Deck 7: Product Positioning, branding, and Product Line Strategies

Question 1

Businesses with a low-cost advantage in markets in which price is an important determinant of customer value can use low prices as a basis for product positioning.

Answer 1

True

Question 2

Which of the following is a marketing effort factor influencing a business's market share?

A)price
B)product differentiation
C)product breadth
D)brand image
E)sales promotions

Answer 2

E

Question 3

Companies with high brand awareness can more easily introduce new products and enter new markets.

Answer 3

True

Question 4

Which of the following is a brand and product line strategy?

A)product differentiation
B)brand differentiation
C)bundling and unbundling
D)brand identity
E)low cost of purchase

Question 5

Invented names are company or brand names that create a direct connection to something real and that can be associated with a direct experience.

Question 6

Which of the following is a differentiation and product positioning strategy?

A)low cost of purchase
B)brand encoding
C)product elimination
D)bundling and unbundling
E)product line extensions

Question 7

Which of the following is a branding and brand-management strategy?

A)umbrella brand
B)brand differentiation
C)brand encoding
D)bundling and unbundling
E)flanker brand

Question 8

Which of the following is a product position factor influencing a business's market share?

A)sales force
B)service quality
C)retailing and merchandising
D)physical distribution
E)media advertising

Question 9

Service can be an important source of differentiation when it comes to positioning strategies.

Question 10

Product positioning starts with company engineers or product managers,not target customers.

Question 11

The purpose of line extensions under an umbrella brand is to leverage the awareness and image of the umbrella brand.

Question 12

Quality aesthetics as a source of differentiation are of value only when all other aspects of quality are met with respect to customer quality expectations.

Question 13

In a price-sensitive market,product positioning generally requires a higher price because this is the only source of differentiation that target customers value.

Question 14

An umbrella brand refers to a new product that is a vertical brand extension of the core product.

Question 15

The total cost of purchase excludes the customer's ownership costs.

Question 16

A weak product position with a strong marketing effort will fail to deliver the desired level of market share.

Question 17

The intent of umbrella branding is to enhance the effectiveness of marketing programs and to increase demand for product line extensions by transferring brand awareness and perceptions of quality from the umbrella brand.

Question 18

The extent that a market share grows is directly dependent on the strength of a business's product positioning and marketing effort.

Question 19

A brand-encoding system helps in understanding how to position a product with a brand name for a specific market and desired image.

Question 20

If a business fails to deliver acceptable or expected levels of serviceability and appearance,an advantage in other dimensions of product performance will not matter.

Question 21

Within the dimensions of product performance,which of the following is a product performance enhancement factor?

A)reliability
B)conformance
C)durability
D)serviceability
E)improvements

Question 22

S.K.Group of Manufacturers produces and distributes mattresses and pillows under the brand name SoftComfort.In this example,S.K.Group of Manufacturers uses which of the following types of brand names?

A)a founder name
B)an experiential name
C)a functional name
D)an acronym
E)a morpheme

Question 23

Functional names differ from evocative names in that functional names ________.

A)are derived from the basic benefit provided by the product
B)do not have any association with a core customer benefit
C)are built from root words and morphemes
D)are poetic constructions based on the rhythm of saying them
E)are associated with positive attributes or feelings

Question 24

Microsoft Office 2010 allows buyers and users to quickly identify the Microsoft product and its newness to older versions of the same brand.This is an example of using a ________ branding strategy.

A)company name
B)company and brand name
C)brand and subbrand name
D)company,brand,and product name
E)company and brand name,and number

Question 25

Unilever has over 10 personal care brands,each with a unique focus and product positioning strategy.Buyers would not know that Unilever is the manufacturer of a specific brand unless they looked closely at the small print on the package.This is an example of using a ________ branding strategy.

A)company name only
B)brand name only
C)company and brand name
D)brand and subbrand name
E)company,brand,and product name

Question 26

Without defining the desired product positioning and value proposition for a specific target market,the ________ process would quickly deteriorate into an internal process that was built around product features rather than customer benefits.

A)brand naming
B)brand identification
C)brand encoding
D)brand equity
E)brand extension

Question 27

Church & Dwight,Co.is a U.S.manufacturer of household products.The firm owns a line of toothpastes under the brand name Arm & Hammer Peroxicare.The firm also sells other products under the brand name Arm & Hammer.Arm & Hammer Peroxicare is an example of which of the following encoding strategies?

A)company name
B)company and brand name
C)brand and subbrand name
D)company and product name
E)brand name only

Question 28

When automakers include air bags,cruise control,satellite radio,and GPS systems in their consumer products,these features are considered to be quality ________.

A)killers
B)drivers
C)enhancers
D)aesthetics
E)determinants

Question 29

Ford sells the Ford Fiesta automobile.This is an example of using a ________ branding strategy.

A)company name
B)company and brand name
C)brand and subbrand name
D)company and product name
E)company,brand,and product name

Question 30

In which of the following ways of creating a new company,brand,or subbrand name,the names are derived from the basic benefit provided by the product?

A)evocative names
B)experiential names
C)functional names
D)invented names
E)realistic names

Question 31

Red Hot Mexican Grill,a chain of Mexican-style casual dining restaurants in America,has traditional Mexican décor throughout the restaurant and the waiters are dressed in Mexican hats.This is best an example of ________.

A)service reliability
B)service assurance
C)performance
D)appearance
E)responsiveness

Question 32

In the context of brand name development,________ names are either built from root words and morphemes or are poetic constructions based on the rhythm or experience of saying them.

A)evocative
B)experiential
C)functional
D)invented
E)realistic

Question 33

Within the dimensions of service quality,which of the following is a "quality enhancer"?

A)service reliability
B)performance
C)customer empathy
D)appearance
E)reputation

Question 34

Which of the following service quality dimensions refers to employee competency with respect to knowledge and courtesy?

A)service reliability
B)service assurance
C)extended services
D)customer empathy
E)appearance

Question 35

Within the dimensions of product performance,which of the following is a "quality driver"?

A)conformance
B)durability
C)serviceability
D)reputation
E)reliability

Question 36

Which of the following service quality dimensions refers to a service obsession to get it right when things go wrong?

A)service reliability
B)service assurance
C)performance
D)customer empathy
E)responsiveness

Question 37

Within the dimensions of product performance,a poor performance in which of the following would be a "quality killer"?

A)serviceability
B)features
C)appearance
D)conformance
E)reputation

Question 38

Dairy Products Inc.is a manufacturing firm that produces and sells a line of butter packs under the brand name Melt Butter.The firm created Melt Tasty Butter and Melt Low-Fat Butter so that health-conscious customers can quickly differentiate its benefits.In this example,Dairy Products Inc.is using which of the following brand encoding strategies?

A)company name only
B)company and brand name
C)brand and subbrand name
D)brand and product name
E)brand name only

Question 39

Which of the following statements is true about branding?

A)The first step in developing a brand identity is to focus on product features rather than customer benefits.
B)An internally focused business is best prepared to build a brand identity that would be meaningful to target customers.
C)A brand name provides customers with a way to quickly comprehend the brand's primary benefits.
D)A brand-encoding system refers to the measures taken to protect a brand name.
E)Functional names refer to brand names that are associated with an experience.

Question 40

Which of the following refers to expenses other than the purchase price that are associated with the acquisition and use of a product?

A)fixed costs
B)ownership costs
C)variable costs
D)differentiation costs
E)opportunity costs

Question 41

A(n)________ strategy offers the customer the opportunity to purchase each of the items separately at a sale price or bundled with an additional level of savings.

A)pure product bundling
B)impure product bundling
C)mixed bundling
D)horizontal brand extension
E)vertical brand extension

Question 42

Which of the following is true about licensing?

A)It is a bad option for products that are difficult to produce.
B)It refers to the transfer of trademark rights held by one party to another party.
C)It allows owners of intellectual property to obtain payment for their creations in a lump sum.
D)It involves the legal assignment of the rights to a product from one party to another.
E)It is a method of protecting the brand name and logo of a company.

Question 43

Compare and contrast the different ways in which new brand names are created and provide an example of each.

Question 44

Which of the following involves the transfer of quality perceptions derived from a core product or brand to product line extensions that use the same brand name?

A)a pure product bundling strategy
B)a mixed bundling strategy
C)a product unbundling strategy
D)an umbrella branding strategy
E)a vertical integration strategy

Question 45

OrganicMeals Inc.is an American firm that manufactures frozen,vegetarian burgers made from organic ingredients under the brand name VegDelite.The firm markets a core product,the Chipotle Veg Burger,under the VegDelite brand.After success of its core product,the firm adds other burgers under the VegDelite brand,such as the Crunchy Garden burger,the Vegan Special burger,and the Spicy Trip burger.In this example,OrganicMeals Inc.uses which of the following strategies?

A)a vertical brand-line extension strategy
B)a horizontal brand-line extension strategy
C)a new product-market brand extension strategy
D)a cobranding strategy
E)a product bundling strategy

Question 46

MINI-CASE
Organic Harvest Inc.is an American manufacturing firm based in California.The firm manufactures and sells a line of organic fruit juices under the brand name OrganicDrinks.The firm also markets a line of medicinal health drinks,under the brand name HerbalDrinks.
Mini-Case Question.Which of the four types of brand names does OrganicDrinks best represent?

A)a functional name
B)an invented name
C)a morpheme name
D)an evocative name
E)a founder name

Question 47

MINI-CASE
Organic Harvest Inc.is an American manufacturing firm based in California.The firm manufactures and sells a line of organic fruit juices under the brand name OrganicDrinks.The firm also markets a line of medicinal health drinks,under the brand name HerbalDrinks.
Mini-Case Question.Organic Harvest Inc.introduces a new line of personal care products,including soaps and shampoos that are made from natural ingredients.The firm markets these products under brand name NaturalCare.In this example,Organic Harvest Inc.uses which of the following product-line extension strategies?

A)vertical brand-line extension
B)horizontal brand-line extension
C)new product-market brand extension
D)cobranding
E)product bundling

Question 48

Owner's equity is equal to ________.

A)brand assets minus brand liabilities
B)brand assets divided by brand liabilities
C)company assets minus company liabilities
D)company assets divided by company liabilities
E)company liabilities minus brand liabilities

Question 49

Name the hierarchical categories of product performance and for each,name and describe two dimensions of product performance that can serve as bases for product differentiation.

Question 50

MINI-CASE
Organic Harvest Inc.is an American manufacturing firm based in California.The firm manufactures and sells a line of organic fruit juices under the brand name OrganicDrinks.The firm also markets a line of medicinal health drinks,under the brand name HerbalDrinks.
Mini-Case Question.Organic Harvest Inc.offers five flavors under the OrganicDrinks brand.Based on the success of these flavors,the firm introduces three new flavors of OrganicDrinks: Pink Pomegranate,Cool Coconut Water,and Spicy Apple Cider.In this example,Organic Harvest Inc.uses which of the following product-line extension strategies?

A)vertical brand-line extension
B)horizontal brand-line extension
C)new product-market brand extension
D)cobranding
E)product bundling

Question 51

A(n)________ strategy involves the sale of two or more products at an overall price that is lower than the total price that a customer would pay to purchase the products separately.

A)pure product bundling
B)impure product bundling
C)cobranding
D)horizontal brand extension
E)vertical brand extension

Question 52

M.L.Manufacturers Inc.is an American clothes manufacturing firm that sells women's fashion apparel under the brand name DressChic.After extensive market research,the firm introduces a line of children's clothes under the brand name Mischief and a line of affordable work wear for women under the brand name DressSmart.In this example,M.L.Manufacturers Inc.uses which of the following strategies?

A)a vertical brand-line extension strategy
B)a horizontal brand-line extension strategy
C)a new product-market brand extension strategy
D)a cobranding strategy
E)a product bundling strategy

Question 53

George recently purchased a computer from HardDigits Inc. ,a firm that sells assembled desktop computers and other electronic products.Included in his purchase were an inkjet printer,a web camera,and an office software program that included a word processor,a spreadsheet,and a photo editor.The price he paid for the computer,software,and accessories was lower than the total price that he would have paid if he had purchased the products separately.In this example,HardDigits Inc.uses which of the following product line extension strategies?

A)product diversification
B)umbrella branding
C)product cobranding
D)product bundling
E)disintermediation

Question 54

Which of the following is true about pure product bundling strategy?

A)It is shown to be more profitable than mixed bundling strategies.
B)It takes advantage of the potential synergy of two brands that share a common market space.
C)It involves entering new product-markets.
D)It creates a base from which to introduce line extensions that enhance market penetration at a lower cost.
E)It involves the sale of two or more products at an overall price that is cheaper than purchasing the products separately.

Question 55

The brand equity of many oil companies is lower when associated with oil spills or controversial drilling practices.Which type of brand liability does this best represent?

A)customer dissatisfaction
B)poor record on social issues
C)product or service failures
D)inadequate product line development
E)poor product conformance

Question 56

The brand equity of LifeSecure Inc. ,an American health insurance firm,was diminished when its top executives were subject to money laundering allegations.Which type of brand liability does this best represent?

A)customer dissatisfaction
B)poor product conformance
C)product or service failures
D)poor record on social issues
E)questionable practices

Question 57

Frosty Inc.is an American firm that manufactures and markets a line of ice creams under the brand name Frosty Delight.Together with Magic Bakes,a popular brand of baking mixes and canned frostings,the firm introduces a line of Frosty Magic Bakes,a line of ice cream cake mixes.The new product line,Frosty Magic Bakes,uses the logos of both Frosty Delight and Magic Bakes.This is an example of ________.

A)franchising
B)cobranding
C)pure product bundling
D)mixed product bundling
E)licensing

Question 58

In the context of brand name development,which of the following is true about an invented name?

A)It is built from root words and morphemes.
B)It aims to evoke a positive attribute or a feeling.
C)It is associated with an experience.
D)It is based on the names of company founders.
E)It strives to build an association between the brand name and the core function of the brand.

Question 59

Brand equity is equal to ________.

A)total brand assets minus total brand liabilities
B)total brand assets divided by total brand liabilities
C)total company assets minus total company liabilities
D)total company assets divided by total company liabilities
E)total company liabilities minus total brand liabilities

Question 60

Mathis Inc.is a home appliance manufacturing firm based in Vermont that sells its products under the brand name GoodHome.The firm initially built a reputation in the household appliances market for its high-quality products.After an extensive market research,the firm used its brand reputation to expand into the home furnishing industry.In this example,Mathis Inc.uses which of the following product line extension strategies?

A)a vertical brand-line extension strategy
B)a horizontal brand-line extension strategy
C)a new product-market brand extension strategy
D)a cobranding extension strategy
E)a product bundling extension strategy