Question 1

American Express recently introduced the One card that incorporates the American Express brand as well as its own brand One.This is an example of combining a family brand with _____.

Accepted Answer

Another branding option is combining family brands with a more distinct individual product brand. Many companies follow a variation of this strategy. American Express introduced the One card that incorporates the American Express brand as well as its own stand-alone brand One.

Question 2

XYZ is a new hotel chain and is relatively unknown among Disney park visitors.However,because Disney has attached its name to the hotel,most rooms are booked every night.This is probably because customers associate Disney with quality and so they also expect XYZ to be a high-quality hotel.This is an example of the __________ benefit of brand equity.

Accepted Answer

Brand-loyal customers are vocal and tell others about their experiences, which attracts new customers. Brand-loyal customers are also forgiving, which enables companies to respond to a negative experience. This creates a sense of ownership (equity) and loyalty.

Question 3

When Maria purchases laundry detergent she is able to easily recall and process information about Tide,but this does not happen for other brands.This is an example of the _______ benefit of brand equity for customers.

Accepted Answer

Two primary customer advantages result from brand associations. First, customers process, store, and retrieve product information by brand, which is a big advantage for strong brands. People are more likely to connect information with a brand they know rather than sort through information on unfamiliar brands. A second benefit is that strong brands generate a more positive attitude toward the product.

Question 4

The producers of a successful animated television program for children entered in agreements with restaurants and toy manufacturers right to use the brand in exchange for a set fee or percentage of sales.This is an example of _______.

Accepted Answer

Among the best followers of the license strategy are movies, which license their brand (the movie) to a wide range of companies (restaurants, toy manufacturers, and others). The Avengers broke box office records with $1.5 billion in global box office revenue opening week, but license agreements will keep making money for the franchise for years. Not only does Disney sell merchandise through the Marvel division, it has licensing agreements with Acura, Wyndham Hotels, and Hasbro, among many others.

Question 5

Intel makes a product most people never see; however,it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the ______ benefit of brand equity to marketing strategy.

Accepted Answer

Intel spends a great deal of money building its brand and now people ask for "Intel Inside." Marketing managers know that loyal customers are great advocates for a brand. As a result, blogs and other online communities have become excellent tools for marketers to reinforce the brands message.

Question 6

The Symbian operating system came about from the co-branding effort of Nokia,Ericsson,Sony,Panasonic,Siemens,and Samsung.They license Symbian to a number of wireless manufacturers including LG and Fujitsu.This is an example of a(n)_____ type of co-branding relationship.

Accepted Answer

A type of co-branding relationship involves bringing multiple companies together to form a new branded product.

Question 7

Procter & Gamble co-branded its Tide detergent and Downy fabric softener to create Tide Simple Pleasures and Downy Simple Pleasures in the U.S.market.In England,the company co-branded its Bold and Lenor detergents,creating a premium brand called Bold Infusions and Lenor Infusions.These are examples of a(n)_____ type of co-branding relationship.

Accepted Answer

A type of co-branding affiliation happens when a company combines two of its own products. Procter & Gamble combined its Crest toothpaste and Scope mouthwash to create Crest 1 Scope Outlast-a toothpaste that combines teeth cleaning properties with a "fresh breath feeling."

Question 8

The marketing manager for DRNK Spirits has decided that all of the products his company produced would carry the same brand name of Nightlife.As a result there is Nightlife Ale,Nightlife Lager,Nightlife Vodka,Nightlife Tequila,and Nightlife Whiskey.This is an example of _______.

Accepted Answer

There is synergy among members of a brand family, but a negative event with one product often leads to negative publicity for the entire brand family.

Question 9

XYZ brand is the market leader in small appliances.Its brand is also the strongest in the category and customers identify with the brand.Because of the strength of its brand,other competitors are finding it difficult to successfully enter the marketplace.This is an example of the _______ benefit of brand equity for brand sponsors.

Accepted Answer

When customers identify with a brand and then transfer that loyalty to the product, it creates an additional barrier to entry for new brands, particularly for smaller firms that lack brand recognition. The default choice for network servers is Cisco in many corporate IT departments because executives have heard of Cisco even if they are not familiar with the product itself, thus making it harder for other servers to enter the market.

Question 10

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members.This is an example of _______.

Accepted Answer

Successful co-branding relationships work best when both brands come together as equals that make sense in the marketplace. Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members. Critical decisions in the process revolve around resource commitments, which company is spending what, and what other resources are asked of each company. In addition, it is important for each company in the relationship to understand the performance objectives and expected benefits of each partner.

Question 11

Courtney always purchases Coke products.She doesn't even consider other beverages when they are cheaper than Coke.This is an example of the _______ benefit of brand equity for customers.

Accepted Answer

Brand-loyal customers do not spend as much time searching for new information and, as a result, generally spend less time in the purchase decision process.

Question 12

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions.Dell engaged in a ______ extension.

Accepted Answer

Dell's expansion into printers and consumer electronics represents a category extension, which involves moving into new product categories that are related to the company's existing products or services.

Question 13

Super-Mart decides to create its own brand of personal care products.It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry its newly formed brand's name.This is an example of _______.

Accepted Answer

An alternative to creating a national brand is a store brand. Many large retailers create a store brand to market their own products. Often contracting with the large manufacturers such as Procter & Gamble, retailers are able to compete directly with national brands by offering lower prices.

Question 14

International Delight coffee creamers frequently adds new flavor offerings to its product offerings.This would be an example of a ______ extension.

Accepted Answer

International Delight coffee creamers adding new flavor offerings is an example of a line extension, which means expanding product lines within the same category.

Question 15

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing,housewares,and even cosmetics.Eventually Pierre Cardin wasn't known for anything anymore.This is an example of _____,a disadvantage of co-branding.

Accepted Answer

A potential disadvantage of co-branding is overexposure; a successful product does not want too many co-branded relationships.

Question 16

Lever Brothers,a worldwide leader in consumer products,follows a brand strategy in its personal care division with nine brands (AXE,Dove,Lifebuoy,Lux,Ponds,Rexona,Sunsilk,Signal,and Vaseline)that operate independently of one another.This is an example of _______.

Accepted Answer

Stand-alone brands separate the company from the brand, which insulates the company if there is a problem with the brand. But stand-alone brands are expensive to create and maintain as there is little or no synergy between company brands.

Question 17

Porsche was able to successfully introduce the Cayenne SUV as the first high-performance sporty SUV.Because the company's brand had high _____ it was able to introduce a product into a category that,to that point,had not been considered a "sports vehicle."

Accepted Answer

Brands convey a perception of quality that is either positive or negative. Companies use a positive perceived quality to differentiate the product and create higher price points. Rolex watches have been able to sustain a price premium long into their life cycle because of the perceived quality in design and performance of the product.

Question 18

Really Big Soaps,the market leader in body wash,sell its products around the country under the same brand.This is an example of _______.

Accepted Answer

Large consumer products companies such as Procter & Gamble create national brands that are sold around the country under the same brand.

Question 19

Nickelodeon and Marriott partnered to create a kid-friendly chain of vacation-oriented hotels.This is an example of a(n)_____ type of co-branding relationship.

Accepted Answer

Generally, co-branding involves one of four relationships. The first is a joint venture between two companies; for example, American Express uses this model frequently, partnering with a variety of third-party financial institutions that issues the Amex branded-cards, and is responsible for customer service and billing, but the credit card company supplies the transaction processing and merchant network.

Question 20

When Toyota,Honda,and Nissan created luxury cars,they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile.This is because the luxury lines would not fit with the ________ that customers held.

Accepted Answer

Because of customer brand connections, marketing managers generally want to extend the brand to new products. However, extending a brand needs to fit the target market's perception of the brand. When Toyota, Honda, and Nissan created luxury cars, they realized the need to create a new brand because the target markets would be less willing to accept their current brands in a luxury automobile. It is also important for strong brands to reinforce their market presence because it helps maintain a barrier to entry.

Quiz 8: Build the Brand