Question 1

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

Accepted Answer

Trust is defined as a customer's belief in the effectiveness and dependability of a brand, product, or service.

Question 2

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 3

Brand equity using the stock market value method estimates the future cash flows of a brand based on its unique strengths that are then discounted to determine a net present value.

Accepted Answer

The answer of Brand equity using the stock market value...

Question 4

Brands are names generally assigned to individual goods or services or to sets of products in a line.

Accepted Answer

Brands are names given to individual goods or services or to sets of products in a line.

Question 5

Measuring brand equity using the financial value method estimates 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.

Accepted Answer

Measuring brand equity using the financial value method involves estimating the future cash flows of a brand based on its unique strength and characteristics, and then discounting them to determine their net present value. This is used to determine the financial value of a brand, which can be useful in making strategic decisions about the brand.

Question 6

The stock market approach to estimate brand equity involves determining the financial value of the company through stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets.

Accepted Answer

The statement is true. The stock market approach is a common method to estimate brand equity, which involves analyzing the company's financial value through stock valuation, with a portion of that value being attributed to intangible assets such as brand equity rather than physical assets.

Question 7

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 8

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 9

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

Accepted Answer

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

Question 10

When 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

Revenue premium measures a branded product's revenue against a similar product from a private label brand, highlighting the added value the brand brings in terms of revenue.

Question 11

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 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 called consumer value. It is also sometimes referred to as customer-based brand equity. This method can help companies understand their brand's strength in the market and guide their marketing strategies to improve their brand's value to consumers.

Question 12

Ingredient branding is the joint venture of two or more brands into a new good or service.

Accepted Answer

Ingredient branding is a marketing strategy where a component or ingredient of a product is branded and given its own identity within the final product, not a joint venture of two or more brands into a new good or service.

Question 13

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

Accepted Answer

Incorporating social media in brand building has become a popular trend in recent times as it allows brands to connect with their audience and increase their visibility.

Question 14

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 connect with consumers, build relationships, and increase brand awareness through user-generated content, influencer marketing, and targeted advertising. Consumer interaction on social media can also help to shape a brand's image and reputation.

Question 15

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

Accepted Answer

Brand equity refers to the added value or perceived quality that a brand brings to a product or service. This value is made up of unique brand characteristics that set it apart from competitors and make it more desirable to consumers.

Question 16

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

Accepted Answer

Brand equity is still important in B2B markets, as it can affect customer loyalty, perceived quality, and overall reputation. While pricing is an important factor, it is not the only decision variable in B2B purchasing decisions.

Question 17

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

Brand parity refers to the perception that there are no significant differences between competing brands, which can lead consumers to choose based on price or promotions rather than brand loyalty.

Question 18

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

Accepted Answer

Developing a strong brand requires understanding the reasons why consumers choose and continue to choose a particular brand.

Question 19

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

Accepted Answer

Consumers usually recommend brands to their families and friends because of one or more salient attributes, such as quality, convenience, affordability, reliability, or innovation.

Question 20

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

The method described in the question is called revenue premium, which measures the difference in price between a branded product and an unbranded or private-label product. This difference in price represents the premium that consumers are willing to pay for the brand, which in turn reflects the brand equity. Revenue premium is a commonly used method to quantify brand equity, especially for consumer goods and retail products. Financial value and market value are related but different concepts that focus on the overall value of a brand in terms of assets, revenues, and market share. Consumer value is more subjective and relates to the perceived benefits and satisfaction that consumers derive from a brand.

Quiz 2: Corporate Image and Brand Management