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.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

The statement mentions that NRG Beverages has a reputation for excellent flavor and increasing energy, which suggests that it has a high perceived quality in the eyes of the customers. The fact that NRG is able to charge a price premium for its products indicates that customers are willing to pay more for this perceived quality. Therefore, linking the perceived quality benefit of brand equity to marketing strategy would help NRG to justify its premium price to its customers.

Question 2

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions.Dell engaged in a ______ extension.
A) Natural
B) Line
C) Random
D) Category
E) Basic

Accepted Answer

Dell engaged in category extension by expanding into new product categories such as printers and consumer electronics.

Question 3

International Delight coffee creamers, frequently adds new flavor offerings to its product offerings.This would be an example of a ______ extension.
A) Natural
B) Line
C) Random
D) Category
E) Basic

Accepted Answer

International Delight adding new flavor offerings is an example of a line extension, which involves adding new products to an existing product line. In this case, the product line is their coffee creamers and they are adding new flavors to that line. This is different from a category extension, which would involve the company entering into a completely new product category.

Question 4

Really Big Soaps, the market leader in body wash, sell its products around the country under the same brand.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) National Branding

Accepted Answer

This is an example of national branding because the company sells its products under the same brand name around the country.

Question 5

Starbucks has a relatively small advertising budget because it is so well known that it doesn't need to spend much money raising brand awareness.This is an example of the _______ benefit of brand equity for brand sponsors.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

Brand loyalty allows Starbucks to spend less on advertising because its strong customer base and recognition reduce the need for extensive brand awareness campaigns.

Question 6

American Express recently introduced the One card that incorporates the American Express brand as well as its own brand One This is an example of combining a family brand with _____.
A) Merging
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) Licensing

Accepted Answer

The answer of American Express recently introduced the One card...

Question 7

When Toyota, Honda, and Nissan created luxury cars, they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile.This is because the luxury lines would not fit with the ________ that customers held.
A) Brand associations
B) Brand loyalty
C) Perceived quality
D) Brand connections
E) Brand identity

Accepted Answer

Because of customer brand connections, marketing managers generally want to extend the brand to new products. However, extending a brand needs to fit the target market's perception of the brand. When Toyota, Honda, and Nissan created luxury cars, they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile. It is also important for strong brands to reinforce their market presence because it helps maintain a barrier to entry.

Question 8

Porsche was able to successfully introduce the Cayenne SUV as the first high-performance sporty SUV.Because the company's brand had high _____ they were able to introduce a product into a category that, to that point, had not been considered a "sports vehicle."
A) Brand associations
B) Brand loyalty
C) Perceived quality
D) Brand connections
E) Brand identity

Accepted Answer

The answer of Porsche was able to successfully introduce the...

Question 9

When Maria purchases laundry detergent she is able to easily recall and process information about Tide, but this does not happen for other brands.This is an example of the _______ benefit of brand equity for customers.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

The answer of When Maria purchases laundry detergent she is...

Question 10

XYZ brand is the market leader in small appliances.Its brand is also the strongest in the category and customers identify with the brand.Because of the strength of its brand, other competitors are finding it difficult to successfully enter the marketplace.This is an example of the _______ benefit of brand equity for brand sponsors.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

The answer of XYZ brand is the market leader in...

Question 11

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline)that operate independently of each other.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) National Branding

Accepted Answer

Lever Brothers is using stand-alone branding, where each brand operates independently of each other. This allows for each brand to have its own unique identity and target audience.

Question 12

The producers of a successful animated television program for children entered in agreements with restaurants and toy manufacturers right to use the brand in exchange for a set fee or percentage of sales.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) Licensing

Accepted Answer

This is an example of licensing, where the producers allow other companies to use their brand in exchange for a fee or percentage of sales.

Question 13

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) Licensing

Accepted Answer

Co-branding is the strategy of two or more brands collaborating on marketing efforts to leverage the strength of each brand. In this case, both the Costco and American Express brands benefit from the joint venture by increasing their customer reach and attracting more loyal customers through the rebates offered on purchases.

Question 14

Intel makes a product most people never see, however it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the ______ benefit of brand equity to marketing strategy.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

The answer of Intel makes a product most people never...

Question 15

The marketing manager for DRNK Spirits has decided that all of the products his company produced would carry the same brand name of Nightlife.As a result there is Nightlife Ale, Nightlife Lager, Nightlife Vodka, Nightlife Tequila, and Nightlife Whiskey.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) National Branding

Accepted Answer

This is an example of family branding, where all products of a company carry the same brand name.

Question 16

Because he always purchased Harley-Davidson Motorcycles, Cliff does not consider any other brands and makes a quick decision when he is making a purchase in this product category.This is an example of the _______ benefit of brand equity for customers.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

Cliff's preference for only purchasing Harley-Davidson motorcycles despite other options in the market implies that he has developed a strong attachment to the brand, which is an example of brand loyalty.

Question 17

Even though National Brand pain reliever and Store Brand pain reliever both contain the same amount of Ibuprofen per capsule and are both gel coated, Joan chooses to purchase 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.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

Perceived Quality is the benefit of brand equity that Joan is experiencing. She believes that the National Brand has higher quality even though the two products are identical in composition.

Question 18

David Aaker defines _____ as "a set of assets (and liabilities)linked to a brand's name and symbol that adds to (or subtracts from)the value provided by a product or service to a firm or that firm's customers."
A) Brand Identity
B) Brands
C) Brand Momentum
D) Brand Equity
E) Brand Symbols

Accepted Answer

David Aaker defines brand equity as the set of assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm's customers.

Question 19

ABC Pasta has developed a strong brand name in the dry pasta market place 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.
A) Perceived Quality
B) Brand Image
C) Brand Connections
D) Perceived Bonuses
E) Brand Loyalty

Accepted Answer

The answer of ABC Pasta has developed a strong brand...

Question 20

Super-Mart decides to create its own brand of personal care products.It enters into an agreement with a large manufacturer of this type of product to supply them with the products that will carry its newly formed brand's name.This is an example of _______.
A) Family branding
B) Store Branding
C) Stand-alone branding
D) Co-branding
E) National Branding

Accepted Answer

This is an example of Store Branding, where the retailer creates and sells products under its own brand name with the help of a manufacturer.

Quiz 11: The Product Experience: Building the Brand

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions.Dell engaged in a ______ extension.

International Delight coffee creamers, frequently adds new flavor offerings to its product offerings.This would be an example of a ______ extension.

Really Big Soaps, the market leader in body wash, sell its products around the country under the same brand.This is an example of _______.

Starbucks has a relatively small advertising budget because it is so well known that it doesn't need to spend much money raising brand awareness.This is an example of the _______ benefit of brand equity for brand sponsors.

American Express recently introduced the One card that incorporates the American Express brand as well as its own brand One This is an example of combining a family brand with _____.

When Toyota, Honda, and Nissan created luxury cars, they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile.This is because the luxury lines would not fit with the ________ that customers held.

Porsche was able to successfully introduce the Cayenne SUV as the first high-performance sporty SUV.Because the company's brand had high _____ they were able to introduce a product into a category that, to that point, had not been considered a "sports vehicle."

When Maria purchases laundry detergent she is able to easily recall and process information about Tide, but this does not happen for other brands.This is an example of the _______ benefit of brand equity for customers.

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of each other.This is an example of _______.

The producers of a successful animated television program for children entered in agreements with restaurants and toy manufacturers right to use the brand in exchange for a set fee or percentage of sales.This is an example of _______.

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members.This is an example of _______.

Intel makes a product most people never see, however it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the ______ benefit of brand equity to marketing strategy.

The marketing manager for DRNK Spirits has decided that all of the products his company produced would carry the same brand name of Nightlife.As a result there is Nightlife Ale, Nightlife Lager, Nightlife Vodka, Nightlife Tequila, and Nightlife Whiskey.This is an example of _______.

Because he always purchased Harley-Davidson Motorcycles, Cliff does not consider any other brands and makes a quick decision when he is making a purchase in this product category.This is an example of the _______ benefit of brand equity for customers.

David Aaker defines _____ as "a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers."

Super-Mart decides to create its own brand of personal care products.It enters into an agreement with a large manufacturer of this type of product to supply them with the products that will carry its newly formed brand's name.This is an example of _______.