Question 1

Which of the following is a benefit of using a sub-brand architecture?

Accepted Answer

Sub-brand architecture allows a brand to leverage the equity of the parent brand while also creating new associations specific to the sub-brand. This balance is beneficial for expanding a brand's portfolio without completely starting from scratch or risking the dilution of the parent brand's equity.

Question 2

Colgate Total's launch of a tartar control toothpaste is an example of:

Accepted Answer

Line extension occurs when a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes. Colgate Total's launch of a tartar control toothpaste represents a line extension because it adds a new variant to the existing Colgate Total product line within the toothpaste category.

Question 3

Which of the following is NOT a benefit of introducing a line extension?

Accepted Answer

Minimizing cannibalization of sales of existing products is not a benefit of introducing a line extension; rather, it is a potential risk. Line extensions can sometimes result in cannibalization, where the new product eats into the sales of the brand's existing products instead of capturing new market share or attracting new customers.

Question 4

If Rolex, the leading brand of luxury watches, attempts to launch a fragrance for men, this brand extension would be justifiable under the following brand extension strategy:

Accepted Answer

Reflecting the brand's prestige image is the most justifiable strategy for Rolex's brand extension into fragrances. This is because Rolex is widely recognized for its luxury and prestige, which can be effectively transferred to a new product category like fragrances, appealing to the same target market that values high-status brands.

Question 5

Which of the following is NOT a benefit of using a co-brand for a new product introduction?

Accepted Answer

Control over marketing programs is not inherently a benefit of using a co-brand for a new product introduction. Co-branding typically involves sharing control with the partner, which can lead to compromises and shared decision-making rather than full control over marketing programs.

Question 6

The biggest risk of a downward stretch is that it can decrease sales of the brand's higher-priced offerings and eventually damage the brand's reputation:

Accepted Answer

A downward stretch involves introducing lower-priced products into a brand's lineup, which can lead to cannibalization of higher-priced offerings as consumers opt for the cheaper alternatives. Over time, this can also erode the brand's perceived value and prestige, potentially damaging its reputation.

Question 7

Which of the following is NOT true of upward stretches?

Accepted Answer

Upward stretches often require significant investment in product development, marketing, and sometimes a shift in brand perception, making them more challenging to implement than downward stretches. Downward stretches usually involve introducing lower-priced products to appeal to a broader market, which can be easier to achieve than creating premium offerings.

Question 8

Which of the following is a base of brand extension fit?

Accepted Answer

All of the above options (a. The extension product category is similar to products in existing brand portfolio, b. The extension product complements an existing product sold by the brand, c. The extension product possesses an attribute associated with the brand, d. The extension product leverages an aspect of the brand's technical expertise) are bases of brand extension fit.

Question 9

Which of the following is NOT an element of individualism?

Accepted Answer

Individualism emphasizes personal goals, autonomy, and an independent view of the self, contrasting with collectivism, which prioritizes in-group goals over personal ones.

Question 10

In which countries is horizontal individualism a common cultural orientation?

Accepted Answer

Horizontal individualism, where individuals are seen as independent yet equal in status to others, is more commonly found in countries like Australia and Finland. These societies value individual autonomy and self-expression but also emphasize equality among individuals.

Question 11

The key distinction between vertical and horizontal cultural orientations is based on an independent (vs. interdependent) view of the self.

Accepted Answer

Vertical and horizontal cultural orientations differ in terms of hierarchy and equality, not primarily on the independent vs. interdependent view of the self. Vertical cultures emphasize hierarchical roles and authority, while horizontal cultures stress equality and egalitarian relationships.

Question 12

In which cultural environment is the following statement more likely to be endorsed?
"How people behave is mostly determined by their personality. One's personality predisposes and guides an individual to behave in one way, not in another way, no matter what circumstances the person is in. In a sense, behavior is an unfolding of personality. One's behavior is remarkably stable across time and consistent across situation because it is guided by personality. Therefore, if we know the personality of one person, we can easily predict how the person will behave in the future and explain why that person behaved in the particular way in the past."

Accepted Answer

This statement aligns with individualist culture, which emphasizes personal autonomy and the importance of individual traits and preferences, including the belief that personality greatly influences behavior.

Question 13

Which of the two concepts below are the most likely to be positively correlated:

Accepted Answer

Horizontal individualism, which emphasizes independence and self-reliance without a hierarchical structure, aligns well with openness values that include a willingness to experience new things, creativity, and a broad-minded perspective on life.

Question 14

The major motivational concern of a vertical individualistic orientation is:

Accepted Answer

A vertical individualistic orientation emphasizes power and status-seeking, focusing on achieving personal success and standing out from others.

Question 15

Which of the following is NOT a measure of brand preference?

Accepted Answer

Brand belief is a measure of brand attitude, not brand preference.

Question 16

Identity-based measures try to capture the extent to which the consumer incorporates the brand into the self.

Accepted Answer

Identity-based measures assess how much a consumer sees a brand as a reflection of their own identity, indicating the degree to which the brand is integrated into their sense of self.

Question 17

Eighty-five percent of consumers presented with the Toyota logo recognize it as that of Toyota. Based on this information, we can confidently say that Toyota:

Accepted Answer

The information provided indicates that 85% of consumers recognize the Toyota logo when presented with it, which is an example of high aided awareness. Aided awareness refers to the ability to recognize a brand when prompted with a visual or verbal cue.

Question 18

Which of the following is NOT an example of a quantitative brand image measure?

Accepted Answer

Brand collage is not a quantitative measure; it is a qualitative tool used to capture the visual aspects of a brand's image through images and symbols. Quantitative measures typically involve numerical data or ratings.

Question 19

Which of the following is NOT a step in a brand concept map study?

Accepted Answer

In a brand concept map study, participants are not typically instructed to collect photographs. The focus is on eliciting and connecting brand associations and aggregating them.

Question 20

Brand dilution refers to a situation where a brand's reputation and value has been harmed.

Accepted Answer

Brand dilution occurs when a brand's reputation and value are weakened, often due to overextension, poor quality products, or inconsistent messaging, leading to a loss of brand identity and consumer trust.

Quiz 1: Strategic Brand Management Lessons for Winning Brands in Globalized Markets