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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.
Strong brands protect the firm somewhat from competition because the brand differentiates the firm's products, making customers more loyal.

F) A) and E)
G) A) and C)

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Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has


A) no brand associations.
B) unspent brand loyalty.
C) private label impact.
D) brand dilution.
E) negative brand equity.
The Enron name has negative brand equity for some people, such that some former Enron employees were viewed negatively due to their association with the brand.

F) A) and C)
G) A) and E)

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Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head & Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been


A) rebranded.
B) reformulated.
C) licensed to a premium shampoo manufacturer.
D) extended as a brand.
E) co-branded.
Head & Shoulders has been rebranded (also referred to as brand repositioning) to give it a health-oriented image. Although that it may have been reformulated, it is equally likely that the rebranding consists strictly of changes in positioning and marketing communications.

F) None of the above
G) A) and B)

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Procter & Gamble is a huge national brand manufacturer. By having leading 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 marketing strategy.
D) can increase brand dilution.
E) can eliminate any local competition.
Brand ownership gives the owner greater control over marketing strategy-the ability to position the brand and to establish the marketing mix.

F) C) and D)
G) B) and C)

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Which of the following is NOT true regarding secondary packaging?


A) It can provide information to consumers not found on the primary packaging.
B) It is important to the retailer in terms of convenience in handling.
C) It can be an important positioning tool to convey the brand image.
D) It can allow for cost efficiencies due to larger order and shipment sizes.
E) It is of little value to the average consumer.
Secondary packaging-the wrapper or exterior carton that contains the primary package-fills many roles, including all of those listed here. It is therefore of value to the consumer.

F) A) and E)
G) A) and D)

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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
The perceived value of a good or service is the relationship between its benefits and its costs. By reducing the cost, the value will be seen to be greater.

F) C) and E)
G) D) and E)

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When personal computers were new, people spent considerable time and energy learning about and investigating choices and options. Now, many consumers replace old computers with little research or investigation. In terms of types of products (specialty, shopping, convenience goods), how have personal computers changed?

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Students could argue that personal compu...

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Define convenience, shopping, unsought products and give an example of each.

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Convenience products / services are thos...

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A currently popular trend in the wine industry is house-labeled wine. Restaurants, hotel chains, and even universities now sell wine under their brand name. Is this type of brand extension a good marketing strategy? Defend your answer.

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Answers will vary but should include dis...

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Where on a product's packaging would one most likely find nutrient content and country of origin?


A) inside the secondary package
B) inside the primary package
C) on the company website
D) on the label
E) on the store shelf display
Product labels may highlight specific ingredients, vitamin content, nutrient content, and country of origin.

F) A) and B)
G) A) and C)

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Strong brands can reduce marketing costs. How do they accomplish that?

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The brand sells the products a...

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Why would a company like Walmart have a difficult time repositioning itself as a retailer of quality, stylish clothing?

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Repositioning involves changing a brand'...

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Though most universities are nonprofit organizations, they are engaged in marketing strategy choices, just like businesses. For example, universities must decide whether they should increase or decrease product mix breadth, or increase or decrease product line depth. Using your university, describe a real or plausible example of each of these four potential changes.

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Answers will vary, but an increase in pr...

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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. This is a brand extension, not a line extension. A brand extension is the use of the same brand name in a different product line. Phones and gaming systems are different product lines.

A) True
B) False

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Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products. A firm's product mix breadth represents a count of the number of product lines offered by the firm.

A) True
B) False

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Brands can be owned by


A) manufacturers only.
B) any firm in the supply chain.
C) retailers only.
D) wholesalers and retailers only.
E) only private label generic retailers.
Any firm in the supply chain-manufacturer, retailer, distributor, and so on-can own a brand.

F) B) and C)
G) None of the above

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Brand extension is a popular marketing strategy because


A) it separates out the cost of brand extension from brand intention.
B) it allows the firm to discontinue complementary products.
C) the firm can spend less on creating brand awareness and associations.
D) it avoids the problem of brand dilution.
E) it guarantees success for a new product.
Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product.

F) All of the above
G) B) and E)

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Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line?


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.
All of these are reasons firms might decide to delete a product from a product line, except the desire to capture new markets.

F) None of the above
G) All of the above

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Sales of private-label brands continue to decline in the U.S., particularly in big-box stores such as Costco. Sales of private-label brands continue to rise in the North America, where they account for about 20 percent of retail sales. Costco is a leader in the use of private-label brands.

A) True
B) False

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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 McDonalds, 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.
The Golden Arches are a brand symbol for McDonald's. The company has invested in ensuring that consumers recognize the symbol and associate it with the brand.

F) B) and E)
G) B) and D)

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