Question 1

In Hershey Kisses candy, Hershey would be considered a branded variant.

Accepted Answer

The answer of In Hershey Kisses candy, Hershey would be...

Question 2

Research indicates that high-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.

Accepted Answer

Research has shown that high-quality brands have more elastic demand compared to average-quality brands. In other words, consumers are willing to pay a higher price for high-quality brands and are more likely to continue purchasing them even if the price increases slightly. However, even high-quality brands have boundaries to how much consumers are willing to pay for them.

Question 3

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

Accepted Answer

The line-extension trap refers to a situation where a company dilutes its brand by introducing too many variants of its product under the same brand name. Cadbury made the mistake of putting its name on non-chocolate products and thereby extending the brand too far. This led to a potential dilution of the brand, which could confuse customers and harm brand equity.

Question 4

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

Accepted Answer

An optimal brand portfolio should have the ability of each brand to maximize equity in combination with all the other brands in it. This means that each brand should be distinct and contribute to the overall strength and equity of the portfolio, rather than competing against each other. This leads to a stronger and more cohesive brand portfolio overall. Options B, C, D, and E are not characteristics of an optimal brand portfolio.

Question 5

Flankers are brands that may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.

Accepted Answer

The answer of Flankers are brands that may be kept...

Question 6

________ 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

Accepted Answer

Flanker brands are designed to protect a company's flagship brands by occupying the same market space as competitors' brands. These brands are typically less expensive or offer slightly different features than the flagship brand, allowing the company to target a wider range of customers without compromising the positioning of its core products. This strategy helps to prevent other brands from encroaching on the flagship brand's market share and helps to maintain the brand's profitability.

Question 7

When Honda expanded its brand into such areas as automobiles, snow blowers, and marine engines, it was pursuing a strategy called line extension.

Accepted Answer

Honda expanding into automobiles, snow blowers, and marine engines represents diversification, not line extension. Line extension involves adding new variations or sizes to an existing product line, not entering entirely different product categories.

Question 8

The role of a relatively high-priced brand in a portfolio is often to attract customers to the brand franchise or to "build traffic."

Accepted Answer

The answer of The role of a relatively high-priced brand...

Question 9

Intrabrand shifts in a company's sales are always undesirable.

Accepted Answer

Intrabrand shifts refer to changes in sales within a particular brand of a company. These shifts can be both positive and negative. For example, if a company introduces a new and improved version of a product, it may see an intrabrand shift as customers switch from the old version to the new one. While this shift may cause some temporary disruption, it can ultimately benefit the company if the new product is successful. Therefore, intrabrand shifts are not always undesirable.

Question 10

Brand differentiation occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.

Accepted Answer

Brand differentiation occurs when consumers do associate a brand with a specific product or highly similar products, which sets the brand apart from its competitors and creates a unique identity for the brand in the minds of consumers. If consumers no longer associate the brand with a specific product, it can lead to brand confusion and ultimately weaken the brand's position in the market.

Question 11

Marketers must judge each potential brand extension by how effectively the brand leverages existing brand equity from the parent brand, as well as how effectively, in turn, it contributes to the parent brand's equity.

Accepted Answer

Marketers need to assess whether the new brand extension will add value to the existing brand and also contribute to the overall equity of the parent brand.

Question 12

Cash cows, or fighter brands, include products like Busch Bavarian and Intel Celeron, which are positioned with respect to the competitors' brands so that more important and profitable flagship brands can retain their desired positioning.

Accepted Answer

Cash cows are not the same as fighter brands. Cash cows are products or business units that generate a steady return of profits that far exceed the initial outlay for investment. Fighter brands, on the other hand, are created or positioned specifically to combat or deter competitors, often by protecting the market share of a company's higher-end products without necessarily being major sources of profit themselves.

Question 13

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

Accepted Answer

Cannibalizing refers to a situation where the sales of a new product are coming at the expense of the sales of an existing product from the same company. In this case, the sales of the brand extension are high, but they are mainly from customers switching from the parent brand, which means the revenue from the parent brand is being affected or reduced. Therefore, the best choice is B.

Question 14

When a parent brand covers a new product within a product category it currently serves, it is called a line extension.

Accepted Answer

This is the correct definition of a line extension.

Question 15

A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.
A) architecture
B) position
C) portfolio
D) extension
E) image

Accepted Answer

A brand portfolio is the total collection of brands and brand lines that a particular company offers for sale in a specific category. This includes all of the different variations and extensions of a brand. A brand portfolio helps a company to diversify their offerings, appeal to different markets, and build a strong presence in a particular category.

Question 16

A firm's branding strategy is also called the brand architecture.

Accepted Answer

A firm's branding strategy is also known as brand architecture, which includes the hierarchy and relationship of brand names, logos, and symbols.

Question 17

Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.

Accepted Answer

Brand extensions leverage existing brand equity and recognition, allowing for a smoother introduction of new products and potentially reducing marketing costs. Additionally, retailers may be more willing to stock and promote a new product from a trusted brand.

Question 18

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

Accepted Answer

Brand extensions can help new products to be accepted more easily by consumers because the extension has already established trust and loyalty with the parent brand. Additionally, a successful brand extension can provide positive feedback and strengthen the reputation of the parent brand and company.

Question 19

A ________ is a set of all brand lines that a particular seller makes.
A) brand platform
B) brand image
C) co-brand
D) brand extension
E) brand mix

Accepted Answer

Brand mix refers to the set of all brand lines that a particular seller makes. It includes all the products, services, and brands offered by the company. It is also known as product assortment or product portfolio.

Question 20

Increasing shelf presence and retailer dependence in the store is one of the reasons for introducing multiple brands in a category.

Accepted Answer

By introducing multiple brands in a category, a company can increase their shelf presence in the store and create greater dependence from retailers. This helps them increase their visibility and potential sales.

Quiz 11: Creating Brand Equity

In Hershey Kisses candy, Hershey would be considered a branded variant.

Research indicates that high-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.

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.

The hallmark of an optimal brand portfolio is ________.

Flankers are brands that may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.