Question 1

Which of the following measures returns on branding investments?
A)Brand infringement
B)Brand parity
C)Brand equity
D)Brand metrics

Accepted Answer

The answer of Which of the following measures returns on...

Question 2

The perception that all brands are essentially the same is:
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 in a product category are essentially the same. This can lead to consumers choosing based on price or convenience rather than brand loyalty.

Question 3

Nike creating a line of clothing to go along with their main products (shoes)is an example of a:
A)flanker brand.
B)brand extension.
C)cooperative brand.
D)complementary brand.

Accepted Answer

Nike creating a line of clothing to go along with their main products (shoes) is an example of a brand extension, where a company introduces a new product category under an already established brand name. In this case, Nike is leveraging their brand equity and recognition to enter the clothing market.

Question 4

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 the level of similarity between different brands in a product category. In this case, since Charles sees only minor differences among the various brands of high definition televisions, it indicates a high level of brand parity.

Question 5

Strong brands achieve each of the following except:
A)allow a company to charge more for products.
B)create brand parity.
C)provide customers assurance of quality.
D)transfer to other products or brands the company sells.

Accepted Answer

Strong brands do not create brand parity, but rather distinguish themselves from competitors and establish a unique identity in the market. The other options are all benefits of strong brands.

Question 6

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

Accepted Answer

Brand equity refers to the value a brand brings to a product or service beyond the functional benefits it provides. Craftsman has brand equity in this scenario because it is perceived by the customer to be the best and most reliable tool brand. Brand parity refers to a lack of differentiation between brands, brand cooperation is not a recognized term in branding, and brand decision is not a relevant concept in this scenario.

Question 7

Black & Decker's line of power tools is an example of a(n):
A)adaptation.
B)family brand.
C)flanker brand.
D)private label brand.

Accepted Answer

Black & Decker is a family brand, which encompasses a range of products including power tools, home appliances, and hardware. The brand name represents a consistent level of quality and reliability across all product categories.

Question 8

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 9

A Pillsbury cookie mix featuring Hershey's Chocolate is a form of:
A)flanker branding.
B)cooperative branding.
C)ingredient branding.
D)complementary branding.

Accepted Answer

Ingredient branding is a form of branding where a company promotes a specific ingredient as a major selling point of its product, as in this case where Pillsbury is promoting Hershey's Chocolate as a key ingredient in their cookie mix.

Question 10

Names assigned to individual goods or services or to groups of products in a line are:
A)brands.
B)logos.
C)metrics.
D)designs.

Accepted Answer

Brands are names or symbols used to identify and differentiate goods or services from those of competitors. Logos are visual symbols or designs associated with a brand. Metrics are measures of performance or effectiveness. Designs refer to the physical appearance or structure of a product or service.

Question 11

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 is described as the behavior of a customer who consistently prefers one brand over others and resists competitors' attempts to attract them. This choice indicates that customers who only buy one brand regardless of price differences show loyalty to that brand.

Question 12

The joint venture of two or more brands into a new good or service is:
A)ingredient branding.
B)cooperative branding.
C)complementary branding.
D)flanker branding.

Accepted Answer

Cooperative branding involves two or more brands coming together to create a new product or service, which is the description given in the question. Ingredient branding refers to a brand being used as a component or ingredient in another product. Complementary branding involves two brands that are used together but remain separate, such as a car manufacturer partnering with a tire brand. Flanker branding is a marketing strategy in which additional brands are introduced by a company to compete within the same market as its existing brands. Therefore, cooperative branding is the best choice.

Question 13

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 is the value that a brand name brings to the product or service. One of the benefits of brand equity is that it allows the company to charge a higher price than competitors. It is also helpful in business-to-business markets as it helps in building trust and reliability. Similarly, it is helpful in international markets as it provides recognition to the brand to the consumers who are not familiar with the company's products in the new market. However, brand equity does not reduce name retention; rather, it helps in building and maintaining a strong brand image in the market.

Question 14

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

When brand equity is measured using estimates of future cash flows, the method is called financial value. This method takes into account the unique strength and characteristics of the brand to determine its potential future earnings, which are then discounted to determine a net present value.

Question 15

When Procter & Gamble introduces a new laundry detergent with a different brand name, it is an example of creating a(n):
A)family brand.
B)cooperative brand.
C)co-brand.
D)flanker brand.

Accepted Answer

Procter & Gamble introducing a new laundry detergent with a different brand name is an example of creating a flanker brand. A flanker brand is a new brand introduced into the market by a company in the same product category as an existing brand, with the intention of attracting different customers and competing with other brands in the same category. The new brand is positioned to be slightly different from the existing brand, in terms of price, quality, or features, to appeal to a different segment of customers or to provide an option for customers who may be loyal to a different brand in the same category.

Question 16

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

Accepted Answer

Brand equity refers to the value a brand has beyond its tangible attributes, including the perception that the brand is different and superior to other brands in its category.

Question 17

A family brand is:
A)one in which a company offers a series or group of products under one brand name.
B)a type of extension or flanker brand offered by one company.
C)a logo or theme of a brand.
D)one that has a high level of brand equity.

Accepted Answer

A family brand is a branding strategy in which a company offers a series or group of products under one brand name. This allows the company to leverage the brand recognition and loyalty of the primary brand across multiple products. Examples include Coca-Cola, which offers multiple products under the Coca-Cola brand name, such as Diet Coke, Coca-Cola Zero, etc.

Question 18

A customer's belief in the efficacy and reliability of a brand that has been established over time through personal experience is:
A)brand competence.
B)trust.
C)reliability.
D)distinctiveness.

Accepted Answer

The customer's belief in the efficacy and reliability of a brand is essentially trust. Trust is built over time through personal experience with the brand, and is a crucial factor in establishing brand loyalty.

Question 19

An advertising campaign created by Hormel that was designed to show customers the rich variety of brands sold by the company sought to:
A)allow the company to charge more.
B)create brand parity across company brands.
C)create perceptions of corporate uniqueness.
D)transfer perceptions of strong brands to other company products.

Accepted Answer

The advertising campaign was designed to transfer perceptions of strong brands to other company products, indicating that the company sought to leverage on the popularity of its established brands to create a positive perception of its other, less famous products. This could help to increase sales and improve the overall image of the company.

Question 20

When should a company consider rejuvenating or changing its image and how should it be done?

Accepted Answer

The answer of When should a company consider rejuvenating or...

Quiz 2: Corporate Image and Brand Management

Which of the following measures returns on branding investments?

The perception that all brands are essentially the same is:

Nike creating a line of clothing to go along with their main products (shoes) is an example of a:

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

Strong brands achieve each of the following except:

When a customer believes Craftsman makes the best and most reliable tools, it is an example of:

Black & Decker's line of power tools is an example of a(n) :

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 Pillsbury cookie mix featuring Hershey's Chocolate is a form of:

Names assigned to individual goods or services or to groups of products in a line are:

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

The joint venture of two or more brands into a new good or service is:

Which is not true concerning brand equity?

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:

When Procter & Gamble introduces a new laundry detergent with a different brand name, it is an example of creating a(n) :

The perception that a brand is different and better is:

A family brand is:

A customer's belief in the efficacy and reliability of a brand that has been established over time through personal experience is:

An advertising campaign created by Hormel that was designed to show customers the rich variety of brands sold by the company sought to:

When should a company consider rejuvenating or changing its image and how should it be done?