Chapter 8 Products, Services, and Brands: Building Customer Value
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2. Which of the following is true with regard to products()?
A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.
E) Products refer to only those activities that are essentially intangible.
3. ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything()?
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products
4. Which of the following exemplifies a service()?
A) candy
B) laptop
C) retail
D) car
E) laundry detergent
5. Marketing mix planning begins with ________()?
A) building an offering that brings value to target customers
B) finding a suitable promotion strategy for the product
C) setting a reasonable price for the product
D) selecting the right channel for distribution of the product
E) calculating the total costs involved in manufacturing the product
6. Which of the following is true with regard to services()?
A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.
7. Which of the following is an example of a pure tangible good()?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips
8. Which of the following product offerings is intangible()?
A) a package of laundry detergent
B) an ink cartridge for a printer
C) a wool jacket
D) a gold ring
E) a taxi ride
9. Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying()?
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value
10. Product planners need to consider products and services on three levels. At the second level, product planners must ________()?
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers seek
11. Product planners need to consider products and services on three levels. At the third level, product planners must build ________()?
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product
12. ________ are industrial products()?
A) Major appliances
B) Laundry detergents
C) Life insurance policies
D) Office supplies
E) Legal services
13. Consumer products refer to ________()?
A) products purchased by consumers for further processing or for use in conducting a business
B) products and services bought by final consumers for personal consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer's production or operations, including installations and accessory equipment
14. ________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort()?
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services
15. Which of the following is an example of a convenience product()?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator
16. ________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style()?
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services
17. Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product()?
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
18. ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort()?
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products
19. A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a ________()?
A) convenience product
B) capital item
C) specialty product
D) service
E) product attribute
20. ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying()?
A) Specialty products
B) Convenience products
C) Unsought products
D) Shopping products
E) Capital items
21. ________ products are those products purchased for further processing or for use in conducting a business()?
A) Unsought
B) Specialty
C) Shopping
D) Industrial
E) Convenience
22. ________ are the major marketing factors in the sale of most manufactured materials and parts()?
A) Branding and advertising
B) Price and service
C) Sales promotion and advertising
D) Branding and packaging
E) Public relations and brand management
23. ________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment()?
A) Unsought products
B) Convenience products
C) Capital items
D) Specialty items
E) Repair items
24. Installations consist of ________()?
A) highly priced luxury goods such as Rolex watches
B) portable office equipment such as computers
C) major purchases such as elevators
D) portable factory equipment such as hand tools
E) products such as insurance
25. Lubricants, coal, paper, and pencils are examples of ________()?
A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations
26. ________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization()?
A) Social network
B) Organization
C) Niche
D) Location
E) Concentrated
27. The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example of ________ marketing()?
A) person
B) corporate image
C) internal
D) place
E) niche
28. ________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations()?
A) Corporate image
B) Person
C) Social
D) Organization
E) Place
29. A company that uses well-known celebrities to help sell its products is using ________ marketing()?
A) interactive
B) internal
C) social
D) person
E) organization
30. ________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions()?
A) Idea
B) Place
C) Organization
D) Social
E) Interactive
31. Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing()?
A) corporate image
B) person
C) organization
D) internal
E) place
32. Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________ marketing()?
A) corporate image
B) internal
C) social
D) place
E) person
33. Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its products. This is an example of ________ marketing()?
A) person
B) place
C) social
D) organization
E) internal
34. Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing()?
A) internal
B) social
C) organization
D) person
E) place
35. Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________()?
A) corporate image marketing
B) social marketing
C) place marketing
D) social engineering
E) negative brand equity
36. An easier, more comfortable, more stylish transfer of thought onto paper refers to the ________ of Ruben's offerings()?
A) tangible element
B) core customer value
C) actual product
D) augmented product
E) service variability
37. Which type of product does Delgado manufacture()?
A) industrial
B) convenience
C) specialty
D) shopping
E) unsought
38. A service refers to an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything()?
A)TRUE
B)FALSE
39. Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort()?
A)TURE
B)FALSE
40. Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style()?
A)TURE
B)FALSE
41. The augmented product is the actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance()?
A)TRUE
B)FALSE
42. Give examples of pure tangible goods.
Answer: Examples will vary. A company's market offering often includes both tangible goods and services. Examples of pure tangible goods include soap, toothpaste, or salt; no services accompany these products.
43. What is a product?
Answer: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is known as a product.
44. How do consumers perceive products?
Answer: Consumers see products as complex bundles of benefits that satisfy their needs.
45. Name some common convenience products.
Answer: Student examples may vary. Convenience products include laundry detergent, candy, magazines, and fast food.
46. Give three examples of shopping products.
Answer: Student examples may vary. Shopping products include clothing, used cars, and furniture.
47. How are specialty products distributed?
Answer: Specialty products are distributed through only one or a few exclusive outlets per market area. Special effort is required to purchase these products.
48. Explain the difference between a consumer product and an industrial product. Include an example.
Answer: The distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.
49. Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad classes and describe how they are different from each other.
Answer: The two broad classes are consumer products and industrial products.
Consumer products and services—those bought by final consumers—are usually classified according to consumer shopping habits. Consumer products include convenience products, shopping products, specialty products, and unsought products.
Industrial products, on the other hand, are those that are purchased for further processing or for use in conducting a business. These products include the three broad categories of materials and parts, capital items, and supplies and services.
50. Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________()?
A) product labels
B) product attributes
C) support services
D) product packaging
E) branding
51. ________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs()?
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality
52. ________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes()?
A) Business intelligence
B) Quality function deployment
C) Total quality management
D) Brand equity management
E) Product positioning
53. What are the two dimensions of product quality()?
A) consistency and level
B) performance and conformance
C) design and innovation
D) conformance and style
E) feature and design
54. ________ refers to freedom from defects and consistency in delivering a targeted level of performance()?
A) Performance quality
B) Product style
C) Branding
D) Conformance quality
E) Product design
55. Style simply describes the ________ of a product()?
A) quality
B) appearance
C) utility
D) durability
E) long-term benefits
56. ________ contributes to a product's usefulness as well as to its looks()?
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging
57. A good design begins with ________()?
A) brainstorming new product ideas
B) making prototypes of the planned product
C) identifying the most suitable and aesthetic packaging
D) brainstorming technical product specifications
E) observing and understanding customers and shaping their product-use experience
58. Which of the following questions is most important for product designers to consider while developing a product()?
A) Which specific features of the product do customers like most?
B) How does the product appear to buyers?
C) What are the product's technical specifications?
D) How would customers use and benefit from the product?
E) How can the product be packaged to stimulate instant purchase?
59. A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service()?
A) feature
B) brand
C) line extension
D) package
E) value chain
60. ________ involves designing and producing the container or wrapper for a product()?
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling
61. A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand()?
A) line extension
B) portfolio
C) label
D) design
E) feature
62. The ________ requires sellers to provide detailed nutritional information on food products()?
A) Fair Packaging and Labeling Act of 1966
B) Nutritional Labeling and Educational Act of 1990
C) Glass-Steagall Act
D) Commodity Futures Modernization Act of 2000
E) Federal Trade Commission Act of 1914
63. The first step in designing support services is to ________()?
A) add new services that will both delight customers and yield profits to the company
B) closely observe the product and pricing strategies of consumers
C) survey customers to assess the value of current services and obtain ideas for new ones
D) prevent brand dilution
E) encourage customers to try new products
64. A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges()?
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand
65. The major product line decision involves product ________, the number of items in the product line()?
A) features
B) line depth
C) line conformance
D) line length
E) packaging
66. ________ involves adding more items within the present range of the product line()?
A) Market diversification
B) Brand extension
C) Product line filling
D) Upward product line stretching
E) Downward product line stretching
67. Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________()?
A) line filling
B) social marketing
C) market diversification
D) negative brand equity
E) person marketing
68. ________ occurs when a company lengthens its product line beyond its current range()?
A) Product line filling
B) Product line stretching
C) Co-branding
D) Niche marketing
E) Market diversification
69. Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________()?
A) social marketing
B) product line filling
C) product line stretching
D) internal marketing
E) cannibalization
70. A ________ consists of all the product lines and items that a particular seller offers for sale()?
A) product mix
B) store brand
C) supply chain
D) value chain
E) line extension
71. Product mix ________ refers to the number of different product lines the company carries()?
A) length
B) height
C) width
D) consistency
E) depth
72. Product mix ________ refers to the total number of items a company carries within its product lines()?
A) length
B) depth
C) height
D) width
E) consistency
73. Product mix ________ refers to the number of versions offered for each product in the line()?
A) length
B) depth
C) height
D) width
E) consistency
74. The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way()?
A) length
B) depth
C) consistency
D) width
E) height
75. A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________()?
A) lengthened its existing product line
B) decreased its product line consistency
C) widened its product mix
D) engaged in market diversification
E) engaged in social marketing
76. The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are examples of ________()?
A) product line filling
B) multibranding
C) megabranding
D) product line inconsistencies
E) co-branding
77. Style is a larger concept than design. Design simply describes the appearance of a product()?
A)TURE
B)FALSE
78. Branding decisions include determining a product price()?
A)TURE
B)FALSE
79. For few companies, the package itself has become an important promotional medium()?
A)TURE
B)FALSE
80. Labels range from simple tags attached to products to complex graphics that are part of the packaging()?
A)TRUE
B)FALSE
81. A product line consists of unrelated products that are sold to diverse customer groups()?
A)TURE
B)FALSE
82. Product line filling is overdone if it results in cannibalization and customer confusion()?
A)TRUE
B)FALSE
83. A company cannot stretch its product line downward()?
A)TURE
B)FALSE
84. Product mix width refers to the total number of items a company carries within its product lines()?
A)TURE
B)FALSE
85. Companies stretch downward to add prestige to their current products()?
A)TURE
B)FALSE
86. A company's product mix has four important dimensions: width, length, depth, and consistency()?
A)TRUE
B)FALSE
87. How does branding help buyers?
Answer: Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency—buyers who always buy the same brand know that they will get the same features, benefits, and quality each time they buy.
88. When does product line stretching occur?
Answer: Product line stretching occurs when a company lengthens its product line beyond its current range.
89. Define consistency of the product mix.
Answer: The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
90. Name and describe the principal decisions companies make regarding their individual products and services.
Answer: Individual product decisions involve: 1) product attributes, 2) branding, 3) packaging, 4) labeling, and 5) product support services.
Product attribute decisions involve product quality, features, and style and design. Branding decisions include selecting a brand name and developing a brand strategy. Package decisions often include designing labels, which identify, describe, and possibly promote the product. Labeling identifies the product and may describe and promote the product and brand. Companies also develop product support services that enhance customer service and satisfaction and safeguard against competitors.
91. Describe the principal functions of packaging.
Answer: Packaging involves designing and producing the container or wrapper for a product. Traditionally, the primary function of the package was to hold and protect the product. In recent times, however, packaging has become an important marketing tool as well. Increased competition and clutter on retail store shelves means that packages must now perform many sales tasks—from attracting buyers, to communicating brand positioning, to closing the sale.
92. Briefly describe the history of legal concerns about packaging and labels.
Answer: The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive labels or packages constitute unfair competition. Labels can mislead consumers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. The most prominent is the Fair Packaging and Labeling Act of 1966, which set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries. Labeling has been affected in recent times by unit pricing (stating the price per unit of a standard measure), open dating (stating the expected shelf life of the product), and nutritional labeling (stating the nutritional values in the product). The Nutritional Labeling and Educational Act of 1990 requires sellers to provide detailed nutritional information on food products, and recent sweeping actions by the Food and Drug Administration (FDA) regulate the use of health-related terms such as low fat, light, and high fiber.
93. What are the different dimensions of a company's product mix? Briefly describe each dimension.
Answer: A company's product mix has four important dimensions: width, length, depth, and consistency.
Product mix width refers to the number of different product lines the company carries.
Product mix length refers to the total number of items a company carries within its product lines.
Product mix depth refers to the number of versions offered for each product in the line.
Finally, the consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
94. Service ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought()?
A) inseparability
B) variability
C) intangibility
D) perishability
E) heterogeneity
95. Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility()?
A) increase entree prices after 6:00 p.m.
B) provide clean tablecloths and fresh napkins for each new customer
C) empower employees to handle customer complaints
D) offer discounted prices for appetizers ordered during happy hour
E) hold regular employee workshops focusing on customer service
96. Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance()?
A) service intangibility
B) service inseparability
C) service variability
D) service perishability
E) service distinction
97. Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided()?
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
98. The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance()?
A) service intangibility
B) service inseparability
C) service perishability
D) service variability
E) service distinction
99. Service ________ means that services cannot be stored for later sale or use()?
A) consistency
B) perishability
C) variability
D) intangibility
E) inseparability
100. Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem()?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability
101. According to the service profit chain, superior internal service quality results in ________()?
A) lesser service value
B) increased word-of-mouth sales
C) reduced after-sale services
D) more satisfied, loyal, and hardworking employees
E) negative brand equity of newly launched products
102. Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction()?
A) service inseparability
B) social marketing
C) service variability
D) internal marketing
E) corporate image marketing
103. ________ means that service quality depends on the quality of buyer-seller interaction during the service encounter()?
A) Interactive marketing
B) Service differentiation
C) Service productivity
D) Corporate image marketing
E) Traditional external marketing
104. Service companies can differentiate their service delivery by ________()?
A) using symbols and logos
B) instituting a hierarchical organizational structure
C) offering innovative product features
D) de-emphasizing branding
E) having more able and reliable customer-contact people
105. Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________()?
A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding
106. Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided()?
A)TURE
B)FALSE
107. In a service business, the customer and the front-line service employee interact to co-create the service()?
A)TRUE
B)FALSE
108. Within a hotel renowned for its superior service, one registration-desk employee may be cheerful and efficient, whereas another may be irritable and slow. This exemplifies service consistency()?
A)TURE
B)FALSE
109. Service companies can differentiate their service delivery by having more able and reliable customer-contact people()?
A)TRUE
B)FALSE
110. Product quality is harder to define and judge than service quality()?
A)TURE
B)FALSE
111. Good service recovery can turn angry customers into loyal ones()?
A)TRUE
B)FALSE
112. As competition and costs increase, and as productivity and quality decrease, what are the three major marketing tasks facing service companies in contemporary times?
Answer: Today, as competition and costs increase, and as productivity and quality decrease, more service marketing sophistication is needed. Service companies face three major marketing tasks: They want to increase their service differentiation, service quality, and service productivity.
113. Define interactive marketing. Why is it considered an important skill for service marketers?
Answer: Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. In product marketing, product quality often depends little on how the product is obtained. But in services marketing, service quality depends on both the service deliverer and the quality of delivery. Service marketers, therefore, have to master interactive marketing skills.
114. What are the key service characteristics a company must consider when designing marketing programs? Briefly describe each characteristic.
Answer: A company must consider four special service characteristics when designing marketing programs: intangibility, inseparability, variability, and perishability.
Service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service inseparability means that services cannot be separated from their providers, whether the providers are people or machines.
Service variability means that the quality of services depends on who provides them as well as when, where, and how they are provided.
Service perishability means that services cannot be stored for later sale or use.
115. Distinguish between the service profit chain and internal marketing.
Answer: The service profit chain links service firm profits with employee and customer satisfaction. This chain consists of five links: internal service quality, satisfied and productive service employees, greater service value, satisfied and loyal customers, and healthy service profits and growth.
On the other hand, internal marketing means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. Marketers must get everyone in the organization to be customer centered. In fact, internal marketing must precede external marketing.
116. How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?
Answer: A service offer can include innovative features that set a company's offers apart from competitors' offers. Service companies can differentiate their service delivery by having more able and reliable customer-contact people, developing a superior physical environment in which the service product is delivered, or designing a superior delivery process. Services can also be differentiated through symbols and branding, by creating an image that sets a company's services apart from that of its competitors.
117. ________ represent(s) consumers' perceptions and feelings about a product and its performance()?
A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes
118. Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing()?
A) differentiation
B) knowledge
C) equity
D) personality
E) relevance
119. BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________()?
A) an aggressive brand personality
B) high brand equity
C) no brand commitment
D) negative brand equity
E) low brand relevance
120. Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength()?
A) brand conformance
B) brand consistency
C) brand convenience
D) brand extension
E) brand relevance
121. Brand ________ refers to how consumers feel if a brand meets their needs()?
A) differentiation
B) equity
C) dilution
D) esteem
E) relevance
122. Brand ________ refers to how highly consumers regard and respect the brand()?
A) esteem
B) conformance
C) differentiation
D) relevance
E) knowledge
123. After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand Asset Valuator, this reflects brand ________()?
A) valuation
B) esteem
C) relevance
D) differentiation
E) knowledge
124. Which of the following is true with regard to brand equity()?
A) Brand equity refers to how much consumers know about the brand.
B) High brand equity provides a company with many competitive advantages.
C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version.
D) Positive brand equity derives from low brand esteem.
E) The total financial value of a brand can be easily measured.
125. The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates()?
A) the customer mix
B) customer equity
C) the product experience
D) service variability
E) the service encounter
126. Which of the following is the lowest level on which marketers can position their brands in target customers' minds()?
A) beliefs and values
B) product benefits
C) product attributes
D) after-sale services
E) brand equity
127. The strongest brands are positioned on ________()?
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes
128. Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy Kendell Associates. Gainville is most likely positioned on ________()?
A) basic product attributes
B) short-term benefits
C) service variability
D) self-image enhancement
E) strong beliefs and values
129. A good brand name should most likely be ________()?
A) trendy
B) complex
C) long
D) conventional
E) distinctive
130. An increasing number of retailers and wholesalers have created their own ________, also called store brands()?
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer's brand
131. Costco's Kirkland Signature products are an example of a ________()?
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer's brand
132. Which of the following is true with regard to store brands()?
A) Store brands have been declining in popularity and strength for more than two decades.
B) Store brands are also known as national brands.
C) Store brands are created and owned by resellers of a product or service.
D) Increasing consumer distrust toward store brands has led to a store-brand slump.
E) Store brands are growing far slower than manufacturer's brands.
133. Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________()?
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing
134. ________ occurs when two established brand names of different companies are used on the same product()?
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
135. Which of the following is an advantage offered by co-branding()?
A) Manufacturers do not have to invest in creating their own brand names with co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.
136. ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes()?
A) Line extension
B) Megabranding
C) Interactive marketing
D) Internal marketing
E) Co-branding
137. ________ involves the use of a successful brand name for new or modified products in a new category()?
A) A line extension
B) A product line
C) A brand extension
D) Co-branding
E) Cannibalization
138. Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________()?
A) line extension
B) brand extension
C) licensing
D) co-branding
E) cannibalization
139. Which of the following is a potential drawback of multibranding()?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very profitable.
E) Multibranding causes companies to refrain from product diversification.
140. Which of the following strategies involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number one or number two market share positions with good growth prospects in their categories()?
A) megabrand strategies
B) niche marketing strategies
C) social marketing strategies
D) co-branding
E) licensing
141. While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by ________()?
A) brand differentiation
B) line extensions
C) brand experiences
D) brand sponsorships
E) brand awareness
142. Attributes are the most desirable level for brand positioning because competitors can easily copy attributes()?
A)TURE
B)FALSE
143. The strongest brands do not engage customers on a deep, emotional level()?
A)TURE
B)FALSE
144. Co-branding occurs when retailers and wholesalers create their own store brands()?
A)TURE
B)FALSE
145. Line extension refers to extending an existing brand name to new product categories()?
A)TURE
B)FALSE
146. Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share()?
A)TRUE
B)FALSE
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