Question 1

Because of its reputation for excellent flavor and increasing energy,NRG Beverages is able to charge a price premium for its products.However,NRG must continue to validate the reasons for this premium price to its customers.This is an example of linking the ______ benefit of brand equity to marketing strategy.

Accepted Answer

Brands convey a perception of quality that is either positive or negative. Companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle because of the perceived quality in design and performance of the product.

Question 2

Because she knows that no other single product element conveys more information about the company than the brand,the marketing manager of XYZ Shoes is concerned with ____ as an integral part of the product development process.Even though XYZ offers an established product,it is defined,in large measure,by its brand,and the marketing manager works very hard to protect this critical asset.

Accepted Answer

Brands take on different roles for customers, manufacturers, even competitors. No other single product element conveys more information about the company. Branding strategy is an integral part of the product development process because companies know that successful new products result from a well-conceived branding strategy.

Question 3

Even though a national brand pain reliever and a store brand pain reliever both contain the same amount of ibuprofen per capsule and are both gel coated,Joan chooses to purchase the national brand because she thinks it will work better based on the brand name alone.This is an example of the _______ benefit of brand equity for customers.

Accepted Answer

Brands convey a perception of quality that is either positive or negative. Companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle because of the perceived quality in design and performance of the product.

Question 4

James has been to Farm Fresh Ice Cream Shops several times.Based on his previous visits he has developed certain emotional,psychological,and performance expectations for all subsequent visits to Farm Fresh.For instance,he believes he will feel happier when he leaves than when he arrives and that the ice cream will be rich and smooth.This is an example of the _____ dimension of brand equity.

Accepted Answer

Customers develop a number of emotional, psychological, and performance associations with a brand. In many cases, these associations become a primary purchase driver, particularly with brand-loyal users. Dell has a reputation as a mass-market computer company with reasonably good-quality products but poor customer service. As a result, competitors, such as Hewlett-Packard, have been able to create market opportunities by associating their brand with higher levels of product support and customer service.

Question 5

Over the years Maytag has earned a reputation as reliable and durable,so when John decided to buy a new Maytag washing machine,he was willing to pay more for it.This is an example of the _____ dimension of brand equity.

Accepted Answer

Brands convey a perception of quality that is either positive or negative. Companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle because of the perceived quality in design and performance of the product.

Question 6

ABC Pasta has developed a strong brand name in the dry pasta marketplace based on its texture and taste.Through its strong brand,ABC was able to introduce a successful line of sauces under the same brand name.This is an example of the _______ benefit of brand equity for brand sponsors being used to extend the product range.

Accepted Answer

Brands convey a perception of quality that is either positive or negative. Companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle because of the perceived quality in design and performance of the product.

Question 7

Because Sony has so many different product offerings in various electronics categories,management has found that it is helpful to use brands to keep track of products in each category,Thus,it has different brand names for its televisions,DVD players,and portable music players.This is an example of the _______ role the brand plays for the brand sponsor.

Accepted Answer

Brands offer an effective and efficient methodology for categorizing products.

Question 8

Harley-Davidson introduced a cologne.While the Harley brand has a large and loyal customer base,the cologne was not successful.This is an example of the ______ limitation of branding.

Accepted Answer

While branding can have a strong effect on the product experience, it is not all-powerful. A good branding strategy will not overcome a poorly designed product that fails to deliver on the value proposition.

Question 9

The marketing manager for ABC Corp.is about to launch a new product.He is concerned about coming up with a combination of name,symbol,and design to identify the new product and to differentiate from the competition.He is trying to come up with the _____ for the product.

Accepted Answer

A brand, as defined by the American Marketing Association, is "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors."

Question 10

The St.Louis Rams pump the smell of candy cane's into their stadium because the team feels that the scent adds to the _____ experience.

Accepted Answer

The U.S. football team, St. Louis Rams, pumps a candy cane smell into its stadium and the team was so pleased with the results that it intends to expand the program next year pumping different scents into different parts of the stadium. A wide range of companies from Bloomingdale's to General Dynamics are using "scent technology" in their offices and stores. These companies and others understand that scent plays a significant role in the overall brand experience. Products that smell good sell better.

Question 11

Gino always purchases clothing made by S&G Clothing.He tells others about how much he likes their clothes and the good qualities about them.When a shirt he purchased turned out to be defective,instead of switching clothing companies he gave S&G a chance to fix the problems and still shops there.This is an example of the _____ dimension of brand equity.

Accepted Answer

Brand loyalty is the strongest form of brand equity and reflects a commitment to repeat purchases. Loyal customers are reassured by the brand and are often ambassadors to new customers. Loyal customers enable a company to reduce marketing costs, leverage trade relationships, and speak to competitive threats with greater success.

Question 12

When customers see the logo of McDougal's restaurant,they think of decent food served quickly in a clean,family-friendly environment.This is an example of the _______ role the brand plays for customers.

Accepted Answer

Whether the customer is a consumer or another business, brands have three primary roles. First, the brand conveys information about the product. Without any additional data, customers construct expectations about quality, service, even features based on the brand. Years after ending the marketing communications campaign, many customers see the FedEx logo and still think, "Absolutely, positively, overnight." The logo itself creates an expectation of service, though FedEx now offers many delivery options and products.

Question 13

Over the years Athena Footwear had developed a reputation as a high-quality brand of shoes at a moderate price point.Recently it decided to introduce a low-price line of shoes; however,the new line suffered from poor performance and durability,and if the shoes in the new line got wet,the colors would bleed.Because of these problems,the sales of new line shoes were poor and the value of Athena Footwear's brand dropped significantly.This is an example of the ______ limitation of branding.

Accepted Answer

While branding can have a strong effect on the product experience, it is not all-powerful. A good branding strategy will not overcome a poorly designed product that fails to deliver on the value proposition. Too frequently companies put a good brand on a bad product, which often leads to erosion of the brand's value.

Question 14

The owner of Santos Lawn Service is looking to buy a new lawn tractor,a major purchase and significant financial investment.The owner decides to purchase a Dixie Chopper because of its reputation for dependability and excellent customer service.This is an example of the _______ role the brand plays for customers.

Accepted Answer

A company willing to stand behind its product for life provides a lot of reassurance to the customer. In addition, there is an implied quality perception about a product warranted for life.

Question 15

The owners of ABC Medical Equipment has been developing the brand equity of their MRI and CAT scan equipment.Now when someone mentions ABC's machines,radiologists and hospital purchasing agents usually say that they have heard of ABC's offerings and are interested in learning more about them.This response signals a familiarity and potential commitment to the brand.They have achieved the _____ dimension of brand equity.

Accepted Answer

The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships. It signals a familiarity and potential commitment to the brand.

Question 16

KFC is very protective of its "Seven Herbs and Spices" recipe intellectual property,which,in the view of the company,gives them a significant competitive advantage over other chicken restaurants,and will use any legal resource available to protect its patented formula.This is an example of the _____ dimension of brand equity.

Accepted Answer

Brands possess other assets such as trademarks and patents that represent a significant competitive advantage. Google is very protective of its search algorithm intellectual property, which, in the view of the company, gives the company a significant advantage over other search engines.

Question 17

When a competitor used its logo in a disparaging way in an advertisement,XYZ brand sued.It won the suit on the basis that the competitor violated its trademark.This is an example of the _______ role the brand plays for the brand sponsor.

Accepted Answer

Brands perform important roles for the brand's sponsor (manufacturer, distributor, or retailer). They offer legal protection for the product through a trademark. By protecting the brand, the company is able to defend essential product elements such as its features, patentable ideas in manufacturing or product design, and packaging.

Question 18

LMN Spirits created a digital nightclub as a way to reach younger customers in Generation X and Generation Y.It felt that this second-life hangout would positively influence the value of its brand.However,it did not verify the ages of users and created a national stir when it was discovered that up to 30 percent of the users were under the legal drinking age of 21.Its failure to meet the industry's ethical guidelines about promoting products to minors led to a sharp decrease in the value of LMN's brand.This is an example of the ______ limitation of branding.

Accepted Answer

A brand must also be protected. Counterfeit products or illegal activities conducted under the name of another company's brand can do significant damage to the brand. This is why companies aggressively protect their brands around the world.

Question 19

When consumers see an apple with a single bite taken out of the right side,several small electronic devices such as iPhones,iPods,or iPads might come to mind.This occurs because consumers form a _____ between the logo and electronic devices.

Accepted Answer

Customers develop a number of emotional, psychological, and performance associations with a brand, called brand association. In many cases, these associations become a primary purchase driver, particularly with brand-loyal users. Dell has a reputation as a mass-market computer company with reasonably good-quality products but poor customer service. As a result, competitors, such as Hewlett-Packard, have been able to create market opportunities by associating their brand with higher levels of product support and customer service.

Question 20

Listerine mouthwash sells for $2 more than Target's Up & Up brand mouthwash even though both products contain the same ingredients and are manufactured by the same company.This is because _____ brands can command a price premium.

Accepted Answer

National brands enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications, and distribution. In addition, national brands generally have a higher perceived quality and, as a result, enjoy a price premium. However, developing a national brand is costly and lower-priced store brands are strong competitors in many product categories.

Quiz 8: Build the Brand

Over the years Maytag has earned a reputation as reliable and durable,so when John decided to buy a new Maytag washing machine,he was willing to pay more for it.This is an example of the _____ dimension of brand equity.

Harley-Davidson introduced a cologne.While the Harley brand has a large and loyal customer base,the cologne was not successful.This is an example of the ______ limitation of branding.

The marketing manager for ABC Corp.is about to launch a new product.He is concerned about coming up with a combination of name,symbol,and design to identify the new product and to differentiate from the competition.He is trying to come up with the _____ for the product.

The St.Louis Rams pump the smell of candy cane's into their stadium because the team feels that the scent adds to the _____ experience.

When customers see the logo of McDougal's restaurant,they think of decent food served quickly in a clean,family-friendly environment.This is an example of the _______ role the brand plays for customers.

When a competitor used its logo in a disparaging way in an advertisement,XYZ brand sued.It won the suit on the basis that the competitor violated its trademark.This is an example of the _______ role the brand plays for the brand sponsor.

When consumers see an apple with a single bite taken out of the right side,several small electronic devices such as iPhones,iPods,or iPads might come to mind.This occurs because consumers form a _____ between the logo and electronic devices.

Listerine mouthwash sells for $2 more than Target's Up & Up brand mouthwash even though both products contain the same ingredients and are manufactured by the same company.This is because _____ brands can command a price premium.