Products Services and Brands - Building Customer Value Pt4

115) How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price? Answer: A service offer can include innovative features that set a company's offers apart from competitors' offers. Service companies can differentiate their service delivery by having more able and reliable customer-contact people, developing a superior physical environment in which the service product is delivered, or designing a superior delivery process. Services can also be differentiated through symbols and branding, by creating an image that sets a company's services apart from that of its competitors. 116) ________ represent(s) consumers' perceptions and feelings about a product and its performance. A) Product lines B) Labeling C) Brands D) Design E) Product attributes Answer: C 117) Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A) differentiation B) knowledge C) equity D) personality E) relevance Answer: C 118) BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________. A) an aggressive brand personality B) high brand equity C) no brand commitment D) negative brand equity E) low brand relevance Answer: B 119) Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand conformance B) brand consistency C) brand convenience D) brand extension E) brand relevance Answer: E 120) Brand ________ refers to how consumers feel if a brand meets their needs. A) differentiation B) equity C) dilution D) esteem E) relevance Answer: E 121) Brand ________ refers to how highly consumers regard and respect the brand. A) esteem B) conformance C) differentiation D) relevance E) knowledge Answer: A 122) After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand Asset Valuator, this reflects brand ________. A) valuation B) esteem C) relevance D) differentiation E) knowledge Answer: C 123) Which of the following is true with regard to brand equity? A) Brand equity refers to how much consumers know about the brand. B) High brand equity provides a company with many competitive advantages. C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version. D) Positive brand equity derives from low brand esteem. E) The total financial value of a brand can be easily measured. Answer: B 124) The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates. A) the customer mix B) customer equity C) the product experience D) service variability E) the service encounter Answer: B 125) Which of the following is the lowest level on which marketers can position their brands in target customers' minds? A) beliefs and values B) product benefits C) product attributes D) after-sale services E) brand equity Answer: C 126) The strongest brands are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) product attributes Answer: D 127) Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy Kendell Associates. Gainville is most likely positioned on ________. A) basic product attributes B) short-term benefits C) service variability D) self-image enhancement E) strong beliefs and values Answer: E 128) A good brand name should most likely be ________. A) trendy B) complex C) long D) conventional E) distinctive Answer: E 129) An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) national brand B) support brand C) private brand D) generic brand E) manufacturer's brand Answer: B 130) Costco's Kirkland Signature products are an example of a ________. A) national brand B) support brand C) private brand D) generic brand E) manufacturer's brand Answer: C 131) Which of the following is true with regard to store brands? A) Store brands have been declining in popularity and strength for more than two decades. B) Store brands are also known as national brands. C) Store brands are created and owned by resellers of a product or service. D) Increasing consumer distrust toward store brands has led to a store-brand slump. E) Store brands are growing far slower than manufacturer's brands. Answer: C 132) Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________. A) multibranding B) positioning C) segmenting D) co-branding E) licensing Answer: E 133) ________ occurs when two established brand names of different companies are used on the same product. A) Market diversification B) Niche marketing C) Co-branding D) Licensing E) Cannibalization Answer: C 134) Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names with co-branding. B) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors. C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. D) Co-branding dilutes brand equity and increases the appeal of store brands. E) Co-branding does not involve complex legal contracts and licenses. Answer: C 135) ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) Line extension B) Megabranding C) Interactive marketing D) Internal marketing E) Co-branding Answer: A 136) ________ involves the use of a successful brand name for new or modified products in a new category. A) A line extension B) A product line C) A brand extension D) Co-branding E) Cannibalization Answer: C 137) Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________. A) line extension B) brand extension C) licensing D) co-branding E) cannibalization Answer: B 138) Which of the following is a potential drawback of multibranding? A) Multibranding tends to decrease brand loyalty. B) Company resources are likely to be concentrated on a single brand. C) Multibranding curbs the growth opportunities of established brands. D) Each brand might obtain only a small market share, and none may be very profitable. E) Multibranding causes companies to refrain from product diversification. Answer: D 139) Which of the following strategies involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number one or number two market share positions with good growth prospects in their categories? A) megabrand strategies B) niche marketing strategies C) social marketing strategies D) co-branding E) licensing Answer: A 140) While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by ________. A) brand differentiation B) line extensions C) brand experiences D) brand sponsorships E) brand awareness Answer: C 141) Attributes are the most desirable level for brand positioning because competitors can easily copy attributes. Answer: FALSE 142) The strongest brands do not engage customers on a deep, emotional level. Answer: FALSE 143) Co-branding occurs when retailers and wholesalers create their own store brands. Answer: FALSE 144) Line extension refers to extending an existing brand name to new product categories. Answer: FALSE 145) Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. Answer: TRUE 146) Briefly explain the concept of brand equity. Answer: Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing. It's a measure of the brand's ability to capture consumer preference and loyalty. A brand has positive brand equity when consumers react more favorably to it than to a generic or unbranded version of the same product. It has negative brand equity if consumers react less favorably than to an unbranded version. 147) What are the desirable qualities for a brand name? Answer: Desirable qualities for a brand name include the following: 1. It should suggest something about the product's benefits and qualities. 2. It should be easy to pronounce, recognize, and remember. 3. It should be distinctive. 4. It should be extendable. 5. The name should translate easily into foreign languages. 6. It should be capable of registration and legal protection. 148) What is a private brand? Answer: A brand created and owned by a reseller of a product or service is known as a private brand or store brand. 149) What are the different brand sponsorship options available to manufacturers? Answer: A manufacturer has four sponsorship options. The product may be launched as a national brand (or manufacturer's brand), as when Samsung and Kellogg sell their output under their own brand names (the Samsung Galaxy tablet or Kellogg's Frosted Flakes). Or the manufacturer may sell to resellers who give the product a private brand (also called a store brand or distributor brand). Although most manufacturers create their own brand names, others market licensed brands. Finally, two companies can join forces and co-brand a product. 150) A company has four choices when it comes to developing brands. Describe them. Answer: The company can introduce line extensions, brand extensions, multibrands, or entirely new brands. A line extension involves extending a current brand name to new forms, colors, sizes, flavors, etc. in one of the company's existing product categories. In contrast, a brand extension extends a current brand name to a new or modified product in a new product category. Multibranding involves introducing several brands within the same category. Finally a company may decide that a new brand name is needed, particularly if the power of an existing brand name is declining or the company is entering a new product category.