Final Flashcards
________ combines the design and implementation of marketing activities and programs to build, measure, and manage brands to maximize their value.
A) Brand planning
B) Strategic brand management
C) Tactical brand management
D) Brand targeting
E) Brand positioning
B
The ________ approach to measuring brand equity examines the investment made in developing the brand, including marketing research, brand design, communication, management, and legal services.
A) market
B) financial
C) cost
D) valuation
E) calculation
C
The ________ approach to measuring brand equity measures the difference between the sales revenues from a branded offering against those of an identical unbranded offering, adjusted for the expense of building the brand.
A) market
B) financial
C) cost
D) valuation
E) calculation
A
The ________ approach to measuring brand equity evaluates the net present value (NPV) of a brand’s future earnings.
A) market
B) financial
C) cost
D) valuation
E) calculation
B
The American Marketing Association defines a ________ as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”
A) copyright
B) trademark
C) slogan
D) brand
E) logo
D
________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand.
A) Mission-driven equity
B) Brand power
C) Product-driven equity
D) Brand equity
E) Function-based equity
B
Which of the following is a marketing advantage of strong brands?
A) No vulnerability to marketing crises
B) More elastic consumer response to price increases
C) Guaranteed profits
D) Additional brand extension opportunities
E) More inelastic consumer response to price decreases
D
________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies
E
TF Brand power arises from differences in the consumer responses that a brand evokes.
True
TF The indirect approach to assessing brand power assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.
False
TF One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.
True
________ represent a special type of brand symbol—one with human characteristics that both enhance likability and tag the brand as interesting and fun.
A) Brand characters
B) Brand icons
C) Logos
D) Logotypes
E) Brand personalities
A
Which of these is NOT a secondary brand association that a company would typically seek to establish for its brands?
A) Source of company funds
B) The company itself
C) Countries or regions
D) Channels of distribution
E) Spokespeople
A
A brand ________ is a three- to five-word articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.”
A) mantra
B) personality
C) identity
D) position
E) revitalization
A
Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand.
A) elements
B) value propositions
C) perceptions
D) images
E) extensions
A
Which of the following is a defensive criterion for choosing brand elements?
A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance
A
Which of the following statements about brand mantras is true?
A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They are used by employees only, not external marketing partners.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They average one paragraph in length.
D
American Express’s “World-Class Service, Personal Recognition,” Mary Kay’s “Enriching Women’s Lives,” Hallmark’s “Caring Shared,” and Starbucks’ “Rewarding Everyday Moments” are examples of brand ________.
A) mantras
B) parity
C) identity
D) architecture
E) extension
A
Nike’s “Just Do It,” BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch someone” are all examples of brand ________.
A) slogans
B) personalities
C) missions
D) architectures
E) mantras
A
For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on points of ________.
A) difference
B) presence
C) inflection
D) parity
E) conflict
A
TF The more important brand elements are often those that capture intangible characteristics.
True
TF Brand equity is essentially the same as brand valuation
False
The ________ reflects the way in which a company’s brands are related to a company’s products and services, as well as to one another.
A) brand family
B) brand ladder
C) brand DNA
D) brand hierarchy
E) brand blueprint
D
A ________ involves individual or separate family brand names.
A) house-of-brands
B) branded-house
C) sub-brand strategy
D) brand ladder
E) brand network
A
A ________ involves a corporate umbrella or company brand name.
A) house-of-brands
B) branded-house
C) sub-brand strategy
D) brand ladder
E) brand network
B
A ________ combines two or more corporate, family, or individual product brand names.
A) house-of-brands
B) branded-house
C) sub-brand strategy
D) brand ladder
E) brand network
C
Many companies are introducing ________, which are specific brand lines supplied to specific retailers or distribution channels.
A) branded variants
B) regional brands
C) channel brands
D) distribution brands
E) retailer brands
A
________ creates brand equity for materials, components, or parts that are necessarily contained within other branded products.
A) A brand alliance
B) Ingredient branding
C) Internal branding
D) Production branding
E) Recipe branding
B
The ________ in the brand value chain determines the extent to which the value created in the minds and hearts of customers affects market performance.
A) customer multiplier
B) market multiplier
C) shareholder value
D) program multiplier
E) price elasticity
A
The ________ in the brand value chain determines the extent to which the value shown by the market performance of a brand is manifested in shareholder value.
A) customer multiplier
B) market multiplier
C) shareholder value
D) program multiplier
E) price elasticity
B
A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________.
A) the brand value chain
B) the brand portfolio
C) the brand life cycle
D) brand partitioning
E) brand positioning
A
Competitive reactions and channel support are factors that influence the ________ multiplier of the brand value chain.
A) program
B) customer
C) brand
D) profit
E) market
B
Distinctiveness, relevance, and value are factors that influence the ________ multiplier of the brand value chain.
A) program
B) brand
C) market
D) customer
E) profit
A
A major advantage of a ________ strategy is that the company does not tie its reputation to the product.
A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization
C
The ________ in the brand value chain determines the marketing program’s ability to affect the customer mindset and is a function of the quality of the program investment.
A) customer multiplier
B) market multiplier
C) shareholder value
D) program multiplier
E) price elasticity
D
TF Westin Hotels’ Heavenly Bed initiative that promotes the comfort of its beds is an example of ingredient branding.
T
When marketers combine a new brand with an existing brand, the brand extension can also be called a ________, such as Hershey Kisses candy and Courtyard by Marriott hotels.
A) child brand
B) spinoff brand
C) merged brand
D) sub-brand
E) hybrid brand
D
The Dannon yogurt products Fruit on the Bottom, All Natural flavors, Danonino, and Light & Fit are all examples of ________ from the original Dannon brand.
A) down-market stretches
B) up-market stretches
C) line extensions
D) brand extensions
E) family brands
C
What percentage of new products in a typical year are brand extensions?
A) 4 to 5 percent
B) 8 to 10 percent
C) 15 to 20 percent
D) 50 to 60 percent
E) 80 to 90 percent
E
When Honda applied that brand name to snowblowers, lawnmowers, and other non-automotive products, it was engaging in ________.
A) cobranding
B) brand architecting
C) brand extensions
D) line extensions
E) laddering
C
Why was Ralph Lauren able to extend its brand name from fashion to something as far removed as paint?
A) The brand was known for its fashionable style, which extended easily to home décor.
B) Consumers like to consolidate all style-related purchases, whether fashion or home goods.
C) There is little competition in the paint sector.
D) The paint sector had become stale, with few innovations in color palettes.
E) Color became a strong secondary brand association, so a move into paint was natural.
C
Brand ________ occurs when consumers no longer associate a brand with a specific or highly similar set of products and start thinking less of the brand.
A) erasure
B) dilution
C) minimization
D) consolidation
E) negation
BW34Q2
Which of these is NOT one of the four guidelines to help firms manage their brands through a public crisis?
A) Empathy: Get even closer to consumers and customers.
B) Value: Put forth the most compelling value proposition.
C) Strategy: Be authentic and true to the brand promise.
D) Vision: Convince investors that the company is staying true to its long-term plans.
E) Innovation: View the crisis as an opportunity to improve plans and products.
D
Nike’s shift to use its technical expertise to develop Personal Protective Equipment (PPE) when the Covid-19 crisis hit was an example of which crisis-management guideline?
A) Empathy: Get even closer to consumers and customers.
B) Value: Put forth the most compelling value proposition.
C) Strategy: Be authentic and true to the brand promise.
D) Vision: Convince investors that the company is staying true to its long-term plans.
E) Promotion: View the crisis as an opportunity to demonstrate expertise.
A
Which of these is a challenge that Coca-Cola faced when trying to extend its brand into the health and energy drinks category?
A) Low consumer trust
B) A strong association with carbonated colas
C) Counterattacks from PepsiCo
D) Consumer boredom with the health and energy drinks category
E) Limited distribution opportunities
B
Which of these would probably be the most difficult brand to execute a brand extension from?
A) One with multiple positive associations
B) One with multiple positive secondary brand associations
C) One seen as prototypical of its product category
D) One viewed as particularly edgy or innovative by its fans
E) One that faces strong competition in its core category
C
Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its coffee shops. This is an example of ________.
A) brand dilution
B) co-branding
C) brand variants
D) brand extension
E) brand harmonization
D
A parent brand that is associated with multiple products through brand extensions is also called a(n) ________.
A) category brand
B) subbrand
C) extension brand
D) family brand
E) line brand
D
Two advantages of ________ are that they can facilitate new-product acceptance and help clarify the meaning of the parent brand.
A) product licensing
B) brand extensions
C) brand architecture
D) brand audits
E) brand dilutions
B
TF A brand that is seen as prototypical of a product category is easy to extend outside the category.
F
What element is in the center of the Bull’s-Eye Framework for developing brand positioning?
A) The brand mantra
B) Points of parity
C) Points of difference
D) Substantiators
E) Brand values
A
If Starbucks wanted its positioning to include the attributes of contemporary, thoughtful, and caring, where would these qualities appear in its Bull’s-Eye Framework?
A) The brand mantra
B) Points of parity
C) Points of difference
D) Substantiators
E) Brand values, personality, character
E
In addition to helping time-pressed customers research products before coming into retail stores, what is another reason many high-end fashion brands such as Dior, Louis Vuitton, and Fendi have unveiled e-commerce sites?
A) To eliminate the costly retail channel
B) To be seen as young and hip
C) To eliminate the need for retail sales personnel
D) To combat fakes sold online
E) To meet new government data privacy regulations
D
TF Price is one of the two elements of the marketing mix that produces revenue.
F
________—various visual, verbal, and numerical indicators that convey information about price—are an important part of the psychology of pricing.
A) Pricing cues
B) Price tags
C) Bar codes
D) QR codes
E) Quality labels
A
________ is especially effective with ego-sensitive products such as perfumes, expensive cars, and designer clothing.
A) Exclusive pricing
B) Price matching
C) Hidden price tagging
D) Image pricing
E) Value-perception pricing
D
When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price.
A) markup
B) reference
C) market-skimming
D) accumulated
E) target
B
Pricing cues such as sale signs and prices that end in 9 are more influential when ________.
A) customers have substantial knowledge about prices
B) customers purchase the particular item regularly
C) product quality is standardized
D) product designs vary over time
E) prices do not vary from time to time
D
TF Pricing cues such as sale signs and prices that end in 9 are more influential when consumers are experienced in the category.
F
TF Although consumers may have fairly good knowledge of the range of prices involved, very few can accurately recall specific prices of products.
T
What is the normal relationship between price and demand in a demand curve?
A) The higher the price, the lower the demand
B) The lower the price, the higher the demand
C) The higher the price, the higher the demand
D) The lower the price, the lower the demand
E) Price and demand move in the same direction
A
The zone in which prices can fluctuate with negligible effect on demand is known as the ________.
A) negligence band
B) price indifference band
C) negative elasticity zone
D) customer indifference band
E) price ignorance band
B
Which of these is a condition that usually contributes to low price elasticity?
A) There are many substitutes for a product.
B) Consumers readily notice price increases.
C) Part or all of the cost is borne by another party.
D) Consumers don’t believe price hikes are justified.
E) Consumers are quick to change their buying habits.
C
Which of these is a major risk of experience-curve pricing?
A) There is a point beyond which the company can lower its prices no further.
B) The more the company produces, the less money it earns.
C) The company will reach a point where it can no longer afford to keep building production capacity.
D) A competitor may innovate with lower-cost technology, leaving the leader stuck with old technology.
E) Aggressive pricing is viewed as socially irresponsible.
D
After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy?
A) It should analyze its competitors’ costs, prices, and offers.
B) It should select its pricing method.
C) It should select its final price.
D) It should determine the demand for its product.
E) It should estimate the cost of its product.
D
The first step in estimating demand is to ________.
A) analyze competitors’ cost
B) select a pricing method
C) understand what affects price sensitivity
D) calculate fixed costs
E) decipher the experience curve
C
Consumers are less price sensitive ________.
A) to high cost items
B) when they frequently change their buying habits
C) when there are more substitutes
D) when there are more competitors
E) when they do not readily notice higher prices
E
Consumers are less price sensitive when ________.
A) price is only a small part of the total cost spent on the product over its lifetime
B) they perceive the higher prices to be unjustified
C) they change their buying habits regularly
D) there are many substitutes and competitors in the market
E) they are buying high-cost items
A
If demand hardly changes with a small change in price, the demand is said to be ________.
A) strained
B) marginal
C) inelastic
D) flexible
E) unit elastic
C
Which of the following is true regarding price elasticity?
A) The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction.
B) Within the price indifference band, price changes have little or no effect on demand.
C) If demand is elastic, sellers will consider increasing the price.
D) Price elasticity does not depend on magnitude and direction of the contemplated price change.
E) When demand is inelastic, sellers should lower prices in order to increase total revenue.
Answer: B
B
________ cost is the cost per unit at that level of production; it equals total costs divided by production volume.
A) Target
B) Average
C) Marginal
D) Opportunity
E) Fixed
B
Experience-curve pricing ________.
A) assumes competitors are weak followers
B) allows products to project a high quality image
C) is applicable only to manufacturing costs
D) focuses on reducing fixed costs
E) is generally risk-free
A
Which of the following is the most elementary pricing method?
A) Value pricing
B) Going-rate pricing
C) Markup pricing
D) Target-return pricing
E) Perceived-value pricing
C
A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company’s target-return price for this product.
A) $18.10
B) $18.23
C) $20.25
D) $20.70
E) $25.50
C
An umbrella manufacturing company’s fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units does the firm need to sell in order to break even?
A) 1,819
B) 5,500
C) 18,000
D) 27,500
E) 55,000
E
________ pricing takes into account a host of inputs, such as the buyer’s image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier’s reputation, trustworthiness, and esteem.
A) Economic-value-to-customer
B) Value
C) Going-rate
D) Auction-type
E) Markup
A
The key to economic-value-to-customer pricing is to ________.
A) reengineer the company’s operations
B) deliver more unique value than competitors
C) adopt subtle marketing tactics compared to competitors
D) deliver more value but at a lower cost
E) invest heavily in advertising in order to convey superior value
B
Which of the following auctions is characterized by one seller and many buyers?
A) Walrasian auctions
B) English auctions (ascending bid)
C) Closed auctions
D) Sealed-bid auctions
E) Reverse auctions
B
In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?
A) A Dutch auction with one buyer and many sellers
B) An English auction with one seller and many buyers
C) An ascending bid auction
D) A sealed-bid auction
E) A Dutch auction with one seller and many buyers
E
In a(n) ________, the buyer announces something he or she wants to buy, and potential sellers compete to offer the lowest price.
A) Dutch auction with one buyer and many sellers
B) English auction with one buyer and many sellers
C) English auction with one seller and many buyers
D) sealed-bid auction
E) ascending auction
A
In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand.
A) second-degree price discrimination
B) third-degree price discrimination
C) psychological discounting
D) special-customer pricing
E) first-degree price discrimination
E
In second-degree price discrimination, the seller charges ________.
A) less to buyers of larger volumes
B) different prices depending on the season, day, or hour
C) a separate price to each customer depending on the intensity of his or her demand
D) different prices for different versions of the same product
E) different prices for the same product depending on the channel through which it is sold
A
In ________, the seller charges different amounts to different segments of buyers.
A) perceived value pricing
B) third-degree price discrimination
C) first-degree price discrimination
D) second-degree price discrimination
E) psychological discounting
B
________ refers to selling below cost with the intention of destroying competition.
A) Bid rigging
B) Loss-leader pricing
C) Predatory pricing
D) Price discrimination
E) Price penetration
C
TF In the case of prestige goods, the demand curve sometimes slopes upward.
T
TF A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales would charge a markup price of $20.
T
TF Price elasticity tends to be lower for durable goods than for other goods.
F
Which of these signals a condition where competitors are most likely to react to a price change?
A) When the firm has a weak value proposition
B) When the firm enjoys a monopoly
C) When there are few competing firms
D) When the product is heterogeneous
E) When buyers have limited information
C
Which of these is a consumer franchise building incentive?
A) Price-off packs
B) Frequency awards
C) Contests
D) Refund offers
E) Sweepstakes
B
By monitoring the proportion of customers receiving discounts, the average discount, and any tendency for salespeople to rely too heavily on discounting, managers use ________ to arrive at the “real price” of an offering.
A) net price analysis
B) discount analysis
C) price research
D) price monitoring
E) price trending
A
