mkt 4451 (ch. 9-11) tb

The first step in the strategic brand management process is ________.
A) measuring consumer brand loyalty
B) identifying and establishing brand positioning
C) planning and implementing brand marketing
D) measuring and interpreting brand performance
E) growing and sustaining brand value
B
The American Marketing Association defines a ________ as “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.”
A) copyright
B) trademark
C) slogan
D) brand
E) logo
D
Branding is ________.
A) all about creating unanimity between products
B) the process of performing market research and selling products or services to customers
C) endowing products and services with the power of a brand
D) the process of comparing competing brands available in the market
E) use of online interactive media to promote products and brands
C
Brand ________ is the added value endowed to products and services.
A) loyalty
B) equity
C) preference
D) identity
E) licensing
B
________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand.
A) Mission-driven brand equity
B) Customer-based brand equity
C) Product-driven brand equity
D) Service-driven brand equity
E) Function-based brand equity
B
Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is an IFB Bosch product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Bosch. This example implies that ________.
A) the imported brand will not survive the competition from Bosch
B) Bosch has a positive customer brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Bosch washing machine has better features than the imported brand
B
When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________.
A) brand knowledge
B) ethnocentric bias
C) self-serving bias
D) cognitive dissonance
E) brand identity
A
The challenge for marketers in building a strong brand is ________.
A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge
B) pricing the product at a point that maximizes sales volume
C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience
D) minimizing the impact of customer brand equity
E) avoiding the usage of an established brand to introduce a new product in the market
A
Which of the following is a marketing advantage of strong brands?
A) no vulnerability to marketing crises
B) more elastic consumer response to price increases
C) guaranteed profits
D) additional brand extension opportunities
E) more inelastic consumer response to price decreases
D
When a marketer expresses his or her vision of what the brand must be and do for consumers, they are expressing what is called ________.
A) a brand promise
B) a brand personality
C) a brand identity
D) a brand position
E) a brand revitalization
A
Identify the four pillars of brand equity, according to brand asset valuator model.
A) relevance, performance, bonding, and advantage
B) presence, performance, advantage, and bonding
C) energized differentiation, relevance, esteem, and knowledge
D) brand salience, brand feelings, brand imagery, and brand performance
E) energized differentiation, esteem, brand feelings, and brand salience
C
Christian Louboutin is a footwear designer who launched his line of high-end women’s shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario?
A) energized differentiation
B) relevance
C) esteem
D) knowledge
E) advantage
A
Christian Louboutin is a footwear designer who launched his line of high-end women’s shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting “Loubs” at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario?
A) knowledge
B) energized differentiation
C) esteem
D) advantage
E) presence
C
According to the brand asset valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand?
A) esteem
B) energized differentiation
C) relevance
D) knowledge
E) presence
D
According to the brand asset valuator model, which of the components of brand equity measures the breadth of a brand’s appeal?
A) differentiation
B) relevance
C) esteem
D) knowledge
E) value
B
According to brand asset valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________.
A) position
B) image
C) depth
D) knowledge
E) strength
E
According to brand asset valuator model, esteem and knowledge, the two pillars of brand equity together create ________, a “report card” on past performance and a current indicator of current value.
A) brand stature
B) brand parity
C) brand strength
D) brand personality
E) brand architecture
A
According to the brand asset valuator model, strong new brands show ________.
A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still
B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
C) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
D) high levels on energy, differentiation, relevance, knowledge, and esteem
E) low levels on energy, differentiation, relevance, knowledge, and esteem
B
According to brand asset valuator model, leadership brands show ________.
A) high levels of energy, differentiation, relevance, knowledge, and esteem
B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are
lower still
C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are
lower still
D) low levels on energy, differentiation, relevance, knowledge, and esteem
E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
A
According to brand asset valuator model, declining brands show ________.
A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are
lower still
B) high relevance—appropriateness of brand’s appeal—a lower level of energy and differentiation, and even lower knowledge
C) high levels on energy, differentiation, relevance, knowledge, and esteem
D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are
lower still
E) high knowledge—evidence of past performance—a lower level of esteem, and even lower
relevance, energy, and differentiation
E
According to Young and Rubicam’s brand asset valuator, a brand’s ________ measures how well the brand is regarded and respected.
A) differentiation
B) energy
C) relevance
D) esteem
E) knowledge
D
Aromas Inc., introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the brand dynamics pyramid?
A) presence
B) bonding
C) relevance
D) performance
E) advantage
A
If a consumer, trying to decide between alternatives, believes that a particular brand delivers acceptable product performance and can be short listed, she is in the ________ level of the brand dynamics pyramid.
A) presence
B) relevance
C) performance
D) advantage
E) bonding
C
Which of the following levels of the brand dynamics pyramid pertains to consumer’s needs?
A) advantage
B) relevance
C) bonding
D) performance
E) presence
B
A consumer who expresses rational and emotional attachments to the brand to the exclusion of most
other brands has reached the ________ level in the brand dynamics pyramid.
A) advantage
B) relevance
C) presence
D) performance
E) bonding
E
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address the question “Do I know about this brand?”
A) relevance
B) presence
C) performance
D) advantage
E) bonding
B
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question “Does this brand offer something better than the others?”
A) performance
B) presence
C) advantage
D) bonding
E) relevance
C
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question “Can this brand deliver?”
A) performance
B) bonding
C) advantage
D) relevance
E) presence
A
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question “Does this brand offer me something?”
A) advantage
B) presence
C) relevance
D) bonding
E) performance
C
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message ” Nothing else beats this brand”?
A) bonding
B) relevance
C) advantage
D) performance
E) presence
A
Brand salience ________.
A) is customers’ emotional responses and reactions with respect to the brand
B) is how often and how easily customers think of the brand under various purchase or consumption situations
C) is how well the product or service meets customers’ functional needs
D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social needs
E) describes the relationship customers have with the brand and the extent to which they feel they’re “in sync” with it
B
With respect to the “six brand building blocks,” ________ signifies how well the product or service meets customers’ functional needs.
A) brand judgment
B) brand imagery
C) brand salience
D) brand performance
E) brand resonance
D
With respect to the “six brand building blocks,” ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social needs.
A) brand imagery
B) brand judgment
C) brand resonance
D) brand salience
E) brand performance
A
With respect to the “six brand building blocks,” ________ focuses on customers’ own personal opinions and evaluations.
A) brand salience
B) brand performance
C) brand imagery
D) brand judgment
E) brand resonance
D
With respect to the brand building pyramid, at which of the following “building block levels” would we expect the consumer to develop an intense, active loyalty?
A) salience
B) imagery
C) feelings
D) judgments
E) resonance
E
With respect to the brand building pyramid, at which of the following “building block levels” would we expect the consumer to develop positive and accessible reactions?
A) resonance
B) salience
C) imagery
D) performance
E) feelings
E
With respect to the “six brand building blocks,” ________ describes the relationship customers have with the brand and the extent to which they feel they’re “in sync” with it.
A) brand imagery
B) brand judgment
C) brand resonance
D) brand salience
E) brand performance
C
With respect to the “six brand building blocks,” ________ are customers’ emotional responses and reactions with respect to the brand.
A) brand imagery statements
B) brand judgments
C) brand performances
D) brand feelings
E) brand resonances
D
Which of the following “building block levels” corresponds to the branding objectives of points-of-parity and difference?
A) performance and imagery
B) judgment and feelings
C) resonance and salience
D) imagery and judgment
E) salience and feelings
A
With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following “building block levels”?
A) resonance
B) imagery
C) performance
D) salience
E) judgment
D
From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald’s decided to use the “golden arches” and Ronald McDonald as symbols of their brand?
A) the product and all accompanying marketing activities and supporting marketing programs
B) the service and all accompanying marketing activities and programs
C) the initial choices for the brand elements or identities making up the brand
D) associations indirectly transferred to the brand by linking it to some other entity
E) the profitability associated with brand development
C
Red Bull enlisted college students as “Red Bull student brand managers” to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario?
A) the profitability associated with brand development
B) associations indirectly transferred to the brand by linking it to a person
C) the product and all accompanying marketing activities and supporting marketing programs
D) the initial choices for the brand elements or identities making up the brand
E) associations indirectly transferred to the brand by linking it to a place
C
The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of
the brand equity drivers is most applicable in the given scenario?
A) the associations indirectly transferred to the brand by linking it to a place or thing
B) the product and all accompanying marketing activities and supporting marketing programs
C) the initial choices for the brand elements or identities making up the brand
D) the profitability associated with brand development
E) the service and all accompanying marketing activities and programs
A
________ are devices that can be trademarked and serve to identify and differentiate the brand.
A) Brand elements
B) Brand value propositions
C) Brand perceptions
D) Brand images
E) Brand extensions
A
If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________.
A) memorable
B) meaningful
C) likeable
D) transferable
E) adaptable
D
If consumers can easily recall and recognize a brand element, the brand element is said to be ________.
A) meaningful
B) protectable
C) adaptable
D) transferable
E) memorable
E
Which of the following is a defensive criterion for choosing brand elements?
A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance
A
With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful “hook” or “handle” to help consumers grasp what the brand is and what makes it special.
A) the tangibility of a product
B) a product’s shape
C) a slogan
D) a patent
E) a copyright
C
A ________ can be defined as 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.
A) brand value
B) brand personality
C) brand trait
D) brand character
E) brand contact
E
The traditional “marketing-mix” concept and the notion of the “four Ps” may not adequately describe modern marketing programs. ________ is about mixing and matching marketing activities to maximize their individual and collective effects.
A) Personalized marketing
B) Mass customization
C) Globalized marketing
D) Relationship marketing
E) Integrated marketing
E
Brand equity can be built by ________, which create(s) equity by linking the brand to other information in memory that conveys meaning to customers.
A) internal marketing
B) brand transferability
C) secondary associations
D) customer alignment
E) brand auditing
C
Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing ________.
A) brand alliance
B) brand essence
C) brand harmonization
D) brand parity
E) brand bonding
E
________ consists of activities and processes that help inform and inspire employees about brands.
A) Internal branding
B) Personal branding
C) Individual branding
D) External branding
E) Co-branding
A
AT&T’s business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray?
A) choosing the right moment to capture employees’ attention and imagination
B) furnishing energizing and informative internal communication
C) bringing the brand alive for employees
D) linking internal and external marketing
E) understanding how brand communities work
D
A ________ is a specialized group of consumers and employees whose identification and activities focus around the brand.
A) brand community
B) brand channel
C) brand association
D) brand personality
E) brand cluster
A
Which of the following value creation processes means sharing the brand “good news” and inspiring others to use the brand?
A) staking
B) badging
C) evangelizing
D) justifying
E) milestoning
C
Which of the following value creation processes means detailing the brand relationship journey in a
narrative way, often anchored by and peppered with milestones?
A) documenting
B) milestoning
C) badging
D) evangelizing
E) staking
A
Which of the following value creation processes means translating milestones into symbols and artifacts?
A) staking
B) evangelizing
C) milestoning
D) badging
E) documenting
D
A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________.
A) the brand value chain
B) the brand portfolio
C) the brand life cycle
D) brand partitioning
E) brand positioning
A
Competitive superiority and channel support are factors that influence the ________ of the brand value chain.
A) program multiplier
B) customer multiplier
C) brand multiplier
D) profit multiplier
E) market multiplier
B
Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ of the brand
value chain.
A) program multiplier
B) brand multiplier
C) market multiplier
D) customer multiplier
E) profit multiplier
A
________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies
E
________ is the job of estimating the total financial worth of the brand.
A) Brand tracking
B) Brand auditing
C) Brand equity
D) Brand valuation
E) Brand harmonization
D
Apple’s ipod shuffle is an example of ________.
A) a sub-brand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand
A
When a firm uses an established brand to introduce a new product, it is called a ________.
A) brand harmonization
B) brand valuation
C) brand extension
D) brand positioning
E) brand parity
C
A parent brand that is associated with multiple products through brand extensions is also called a(n)________.
A) category brand
B) subbrand
C) extension brand
D) family brand
E) line brand
D
The introduction of diet coke by the Coca Cola Company is an example of ________.
A) line extension
B) brand harmonization
C) category extension
D) brand dilution
E) co-branding
A
A ________ consists of all productsoriginal as well as line and category extensionssold under a particular brand.
A) brand line
B) cobrand
C) generic brand
D) licensed product
E) subbrand
A
A major advantage of a ________ strategy is that the company does not tie its reputation to the product.
A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization
C
Starbucks introduced ice creams in the same flavors as the frappucinos it sold in its coffee shops. This is an example of ________.
A) brand dilution
B) cobranding
C) brand variants
D) category extension
E) brand harmonization
D
A ________ is a set of all brand lines that a particular seller makes.
A) brand platform
B) brand image
C) cobrand
D) brand extension
E) brand mix
E
A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category.
A) brand architecture
B) brand position
C) brand portfolio
D) brand extension
E) brand image
C
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
A
________ 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
A
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
B
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
E
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 offeringsin effect ________ the parent brand.
A) diluting
B) cannibalizing
C) reinforcing
D) eroding
E) revamping
B
In its focus on bottom-line financial value, the ________ approach often overlooks the “option value” of brands and their potential to affect future revenues and costs.
A) brand equity
B) brand value chain
C) customer tracking
D) customer equity
E) brand extension
D
All marketing strategy is built on STPsegmentation, targeting, and ________.
A) positioning
B) product
C) planning
D) promotion
E) performance
A
________ is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
A) Positioning
B) Valuation
C) Pricing
D) Commercialization
E) Launching
A
The goal of positioning is ________.
A) to locate the brand in the minds of consumers to maximize the potential benefit to the firm
B) to discover the different needs and groups existing in the marketplace
C) to target those customers marketers can satisfy in a superior way
D) to collect information about competitors that will directly influence the firms’ strategy
E) to help the firm anticipate what the actions of its competitors will be
A
The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product.
A) an award-winning promotional campaign
B) a customer-focused value proposition
C) a demand channel
D) everyday low pricing
E) employee value proposition
B
Which of the following best describes a car company’s value proposition?
A) We charge a 20% premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.
C
Which of the following best describes BR Chicken’s value proposition?
A) We sell chicken at most major malls.
B) We undertake home delivery services.
C) We target quality-conscious consumers of chicken.
D) We sell tender golden chicken at a moderate price.
E) We charge a 10% premium on our chicken.
D
The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis
D
________ refers to the products or sets of products with which a brand competes and which function as close substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
E) Demand field
C
________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups
B
A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another.
A) community
B) task force
C) industry
D) focus group
E) umbrella brand
C
Which of the following statements about blue ocean thinking is true?
A) It involves designing creative business ventures to positively affect both a company’s cost structure
and its value proposition to consumers.
B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive rules of the game are known.
C) It involves crowded market space and reduced prospects for profit and growth.
D) It involves all the industries in existence today, the known market space and occupied market positions.
E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has previously offered.
A
Which of the following terms is most closely associated with the statement: “attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand”?
A) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence
B
________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands.
A) Points-of-parity
B) Points-of-difference
C) Points-of-inflection
D) Points-of-presence
E) Points-of-divergence
A
The three criteria that determine whether a brand association can truly function as a point-of-difference are ________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability
D
Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?
A) deliverability
B) authenticity
C) desirability
D) differentiability
E) feasibility
C
Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers?
A) differentiability
B) peculiarity
C) desirability
D) believability
E) deliverability
E
Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors?
A) desirability
B) differentiability
C) believability
D) deliverability
E) deviance
B
The brand must demonstrate ________, for it to function as a true point-of-difference.
A) clear superiority on an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors’ weakness
A
The two basic forms of points-of-parity are ________ and ________.
A) conceptual points-of-parity; competitive points-of-parity
B) strategic points-of-parity; conceptual points-of-parity
C) category points-of-parity; deliverable points-of-parity
D) competitive points-of-parity; peculiar points-of-parity
E) category points-of parity; competitive points-of-parity
E
________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.
A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference
D
Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good?
A) points-of-difference
B) points-of-presence
C) points-of-parity
D) points-of-conflict
E) points-of-inflection
C
Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling?
A) points-of-difference
B) points-of-conflict
C) points-of-parity
D) points-of-presence
E) points-of-inflection
A
Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________.
A) competitive points-of-difference
B) competitive points-of-parity
C) category points-of-difference
D) category points-of-parity
E) conceptual points-of-parity
D
Nivea became the leader in the skin cream class on the “gentle”, “protective” and “caring” platform. The company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colorful enough. This is an example of ________.
A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence
C
________ are associations designed to overcome perceived weaknesses of the brand.
A) Conceptual points-of-parity
B) Category points-of-difference
C) Competitive points-of-parity
D) Competitive points-of-difference
E) Category points-of-parity
C
As a marketing manager, which of the following would be the best purpose for your organization’s competitive points-of-parity?
A) to point out competitors’ points-of-difference
B) to emphasize competitors’ points-of-difference
C) to rationalize competitors’ perceived points-of-difference
D) to globalize competitors’ perceived points-of-difference
E) to negate competitors’ perceived points-of-difference
E
A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following?
A) the soap is one-quarter cleansing cream
B) Dove products include bar soaps and shampoos
C) Dove soap helps users have softer skin
D) the soap brand has global presence
E) the brand has recently launched soap for men
C
Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________ allows the brand to create a point-of-parity (POP) on taste and a point-of-difference (POD) on health with respect to quick-serve restaurants such as McDonald’s and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés.
A) Category-based positioning
B) Need-based positioning
C) Noncomparitive positioning
D) Straddle positioning
E) Price-quality positioning
D
BMW positioned itself as the only automobile that offered both luxury and performance. At that time, consumers saw U.S. luxury cars as lacking performance. It was able to achieve a point-of-difference on performance and a point-of-parity on luxury with respect to U.S. luxury cars like Cadillac. This is an example of ________.
A) straddle positioning
B) category-based positioning
C) need-based positioning
D) noncomparitive positioning
E) price-quality positioning
A
Marketers typically focus on ________ in choosing the points-of-parity and points-of-difference
that make up their brand positioning.
A) brand equity
B) brand awareness
C) brand benefits
D) brand architecture
E) brand extensions
C
________ are visual representations of consumer perceptions and preferences.
A) Procedural maps
B) Brain maps
C) Perceptual maps
D) Procedural models
E) Cognitive maps
C
Straddle positions ________.
A) help firms to analyze who their competitors are
B) allow brands to expand their market coverage and potential customer base
C) are a necessity while creating a firm’s vision and mission statement
D) assist firms in collecting information on competitors that will directly influence their strategy
E) are ambiguous moral principles behind the operation and regulation of marketing
B
Which of the following statements about brand mantras is true?
A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating what it is not.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.
D
American Express’- “Worldclass Service, Personal Recognition,” Mary Kay’s – “Enriching women’s lives,” Hallmark’s- “Caring Shared,” and Starbucks’-“Rewarding Everyday Moments” are examples of ________.
A) brand mantras
B) brand parity
C) brand identity
D) brand architecture
E) brand extension
A
________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and ensure that the company’s own employees understand what the brand represents.
A) Brand mantras
B) Brand symbols
C) Brand logos
D) Brand alliances
E) Brand extensions
A
A ________ is a translation of the brand mantra that attempts to creatively engage consumers and others external to the company.
A) brand vision
B) brand extension
C) brand architecture
D) brand slogan
E) brand alliance
D
BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch someone” are all examples of ________.
A) brand slogan
B) brand personality
C) brand mission
D) brand architecture
E) brand vision
A
A brand mantra should be ________.
A) original, ambiguous, and straightforward
B) unique, complex, and inspirational
C) communicative, simple, and inspirational
D) competitive, sensitive, and simple
E) unique, sensitive, and explanatory
C
Brand mantras typically are designed to capture the brand’s ________, that is, what is unique about the brand.
A) points-of-conflict
B) points-of-parity
C) points-of-inflection
D) points-of-difference
E) points-of-presence
D
Points-of-parity are important while designing brand mantras for brands facing ________.
A) rapid growth
B) market saturation
C) slow and steady growth
D) rapid decline
E) stability in sales volume
A
For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on ________.
A) points-of-difference
B) points-of-presence
C) points-of-inflection
D) points-of-parity
E) points-of-conflict
A
Tums claims to have the most acid-reducing components of any antacid. In what way is the brand’s category membership being conveyed?
A) comparing to exemplars
B) relying on the product descriptor
C) announcing category benefits
D) focusing on reliability
E) persuasion based on believability
C
The typical approach to positioning is to inform consumers of a brand’s category membership before stating its ________,
A) point-of-parity
B) point-of-difference
C) point-of-conflict
D) point-of-weakness
E) point-of-presence
B
In which of the following examples is a company communicating category membership using a product descriptor?
A) Use Zipex for quick and thorough cleaning.
B) Barry’s Oats, when you want nutrition and flavor.
C) Clarity offers you the best prices for the best quality.
D) Choose Grissom’s for an unparalleled shopping experience.
E) Chloe: All you need for a beautiful you.
B
Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand’s category membership by ________.
A) relying on the product descriptor
B) comparing to exemplars
C) announcing category benefits
D) communicating deliverability variables
E) identifying counter examples
C
A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes
A
Which of the following ways to conveying a brand’s category membership relates to well-known,
noteworthy brands in a category helping a brand specify its category membership?
A) comparing to exemplars
B) communicating deliverability variables
C) identifying counter examples
D) announcing category benefits
E) relying on the product descriptor
A
SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC’s competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes
B
When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand’s category membership by ________.
A) relying on the product descriptor
B) focusing on reliability
C) comparing to exemplars
D) announcing category benefits
E) identifying counter examples
C
Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid association with its Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a “sports wagon”. According to the given scenario, Ford Motor Co. conveyed their brand’s category membership by ________.
A) announcing category benefits
B) identifying counter examples
C) relying on the product descriptor
D) focusing on reliability
E) comparing to exemplars
C
One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________.
A) negatively correlated
B) always correlated
C) directly proportional
D) never correlated
E) positively correlated
A
________ is a company’s ability to perform in one or more ways that competitors cannot or will not match.
A) Brand positioning
B) Market research
C) Competitive advantage
D) Competitor analysis
E) Competitive intelligence
C
A ________ is one that a company can use as a springboard to new advantages.
A) sustainable advantage
B) leverageable advantage
C) realistic advantage
D) rational advantage
E) distinct advantage
B
Which of the following types of differentiation relates to companies having better-trained personnel
who provide superior customer service?
A) channel differentiation
B) services differentiation
C) employee differentiation
D) image differentiation
E) product differentiation
C
Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an example of ________ differentiation.
A) image
B) services
C) product
D) employee
E) channel
D
Which of the following types of differentiation refers to companies effectively designing their distribution medium’s coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding?
A) service differentiation
B) channel differentiation
C) image differentiation
D) product differentiation
E) employee differentiation
B
Dayton, Ohio–based Iams found success selling premium pet food through regional veterinarians, breeders, and pet stores. This is an example of ________ differentiation.
A) service
B) employee
C) image
D) product
E) channel
E
Which of the following is an example of channel differentiation?
A) Berry’s has an intensive training program for its customer-facing employees, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK’s sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley’s found success by allowing buyers to customize the color and some features of its appliances before buying them.
D
Which of the following is an example of image differentiation?
A) Berry’s has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK’s sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley’s found success by allowing buyers to customize the color and some features of its appliances before buying them.
B
Which of the following is an example of services differentiation?
A) Berry’s has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK’s sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley’s found success by allowing buyers to customize the color and some features of its appliances before buying them.
C
A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher quality because of the way the farmers treat their cows. They said that the difference comes from how comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers and those moving toward organic products. This is an example of ________.
A) personnel differentiation
B) channel differentiation
C) service differentiation
D) product differentiation
E) image differentiation
E
A company which can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers is most likely using ________ differentiation.
A) services
B) channel
C) image
D) product
E) employee
A
Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most likely to be differentiated based on ________.
A) resilience
B) innovativeness
C) insensitivity
D) reliability
E) expertise
D
Suppliers who are better at handling emergencies, product recalls, and inquiries are most likely to be differentiated based on their ________.
A) innovativeness
B) thoroughness
C) resilience
D) insensitivity
E) reliability
C
A supplier creates better information systems, and introduces bar coding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________.
A) innovativeness
B) reliability
C) insensitivity
D) resilience
E) accuracy
A
Which of the following traits of a brand’s ability to become a lovemark relates to drawing together stories, metaphors, dreams, and symbols?
A) intimacy
B) mystery
C) insensitivity
D) sensuality
E) practicality
B
Which of the following traits of a brand’s ability to become a lovemark keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, music, and other such stimuli?
A) sensuality
B) intimacy
C) mystery
D) practicality
E) sensitivity
A
Which of the following traits of a brand’s ability to become a lovemark implies empathy, commitment, and passion?
A) practicality
B) sensuality
C) morality
D) mystery
E) intimacy
E
Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to
people’s memories, associations, and stories.
A) cultural branding
B) narrative branding
C) brand journalism
D) emotional branding
E) personal branding
B
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the time, place, and context of the brand story?
A) cast
B) pitch
C) narrative arc
D) setting
E) language
D
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany?
A) language
B) pitch
C) cast
D) setting
E) narrative arc
E
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs?
A) narrative arc
B) context
C) language
D) setting
E) cast
C
Which of the following statements about the branding guidelines for a small business is true?
A) A small business must creatively conduct low-cost marketing research.
B) A small business must avoid leveraging secondary brand associations.
C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image.
D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers.
E) A small business must focus on building more than two strong brands based on a number of associations.
A
The ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.
A) market challenger
B) market entrant
C) market follower
D) market nicher
E) market leader
E
When the total market expands, the ________ usually gains the most.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
B
When a firm looks for new users in groups that might use the product but do not, the firm is using the ________ strategy.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
B
As the marketing manager of a company that manufactures floor tiles, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use the product but do not at present. Which of the following strategies is Evans pursuing to increase the market demand for his product?
A) market-penetration strategy
B) new-market segment strategy
C) geographical-expansion strategy
D) needs-assessment strategy
E) consolidation strategy
A
When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
A
When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don’t drink coffee, Starbucks was employing a ________ strategy.
A) market-penetration
B) new-market segment
C) geographical-expansion
D) niche identification
E) blue-ocean
B
Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy
C
A market leader on the look out for more usage from existing customers should focus on increasing the frequency of consumption and ________.
A) decreasing the product price
B) the product line
C) the amount of consumption
D) decreasing production turnover time
E) diversifying into unrelated markets
C
Which of the following marketing strategies requires either identifying additional opportunities to use the brand in the same basic way or identifying completely new and different ways to use the brand?
A) increasing the amount of consumption
B) decreasing the level of consumption
C) increasing dedication to consumption
D) increasing product innovation
E) increasing frequency of consumption
E
When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ of the brand.
A) amount of consumption
B) level of consumption
C) dedication to consumption
D) frequency of consumption
E) awareness consumption
D
Oliver, a company that produces different types of olive oil, launched a promotional campaign focusing on the alternative uses of olive oil. What strategy is the company implementing to expand its total market demand?
A) using the new-market segment strategy to attract new customers
B) improving the current level of product performance
C) advertising new and different applications of the brand
D) protecting its market share
E) using the market-penetration strategy to attract new customers
C
Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates kitchen odors, in order to generate additional opportunities to use the brand in the same basic way. This is an attempt to ________.
A) increase the amount of consumption
B) increase the level of consumption
C) increase the perception of consumption
D) increase the frequency of consumption
E) increase the emotional implications of consumption
D
Which of the following is the most constructive response a market leader can make when defending its market share?
A) maintain basic cost control
B) innovate continuously
C) provide desired benefits
D) meet challengers with a swift response
E) provide expected benefits
B
To satisfy customers, a(n) ________ marketer finds a stated need and fills it.
A) creative
B) responsive
C) anticipative
D) laidback
E) inexperienced
B
A(n) ________ marketer looks ahead to needs customers may have in the near future.
A) laidback
B) creative
C) inexperienced
D) responsive
E) anticipative
E
A(n) ________ marketer discovers solutions customers did not ask for but to which they
enthusiastically respond.
A) laidback
B) responsive
C) inexperienced
D) creative
E) anticipative
D
________ marketers are not just market-driven, they are proactive market-driving firms.
A) Creative
B) Responsive
C) Inexperienced
D) Laidback
E) Anticipative
A
Sony is an unusual market leader. It gives its customers new products that they have never asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) ________ firm.
A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven
B
Which of the following is true about proactive marketing?
A) A company needs creative anticipation to see the writing on the wall.
B) Proactive companies create new offers to serve unmet and unknown consumer needs.
C) Proactive companies refrain from practicing uncertainty management.
D) A company needs responsive anticipation to devise innovative solutions.
E) Companies are winners when they are extremely risk-averse.
B
________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.
A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction
A
A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization’s new competitive strategy.
A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile
B
________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance.
A) Position defense
B) Flank defense
C) Contraction defense
D) Preemptive defense
E) Lateral defense
D
The defensive marketing strategy wherein a stream of new products are introduced by a firm and are announced in advance are referred to as ________ defense.
A) mobile
B) counteroffensive
C) preemptive
D) contraction
E) flank
C
If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
A
In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it’s forced to pull back to defend itself.
A) position
B) counteroffensive
C) preemptive
D) contraction
E) flank
B
After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________.
A) position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense
C
In ________, the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
A) counteroffensive defense
B) flank defense
C) contraction defense
D) mobile defense
E) position defense
D
Market broadening and market diversification are likely tactics employed in ________ strategies.
A) position defense
B) flank defense
C) preemptive defense
D) counteroffensive defense
E) mobile defense
E
When “petroleum” companies such as BP sought to recast themselves as “energy” companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
C
When large companies can no longer defend all their territory, they launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.
A) contraction
B) preemptive
C) flank
D) mobile
E) position
A
In 2006, Sara Lee spun off products that accounted for a large percentage of the company’s revenues, including its strong Hanes hosiery brand, so it could concentrate on its well-known food brands. In this example, Sara Lee is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
E
A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
C
For a market challenger, attacking ________ is a high risk but potentially high payoff strategy, which also allows it to distance itself from other challengers.
A) a firm of its own size
B) the market leader
C) a regional firm
D) an underfinanced firm
E) a poorly performing firm
B
In a pure ________ attack, the attacker matches its opponent’s product, advertising, price, and distribution.
A) guerilla
B) bypass
C) encirclement
D) frontal
E) flank
D
Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor’s. This is an example of a(n) ________ attack.
A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank
B
The ________ can be used when the challenger spots areas where the opponent is underperforming.
A) encirclement attack
B) frontal attack
C) flank-geographic attack
D) backwards-flank attack
E) guerilla warfare
C
Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack.
A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass
B
A(n) ________ is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill the gaps and developing them into strong segments.
A) frontal attack strategy
B) flanking strategy
C) encircling strategy
D) counteroffensive strategy
E) bypass strategy
B
The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.
A) frontal
B) bypass
C) flank
D) encirclement
E) guerrilla
D
Sally Seabrook is an up-and-coming marketing manager for a large department store chain. Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition?
A) frontal attack
B) bypass attack
C) guerrilla warfare
D) flank attack
E) encirclement attack
E
The ________ attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies.
A) bypass
B) flank
C) frontal
D) guerrilla
E) encirclement
A
Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack.
A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal
B
A marketing manager has decided to “leapfrog” competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as ________.
A) flank attack
B) encirclement attack
C) bypass attack
D) guerrilla warfare
E) frontal attack
C
Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n) ________.
A) frontal attack
B) flank attack
C) bypass attack
D) encirclement attack
E) guerilla warfare
E
In his article, “Innovative Imitation”, Theodore Levitt argues that ________.
A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision involved
B
As a market follower strategy, the ________ duplicates the leader’s product and packages and sells it on the black market or through disreputable dealers.
A) innovator
B) cloner
C) imitator
D) adapter
E) counterfeiter
E
Aron, a company manufacturing snack food and soft drinks, replicates its product taste and packaging from Lay’s, a market leader in snack food industry. Later, it sells these imitated products on the black market. This is an example of ________.
A) cloning
B) imitating
C) counterfeiting
D) adapting
E) innovating
C
As a market follower strategy, the ________ emulates the leader’s products, name, and packaging, with slight variations.
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator
B
Amani, a company that manufactures cloth for suits, strives to be equal to Armani in product design, brand name, and product packaging. This is an example of ________.
A) innovating
B) adapting
C) imitating
D) cloning
E) counterfeiting
D
Tasteeos, Fruit Rings, and Corn Flakes sell for nearly $1 a box less than leading cereal brands. Which market follower strategy is being employed by the cereal manufacturer?
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) reverse innovator
B
The ________ copies some things from the leader but differentiates on packaging, advertising, pricing, or location.
A) innovate
B) adapt
C) cloner
D) imitator
E) counterfeiter
D
As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has differentiated on location by setting up base in the Middle East, a market which the current leader of the industry McDonalds has yet not exploited.
A) cloner
B) imitator
C) counterfeiter
D) adapter
E) innovator
B
The TelePizza chain, which operates in Europe and Latin America, has copied Domino’s service model but maintains differentiation in terms of location. TelePizza is an example of a(n) ________.
A) counterfeiter
B) adopter
C) cloner
D) imitator
E) adapter
D
As a market follower, the ________ may choose to sell to different markets, but often it grows into a future challenger.
A) imitator
B) adapter
C) cloner
D) counterfeiter
E) innovator
B
Redo is a market follower in the wristwatch industry. After noticing a shortfall in the market leader’s product, Redo improves its product to suit consumer needs and becomes a challenger for the market leader. This is an example of ________.
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator
D
An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________.
A) marketing king
B) market nicher
C) segment king
D) guerilla marketer
E) strategic clone
B
A firm that serves small market segments that are not being served by bigger firms is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
D
The market leader strategy ensures high sales volume, whereas the market nicher strategy allows firms to achieve ________.
A) high margin
B) low margin
C) high promotability
D) medium pricing
E) lower demand
A
Which of the following is true about market-nichers?
A) They are market followers in small markets.
B) They tend to have high manufacturing costs.
C) Their return on investment exceeds that in larger markets.
D) A nicher achieves high volume as against a mass marketer that achieves high margin.
E) They usually experience long-term losses.
C
The key idea in successful nichemanship is specialization. Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer?
A) end-user specialist
B) vertical-level specialist
C) customer-size specialist
D) specific-customer specialist
E) quality-price specialist
D
Newman Inc. is a company that manufactures saddles specifically for horses that race in derbies in the U.S. and the UK. Within this context the firm is exhibiting the role of a ________ specialist.
A) vertical-level
B) customer-size
C) product-line
D) job-shop
E) service
C
A market nicher is considered to be a(n) ________ specialist if the firm specializes in producing a certain type of product or product feature such as, Rent-a-Wreck, that rents only “beat-up” cars.
A) end-user
B) vertical-level
C) customer-size
D) channel
E) product-feature
E
A job-shop specialist ________.
A) sells only in a certain locality, region, or area of the world
B) customizes its products for individual customers
C) operates at the low- or high-quality ends of the market
D) offers one or more services not available from other firms
E) specializes in serving only one channel of distribution
B
A firm that is based in France designs jewelry and takes custom orders from around the world. They do not design more than 15 pieces of jewelry in a year and ensure that each design uses unique stones and is different from the other. Such nichemanship is an example of ________ specialist role.
A) customer-size
B) product
C) product-feature
D) job-shop
E) quality-price
D
When a bank takes loan requests over the phone and hand-delivers the money to the customer, it becomes a ________ specialist.
A) geographic
B) job-shop
C) quality-price
D) channel
E) service
E
________ is the period of slow sales growth and nonexistent profits.
A) Growth
B) Decline
C) Maturity
D) Introduction
E) Stagnancy
D
Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle.
A) stagnancy
B) introduction
C) maturity
D) decline
E) growth
B
________ is a period of rapid market acceptance and substantial profit improvement.
A) Stagnancy
B) Introduction
C) Maturity
D) Decline
E) Growth
E
A dance school in the Bronx teaches professional hip-hop and salsa. It is experiencing an increase in student admissions, which is leading to substantial improvement in profits. The school is going through the ________ phase of its life cycle.
A) decline
B) stagnancy
C) growth
D) introduction
E) maturity
C
________ is a slowdown in sales growth because the product has achieved acceptance by most potential buyers.
A) Obsolescence
B) Introduction
C) Growth
D) Decline
E) Maturity
E
A music school in Boyles Height, LA, specializes in teaching the guitar and the violin. After a spurt in growth and a few successful years, the school is experiencing a slowdown in sales and stability in its profits due to an increase in competition. The school is in the ________ stage of its life cycle.
A) introduction
B) growth
C) decline
D) maturity
E) obsolescence
D
During the ________ stage of a product’s life cycle, sales show a downward drift and profits erode.
A) introduction
B) growth
C) decline
D) obsolescence
E) maturity
C
After a couple of years of successful business, an experimental theatre company based in Aurora is unable to sell tickets for its theatre shows. They have been using profits from previous shows to run the business. The company is in the ________ phase of its life cycle.
A) maturity
B) obsolescence
C) introduction
D) growth
E) decline
E
According to Peter Golder and Gerald Tellis, a(n) ________ is the first to develop a working model of the product.
A) developer
B) creative pioneer
C) market pioneer
D) product pioneer
E) inventor
D
One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience.
A) feature improvement
B) quality improvement
C) style improvement
D) size improvement
E) technological improvement
A
An alternate way to increase sales volume is to expand the number of users. This can be done by ________.
A) having consumers use the product on more occasions
B) having consumers use more of the product on each occasion
C) having consumers use the product in new ways
D) remaining in the current market segment
E) attracting competitors’ customers
E
An alternate way to increase sales volume is to increase the usage rate among users. This can be done by ________.
A) converting nonusers
B) having consumers use less of the product on each occasion
C) having consumers use the product on more occasions
D) attracting competitors’ customers
E) entering new market segments
C
________ is a distribution strategy that can be effectively used during the growth stage of the product life cycle.
A) Building product awareness
B) Phasing out unprofitable outlets
C) Building selective distribution
D) Building intensive distribution
E) Stressing on brand differences
D
Which of the following strategies should be adopted by marketers during a recession?
A) increase investment on marketing existing products
B) focus on expanding the customer base and not on the retention of existing customers
C) focus primarily on price reductions and discounts
D) concentrate on communicating the brand value and product quality to consumers
E) stick to the budget allocations adopted during the preceding years
D
Benz & Frendz Corp., a manufacturer of high end consumer durables, experienced a sluggish sales growth in most of its product categories during three consecutive quarters of 2009. However, market analysis revealed that its competitors’ sales had also slackened during this period. Analysts pointed out that when all firms are losing sales, it is extremely important to adopt strategies that are aimed at retaining customers. This led the firm to reduce operation costs while maintaining product quality. They also revamped their marketing strategy to focus on the values created by their products. Which of the following can be inferred from the strategies adopted by the firm?
A) The company was trying to protect its market share and continue to operate as a market leader.
B) The company was focusing on geographical expansion.
C) The company was aiming to capture a new market segment.
D) The company was marketing its products amidst an economic downturn.
E) The company was focusing on market penetration.
D