Deck 9: Creating Brand Equity

Question 1

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 Samsung 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 Samsung. This example implies that ________.

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

Answer 1

B

Question 2

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

Answer 2

D

Question 3

According to the brand asset 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

Answer 3

B

Question 4

According to brand asset valuator model, declining brands show ________.

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

Question 5

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 6

According to the brand asset valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand?

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

Question 7

According to the brand asset valuator model, which of the components of brand equity measures the breadth of a brand's appeal?

A) differentiation
B) relevance
C) esteem
D) knowledge
E) value

Question 8

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario?

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

Question 9

According to brand asset 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 10

Brand ________ is the added value endowed to products and services.

A) loyalty
B) equity
C) preference
D) identity
E) licensing

Question 11

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

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

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

According to brand asset valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________.

A) position
B) image
C) depth
D) knowledge
E) strength

Question 14

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

Question 15

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 16

According to brand asset valuator model, esteem and knowledge, the two pillars of brand equity together create ________, a "report card" on past performance and a current indicator of current value.

A) brand stature
B) brand parity
C) brand strength
D) brand personality
E) brand architecture

Question 17

________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand.

A) Mission-driven brand equity
B) Customer-based brand equity
C) Product-driven brand equity
D) Service-driven brand equity
E) Function-based brand equity

Question 18

The challenge for marketers in building a strong brand is ________.

A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge
B) pricing the product at a point that maximizes sales volume
C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience
D) minimizing the impact of customer brand equity
E) avoiding the usage of an established brand to introduce a new product in the market

Question 19

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 brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario?

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

Question 20

Identify the four pillars of brand equity, according to brand asset valuator model.

A) relevance, performance, bonding, and advantage
B) presence, performance, advantage, and bonding
C) energized differentiation, relevance, esteem, and knowledge
D) brand salience, brand feelings, brand imagery, and brand performance
E) energized differentiation, esteem, brand feelings, and brand salience

Question 21

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 "Does this brand offer something better than the others?"

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

Question 22

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

Question 23

Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference?

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

Question 24

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

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

Question 25

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 the question "Do I know about this brand?"

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

Question 26

With respect to the "six brand building blocks," ________ signifies how well the product or service meets customers' functional needs.

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

Question 27

Which of the following levels of the brand dynamics pyramid pertains to consumer's needs?

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

Question 28

With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"?

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

Question 29

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 "Does this brand offer me something?"

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

Question 30

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions?

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

Question 31

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

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

Question 32

Aromas Pte Ltd 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 brand dynamics pyramid?

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

Question 33

With respect to the "six brand building blocks," ________ focuses on customers' own personal opinions and evaluations.

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

Question 34

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message "Nothing else beats this brand?"

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

Question 35

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 36

With respect to the "six brand building blocks," ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.

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

Question 37

With respect to the "six brand building blocks," ________ are customers' emotional responses and reactions with respect to the brand.

A) brand imagery statements
B) brand judgments
C) brand performances
D) brand feelings
E) brand resonances

Question 38

Brand salience ________.

A) is customers' emotional responses and reactions with respect to the brand
B) is how often and how easily customers think of the brand under various purchase or consumption situations
C) is how well the product or service meets customers' functional needs
D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs
E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it

Question 39

According to Young and Rubicam's brand asset valuator, a brand's ________ measures how well the brand is regarded and respected.

A) differentiation
B) energy
C) relevance
D) esteem
E) knowledge

Question 40

If a consumer, trying to decide between alternatives, believes that a particular brand delivers acceptable product performance and can be short listed, she is in the ________ level of the brand dynamics pyramid.

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

Question 41

________ are devices that can be trademarked and serve to identify and differentiate the brand.

A) Brand elements
B) Brand value propositions
C) Brand perceptions
D) Brand images
E) Brand extensions

Question 42

The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ 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 43

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 44

A ________ is a specialized group of consumers and employees whose identification and activities focus around the brand.

A) brand community
B) brand channel
C) brand association
D) brand personality
E) brand cluster

Question 45

Which of the following value creation processes means detailing the brand relationship journey in a narrative way, often anchored by and peppered with milestones?

A) documenting
B) milestoning
C) badging
D) evangelizing
E) staking

Question 46

If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________.

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

Question 47

A ________ can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer's product or service.

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

Question 48

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

Question 49

Which of the following value creation processes means sharing the brand "good news" and inspiring others to use the brand?

A) staking
B) badging
C) evangelizing
D) justifying
E) milestoning

Question 50

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" or "handle" 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 51

If consumers can easily recall and recognize a brand element, the brand element is said to be ________.

A) meaningful
B) protectable
C) adaptable
D) transferable
E) memorable

Question 52

IBM's e-business campaign not only helped to change public perceptions of the company in the marketplace, it also sent a signal to employees that IBM was determined to be a leader in the use of Internet technology. 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 53

Li Ning Sports Goods associates itself with the Olympics. It sponsored the Chinese table tennis, diving, gymnastics, and shooting teams. 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 54

Brand equity can be built by ________, which create(s) equity by linking the brand to other information in memory that conveys meaning to customers.

A) internal marketing
B) brand transferability
C) secondary associations
D) customer alignment
E) brand auditing

Question 55

Which of the following value creation processes means translating milestones into symbols and artifacts?

A) staking
B) evangelizing
C) milestoning
D) badging
E) documenting

Question 56

Mark feels that Shell delivers on its promises to supply the best petrol possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing ________.

A) brand alliance
B) brand essence
C) brand harmonization
D) brand parity
E) brand bonding

Question 57

Red Bull enlisted polytechnic 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 58

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

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

Question 59

________ consists of activities and processes that help inform and inspire employees about brands.

A) Internal branding
B) Personal branding
C) Individual branding
D) External branding
E) Co-branding

Question 60

Competitive superiority and channel support are factors that influence the ________ of the brand value chain.

A) program multiplier
B) customer multiplier
C) brand multiplier
D) profit multiplier
E) market multiplier

Question 61

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

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

Question 62

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

Question 63

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 64

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 65

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 66

A ________ is a set of all brand lines that a particular seller makes.

A) brand platform
B) brand image
C) cobrand
D) brand extension
E) brand mix

Question 67

Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ of the brand value chain.

A) program multiplier
B) brand multiplier
C) market multiplier
D) customer multiplier
E) profit multiplier

Question 68

In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs.

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

Question 69

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 70

Apple's iPod Shuffle is an example of ________.

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

Question 71

________ 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 72

Brands today play a number of important roles that improve consumers' lives and enhance the financial value of firms.

Question 73

When a firm uses an established brand to introduce a new product, it is called a ________.

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

Question 74

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

Question 75

________ 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 76

The hallmark of an optimal brand portfolio is ________.

A) the ability of each brand to maximize equity in combination with all the other brands in it
B) the ability of each brand to maximize its individual equity in isolation
C) maximum brand overlap
D) the eventual reduction of brand differentiation to create a unified brand appearance
E) maximum internal competition within the firm

Question 77

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

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

Question 78

Starbucks introduced ice creams in the same flavors as the Frappucinos it sold in its coffee shops. This is an example of ________.

A) brand dilution
B) cobranding
C) brand variants
D) category extension
E) brand harmonization

Question 79

According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies.

A) liquidity trap
B) cognitive dissonance
C) branding fallout
D) cannibalization
E) line-extension trap

Question 80

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