Eastern Michigan University

MKT 510A

Chapter 9-Building Brand Equity

TRUE/FALSE Questions

1)A brand is 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.  

2. Brand loyalty can create barriers to entry for competitors.  

3. A brand is said to have a positive industrial-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not.  

4. A brand promise is the product, service, and all accompanying marketing activities and supporting marketing programs.  

5. Name-research procedures used when developing brand elements include association tests and memory tests.  

6. The brand elements of protectable, adaptable, and transferable are considered brand building elements.

7. The three key themes in designing brand-building marketing programs are personalization, integration, and externalization.  

8. Brand bonding occurs when customers experience the company as delivering on its brand promise.  

9. It is possible to “borrow” from other brands or ideas by linking your offering to consumers’ knowledge of those brands.  

10. A brand audit is a means of understanding where, how much, and in what ways brand value is being created.  

11. A brand audit is a consumer-focused exercise that involves a series of procedures to assess the health of the brand and uncover its sources of brand equity.  

12. The only way to reverse a fading brand’s fortune is to “returns to its roots” and restore lost sources of brand equity.  

13. The stronger the brand equity and corporate image, the more likely it is that the firm can successfully emerge from a serious brand crisis.  

14. Snickers Cruncher, a crispy rice bar, with honeyed peanuts, caramel and coated in chocolate would be considered a brand extension.  

15. Snickers Cruncher, a crispy rice bar, with honeyed peanuts, caramel and coated in chocolate would be considered a branded variant.  

16. The Harley-Davidson version of the Ford F150 truck is an example of co-branding.  

17. A Granturismo, made by Italian scooter maker Vespa, is an example of the sub- branding strategy.  

18. By using brand extensions, marketers can cut the cost of new product introductions.  

19. When Apple introduced the iPod Nano model, it simultaneously took its most popular model, the Mini, off the market. This is an example of preemptive cannibalization.  

20. A “flanker” brand is the same as a “fighter” brand that is the same as a “flagship” brand.  

Multiple Choice Questions

21. Which of the following is NOT part of the strategic brand management process?

1. Building and conveying brand history.
2. Identifying and establishing brand positioning.
3. Planning and implementing brand marketing.
4. Measuring and interpreting brand performance.
5. Growing and sustaining brand value.

22. Which is NOT  of brands?

1. Consumers learn of brands through experiences.
2. Good brands simplify consumers’ decision making.
3. Consumers use savings cues more than brand cues.
4. Consumers learn of brands through marketing.
5. Good brands reduce consumer risk.

23. Which of the following is NOT a benefit of brand loyalty?

1. Loyalty provides predictability.
2. Loyalty allows for company security of demand.
3. Loyalty can translate into consumer willingness to pay a higher price.
4. Loyalty is easily matched by competitors.
5. Loyalty can create barriers to entry for other firms.

24. All the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand are known as         .

1. brand knowledge
2. brand equity
3. inelastic consumer response to the brand
4. brand perceptions
5. brand loyalty

25. Which is NOT a marketing advantage of strong brands?

1. Improved perception of product performance.
2. Higher vulnerability to competitive marketing actions.
3. Greater loyalty.
4. Larger margins.
5. Less vulnerability to marketing crises.

26.   can be defined as the differential effect that brand knowledge has on customer response to the marketing of that brand.

1. Brand power
2. Brand knowledge
3. Customer-based brand equity
4. Brand freedom
5. Brand differentials

27. Which is NOT a marketing advantage of strong brands?

1. Additional brand extension opportunities.
2. Possible licensing opportunities.
3. Increased marketing communications effectiveness.
4. Lower margins.
5. Improved perceptions of product performance.

28. A(n)             is the marketer’s vision of what the brand must be and do for consumers.

1. brand’s equity
2. brand mission
3. guarantee
4. implicit warranty
5. brand promise

29. are trademarkable devices that serve to identify and differentiate the

_____________brand.

1. 1. Brand elements
   2. Brand equities
   3. Consumer knowledge bases
   4. Intellectual properties
   5. Brand promises

30. Consumers’ brand knowledge dictates, to some degree, all of the following, EXCEPT:

1. what they think about the brand.
2. how they expect the brand to react to competitor brands.
3. what they feel about the brand.
4. whether they will “grant” or “deny” permission to a particular marketing action or program.
5. where they believe the brand should go.

31. Which is the name of the research procedure associated with the question “What images come to mind?”?

1. Preference tests.
2. Learning tests.
3. Association tests.
4. Memory tests.
5. Retention tests.

32. What question is associated with name-research tests of association?

1. What images come to mind?
2. How easily is the name pronounced?
3. How well is the name remembered?
4. Which names are preferred?
5. How much would you pay?

33. All of the following are criteria for choosing brand elements, EXCEPT:

1. noncontroversial.
2. memorable.
3. meaningful.
4. adaptable.
5. transferable.

34.   is about mixing and matching marketing activities to maximize their individual and collective effects.

1. Eclectic marketing
2. “Salad tossing”
3. Integrating marketing
4. Personalizing marketing
5. Synergy marketing

35. A                              is 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.

1. brand brush-up
2. loyalty builder
3. loyalty inducer
4. brand contact
5. “hook” or “handle”

36. Which of the following is a key theme in designing brand-building marketing programs?

1. Depersonalization.
2. Integration.
3. Externalization.
4. All of the above.
5. None of the above.

37. Informing and inspiring employees about the brand through various activities and

processes is called                              .

1. internal branding
2. employee coaching
3. motivational training

4. indoctrination
5. none of the above

38.   occurs when customers experience the company as delivering on its brand promise.

1. Internal branding
2. Brand bonding
3. Personalization branding
4. Brand image
5. Brand building

39. Which of the following is NOT one of the ways Jones Soda created a successful “cult” brand?

1. Recruited people on the street and provided samples.
2. Invited customers to submit photos of unusual product uses.
3. Agreed to large slotting fees to get good shelf placement.
4. Made the soda in unusual and bright colors.
5. Initially, sold the product through nontraditional outlets, like surf shops.

40. Which is NOT a secondary source of brand knowledge for consumers?

1. Country of origin information.
2. Other brands.
3. Third-party endorsements.
4. Things.
5. Library research.

41. The indirect approach to measuring brand equity                                 .

1. assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing
2. is the same as measuring sales outcomes related to marketing communications
3. is preferred by CEOs
4. assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures
5. All of the above are correct answers.

42. Which of the following is NOT part one of the functions of the brand audit?

1. Assess the health of the brand.
2. Inventory public awareness of brand equity.

3. Uncover sources of brand equity.
4. Suggest ways to improve the brand’s equity.
5. Suggest ways to leverage the brand’s equity.

43. With well-known companies, brand value is typically over                                                                               of the total market capitalization.

1. one-tenth
2. one-fourth
3. one-half
4. three quarters
5. There is no numerical average available to answer this question.

44. The brand audit can be used to set the strategic direction for the brand. Questions that are answered include all of the following EXCEPT:

1. Are the current sources of brand equity satisfactory?
2. Do certain brand associations need to be strengthened?
3. Does the brand lack uniqueness?
4. What kinds of advertising would highlight the brand?
5. What brand opportunities exist?

45. Brand equity is reinforced by marketing actions that consistently convey the meaning of the brand to consumers in terms of all of the following EXCEPT:

1. what products the brand represents.
2. what core benefits the brand supplies.
3. what needs the brand satisfies.
4. which strong, favorable, and unique brand associations exist in the consumers’ minds.
5. how brand fans accept less-than-perfect performances.

46. Unless there is some environmental change, there is little reason to deviate from

                           .

1. vigorous preservation of brand “status quo”
2. successful brand positioning
3. last year’s brand advertising
4. the practices that produce dwindling brand leadership
5. All of the above answer the question correctly.

47. Reversing a fading brand’s fortunes may require                                  .

1. relinquishing lost sources of brand equity

2. establishing new sources of brand equity
3. a “return to its roots”
4. only two of the above
5. a, b, and c

48. Which of the following is NOT on the list of corporate resources that would help a firm weather a brand crisis?

1. Strong brand equity.
2. Strong corporate image.
3. Strong credibility.
4. Good lawyers.
5. High trustworthiness.

49. What two words best describe how to execute successful brand crisis management?

1. Fast and furious.
2. In and out.
3. Credibility and trustworthiness.
4. Fess up and settle.
5. Swift and sincere.

50. Which is NOT part of devising a branding strategy?

1. Discovering brand elements.
2. Deciding the nature of new brand elements.
3. Deciding the nature of existing brand elements.
4. Applying brand elements to new products.
5. Applying brand elements to existing products.

51. Which of the following is NOT one of the approaches for improving or “refreshing” a brand’s equity?

1. Expand the breadth of brand awareness.
2. Expand the depth of brand understanding.
3. Improve consumer recall of the brand.
4. Improve the uniqueness of brand associations that make up brand image.
5. Improve consumer recognition of the brand.

52. Using a parent brand to enter a different product category from that currently served by the parent is a               .

1. brand extension
2. sub-brand
3. category extension
4. parent brand
5. line extension

53. An existing brand that “gives birth” to a brand extension is a                                    .

1. family brand
2. brand line

3. brand mix
4. parent brand
5. branded variant

54. The definition of a sub-brand is                                 .

1. using an established brand to launch a new product
2. all products sold under a particular brand
3. the set of all brand lines that a firm offers to buyers
4. the company’s brand assortment
5. combining a new brand with an existing brand

55. BMW, maker of the Mini Cooper brand is using what kind of brand strategy with its Mini products?

1. Individual names.
2. Blanket family names.
3. Separate family names.
4. Corporate names.
5. Generic names.

56. Toyota, maker of the Scion brand is using what kind of brand strategy with Scion products?

1. Separate family names.
2. Blanket family names.
3. Individual names.
4. Corporate names.
5. Generic names.

57. There is a special edition King’s Ranch Ford F150 truck. This is an example of what type of co-branding?

1. Same-company co-branding.
2. Multiple-sponsor co-branding.
3. Joint-venture co-branding.
4. Ingredient co-branding.
5. Retail co-branding.

58. Dell laptop computers have a permanent sticker attached to the top of each machine proclaiming “Intel Inside.” This is an example of what type of co-branding?

1. Multiple-sponsor co-branding.
2. Same-company co-branding.
3. Retail co-branding.
4. Ingredient co-branding.
5. Joint-venture co-branding.

59. A         is when the parent brand is used on a new product targeting a new market segment within a category currently served by the parent.

1. joint-venture co-brand
2. same-company co-brand

3. category extension
4. multiple-sponsor co-brand
5. line extension

60. Which of the following is NOT an advantage of co-branding?

1. Might contribute to overexposure of the brand.
2. Helps position new products.
3. Generates additional sales from the existing target market.
4. Provides more opportunities with new consumers.
5. Can open up new channels for the marketer.

61.    , a potential downside of too much brand extension, occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.

1. Brand death
2. Brand dilution
3. Brand maturity
4. Brand decline
5. All of the above are correct responses.

62. When Apple introduced its popular iPod Nano model, it dropped its Mini iPod at the same time. The Mini was at the time the most popular mp3 player in the marketplace. This is an example of                             .

1. corporate insanity
2. CEO Steve Jobs’ large ego
3. preemptive cannibalization
4. a brand shake-out
5. product maturity

63. Brands can play a number of specific roles within a company’s brand portfolio. For example, a is positioned with respect to competitors’ brand so that more important and profitable brands retain their desired positioning.

1. cash cow
2. low-end, entry level brand
3. high-end, prestige brand
4. flanker
5. mid-market brand

Essay Questions

64. What are the three main sets of brand equity drivers? Give examples in each category.

65. The brand elements chosen when building a brand should differ from those employed when defending a brand. What are the different criteria for choosing brand elements, based on these differences?

66. What is a brand audit? Why is it done?

67. Explain four general strategies for choosing brand names. Give an example of each.

68. What are some of the different roles played by different brands in a brand portfolio? Give an example of each.

Mini-Cases Mini-Case 9-1

Players from the 1990s alternative band Dan Quayle’s Children are considering a reunion tour. The plan is to play dozens of their old haunts from Athens, Georgia in the south to Boston in the north. The band flamed out very suddenly in 1996 when their drummer X- Man was very publicly thrown in jail for an Internet child pornography conviction. The band did not know how to deal with the crisis and for about a month they just sort of went into “hiding.” After that response, they could never really get booked for any gigs, and after about 6 months the remaining Children took day jobs and went on with their lives.

69. Refer to Mini-Case 9-1. If Dan Quayle’s Children is to reverse their fading brand’s fortunes, it will require which of the following?

1. Relinquishing lost sources of brand equity, such as well-known songs and logos.
2. Establishing new sources of brand equity, such as new songs, styles, and stage antics.
3. A “return to its roots,” such as playing old crowd favorites and telling stories of the road onstage.
4. Two of the above could help the band reverse the band’s fortunes.
5. A, b, and c are all ways the band could reverse its fortunes.

70. Refer to Mini-Case 9-1. For the band to have better weathered the 1996 “brand crisis,” they could have used all of the following EXCEPT:

1. strong brand equity.
2. a strong organizational image.
3. strong credibility.
4. good lawyers.
5. high trustworthiness.

71. Refer to Mini-Case 9-1. Lead singer “Loser Bubba” is also the band’s leader and spokesperson. What two words best describe how the band might have better executed successful brand (band) crisis management?

1. Be fast and furious in your response.
2. Get in and out of the problem quickly.
3. Increase credibility and trustworthiness.
4. Fess up and settle.
5. Be swift and sincere in addressing the problem.

Mini-Case 9-2

Chocolate maker Hershey is looking for growth opportunities, and has considered launching a few new products it has developed and acquired. Hershey has traditionally used blanket family brand names such as Hershey’s Milk Chocolate Bar, or individual

names such as Mr. Goodbar, their chocolate with peanuts bar.

72. Refer to Mini-Case 9-2. Hershey has a new product that is almond and caramel- based, covered with chocolate. The California Almond Growers Association want to create a tie-in with their products, by calling the new product the Hershey California Almond Express. This is an example of what type of co-branding?

1. Same-company co-branding.
2. Multiple-sponsor co-branding.
3. Joint-venture co-branding.
4. Ingredient co-branding.
5. Retail co-branding.

73. Refer to Mini-Case 9-2. If Hershey created Mr. Goodbar nibbles, basically a chocolate-covered nut product for eaters who are on the run or who wish for greater portion control, this would be considered a     .

1. joint-venture co-brand
2. same-company co-brand
3. category extension
4. multiple-sponsor co-brand
5. line extension