted Answer

A parent brand that is associated with multiple products through brand extensions is called a family brand. Family branding allows companies to leverage the existing brand equity of their parent brand to boost the success of their new products.

Question 15

The role of a ________ in the brand portfolio often may be to attract customers to the brand franchise.Trading up will often occur with this type of brand.
A) cash cow
B) flanker brand
C) fighting brand
D) high-end prestige brand
E) low-end entry-level brand

Accepted Answer

A low-end entry-level brand is designed to attract customers to the brand franchise, and trading up occurs when customers move from this entry-level product to higher-end products within the brand portfolio.

Question 16

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company.
A) product licensing
B) brand extensions
C) individual-names strategies
D) brand audits
E) brand dilutions

Accepted Answer

Brand extensions refer to the practice of using an established brand name to introduce a new product or product line. This strategy can be advantageous in that it can facilitate new-product acceptance, as consumers are more likely to try new products from a brand they already know and trust. Additionally, a successful brand extension can provide positive feedback to the parent brand and company, strengthening their reputation and brand equity.

Question 17

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.
A) brand line
B) brand variant
C) brand mix
D) licensed product
E) subbrand

Accepted Answer

The answer of A ________ consists of all products-original as...

Question 18

According to Scott Bedbury's book,A New Brand World,all of the following are considered to be important principles for 21st-century branding EXCEPT ________.
A) consumers will tell you what your brand image should be
B) relying on brand awareness has become marketing fool's gold
C) you have to know it before you can grow it
D) great brands establish enduring customer relationships
E) all brands need good parents

Accepted Answer

In Scott Bedbury's book, "A New Brand World," he emphasizes the importance of knowing your brand before you can grow it, establishing enduring customer relationships, and the limitations of relying solely on brand awareness. However, he does not suggest that consumers should dictate a brand's image.

Question 19

Competitive superiority and channel and other intermediary support are factors that influence the ________ of the brand value chain.
A) program multiplier
B) customer multiplier
C) brand multiplier
D) profit multiplier
E) market multiplier

Accepted Answer

The answer of Competitive superiority and channel and other intermediary...

Question 20

A major advantage of a(n)________ strategy is that the company does not tie its reputation to the product.
A) blanket family name
B) licensing
C) individual-names
D) category extension
E) brand revitalization

Accepted Answer

An individual-names strategy allows a company to market products under different brand names, so the company's reputation is not directly tied to any single product.

Quiz 9: Creating Brand Equity

A company's major enduring asset is ________.

A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.

According to Ries and Trout,Cadbury suffered from the ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes,powdered milk,and soups,as well as chocolates and candies.

________ are a means of understanding where,how much,and in what ways brand value is being created,to facilitate day-to-day decision making.

When a firm uses an established brand to introduce a new product,it is called a________.

Even if sales of a brand extension are high and meet targets,the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.

A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create brand value is called ________.

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.

________ is the job of estimating the total financial value of the brand.

The first step in the brand valuation process is ________.

The hallmark of an optimal brand portfolio is ________.

Marketers introduce multiple brands in a category for all of the following reasons EXCEPT ________.

In its focus on bottom-line financial value,the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs.

A parent brand that is associated with multiple products through brand extensions can also be called a ________.

The role of a ________ in the brand portfolio often may be to attract customers to the brand franchise.Trading up will often occur with this type of brand.

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company.

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.

According to Scott Bedbury's book,A New Brand World,all of the following are considered to be important principles for 21st-century branding EXCEPT ________.

Competitive superiority and channel and other intermediary support are factors that influence the ________ of the brand value chain.

A major advantage of a(n) ________ strategy is that the company does not tie its reputation to the product.