Deck 3: Branding Strategy and Consumer Behavior

Question 1

Incremental innovations usually diffuse more quickly than totally new products.

Answer 1

True

Question 2

Brand meaning depends on the strength and nature of the image of the brand in terms of objective quality and performance.

Answer 2

True

Question 3

Each product goes through rejuvenation during the decline stage.

Answer 3

False

Question 4

.Diffusion of innovation is the rate at which a new product spreads or is adopted across the marketplace.

Question 5

The adoption rate of a new product usually is highest during the growth stage of the product life cycle.

Question 6

The S-shaped diffusion curve tends to produce aU-shaped life cycle curve.

Question 7

Perceived risk usually increases the diffusion rate of new products.

Question 8

Brand name is often a product's most important attribute.

Question 9

Adding a brand name can sometimes rejuvenate generic products.

Question 10

Reducing price is one way to rejuvenate a product.

Question 11

Commodities don't follow the product life cycle.

Question 12

7.The introduction stage of a product usually generates high profits.

Question 13

Establishing a strong brand name and reputation typically costs less than ten thousand dollars.

Question 14

Trialability of a new product tends to be lower for inexpensive products than for expensive products.

Question 15

The maturity stage of the product life cycle involves heavy promotion and advertising.

Question 16

Most products score high on both differentiation and relevance.

Question 17

Trialability is the ease with which a consumer can try or use a new product.

Question 18

During the introduction stage of the product life cycle, managers should focus on reducing production and marketing costs.

Question 19

The "decline" stage is the last stage of the product life cycle.

Question 20

Brand identify refers to the feelings and emotions consumers have about your brand.

Question 21

Comparative advertising increases the perceived similarity of underdog and topdog brands.

Question 22

A marketer should consider expanding a product line when consumers are attribute (vs.brand) loyal.

Question 23

People who drive BMW's report feeling like important people when they drive their cars.This represents a strong brand meaning.

Question 24

Trying to attract new category users (e.g., shifting coffee drinkers over to tea) is a good way to retain customers.

Question 25

One way to measure brand equity is to compare consumers' evaluations of a product with a brand name against a generic no-name product in the same category.

Question 26

Slogans like "stick with what works," and "you get what you pay for," are highly credible arguments for consumers.

Question 27

Acquisition and retention strategies usually rely on the use of similar marketing activities.

Question 28

A short channel of distribution is preferred when trying to retain existing customers, but a long channel of distribution is preferred when trying to acquire new customers.

Question 29

Many U.S.fmns are increasing the emphasis on the number of product line managers.

Question 30

Retention strategies focus on keeping existing customers.

Question 31

Increasing product line breadth increases the likelihood of cannibalization.

Question 32

Measuring how much a competitor would be willing to pay for a brand name trademark is a good way to measure brand resonance.

Question 33

Offering a lower price when a consumer purchases multiple units at one time is called continuity pricing.

Question 34

Brands that are low in brand strength but high brand stature are usually strong niche brands.

Question 35

Price comparisons across brands are clear and unambiguous.

Question 36

U.S.Fortune 500 shows that total market share decreases as product line breadth increases.

Question 37

Ambiguity and confmnation bias favor strong and weak brands.

Question 38

Brands that are low in brand strength and low in brand stature are often new products early in the product lifecycle.

Question 39

Brands that are high in brand strength and brand stature have the greatest amount of equity to protect and leverage.

Question 40

Encouraging consumers to challenge their current beliefs can be helpful to underdog brands.

Question 41

New products that share brand name with a familiar established product are known as:

A)brand extensions
B)market leaders
C)niche brands
D)market underdogs
E)growth brands

Question 42

Which new product entry strategy is most appropriate when the product is expected to have a relatively short product life cycle?

A)Moderate takeoff
B)Rapid acceleration
C)Maximum penetration
D)Long-run franchise
E)Rejuvenation

Question 43

During the growth phase of the product life cycle, the marketing manager should focus primarily on:

A)creating awareness and stimulation of trial
B)building and holding share
C)production process improvement
D)harvesting
E)rejuvenating

Question 44

The value that a brand accrues based on the goodwill attached to associations with the brand name is known as:

A)brand extension value
B)asset value
C)diffusion rate
D)customer utility
E)None of the above is correct.

Question 45

Which of the following is not a strategy for extending the product life cycle and rejuvenating a product?

A)Branding a commodity
B)Identifying new relative advantages
C)Increasing the price
D)Identifying new users
E)All of the above are strategies for extending the product life cycle.

Question 46

A product with a relative advantage the diffusion rate

A)high; increases
B)low; increases
C)high; decreases
D)Both A and B are correct.
E)None of the above are correct.

Question 47

Which of the follow is not measured in the Young and Rubicam Brand Asset Valuator?

A)Differentiation
B)Relevance
C)Esteem
D)Equality
E)All of the above are measured.

Question 48

According to the Young and Rubicam Brand Asset Valuator, brand differentiation is:

A)how unique the brand is
B)how useful the brand is
C)how clear or consistent the brand image is
D)how much brand resonance the brand has
E)how much relevance the brand has

Question 49

According to the Young and Rubicam Brand Asset Valuator, brand strength equals:

A)esteem X knowledge
B)esteem X relevance
C)differentiation X knowledge
D)differentiation X relevance
E)None of the above is correct.

Question 50

Lava soap is a heavy-duty hand soap designed to remove grease and oil.The makers of Lava are currently looking for new uses for the product, including stain removal for cloths.This product is most likely in what stage of the product life cycle ?

A)Introduction
B)Harvest
C)Growth
D)Maturity
E)Decline

Question 51

During the maturity phase of the product life cycle, the marketing manager should focus primarily on:

A)creating awareness and stimulation of trial
B)building and holding share
C)production process improvement
D)harvesting
E)rejuvenating

Question 52

The is the rate at which a new product spreads or is adopted across the marketplace.

A)rapid takeoff curve
B)brand asset valuator
C)product life cycle
D)long-run franchise curve
E)diffusion of innovation

Question 53

When a new product is first introduced to the market, the marketing manager should focus primarily on:

A)creating awareness and stimulation of trial
B)building and holding share
C)production process improvement
D)harvesting
E)rejuvenating

Question 54

, which is the ease with which consumers can sample or use a new product innovation, the diffusion rate.

A)Relative advantage; increases
B)Complexity; increases
C)Trialability; increases
D)Relative advantage; decreases
E)Trialability; decreases

Question 55

Procter and Gamble offers over 10 different diaper products.Unfortunately, many of these product are similar and compete with each other.This is an example of what concept?

A)Asset over-valuation
B)Diffusion failure
C)The sales-cost trade-off
D)Cannibalization
E)The majority fallacy

Question 56

Which new product entry strategy is most closely associated with the maturity stage of the diffusion of innovation curve?

A)Rapid takeoff
B)Rapid acceleration
C)Maximum penetration
D)Long-run franchise
E)Rejuvenation

Question 57

Which of the following is a strategy for extending the product life cycle and rejuvenating a product?

A)Developing a new use for the product
B)Advertising more heavily
C)Reducing price
D)Developing a new distribution strategy
E)All of the above are strategies for extending the product life cycle.

Question 58

FluTest is a new product that has been on the market a few months.It is an at-horne test kit to diagnose seasonal flu.The managers at FluTest are working hard to create awareness and get people to try the product.This product is most likely in what stage of the product life cycle?

A)Introduction
B)Early adoption
C)Growth
D)Maturity
E)Rejuvenation

Question 59

Marketers can best influence the diffusion rate early in the introduction stage by identifying and marketing toward what group of consumers?

A)Early adopters
B)Innovators
C)Laggards
D)Majority buyers
E)None of the above are correct.

Question 60

Which of the following is not a factor that influences diffusion of innovation?

A)The relative advantage of a new product over old products
B)Complexity and user-friendliness
C)Perceived risk
D)Compatibility with existing consumers beliefs, opinions, and lifestyles
E)Potential for cannibalization

Question 61

The makers of Pantene Hair Care products was interested in determining types of loyalty in its target market.Using marketing research, they asked customers to indicate their first choice and their second choice from among a list of brands and brand extensions.The majority of the participants indicated that Pantene Body Rich Shampoo and Aussie Body Building Formula Shampoo were their first and second choice.These results suggest that these consumers are:

A)attribute loyal
B)brand loyal
C)product loyal
D)All of the above are correct.
E)It is impossible to predict from this type of research question.

Question 62

The makers oflrish Spring Soap offer a lower price to consumers if they purchase 10 bars of soap at a time.This pricing strategy is called:

A)continuity pricing
B)unit pricing
C)trial pricing
D)loyalty pricing
E)confrnnation pricing

Question 63

If a marketer is trying to retain and extend demand among current customers, what pricing strategy and channel strategy should be pursued, according to your readings?

A)Trial pricing and a long channel
B)Continuity pricing and a long channel
C)Trial pricing and a short channel
D)Continuity pricing and a short channel
E)None of the above are correct.

Question 64

What does the Young Rubicarn Brand Asset Valuator measure?

Question 65

Discuss the ways identified in your readings that managers can build strong brand names for their products.Provide an example of a brand that performs well on at least 2 of these dimensions.

Question 66

How can a product be rejuvenated?

Question 67

Which of the following is not a retention strategy?

A)Enacting a customer loyalty program
B)Giving discounts when customers buy in larger quantities
C)Getting customers to "trade up" to more expensive products in the product line
D)Developing new uses for a product
E)All of the above are retention strategies.

Question 68

People often fmd it easier to identify and interpret information that supports their current beliefs.This concept is know as:

A)truth effect
B)confmnation bias
C)halo effect
D)Miller's rule
E)brand resonance effect

Question 69

The makers of Pantene Hair Care products was interested in determining types of loyalty in its target market.Using marketing research, they asked customers to indicate their first choice and their second choice from among a list of brands and brand extensions.The majority of the participants indicated that Pantene Body Rich Shampoo and Pantene Body Building Mousse were their first and second choice.These results suggest that these consumers are:

A)attribute loyal
B)brand loyal
C)product loyal
D)All of the above are correct.
E)It is impossible to predict from this type of research question.

Question 70

List the steps of the diffusion of innovation curve and the product life cycle curve.

Question 71

Which of the following is not a way for a market underdog to encourage change?

A)Run comparative advertisements
B)Engage in blind taste tests to prove to current customers your brand is best
C)Make price comparisons difficult
D)Encourage customers to challenge their current beliefs and choices
E)Explore the use of unusual distribution channels

Question 72

If the vast majority of a brand's customers are brand loyal, what should a marketer do?

A)Harvest the brand
B)Increase the product line
C)Develop as few brand extension as possible
D)Maintain a narrow product line to avoid cannibalization
E)Stop promoting the brand because it is a waste of money

Question 73

Explain the difference between harvesting and rejuvenating a product.

Question 74

What factors increase the likelihood of brand cannibalization?

Question 75

Which of the following is not a way for a market leader to prevent change?

A)Remind the customer to "stick with what works"
B)Engage in blind taste tests to prove to current customers your brand is best
C)Make price comparisons difficult
D)Differentiate using ambiguous or irrelevant attributes
E)All of the above are ways for market leaders to prevent change.

Question 76

is offering a price so low that it encourages potential new customers to purchase.

A)Continuity pricing
B)Unit pricing
C)Trial pricing
D)Loyalty pricing
E)Confrnnation pricing

Question 77

Tammy really likes Diet Coke.When Diet Coke isn't available Tammy chooses Coke Zero or Caffeine Free Diet Coke.In terms ofloyalty, Tammy is:

A)attribute loyal
B)brand loyal
C)product loyal
D)low in brand resonance
E)All of the above are correct.

Question 78

List the four basic entry strategies that accompany each stage of the diffusion of innovation curve.

Question 79

Defme brand equity.

Question 80

According to your readings, which of the following factors does not help a finn control costs associated with product line breadth?

A)Just-in-time ordering procedures
B)Flexible manufacturing technologies
C)Sharing common parts
D)Adding non-common parts at early stages of the manufacturing process
E)All of the above help.