Deck 11: Product,branding,and Packaging Decisions

Question 1

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

Answer 1

False

Question 2

A company's product line consists of its various product mixes.

Answer 2

False

Question 3

For the average college student,a retirement account would be a shopping product.

Answer 3

False

Question 4

A customized carved cedar wood sign for your house is an example of a convenience product.

Question 5

Brands enable customers to quickly differentiate one firm or product from another.

Question 6

Effective packaging and labels send consumers the signal "Buy me!"

Question 7

Private-label brands are imitations often sold by street vendors.

Question 8

Jenny traded in her old car for her heart's desire,a new Lexus sedan.The Lexus is considered a specialty product.

Question 9

Sales of private-label brands continue to increase,particularly in big-box stores such as Costco and Trader Joe's.

Question 10

A product label is just a required sticker on a package.

Question 11

When Jaclyn selects a case of Sprite at the grocery store for her party,she is attracted by the holiday-themed box featuring green and white bells.What Jaclyn is seeing is referred to as the secondary package.

Question 12

In entertainment licensing,the major risk to licensees is that the brand will become overexposed.

Question 13

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems),this would be an example of a line extension.

Question 14

For a company like Pepsi-Cola,brand dilution occurs when it sells more product than the competition.

Question 15

When purchasing a mobile phone,the product you are buying is more than just the phone.

Question 16

Harold is a loyal Coca-Cola customer.Loyal customers like Harold require lower marketing expenditures,benefiting businesses like Coca-Cola.

Question 17

The more familiar customers are with a brand,the harder their decision-making process will be.

Question 18

Kellogg's sells many different breakfast cereals,including Corn Flakes,Rice Krispies,Frosted Flakes,Raisin Bran,and Special K.This is an example of the breadth of the Kellogg's product mix.

Question 19

A product is anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

Question 20

Nike sells shoes,clothing,and athletic gear.These represent the breadth of Nike's products.

Question 21

The complete set of all products offered by a firm is called its

A) product line.
B) product categories.
C) product mix.
D) product breadth.
E) product line depth.

Question 22

Marketers with successful brands sometimes hesitate to expand their brands because

A) Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name.
B) it is costly to maintain many product lines, and it might weaken the brand's meaning.
C) it is often difficult to get additional marketing communications coverage for the brand.
D) manufacturing divisions usually control brand expansion and are often in conflict with the marketing division.
E) the current economy can support only a limited number of product options.

Question 23

Brands are assets that can be legally protected through trademarks.

Question 24

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark,which is Nike's

A) name.
B) symbol.
C) design.
D) term.
E) theme.

Question 25

For a brand name to be effective,it needs to be

A) easy for consumers to recognize and remember.
B) a catchy, tongue-twisting phrase.
C) a visual image containing human characters.
D) generic, so it can be applied to as many products as possible.
E) associated with a sports or movie superstar.

Question 26

For a major university,undergraduate studies,graduate studies,and professional programs would be __________ within the university's product mix.

A) brand associations
B) family brands
C) co-brands
D) product lines
E) private-label brands

Question 27

Claire always liked Lands' End raincoats,so when she was shopping for a winter coat,she ordered one from Lands' End without thinking too much about it.This demonstrates how brands facilitate purchases.

Question 28

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

A) product line
B) product mix
C) product mix breadth
D) line extension
E) brand extension

Question 29

The decision to delete a product is never taken lightly because,generally,manufacturers

A) have offered the product line to other firms for purchase.
B) have made substantial investments in product development and manufacturing.
C) have promised consumers they will maintain the product.
D) have used brand repositioning to improve results.
E) must meet federal standards when taking products off the market.

Question 30

For many years,General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position,it would exit the market.This strategy often resulted in the company __________ when certain product lines failed to meet this expectation.

A) increasing product line depth
B) decreasing product line depth
C) decreasing product mix breadth
D) increasing product mix breadth
E) introducing brand extensions

Question 31

A familiar brand name always helps the sales of a product.

Question 32

A product is __________ that can be offered through a voluntary marketing exchange.

A) the combination of a firm's marketing mix
B) the brand associations
C) the category depth
D) a tangible item
E) anything of value to consumers

Question 33

All of the following scenarios illustrate a reason why a firm would eliminate an item within a product line except

A) the firm decided to refocus marketing efforts elsewhere.
B) the firm must respond to evolving markets.
C) the product undermined its own brand.
D) the product being eliminated is unprofitable.
E) the firm has decided to capture new markets.

Question 34

In addition to extensive online and outdoor advertising,Under Armour has intensified its ______ efforts by signing Washington Nationals baseball star Bryce Harper to the biggest endorsement deal for an MLB player.

A) logo
B) branding
C) social media
D) value
E) differentiation

Question 35

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

A) brand associations.
B) product lines.
C) product mixes.
D) brands.
E) augmented services.

Question 36

When Mars manufactures M&M's,Snickers,and other confectionary products,or when Trek designs bicycles,each company's core question is: How do we produce this product in the least expensive manner?

Question 37

One important purpose of a brand is to

A) sell advertising space.
B) minimize product line depth needed to be effective.
C) increase consumer recognition and awareness of product offerings.
D) reduce product packaging.
E) meet government regulations.

Question 38

Zappos is a successful online shoe company.One of the difficulties in running a shoe company is the need to have significant __________,a large number of items in each product line.

A) brand equity
B) product line breadth
C) product line depth
D) product mix depth
E) product mix breadth

Question 39

One key feature of the value of a strong brand is that

A) it can protect the firm from competition.
B) it no longer needs to be supported by advertising and promotion.
C) if it becomes a generic name, the brand is worth even more.
D) it cannot be successfully imitated by a retailer's own brand.
E) competitors will typically abandon a sector altogether rather than compete.

Question 40

A decrease in a company's product depth will always hurt its marketing efforts.

Question 41

When Amanda shops for lipstick,she always buys Really Red by Cover Girl.This is an example of

A) brand loyalty.
B) brand awareness.
C) brand association.
D) brand equity.
E) perceived value.

Question 42

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

A) because of the annual competition for the most creative Super Bowl ad
B) because the Super Bowl offers an opportunity to create significant brand awareness
C) because the Super Bowl is a significant opportunity to be associated with global marketing
D) because Super Bowl ads generate brand loyalty
E) there is no good reason

Question 43

The value of a brand is often calculated by assessing the

A) difference between brand equity and brand liability.
B) corporate profitability divided by the monthly brand earnings.
C) earning potential of the brand over the next 12 months.
D) effect of brand dilution if it occurred.
E) average product line depth.

Question 44

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand.She has purchased other shoes with the same brand name in the past but was only marginally satisfied.In this situation,Nora is likely to purchase the store-brand sneakers because they offer

A) more brand awareness.
B) higher degrees of brand loyalty.
C) greater perceived value.
D) a better brand image.
E) more product line depth.

Question 45

Matt was passionate about Hollister.It was the only place he'd buy his clothes.If anyone asked him about clothes,he would talk for what seemed like hours about why he only shopped there.From a strictly marketing perspective,this word of mouth is an element of

A) social marketing.
B) brand loyalty.
C) self-actualization.
D) motivation.
E) brand extension.

Question 46

Firms spend millions of dollars annually to build brand equity,recognizing that brand equity contributes to

A) product mix breadth.
B) corporate stakeholder relations.
C) profitability.
D) brand liability.
E) perceived brand personality.

Question 47

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop.For McDonald's,the Golden Arches reduce marketing costs because people (including young children)

A) have memorized the McDonald's menu.
B) prefer yellow to other colors.
C) know what the Golden Arches brand symbol means.
D) recognize increases in product line depth.
E) are sensitive to brand repositioning.

Question 48

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand,the brand has considerable

A) awareness.
B) equity.
C) extension.
D) integration.
E) depth.

Question 49

Sometimes brand names become synonymous with a product itself.If that happens,the brand

A) has achieved brand stabilization.
B) could lose its trademark status.
C) should try co-branding to avoid brand dilution.
D) should consider a new packaging strategy.
E) easily eliminates all competition.

Question 50

Marketing expenditures allocated carefully can result in greater brand recognition,awareness,perceived value,and consumer loyalty for the brand,which all enhance the brand's

A) positioning.
B) licensing.
C) association.
D) equity.
E) solvency.

Question 51

The XYZ car manufacturing company is advertising its new hybrid vehicle.It understands that its competition,Toyota's hybrid car,the Prius,is known for being economical,a good value,stylish,and good for the environment.Toyota has the advantage of

A) copyrights and trademarks.
B) brand awareness.
C) brand extensions.
D) generic branding.
E) brand associations.

Question 52

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

A) brands protect corporate copyrights.
B) consumer loyalty can be bought for less now compared to the past.
C) brand equity can be obtained only by means of product line depth.
D) people already know what the brand means.
E) well-known brands are less likely to introduce brand extensions.

Question 53

Relatively few consumers like to go to the dentist.Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer.

A) perceived value
B) brand awareness
C) brand loyalty
D) generic positioning
E) brand extension

Question 54

When consumers associate a brand with a certain level of quality and familiar attributes,allowing consumers to make quick decisions,the brand

A) establishes novelty.
B) is the only one the consumer will consider.
C) reduces delivery costs.
D) facilitates purchasing.
E) creates brand dilution.

Question 55

In a competitive market,perceived value is determined by consumers mostly

A) by quantitative analysis of brand personalities.
B) in relation to the value of its close competitors.
C) by weighing primary versus secondary benefits.
D) by trying out different products.
E) through brand association and brand licensing.

Question 56

In the case of Band-Aid adhesive bandages,the brand name has

A) successfully employed private-label branding.
B) distinctive brand substitutability.
C) grown through private-label branding.
D) become synonymous with the product itself.
E) avoided brand extensions.

Question 57

Salina is working to create greater brand awareness for her company's new line of fitness trackers.To increase brand awareness,the least important information that should be included in promotions is

A) the brand name.
B) the logo.
C) the packaging.
D) the slogan.
E) the product history.

Question 58

All of the following are included in the main criteria used for determining how "good" a brand is,or how much equity it has except

A) brand awareness.
B) brand loyalty.
C) brand associations.
D) brand conceptualization.
E) perceived value.

Question 59

Whether they like them or not,most U.S.automobile customers are familiar with and have an opinion about American-made cars.This familiarity makes it easier for consumers to

A) meet their self-actualization needs.
B) make purchase decisions.
C) consider repositioning their opinions.
D) pursue generic alternatives.
E) negotiate discounts.

Question 60

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration.If consumers make a connection between the Doritos brand and this promotional effort,then Doritos has created

A) brand ownership.
B) a brand extension.
C) brand loyalty.
D) brand dilution.
E) a brand association.

Question 61

A tablet programmed with key customers' birthdates,wine preferences,and food allergies is a(n)__________ tool.

A) SKU
B) PDQ
C) IMF
D) CRM
E) GATT

Question 62

Brands that are owned by ___________ are called private-label brands.

A) manufacturers
B) wholesalers
C) supply chain specialists
D) retailers
E) manufacturer's reps

Question 63

All of the following are potential benefits of brand extension except

A) allowing the perception of a brand with a quality image to be carried over to the new product.
B) lowering marketing costs.
C) boosting sales of the core brand.
D) spending less on creating brand awareness and associations.
E) eliminating competition.

Question 64

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company-Procter & Gamble.Old Spice and Iams are known as

A) individual brands.
B) family brands.
C) corporate brands.
D) traditional brands.
E) umbrella brands.

Question 65

________ is another term for private-label brands.

A) Store brands
B) Off brands
C) Manufacturer's brands
D) National brands
E) Experiential brands

Question 66

When Procter & Gamble added teeth-whitening products under the Crest brand,the firm was engaged in

A) corporate branding.
B) brand extension.
C) brand licensing.
D) brand association.
E) perceived value branding.

Question 67

Procter & Gamble is a huge national brand manufacturer.By owning its brands like Tide and Crest,P&G

A) can monopolize store brands.
B) has greater opportunity to dictate retail pricing.
C) has greater control over its marketing strategy.
D) can increase brand dilution.
E) can eliminate any local competition.

Question 68

Jenna always buys Stacy's brand pita chips.She does not even consider alternatives.Jenna is a __________ customer.

A) price-sensitive
B) brand-persuasion-oriented
C) brand-association-oriented
D) brand-extension-oriented
E) brand-loyal

Question 69

All of the following statements regarding brand loyalty are true

A) the marketing costs of reaching loyal customers are typically very high.
B) brand-loyal customers are unlikely to switch to competitor's brands.
C) brand-loyal customers generate positive word of mouth.
D) firms tend to reward brand loyal customers with extra benefits.
E) brand-loyal customers do not need persuasion to buy the firm's brands.

Question 70

Imagine that you are the marketing manager of a hotel chain that wants to implement a customer reward and loyalty program.You research the firm Sabre Hospitality Solutions,which offers its services to global and boutique hotel chains to develop and execute these types of programs.Sabre Hospitality Solutions is a company that focuses on

A) customer relationship management.
B) building brand awareness.
C) building brand associations.
D) increasing perceived value.
E) increasing brand equity.

Question 71

The basic reason manufacturers spend time and money building their own brands is to

A) create brand awareness.
B) build brand equity.
C) offset the power of private-label manufacturers.
D) create positioning possibilities for their generic product lines.
E) maximize product line depth.

Question 72

For luxury carmakers,the lowest-end models in their product lines often represent only a small portion of their sales.Yet these models are critically important when it comes to attracting new customers and,potentially,establishing their lifelong

A) awareness of the brand.
B) perceived value of the brand.
C) loyalty to the brand.
D) product identification of the brand.
E) association of the brand.

Question 73

Which of the following is the best example of a family brand?

A) Cadillac, GMC, and Chevrolet
B) Tostitos Multigrain Scoops and Tostitos Chunky Salsa
C) Kellogg's Special K and Famous Amos Chocolate Chip Cookies
D) Lifesavers Soda, Coca-Cola, and Diet Coke
E) KFC/Taco Bell fast foods

Question 74

Brands can be owned by

A) manufacturers only.
B) any firm in the supply chain.
C) retailers only.
D) wholesalers and retailers only.
E) private-label generic retailers only.

Question 75

Frequent buyer / user award programs are used to

A) increase price sensitivity.
B) decrease co-branding costs.
C) lower licensing fees.
D) expand product line depth.
E) maintain contact with loyal customers.

Question 76

For marketers,one of the benefits of having achieved brand loyalty is

A) recognition through industry awards.
B) lower marketing costs associated with reaching loyal customers.
C) increased price sensitivity among loyal customers.
D) greater concern about competitors' actions.
E) few worries about copyright infringement.

Question 77

One of the categories of products for which brand extension is especially logical is

A) generic goods.
B) generic services.
C) commodities.
D) complementary goods.
E) licensed brands.

Question 78

Private-label brands are developed and managed by

A) manufacturers.
B) wholesalers.
C) supply chain specialists.
D) manufacturer's representatives.
E) retailers.

Question 79

Why is brand extension a popular marketing strategy?

A) It separates out the cost of brand extension from brand intention.
B) It allows the firm to discontinue complementary products.
C) It allows the firm to spend less on creating brand awareness and associations.
D) It avoids the problem of brand dilution.
E) It guarantees success for a new product.

Question 80

Adidas,Pepsi,Kitchen-Aid,and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.

A) national
B) retailer
C) international
D) premium
E) family