Deck 13: Developing and Managing Brand and Product Categories

Question 1

Karen prefers to buy Chemtec's cleaning products over other brands if they are easily available in the market.Karen is in the brand insistence stage of brand loyalty.

Answer 1

False

Question 2

The practice of brand licensing expands a company's exposure in the marketplace.

Answer 2

True

Question 3

Companies test market their new-product offerings to measure consumer reactions under normal competitive conditions.

Answer 3

True

Question 4

Product liability insurance has become an essential element for any new or existing product strategy.

Question 5

The original owner of a brand name can claim exclusive rights to the name even when the brand name becomes a descriptive generic name for a class of products.

Question 6

Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search extensively for the desired merchandise.

Question 7

Marketers' emphasis on targeting smaller market segments has increased the importance of packaging as a promotional tool.

Question 8

Food and household staples are common categories of generic products.

Question 9

A product that has attained a monopoly position with its consumers is in the brand preference stage of brand loyalty.

Question 10

Compared to first adopters,later adopters rely more heavily on impersonal information sources while purchasing new products.

Question 11

Even if a new product tests well in the market and reaches the commercialization stage,it may still take a while to catch on with the general public.

Question 12

A product's package color,size and label shapes are all part of its trade dress.

Question 13

A rise in perceived quality or public opinion about a brand enhances the brand's esteem.

Question 14

The "brand relevance" dimension of the brand personality refers to a brand's ability to stand apart from its competitors.

Question 15

Companies that offer mass-marketed goods and services are more likely to achieve monopoly position with their customers compared to those companies that manufacture luxury products.

Question 16

A global brand is generally defined as one that sells at least 60 percent outside its home country.​

Question 17

Brand extension is the strategy of developing individual offerings that appeal to different market segments while remaining closely related to the existing product line.

Question 18

The consumer adoption process spans from awareness of a product to its acceptance or rejection after a purchase has been made.

Question 19

A promotional outlay for a family brand benefits all items in the line.

Question 20

A product manager often leads new product development programs,including creation of new product ideas and recommendations for improving existing products.

Question 21

A product diversification strategy focuses on developing entirely new products for new markets.

Question 22

A strong brand identity can contribute to the consumers' perceptions of product quality.

Question 23

The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all members of a community or social system.

Question 24

Manufacturers' brands are also called national brands.

Question 25

In the awareness phase of the consumer adoption process,consumers make a trial purchase of an item to determine its usefulness.

Question 26

Once consumers have used a product,seen it advertised,or noticed it in a store,it moves from the unknown to the known category,which increases the probability that they will purchase it.

Question 27

Product positioning refers to consumers' perceptions of a product's attributes,uses,quality,and advantages and disadvantages relative to competing brands.

Question 28

The market shares for generic products increase during economic downturns but subside when the economy improves.

Question 29

A product can fulfill its mission of satisfying consumer needs only if it ensures safe operation.

Question 30

A venture team functions as an entity separate from the basic organization.

Question 31

A brand name must qualify for legal protection.

Question 32

National brands sold exclusively by a retail chain are called captive brands.

Question 33

Fears of product tampering have forced many firms to improve package designs.

Question 34

Consumer innovators are individuals who rely on the experiences of initial buyers before making trial purchases.

Question 35

An effective label performs both promotional and informational functions.

Question 36

New-product committee members spend less time conceiving and developing their own new-product ideas than reviewing and approving new-product plans that arise elsewhere in the organization.

Question 37

Merrill Lynch's bull logo cannot be considered a part of the product's trade dress.

Question 38

Line extension is the strategy of attaching unrelated products to a known brand name to gain instant recognition for the new offerings.

Question 39

A brand name should give buyers the correct connotation of the product's image.

Question 40

Family brands cost more than individual brands to market.

Question 41

Makers of generic products are dependent on brand loyalty for their marketing success.

Question 42

Branding helps firms build and maintain identity and competitive advantage for their products.

Question 43

Product managers have profit responsibility for their product group and help the retailer's category buyer maximize sales for the whole category,not just the particular manufacturer's product.

Question 44

Private labels typically provide better profit margins than captive brands.

Question 45

The original objective of product packaging was to increase consumer awareness of the product.

Question 46

A brand mark is defined as a part of a brand that can be spoken.

Question 47

Kroger,a popular milk brand,is a market leader in Denmark.About 30 percent of its sales and earnings take place outside its home country.Kroger can be regarded as a global brand.

Question 48

Patients cannot sue a pharmaceutical company over the alleged defects of its products,if the FDA has approved the use of the medication.

Question 49

One of the problems associated with brand licensing is that brand names do not transfer well to all products.

Question 50

If potential buyers can observe an innovation's superiority in a tangible form,the adoption rate increases.

Question 51

Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a branded product when choosing it,if available,over competitors' products.

Question 52

Concept testing is a marketing research project that attempts to measure consumer attitudes and perceptions about the new product idea.

Question 53

A trademark is different from a trade name,which is usually used to identify a company.

Question 54

Companies that follow category management process define the category based on the target market's needs.

Question 55

Brand insistence is a company's first objective for newly introduced products.

Question 56

A company sent free samples of its new shampoo to a researched list of potential customers.This strategy is most likely to accelerate the evaluation and trial stages of the consumer adoption process.

Question 57

Marketers opt for family brand names to distinguish dissimilar products.

Question 58

A national brand defines the image most people form when they think of a brand.

Question 59

Some firms register a brand name before they have manufactured the product in order to prevent competitors from using the name.

Question 60

Firms can receive trademark protection only for the brand name and brand mark and not for the product features or packaging elements.

Question 61

Brands with high equity often command comparatively large market shares.

Question 62

The number of product liability lawsuits has fallen in recent years thanks to better designed products and more detailed regulations.

Question 63

Brand names should contain words or phrases in general use,so that it is easier for the consumers to pronounce,recognize and remember the brand names.

Question 64

A market penetration strategy seeks to increase sales of existing products in existing markets.

Question 65

A market development strategy concentrates on developing new products for existing markets.

Question 66

Josh usually buys one brand of orange juice but,occasionally,will buy a competitive brand if it's on sale.Josh is exhibiting brand insistence.

Question 67

Production of private-label goods helps manufacturers reach additional market segments.

Question 68

Family brands are the most effective aids in implementing market segmentation strategies.

Question 69

When a company authorizes another organization to use its brand name,the company is practicing brand diversification.

Question 70

Cannibalization is the loss of sales of an existing product due to competition from a new product introduced into the market by a competing firm.

Question 71

A product development strategy might include flanker brands that are introduced into the market to increase the overall market share of the company.

Question 72

The Columbia Sportswear Company decides to produce a line of jackets embroidered with the names of all of the NFL teams.For doing so,Columbia must first obtain an authorization from the teams and/or the league before using the trademarked names.This is an example of brand licensing.

Question 73

An excellent brand name or symbol in one country may prove disastrous in another.

Question 74

A brand is said to have high relevance if a large number of consumers feel the need for the benefits offered by the brand.

Question 75

A family brand is a single brand name that identifies several related products.

Question 76

Brand insistence,the ultimate stage in brand loyalty,leads consumers to refuse alternatives and to search extensively for the desired merchandise.

Question 77

The screening and business analysis stages of new-product development,determine the product's financial and technical requirements.

Question 78

A line extension involves the addition of new sizes,styles,flavors,or related products to an existing group of products.

Question 79

Tide laundry detergent commands an extremely high market share.Purchasers of the product are extremely less sensitive to price changes.Based on this assessment,it can be said that Tide has high brand equity.

Question 80

Small manufacturers usually assign a category manager to each major channel such as grocery stores or drugstores,instead of each retail chain.