Deck 8: Creating Brand Equity and Driving Growth

Question 1

Branding is ________.

A) all about creating unanimity between products
B) the process of performing market research and selling products or services to customers
C) endowing products and services with the power of a brand
D) the process of comparing competing brands available in the market
E) use of online interactive media to promote products and brands

Answer 1

C

Question 2

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________.

A) the imported brand will not survive the competition from Maytag
B) Maytag has positive customer-based brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Maytag washing machine has better features than the imported brand

Answer 2

B

Question 3

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty?

A) salience
B) imagery
C) feelings
D) judgments
E) resonance

Answer 3

E

Question 4

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario?

A) energized differentiation
B) relevance
C) esteem
D) knowledge
E) advantage

Question 5

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?"

A) performance
B) bonding
C) advantage
D) relevance
E) presence

Question 6

According to BrandAsset® Valuator model, leadership brands show ________.

A) high levels of energy, differentiation, relevance, knowledge, and esteem
B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
D) low levels on energy, differentiation, relevance, knowledge, and esteem
E) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation

Question 7

The first step in the strategic brand management process is ________.

A) measuring consumer brand loyalty
B) identifying and establishing brand positioning
C) planning and implementing brand marketing
D) measuring and interpreting brand performance
E) growing and sustaining brand value

Question 8

What valuable functions can brands perform for a firm?

Question 9

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

Question 10

A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid.

A) advantage
B) relevance
C) presence
D) performance
E) bonding

Question 11

Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid?

A) presence
B) bonding
C) relevance
D) performance
E) advantage

Question 12

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

Question 13

When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________.

A) promise
B) personality
C) identity
D) position
E) revitalization

Question 14

The failure of Cracker Jack cereal is an example of consumers' ________ dictating that the extensions were inappropriate for the brand.

A) brand knowledge
B) brand equity
C) brand stature
D) power grid
E) brand salience

Question 15

Assume you are a marketing manager and want to adopt strategic brand management. List the four main steps that you would most likely go through to accomplish this task.

Question 16

Consumers may evaluate identical products differently depending on how they are branded.

Question 17

According to the BrandAsset® Valuator model, strong new brands show ________.

A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
C) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation
D) high levels on energy, differentiation, relevance, knowledge, and esteem
E) low levels on energy, differentiation, relevance, knowledge, and esteem

Question 18

When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________.

A) brand knowledge
B) ethnocentric bias
C) self-serving bias
D) cognitive dissonance
E) brand identity

Question 19

With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it.

A) imagery
B) judgment
C) resonance
D) salience
E) performance

Question 20

Physical goods, services, and stores can be branded, but ideas and people cannot.

Question 21

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand?

A) the product and all accompanying marketing activities and supporting marketing programs
B) the service and all accompanying marketing activities and programs
C) the initial choices for the brand elements or identities making up the brand
D) associations indirectly transferred to the brand by linking it to some other entity
E) the profitability associated with brand development

Question 22

The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

Question 23

Brand ________ is the job of estimating the total financial worth of the brand.

A) tracking
B) auditing
C) equity
D) valuation
E) harmonization

Question 24

A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, its product category, or its market.

A) value
B) personality
C) trait
D) character
E) contact

Question 25

To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise.

Question 26

One of the selection criteria for creating a successful brand element is that it should be protectable.

Question 27

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special.

A) the tangibility of a product
B) a product's shape
C) a slogan
D) a patent
E) a copyright

Question 28

According to the BrandZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.

Question 29

Brand equity can be built by linking the brand to sources, such as channels of distribution, as well as to other brands.

Question 30

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.

Question 31

The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario?

A) the associations indirectly transferred to the brand by linking it to a place or thing
B) the product and all accompanying marketing activities and supporting marketing programs
C) the initial choices for the brand elements or identities making up the brand
D) the profitability associated with brand development
E) the service and all accompanying marketing activities and programs

Question 32

AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray?

A) choosing the right moment to capture employees' attention and imagination
B) furnishing energizing and informative internal communication
C) bringing the brand alive for employees
D) linking internal and external marketing
E) understanding how brand communities work

Question 33

Which of the following is a defensive criterion for choosing brand elements?

A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance

Question 34

In Interbrand's brand valuation model, Brand Value is the likelihood the brand will realize forecasted Brand Earnings.

Question 35

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

Question 36

________ 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

Question 37

Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario?

A) the profitability associated with brand development
B) associations indirectly transferred to the brand by linking it to a person
C) the product and all accompanying marketing activities and supporting marketing programs
D) the initial choices for the brand elements or identities making up the brand
E) associations indirectly transferred to the brand by linking it to a place

Question 38

A brand audit can assess the health of a brand and uncover sources of brand equity.

Question 39

An important part of reinforcing brands is providing uniform and unchanging marketing support.

Question 40

In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects.

A) personalized marketing
B) mass customization
C) globalized marketing
D) relationship marketing
E) integrated marketing

Question 41

Given that the power of a brand resides in the minds of consumers and how it changes their response to marketing, there are two basic approaches to measuring brand equity. Briefly, describe each of these approaches.

Question 42

Define brand knowledge and explain its role in brand equity.

Question 43

Describe the meaning and function of a brand audit.

Question 44

A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.

A) architecture
B) position
C) portfolio
D) extension
E) image

Question 45

List the six criteria used in choosing brand elements.

Question 46

Apple's iPod Shuffle is an example of ________.

A) a sub-brand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand

Question 47

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand.

A) brand line
B) cobrand
C) generic brand
D) licensed product
E) subbrand

Question 48

Distinguish between brand equity and brand valuation.

Question 49

Describe the function of brand-tracking studies.

Question 50

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company.

A) product licensing
B) brand extensions
C) brand architecture
D) brand audits
E) brand dilutions

Question 51

In the brand resonance model of brand equity, the creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid. What are the six components of this pyramid?

Question 52

Summarize the steps in brand revitalization, and name an example of a brand that has been revitalized.

Question 53

How can marketers reinforce brand equity?

Question 54

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.

A) Flanker
B) Attacker
C) Defender
D) Cash cow
E) Simulation

Question 55

The introduction of Diet Coke by the Coca-Cola Company is an example of ________.

A) line extension
B) brand harmonization
C) category extension
D) brand dilution
E) co-branding

Question 56

Using an established brand to introduce a new product is called brand ________.

A) harmonization
B) valuation
C) extension
D) positioning
E) parity

Question 57

A major advantage of a ________ strategy is that if the product fails, the company has not tied its reputation to the product.

A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization

Question 58

According to the BrandZ model of brand strength, brand building involves a series of five sequential steps. What are those five sequential steps?

Question 59

Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand.

A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) revamping

Question 60

Define brand equity.

Question 61

WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business?

A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.

Question 62

A firm's branding strategy is also called the brand architecture.

Question 63

The role of a relatively high-priced brand in a portfolio is often to attract customers to the brand franchise or to "build traffic."

Question 64

Kellogg's uses its corporate brand name with its individual product brands as with Kellogg's Rice Krispies, Kellogg's Raisin Bran, and Kellogg's Corn Flakes. Which branding strategy is being used by the company?

Question 65

Driving sales and revenue growth can be more challenging in mature markets.

Question 66

Customer equity is synonymous with brand equity.

Question 67

Define customer equity, and describe three things that affect customer lifetime value.

Question 68

Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.

Question 69

Compare and contrast brand equity and customer equity.

Question 70

Identify five of Kotler and Kotler's general strategies for growth.

Question 71

Growth strategies are "either/or" propositions; a focus on core businesses means foregoing new market opportunities.

Question 72

Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.

Question 73

Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)?

A) It offers limited guidance for go-to-market strategies.
B) It has quantifiable measures of financial performance.
C) It ignores the advantages of creating a strong brand.
D) It overlooks the option value of brands.
E) It does not fully account for social network effects or word-of-mouth.

Question 74

Growing the core can be a less risky alternative for growth than expansion into new product categories.

Question 75

Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business?

A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.

Question 76

In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves.

A) brand equity
B) brand value chain
C) customer tracking
D) customer equity
E) brand extension

Question 77

List and briefly describe the four roles brands can play as part of a brand portfolio.

Question 78

When Honda expanded its brand into such areas as automobiles, snow blowers, and marine engines, it was pursuing a strategy called line extension.

Question 79

Identify the three main strategies for growing a company's core, as noted by UK marketing guru David Taylor, and provide an example for each.

Question 80

In what ways can brand extensions improve the odds of new-product success?