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Chapter 09 - Product, Branding, and Packaging Decisions
9-1
Chapter 09
Product, Branding, and Packaging Decisions
Multiple Choice Questions
1. The basic problem-solving benefits that consumers are seeking are defined by the:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand strategy.
E.
core customer value.
There is more to a product than its physical characteristics or its basic service function.
Marketers involved with the development, design, and sale of products think of them in an
interrelated fashion. At the centre is the core customer value, which defines the basic
problem-solving benefits that consumers are seeking.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-01 Complexity of Products and Types of Products
Chapter 09 - Product, Branding, and Packaging Decisions
9-2
2. The nonphysical attributes of a product, including product warranties, financing, product
support, and after-sale service are called the:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand service.
E.
core customer value.
The associated services, also referred to as the augmented product, include the nonphysical
aspects of the product, such as product warranties, financing, product support, and after-sale
service.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-01 Complexity of Products and Types of Products
3. An automobile firm launched a new car into the market, and it was a great success.
Customers primarily looking for speed and excitement were the target market. Positioned as a
sports car with supercar performance, it shattered the lap times of the fastest cars in the world.
In this scenario, speed and excitement constitute the:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand.
E.
core customer value.
In this case, speed and excitement constitute the core customer value. There is more to a
product than its physical characteristics or its basic service function. Marketers involved with
the development, design, and sale of products think of them in an interrelated fashion. At the
centre is the core customer value, which defines the basic problem-solving benefits that
consumers are seeking.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-01 Complexity of Products and Types of Products
Chapter 09 - Product, Branding, and Packaging Decisions
9-3
4. Joss bought a refrigerator. The refrigerator came with a warranty, free delivery, and free
after-sales service. In this scenario, the warranty, free delivery, and after-sales service
constitute the:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand quality.
E.
core customer value.
In this scenario, the warranty, free delivery, and after-sales service constitute the augmented
product. The associated services, also referred to as the augmented product, include the
nonphysical aspects of the product, such as product warranties, financing, product support,
and after-sale service.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-01 Complexity of Products and Types of Products
5. Products and services used by people for their personal use are called:
A.
personal products.
B.
consumer products.
C.
private products.
D.
personalized products.
E.
consumable products.
Consumer products are products and services for people's personal use.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
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Chapter 09 - Product, Branding, and Packaging Decisions
9-4
6. When shopping for diamonds, buyers typically perform a great deal of research on what
they should be looking for as well as viewing different diamonds to choose the ones they want
to buy. Diamonds are an example of:
A.
shopping products.
B.
unsought products.
C.
extended products.
D.
specialty products.
E.
convenience products.
Diamonds are an example of speciality products. Specialty products/services are products or
services toward which customers show such a strong preference that they will expend
considerable effort to search for the best suppliers.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
7. Refrigerators and washing machines are examples of:
A.
shopping products.
B.
unsought products.
C.
extended products.
D.
specialty products.
E.
convenience products.
Shopping products/services are products or services, such as furniture, apparel, fragrances,
appliances, and travel alternatives, for which consumers will spend a fair amount of time
comparing alternatives.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
Chapter 09 - Product, Branding, and Packaging Decisions
9-5
8. Milk and eggs are inexpensive items that are frequently purchased. They are examples of:
A.
shopping products.
B.
unsought products.
C.
extended products.
D.
specialty products.
E.
convenience products.
Convenience products/services are those products or services for which the consumer is not
willing to spend any effort to evaluate prior to purchase. They are frequently purchased
commodity items, such as common beverages, bread, or soap, and are usually purchased with
very little thought.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
9. Fire extinguishers are examples of:
A.
premium products.
B.
unsought products.
C.
extended products.
D.
specialty products.
E.
convenience products.
Unsought products/services are products consumers either do not normally think of buying
(e.g. funeral services, fire extinguishers) or do not know about.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
Chapter 09 - Product, Branding, and Packaging Decisions
9-6
10. Products or services toward which customers show such a strong preference that they will
expend considerable effort to search for the best suppliers are called:
A.
shopping products/services.
B.
unsought products/services.
C.
generic products/services.
D.
specialty products/services.
E.
convenience products/services.
Specialty goods/services are products or services toward which customers show a strong
preference and for which they will expend considerable effort to search for the best suppliers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
11. Products or services, such as furniture, apparel, fragrances, appliances, and travel
alternatives, for which consumers will spend a fair amount of time comparing alternatives are
called:
A.
shopping products/services.
B.
unsought products/services.
C.
generic products/services.
D.
specialty products/services.
E.
convenience products/services.
Shopping goods/services are products or services, such as apparel, fragrances, and appliances,
for which consumers will spend a fair amount of time comparing alternatives.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
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Chapter 09 - Product, Branding, and Packaging Decisions
9-7
12. The products or services for which a consumer is not willing to spend any effort to
evaluate prior to purchase are called:
A.
shopping products/services.
B.
unsought products/services.
C.
luxury products/services.
D.
specialty products/services.
E.
convenience products/services.
Convenience goods/services are those products or services for which the consumer is not
willing to spend any effort to evaluate prior to purchase. They are commodity items that are
frequently purchased, usually with very little thought.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
13. Products consumers either do not normally think of buying or do not know about are
called:
A.
shopping products.
B.
unsought products.
C.
luxury products.
D.
specialty products.
E.
convenience products.
Unsought products/services are products consumers either do not normally think of buying
(e.g. funeral services, fire extinguishers) or do not know about.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-03 Types of Products
Chapter 09 - Product, Branding, and Packaging Decisions
9-8
14. Impulse buying happens to which category of products?
A.
Unsought products
B.
Shopping products
C.
Specialty products
D.
Convenience products
E.
Services
Convenience products are those that consumers are not willing to spend any effort to evaluate
prior to purchase; whereas, for shopping and specialty products, customers spend time and
effort comparing alternatives. For convenience products, customers make purchasing decision
in the store; therefore, impulse buying occur more for convenient product
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
15. An assortment of items that a customer sees as reasonable substitutes for one another is
called a(n):
A.
shopping product.
B.
unsought product.
C.
product category.
D.
specialty product.
E.
convenience product.
Within each product line, there are often multiple product categories. A product category is an
assortment of items that a customer sees as reasonable substitutes for one another.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
Chapter 09 - Product, Branding, and Packaging Decisions
9-9
16. A product line refers to:
A.
the products in the shopping basket of a customer.
B.
the benefits offered with a single product.
C.
a group of associated items, such as those that consumers use together.
D.
the additional free items that a customer receives with a product.
E.
the number of features offered with a product.
The product mix typically consists of various product lines, which are groups of associated
items, such as items that consumers use together or think of as part of a group of similar
products.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
17. Identify the term that refers to the names, terms, designs, symbols, or any other features
that identify one seller's good or service as distinct from those of other sellers.
A.
Augmented product
B.
Extension
C.
Customer lifetime value
D.
Brand
E.
Core customer value
Each category within a product line may use the same or different brands, which are the
names, terms, designs, symbols, or any other features that identify one seller's good or service
as distinct from those of other sellers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
9-10
18. Neon Corp., an electronic goods manufacturing company, uses the picture of an animated
kangaroo on its product. This picture helps in creating distinction from its other competitors in
the market. This picture is an example of a:
A.
brand logo.
B.
brand slogan.
C.
brand jingle.
D.
brand tag line.
E.
brand catch phrase.
In this scenario, the picture used by the electronic goods manufacturing company is an
example of the brand logo. Logos are visual branding elements that stand for corporate names
or trademarks. Symbols are logos without words.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-07 Value of Branding
19. The complete set of all products offered by a firm is called the:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand equity.
E.
core customer value.
The complete set of all products offered by a firm is called its product mix.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
Chapter 09 - Product, Branding, and Packaging Decisions
9-11
20. A company markets a fairly wide variety of products that includes paper, food, household
cleaning supplies, medicine, cosmetics, and oral-care products. The products constitute the
company's:
A.
augmented product.
B.
product mix.
C.
customer lifetime value.
D.
brand equity.
E.
customer loyalty.
In this instance, the products constitute the company's product mix. The product mix typically
consists of various product lines, which are groups of associated items, such as items that
consumers use together or think of as part of a group of similar products.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
21. Clark Inc., a chain store, markets paper, food, household cleaning supplies, medicine,
cosmetics, and oral-care products. Under oral-care products, Clark markets a brand of
toothpastes available in three sizes and two formulations (paste and gel). Out of these, paper,
food, household cleaning supplies, medicine, cosmetics, and oral-care products constitute the:
A.
product mix breadth.
B.
product line depth.
C.
product mix spread.
D.
product line spread.
E.
product line offer.
In this scenario, Clark Inc.'s paper, food, household cleaning supplies, medicine, cosmetics,
and oral-care products constitute the product mix breadth. The product mix reflects the
breadth and depth of a company's product lines. A firm's product mix breadth (sometimes also
referred to as variety) represents the number of product lines offered by the firm.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
Chapter 09 - Product, Branding, and Packaging Decisions
9-12
22. Robinson Corp., a discount store, markets paper, food, household cleaning supplies,
medicine, cosmetics, and oral-care products. Under the hair-care product section, the
company markets a brand of shampoos available in three sizes and two formulations (paste
and gel). The different type of shampoos offered by Robinson is an example of:
A.
product mix breadth.
B.
product line depth.
C.
product mix spread.
D.
product line spread.
E.
product line offer.
In this scenario, the brand of shampoos marketed by Robinson Corp. is an example of the
product line depth. Product line depth is the number of products within a product line.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
23. Product mix breadth refers to the number of:
A.
products in the shopping basket of a customer.
B.
benefits offered along with a single product.
C.
additional free items that a customer receives with a product.
D.
product lines offered by a firm.
E.
features offered with a product.
The product mix reflects the breadth and depth of a company's product lines. A firm's product
mix breadth (sometimes also referred to as variety) represents the number of product lines
offered by the firm.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
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24. Product line depth refers to the number of:
A.
products in the shopping basket of a customer.
B.
products within a group of associated items offered by a firm.
C.
additional free items that a customer receives with a product.
D.
benefits offered along with a single product.
E.
features offered with a product.
Product line depth is the number of products within a product line.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
25. The term for the smallest unit available for inventory control is a(n):
A.
inventory unit.
B.
stock up unit.
C.
product control unit.
D.
stock keeping unit.
E.
marginal unit.
Within each product category are a number of individual items called stock keeping units
(SKUs), which are the smallest unit available for inventory control.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
Chapter 09 - Product, Branding, and Packaging Decisions
9-14
26. Stock keeping units refer to the:
A.
products in the shopping basket of a customer.
B.
benefits offered along with a single product.
C.
individual items within each product category.
D.
additional free items that a customer receives with a product.
E.
different features of a product.
Within each product category are a number of individual items called stock keeping units
(SKUs), which are the smallest unit available for inventory control. Each individual product is
a unique SKU.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
27. "Sony" is a(n)
A.
Brand name
B.
URL
C.
Logo
D.
Character
E.
Slogan
The spoken component of branding is brand name.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers.
Topic: 09-06 Branding
Chapter 09 - Product, Branding, and Packaging Decisions
9-15
28. A car company uses the tag line "Suite on roads." This is an example of a:
A.
slogan.
B.
character.
C.
logo.
D.
mission
E.
jingle.
The tag line used is an example of a slogan. Slogans are short phrases used to describe the
brand or persuade consumers about some characteristics of the brand. Examples include State
Farm's "Like A Good Neighbour" and Tim Hortons "Always Fresh."
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-06 Branding
29. A dairy farm launched a catchy new singing commercial. The lines were: Milk for health,
Milk for fun, Milk for the young, Milk for everyone. This is an example of a:
A.
slogan.
B.
character.
C.
logo.
D.
brand name.
E.
jingle.
In this instance, the lines are an example of a jingle. Jingles are audio messages about the
brand that are composed of words or distinctive music.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-06 Branding
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Chapter 09 - Product, Branding, and Packaging Decisions
9-16
30. Sam travels several times a year for work. As soon as he know the travel date and
location, he goes to Air Canada website and book the ticket; without looking at any other
website. He is happy with service he gets from Air Canada. This is an example of:
A.
Brands impact market value
B.
Brands establish loyalty
C.
Brands protect from competition
D.
Brand awareness
E.
Perceived value
Over time and with continue use, consumers learn to trust certain brands.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers.
Topic: 09-07 Value of Branding
31. Brands add value for both customers and the firm in all following ways EXCEPT:
A.
Brands establish loyalty
B.
Brands reduce marketing costs
C.
Brands are assets
D.
Brands facilitate purchasing
E.
Brands make new product launch a success
Brand, by itself, doesn't make a new product successful. Many established brands fail when
they launch a product.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers.
Topic: 09-07 Value of Branding
Chapter 09 - Product, Branding, and Packaging Decisions
9-17
32. The set of assets and liabilities linked to a brand that add to or subtract from the value
provided by a product or service is called:
A.
cobranding.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
The value of a brand translates into brand equity, or the set of assets and liabilities linked to a
brand that add to or subtract from the value provided by the product or service.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
33. Vinkruet Coffee House has differentiated itself from its competitors by allowing
customers to sit in the café for as long as they want and giving them access to the café's
library. Additionally, celebrities have endorsed the brand, which has helped the café create a
better brand image among the target customers. This is an example of:
A.
brand positioning.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
This endorsement by Vinkruet Coffee House is an example of brand equity. The value of a
brand translates into brand equity, or the set of assets and liabilities linked to a brand that add
to or subtract from the value provided by the product or service.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
Chapter 09 - Product, Branding, and Packaging Decisions
9-18
34. Sindiola Inc. designs high-end footwear for women, which is stylish, sophisticated, and
exclusive. Endorsed by celebrities, the store is considered one-of-a-kind, which makes target
consumers value it more. This is an example of:
A.
cobranding.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
This type of endorsement by Sindiola Inc. is an example of brand equity. The value of a brand
translates into brand equity, or the set of assets and liabilities linked to a brand that add to or
subtract from the value provided by the product or service.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
35. Fenkrusk Foods Inc. offers high-quality frozen foods. It emphasizes that its foods are a
healthy choice because they are free of artificial preservatives. Customers are very familiar
with the brand and what it stands for, and they have an opinion about it. This is an example
of:
A.
brand depth.
B.
brand awareness.
C.
brand loyalty.
D.
brand commitment.
E.
brand extension.
This formation of opinion about Fenkrusk Foods Inc. by its consumers is an example of brand
awareness. Brand awareness measures how many consumers in a market are familiar with the
brand and what it stands for, and have an opinion about that brand. The more aware or
familiar customers are with a brand, the easier their decision-making process will be.
Familiarity matters most for products that are bought without much thought, such as soap or
chewing gum.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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36. Many consumers are familiar with the brands Pepsi and Coca-Cola and what they stand
for. This is an example of:
A.
brand commitment.
B.
brand awareness.
C.
brand loyalty.
D.
brand architecture.
E.
perceived value.
Brand awareness measures how many consumers in a market are familiar with the brand and
what it stands for, and have an opinion about that brand. The more aware or familiar
customers are with a brand, the easier their decision-making process will be. This familiarity
is an example of brand awareness.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
37. Which of the following holds true for the term "brand awareness"?
A.
It refers to the mental links that consumers make between a brand and its key product
attributes.
B.
It refers to a set of human characteristics associated with a brand, which has symbolic or
self-expressive meanings for consumers.
C.
It refers to the relationship between a product or service's benefits and its cost.
D.
It involves a situation that occurs when a consumer buys the same brand's product or
service repeatedly over time rather than buying from multiple suppliers within the same
category.
E.
It suggests that the more aware or familiar customers are with a brand, the easier their
decision-making process will be.
Brand awareness measures how many consumers in a market are familiar with the brand and
what it stands for, and have an opinion about that brand. The more aware or familiar
customers are with a brand, the easier their decision-making process will be.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
Chapter 09 - Product, Branding, and Packaging Decisions
9-20
38. Which of the following holds true for the term "perceived value"?
A.
It refers to the mental links that consumers make between a brand and its key product
attributes.
B.
It refers to a set of human characteristics associated with a brand, which has symbolic or
self-expressive meanings for consumers.
C.
It refers to the relationship between a product or service's benefits and its cost.
D.
It refers to a situation that occurs when a consumer buys the same brand's product or
service repeatedly over time rather than buying from multiple suppliers within the same
category.
E.
It refers to the measurement of the number of customers in a market who are familiar with
a brand and what it stands for.
Perceived value is the relationship between a product or service's benefits and its cost.
Customers usually determine the offering's value in relationship to that of its close
competitors.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
39. Which of the following holds true for the term "brand loyalty"?
A.
It refers to the mental links that consumers make between a brand and its key product
attributes.
B.
It refers to a set of human characteristics associated with a brand, which has symbolic or
self-expressive meanings for consumers.
C.
It refers to the relationship between a product or service's benefits and its cost.
D.
It refers to a situation that occurs when a consumer buys the same brand's product or
service repeatedly over time rather than trying other brands.
E.
It refers to the measurement of the number of customers in a market who are familiar with
a brand and what it stands for.
Brand loyalty occurs when a consumer buys the same brand's product or service repeatedly
over time rather than buying from multiple suppliers within the same category.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
Chapter 09 - Product, Branding, and Packaging Decisions
9-21
40. Which of the following holds true for the term "brand personality"?
A.
It refers to the mental links that consumers make between a brand and its key product
attributes.
B.
It refers to a set of human characteristics associated with a brand, which has symbolic or
self-expressive meanings for consumers.
C.
It refers to the relationship between a product or service's benefits and its cost.
D.
It refers to a situation that occurs when a consumer buys the same brand's product or
service repeatedly over time rather than buying from multiple suppliers within the same
category.
E.
It refers to the measurement of the number of customers in a market who are familiar with
a brand and what it stands for.
Brand personality refers to a set of human characteristics associated with a brand, which has
symbolic or self-expressive meanings for consumers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
41. A celebrity sportsperson endorses a particular product. A consumer equates the product
with physical fitness and sports. This is an example of:
A.
brand association.
B.
brand awareness.
C.
brand loyalty.
D.
brand personality.
E.
perceived value.
This scenario illustrates brand association as the consumer equates the product with that of the
celebrity endorsing it. Brand associations reflect the mental links that consumers make
between a brand and its key product attributes, such as a logo, slogan, or famous personality.
These brand associations often result from a firm's advertising and promotion efforts.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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42. Jim loves eating at the Chinese restaurant Canton Delight. Although three other Chinese
restaurants in the neighbourhood are less expensive, Jim continues to visit Canton Delight.
This is an example of:
A.
brand value.
B.
brand extension.
C.
brand loyalty.
D.
brand personality.
E.
brand depth.
In this scenario, the commitment shown by Jim is an example of brand loyalty. Brand loyalty
occurs when a consumer buys the same brand's product or service repeatedly over time rather
than buying from multiple suppliers within the same category. Therefore, brand-loyal
customers are an important source of value for firms.
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Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
43. Pearly and Waves are two teeth whitening brands. Though Pearly charges more than
Waves, both use the same "magical" ingredient (peroxide) and produce the same result. Most
consumers typically opt for Waves. Which of the following is most likely influencing their
purchase decision?
A.
Brand diversification
B.
Brand depth
C.
Brand loyalty
D.
Product line
E.
Perceived value
The perceived value is influencing the purchase decisions of the consumers in purchasing
Waves instead of Pearly. Perceived value is the relationship between a product or service's
benefits and its cost. Customers usually determine the offering's value in relationship to that
of its close competitors.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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44. Plognas Inc. and Naslog Inc. are manufacturers of diapers. Gita, a likely consumer, relates
to Plognas as an adult diaper brand, whereas she relates to Naslog as a kids diaper brand.
These associations made by Gita with the manufacturers indicate:
A.
brand dilution.
B.
brand extension.
C.
brand loyalty.
D.
brand personality.
E.
brand licensing.
In this scenario, the associations made by Gita with the manufacturers indicate brand
personality. Brand personality refers to a set of human characteristics associated with a brand,
which has symbolic or self-expressive meanings for consumers. Brand personality elements
include male, female, young, old, fun loving, and conservative, as well as qualities such as
fresh, smooth, round, clean, or floral.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
45. Which of the following holds true for the term "brand association"?
A.
It refers to the mental links that consumers make between a brand and its key product
attributes.
B.
It refers to a set of human characteristics associated with a brand, which has symbolic or
self-expressive meanings for consumers.
C.
It refers to the relationship between a product or service's benefits and its cost.
D.
It refers to a situation that occurs when a consumer buys the same brand's product or
service repeatedly over time rather than buying from multiple suppliers within the same
category.
E.
It refers to the measurement of the number of customers in a market who are familiar with
a brand and what it stands for.
Brand associations reflect the mental links that consumers make between a brand and its key
product attributes, such as a logo, slogan, or famous personality.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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46. Synthesis Corp. is perceived among its consumers as a firm that sells sturdy cellphones
with a comparatively longer lifespan than that of the other manufacturers' cellphones. This is
an example of:
A.
brand association.
B.
brand extension.
C.
brand loyalty.
D.
cobranding.
E.
brand depth.
In this scenario, the perception among consumers about the products of Synthesis Corp. is an
example of brand association. Brand associations reflect the mental links that consumers
make between a brand and its key product attributes, such as a logo, slogan, or famous
personality.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
47. Brad loves playing video games. He was always a Sony customer, having used
PlayStation 2 for a long time, and he bought a PlayStation 3 the day it was launched. He has
loved Sony's video game products so much that he now buys only Sony products. This
indicates:
A.
brand association.
B.
brand awareness.
C.
brand loyalty.
D.
brand personality.
E.
perceived value.
This scenario that shows Brad buying only Sony products indicates brand loyalty. Brand
loyalty occurs when a consumer buys the same brand's product or service repeatedly over
time rather than buying from multiple suppliers within the same category.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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48. Perfume makers usually use elaborate and expensive advertising campaigns to create
strong brand imagery for their perfumes. Though the cost of producing perfumes is relatively
low, consumers are ready to pay high prices because they believe that the perfume is worth
having. This is an example of:
A.
brand association.
B.
product line.
C.
brand loyalty.
D.
brand personality.
E.
perceived value.
The willingness of consumers to purchase a perfume primarily for its high cost is an example
of the perceived value of the product. Perceived value is the relationship between a product or
service's benefits and its cost. Customers usually determine the offering's value in relationship
to that of its close competitors.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
49. A set of human characteristics associated with a brand that has symbolic or self-expressive
meanings for consumers is known as:
A.
brand depth.
B.
brand awareness.
C.
brand loyalty.
D.
brand personality.
E.
brand extension.
Brand personality refers to a set of human characteristics associated with a brand, which has
symbolic or self-expressive meanings for consumers.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
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Chapter 09 - Product, Branding, and Packaging Decisions
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50. Which of the following holds true for brand-loyal customers?
A.
They are less sensitive to product quality.
B.
The marketing costs of reaching loyal consumers are very high.
C.
They need an extra push to buy a firm's brands.
D.
They insulate a firm from competition with their high levels of loyalty.
E.
They are a drain on a firm's finances as they need to be constantly rewarded.
A high level of brand loyalty insulates the firm from competition because brand-loyal
customers do not switch to competitors' brands, even when provided with a variety of
incentives.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
51. "no name" is a brand that belongs to Loblaw Companies Limited, Canada's largest food
retailer. "no name" is an example of:
A.
Generic brands
B.
Home brands
C.
National brands
D.
Private-label brands
E.
Public brands
"no name" developed and marketed by a retailer and available only from that retailer.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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52. Brands owned and managed by a manufacturer are called:
A.
national brands.
B.
generic brands.
C.
store brands.
D.
home brands.
E.
public brands.
Manufacturer brands are owned and managed by the manufacturer, and include Nike,
Mountain Dew, KitchenAid, and Marriott. These brands are otherwise known as national
brands.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
53. IBM and Kellogg are brands that are owned and managed by the manufacturers
themselves. They are examples of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
IBM and Kellogg are examples of manufacturer brands. Manufacturer brands are owned and
managed by the manufacturer, and include Nike, Mountain Dew, KitchenAid, and Marriott.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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54. Which of the following brands are also known as manufacturer brands?
A.
National brands
B.
Generic brands
C.
Private-label brands
D.
Home brands
E.
Public brands
Manufacturer brands are owned and managed by the manufacturer, and include Nike,
Mountain Dew, KitchenAid, and Marriott. These brands are otherwise known as national
brands.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
55. Benkerano Inc. is a retailer that owns and manages a brand called Saturn's Choice. This
brand includes grocery products, financial services, and even cellphone services. Benkerano's
Saturn's Choice is an example of a:
A.
manufacturer brand.
B.
generic brand.
C.
private-label brand.
D.
home brand.
E.
public brand.
Benkerano's Saturn's Choice is an example of a private-label brand. Brands that are owned
and managed by retailers are called private-label brands or store brands.
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Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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56. A supermarket sells unbranded dairy products, salt, grains, and meat. These are examples
of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
In this scenario, the products sold by the supermarket are an example of generic brands.
Generic products are those sold without brand names, typically in commodities markets. For
instance, shoppers can purchase unbranded salt, grains, produce, meat, or nuts in grocery
stores.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
57. Tengermart is a chain of discount stores. It owns and manages brands such as Streetsmart
Wear and Blue Veils. These brands are examples of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
The brands owned by Tengermart are examples of private-label brands. Brands that are
owned and managed by retailers are called private-label brands or store brands.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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58. A grocery store sells unbranded barbeque sauces, spices, and seasonings. These are
examples of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
In this scenario, the unbranded barbeque sauces, spices, and seasonings are examples of
generic brands. Generic products are those sold without brand names, typically in
commodities markets. For instance, shoppers can purchase unbranded salt, grains, produce,
meat, or nuts in grocery stores.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
59. Which of the following brands are developed and marketed by a retailer and available
only from that retailer?
A.
National brands
B.
Generic brands
C.
Store brands
D.
Home brands
E.
Public brands
Brands that are owned and managed by retailers are called private-label brands or store
brands. Some manufacturers prefer to make only private-label merchandise because the costs
of national branding and marketing are prohibitive, whereas other firms manufacture both
their own brand and merchandise for other brands or retailers.
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Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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60. A product sold without a brand name, typically in a commodities market, is called a:
A.
national brand.
B.
generic brand.
C.
store brand.
D.
home brand.
E.
public brand.
Generic products are those sold without brand names, typically in commodities markets. For
instance, shoppers can purchase unbranded salt, grains, produce, meat, or nuts in grocery
stores. Hardware stores often sell unbranded screws, nuts, and lumber. However, even in
these markets, the popularity and acceptance of generic products has declined.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
61. When a product is named by using a firm's own corporate name to brand all its product
lines and products, the branding strategy used refers to a(n):
A.
generic brand.
B.
individual brand.
C.
family brand.
D.
home brand.
E.
public brand.
A firm also could use its corporate name to brand similar product lines and products. Such a
strategy is referred to as family brand.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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62. Which of the following statements is true of generic products?
A.
They are sold with popular brand names.
B.
Hardware stores often sell these products.
C.
They are typically excluded in commodities markets.
D.
Manufacturers own and sell these products at a national level.
E.
The popularity of these products is increasing rapidly.
Generic products are those sold without brand names, typically in commodities markets. For
instance, shoppers can purchase unbranded salt, grains, produce, meat, or nuts in grocery
stores. Hardware stores often sell unbranded screws, nuts, and lumber.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
63. Vendronas Solutions Inc. sells its baby care products, Vendronas Baby Powder and
Vendronas Baby Soap, under the Vendronas brand name. This is an example of a(n):
A.
generic brand.
B.
individual brand.
C.
family brand.
D.
home brand.
E.
public brand.
In this scenario, the products sold are examples of a family brand. A firm also could use its
corporate name to brand similar product lines and products.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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64. Perionica Inc. uses a single brand name and the recognizable Perionica logo. The
corporation sells computers, phones, accessories, music players, and tablets under the single
brand name and logo. This is an example of a(n):
A.
generic brand.
B.
individual brand.
C.
family brand.
D.
home brand.
E.
public brand.
This scenario is an example of a family brand. A firm also could use its corporate name to
brand similar product lines and products. When all products in a line are sold under one
family brand, individual brands benefit from the overall awareness associated with the family
name.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
65. Tremblay Inc., a soft-drink company, has a number of local and regional soft-drink brands
such as Peppy and Mild. Peppy and Mild are examples of:
A.
generic brands.
B.
individual brands.
C.
family brands.
D.
home brands.
E.
public brands.
In this scenario, Peppy and Mild are examples of individual brands. A firm can use individual
brand names for each of its products. Individual brands allow a company to compete within
one category, for example, laundry detergent, offering a variety of products to different target
markets.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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66. Austen Corp., a media company, has brands such as Today News, Axiom Music, Vroom
automobile magazines, and Business World. Each of the brands has an independent identity
and an independent target audience. These are examples of:
A.
generic brands.
B.
individual brands.
C.
family brands.
D.
home brands.
E.
public brands.
In this instance, the brands Today News, Axiom Music, Vroom automobile magazines, and
Business World are examples of individual brands. A firm can use individual brand names for
each of its products. Individual brands allow a company to compete within one category, for
example, laundry detergent, offering a variety of products to different target markets.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
67. Palates Corp. is a food manufacturer. It has different brand names for products in different
categories, including Babys (baby food), Vegan (vegetarian meals), and Slim Foods (diet
meals and supplements). These different types of products are examples of:
A.
generic brands.
B.
individual brands.
C.
family brands.
D.
home brands.
E.
public brands.
In this scenario, these different types of products are examples of individual brands. A firm
can use individual brand names for each of its products. Individual brands allow a company to
compete within one category, for example, laundry detergent, offering a variety of products to
different target markets.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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68. Which of the following brand types allows a company to compete within one category?
A.
Generic brands
B.
Individual brands
C.
Family brands
D.
Home brands
E.
Public brands
Individual brands allow a company to compete within one category, for example, laundry
detergent, offering a variety of products to different target markets.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
69. Which of the following refers to the use of the same brand name for new products being
introduced to the same or new markets?
A.
Brand positioning
B.
Brand equity
C.
Brand licensing
D.
Brand extension
E.
Brand dilution
A brand extension refers to the use of the same brand name for new products being introduced
to the same or new markets. The dental hygiene market, for instance, is full of brand
extensions.
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Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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70. Roy Corp., a clothing company, began manufacturing sunglasses. It marketed its
sunglasses under the same brand name as its clothing. This is an example of:
A.
brand positioning.
B.
brand value.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the marketing of sunglasses under the same brand is an example of brand
extension. A brand extension refers to the use of the same brand name for new products being
introduced to the same or new markets. The dental hygiene market, for instance, is full of
brand extensions.
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Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
71. Lakronis Inc., a clothing line, acquired a music company and entered the music retail
industry. Since Lakronis was known in the market for its high quality, it hoped that this
perception would carry over to its new product as well. This is an example of:
A.
brand positioning.
B.
brand value.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the venture of entering into the music retail industry by Lakronis Inc. is an
example of brand extension. A brand extension refers to the use of the same brand name for
new products being introduced to the same or new markets. The dental hygiene market, for
instance, is full of brand extensions.
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Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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72. Boone Inc., a soft-drink company, extended its brand name to include soaps. Boone did
not succeed in selling its soaps and, as a result, sales of its core brand also declined. It took
considerable effort to regain customers who had turned to other soft drinks. This decline was
most likely due to its:
A.
brand valuation.
B.
brand essence.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the decline of the soft drinks manufactured by Boone Inc. was most likely
due to its brand dilution. Brand dilution occurs when the brand extension adversely affects
consumer perceptions about the attributes the core brand is believed to hold.
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Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
73. Which of the following occurs when a brand extension adversely affects consumer
perceptions about the attributes the core brand is believed to hold?
A.
Brand positioning
B.
Brand equity
C.
Brand licensing
D.
Brand extension
E.
Brand dilution
Brand dilution occurs when the brand extension adversely affects consumer perceptions about
the attributes the core brand is believed to hold.
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Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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Chapter 09 - Product, Branding, and Packaging Decisions
9-38
74. Blanding Corp. is a company that specializes in making sports bikes. It then created its
own brand of perfumes. But consumers did not like the perfume and voiced their
dissatisfaction about the product. The company's attempt adversely affected consumer
perceptions about the company's bikes. Blanding was forced to admit its mistake and had to
stop the production of the perfumes. Which of the following has most likely triggered the
change in the company's marketing and production strategy?
A.
Cobranding
B.
Brand equity
C.
Brand licensing
D.
Brand loyalty
E.
Brand dilution
In this scenario, brand dilution has caused Blanding Corp. to reconsider its marketing and
production strategy of its perfumes. Brand dilution occurs when the brand extension adversely
affects consumer perceptions about the attributes the core brand is believed to hold.
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Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
75. Marinek Corp., a sports shoes manufacturer, and Postagilo Inc., a sports equipment
manufacturer, together created Lizla, a sportswear product, which integrates heart rate, speed,
and distance monitoring equipment into sports apparel. This scenario is an example of:
A.
cobranding.
B.
brand equity.
C.
product brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the link between Marinek Corp. and Postagilo Inc. is an example of
cobranding. Cobranding is the practice of marketing two or more brands together, on the same
package or promotion.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
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Chapter 09 - Product, Branding, and Packaging Decisions
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76. The practice of marketing two or more brands together, on the same package or
promotion, is called:
A.
cobranding.
B.
brand equity.
C.
product brand licensing.
D.
brand extension.
E.
brand dilution.
Cobranding is the practice of marketing two or more brands together, on the same package or
promotion.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
77. Fiola Inc. is a chain of cosmetic stores. Pariquan Charity Home is a not-for-profit medical
service organization. Fiola Inc. markets a product carrying the logo of the Pariquan Charity
Home, and a consumer is encouraged to associate the two brands. A portion of the proceeds
benefits the charity. This scenario exemplifies:
A.
cobranding.
B.
perceived value.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the link between Fiola Inc. and Pariquan Charity Home is an example of
cobranding. Cobranding is the practice of marketing two or more brands together, on the same
package or promotion.
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Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
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Chapter 09 - Product, Branding, and Packaging Decisions
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78. A farm markets meat products. It has acquired the right to use the brand name of Piritteo
Hotels. This scenario is an example of:
A.
brand valuation.
B.
brand commitment.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the agreement between Piritteo Hotels and the farm is an example of brand
licensing. Brand licensing is a contractual arrangement between firms, whereby one firm
allows another to use its brand name, logo, symbols, and/or characters in exchange for a
negotiated fee.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
79. Hill Corp., a company selling treadmills under the Hill brand name now wants to move
into the child bicycle trailer category. It enters into an agreement with Cobalt Inc., a child
bicycle trailer manufacturer. Cobalt will produce child bicycle trailers integrated with the Hill
brand and sell them in the mid-tier market. In return for the rights to use the Hill brand,
Cobalt will pay Hill a percentage of the sales. This is an example of:
A.
brand valuation.
B.
brand commitment.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
In this scenario, the agreement between Hill Corp. and Cobalt Inc. is an example of brand
licensing. Brand licensing is a contractual arrangement between firms, whereby one firm
allows another to use its brand name, logo, symbols, and/or characters in exchange for a
negotiated fee.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
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Chapter 09 - Product, Branding, and Packaging Decisions
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80. Which of the following is a contractual arrangement between firms, whereby one firm
allows another to use its brand name, logo, symbols, or characters in exchange for a
negotiated fee?
A.
Brand commitment
B.
Brand value
C.
Brand licensing
D.
Brand extension
E.
Brand dilution
Brand licensing is a contractual arrangement between firms, whereby one firm allows another
to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
81. Which of the following refers to the great frustration that consumers experience with
packaging that makes it seemingly impossible to get at the actual product?
A.
Trolley rage
B.
Techno rage
C.
Air rage
D.
Wrap rage
E.
Narcissistic rage
Many consumers experience "wrap rage"
—
a great frustration with packaging that makes it
seemingly impossible to get at the actual products.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
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Chapter 09 - Product, Branding, and Packaging Decisions
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82. Which of the following is NOT true about packaging?
A.
It protects products
B.
It could be used as a marketing tool for brand positioning
C.
It could impact consumers' emotions
D.
It is considered as the last frontier in advertising
E.
Successful products should change their packaging frequently to remain competitive.
Packaging changes can backfire!
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
83. Which of the following is NOT true about Labelling?
A.
It identifies the product brand.
B.
It can be used as a promotional tool
C.
It must reflect ingredients and quantities
D.
Canadian companies in food industry must use both official languages for labeling the
products.
E.
The Consumer Packaging and Labelling Act and Regulations dictate all elements on the
label.
Many of elements on the label are required by laws and regulations, but other elements of the
label remain within control of the manufacturer.
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Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-16 Labelling
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Chapter 09 - Product, Branding, and Packaging Decisions
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84. Krisnak Inc., a scented candle manufacturer, introduced a different range of candles with
exotic scents such as ice mint, desert flower, and sea breeze. What change in the product mix
was made by Krisnak Inc.?
A.
It changed the number of stock keeping units.
B.
It added a new product line and decreased product line depth.
C.
It changed the product category by replacing an entire product line.
D.
It increased product mix breadth.
E.
It changed the brand orientation.
In this case, Krisnak Inc. has added a new product line and decreased product line depth.
Firms may add new products within a line to address changing consumer preferences or
preempt competitors while boosting sales.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
85. When executives at Poilister Inc., an electronics consumer goods store, noted flat sales
and declining profits, they decided to remove products that were not selling well. In this
example, Poilister Inc.:
A.
changed the number of stock keeping units.
B.
increased product line breadth.
C.
decreased product line depth.
D.
changed the product category.
E.
changed the brand orientation.
In this example, Poilister Inc. decreased product line depth. From time to time, it is necessary
to delete product categories to realign resources.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
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86. Gagnon Inc. stocks cheese, exotic wine, and fancy chocolates. Recently, Gagnon has also
started selling orchids and perfume. How has Gagnon changed its product mix?
A.
It has changed the number of stock keeping units.
B.
It has added new product lines to increase product mix breadth.
C.
It has minimized the product mix breadth by deleting an entire product line.
D.
It has changed the product category.
E.
It has changed the brand orientation.
In this case, Gagnon Inc. has added new product lines to increase product mix breadth. Firms
often add new product lines to capture new or evolving markets, increase sales, and compete
in new venues.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
Miller International Inc. is an organization that manufactures sports goods. It sells hockey
sticks (both field hockey and ice hockey), footballs, baseball bats, cricket bats, and tennis
racquets. To expand its market, it also plans to sell sports apparel under the same brand name.
Miller International has partnered with Polar Inc., which sells health drinks. Polar drinks now
carry the Miller International logo, and some Miller International products also have the Polar
logo. Miller International has also made an agreement with a number of small manufacturers
that will produce sports apparel under the Miller International brand. Sales being impressive,
Miller International decides to discontinue its partnership with Polar and enter into the health
drinks segment on its own. The presence of big players and ineffective marketing strategies
lead to the failure of Miller International's foray into the health drinks market. The failure also
affects the brand image of the company, and there is a dip in the sales of sports goods
marketed by Miller International.
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Chapter 09 - Product, Branding, and Packaging Decisions
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87. Miller International, an organization that manufactures sports goods, had planned to go
into the sports apparel business. This would most likely be an example of:
A.
brand loyalty.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
This would be an example of brand extension. A brand extension refers to the use of the same
brand name for new products being introduced to the same or new markets.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
88. Miller International's failure in the health drinks market also affected its sales of sports
goods. This failure was most likely caused by:
A.
brand loyalty.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
The failure was most likely caused by brand dilution. Brand dilution occurs when the brand
extension adversely affects consumer perceptions about the attributes the core brand is
believed to hold.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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Chapter 09 - Product, Branding, and Packaging Decisions
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89. Miller International had partnered with Polar to sell health drinks. This scenario is an
example of:
A.
cobranding.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
perceived value.
In this scenario, the partnership is an example of cobranding. Cobranding is the practice of
marketing two or more brands together, on the same package or promotion.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
90. Miller International's agreement with the small manufacturers that will manufacture sports
apparel under the Miller International brand is an example of:
A.
brand loyalty.
B.
brand equity.
C.
brand licensing.
D.
brand extension.
E.
brand dilution.
The agreement between Miller International and the small manufacturers is an example of
brand licensing. Brand licensing is a contractual arrangement between firms, whereby one
firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a
negotiated fee.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
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Chapter 09 - Product, Branding, and Packaging Decisions
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Vintage Inc. manufactures jeans and T-shirts for men, women, and kids. It also has a separate
section that deals exclusively with designer wear for celebrities. The clothes in these four
segments are marketed under different brand names. It has to compete with rivals such as
Dressing UP Corp. and Royals Inc. Dressing UP also markets jeans and T-shirts for men,
women, and kids but under the single brand name Dressing UP. Additionally, Dressing UP
markets sportswear under a different brand name Sporty. Royals Inc. manufactures clothing
for men, women, and kids under the brand names Royals He, Royals She, and Royals Kidzee.
91. Dressing UP markets jeans and T-shirts for men, women, and kids under the single brand
name Dressing UP. This scenario is an example of:
A.
corporate and product line branding.
B.
individual branding.
C.
corporate or family branding.
D.
home branding.
E.
public branding.
In this case, this scenario is an example of corporate and product line brand. A firm also could
use its corporate name to brand similar product lines and products.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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92. Royals Inc. manufactures clothing for men, women, and kids by integrating its company
name into the brand name such as Royals He, Royals She, and Royals Kidzee. This is an
example of:
A.
generic branding.
B.
individual branding.
C.
family branding.
D.
home branding.
E.
public branding.
This scenario of Royals Inc. is an example of family brand. A firm could use its corporate
name to brand similar product lines and products.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
93. Vintage Inc. manufactures jeans and T-shirts for men, women, and kids. It also has a
separate section that deals exclusively with designer wear for celebrities. The clothes in the
four segments are marketed under different brand names. This is an example of:
A.
corporate and product line branding.
B.
individual branding.
C.
corporate or family branding.
D.
home branding.
E.
public branding.
This is an example of individual brand. A firm can use individual brand names for each of its
products. Individual brands allow a company to compete within one category.
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Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-11 Naming Brands and Product Lines
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Chapter 09 - Product, Branding, and Packaging Decisions
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94. Taylor Inc. and Lee Corp. are brands owned and managed by their producer. These brands
are examples of:
A.
manufacturer brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
These brands are examples of manufacturer brands. Manufacturer brands are owned and
managed by the manufacturer.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
95. Boom Corp. is a department store with several in-house brands, such as Smart Kid,
Neoners, and Beauty. These brands are examples of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
These brands are examples of private-label brands. Brands that are owned and managed by
retailers are called private-label brands or store brands.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
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96. A supermarket sells unbranded napkins, paper towels, paper cups, plastic wrap, storage
bags, tinfoil, and tissues. These are examples of:
A.
national brands.
B.
generic brands.
C.
private-label brands.
D.
home brands.
E.
public brands.
These products are examples of generic brands. Generic products are those sold without brand
names, typically in commodities markets.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
True / False Questions
97. When developing or changing a product, marketers start with the core customer value to
determine what their potential customers are seeking.
TRUE
When developing or changing a product, marketers start with the core customer value to
determine what their potential customers are seeking. Then, they make the actual physical
product and add associated services to round out the offering.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-01 Describe the components of a product.
Topic: 09-01 Complexity of Products and Types of Products
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Chapter 09 - Product, Branding, and Packaging Decisions
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98. Convenience products/services are products or services toward which customers show
such a strong preference that they will expend considerable effort to search for the best
suppliers.
FALSE
Convenience products/services are those products or services for which the consumer is not
willing to spend any effort to evaluate prior to purchase.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 09-02 Identify the types of consumer products.
Topic: 09-03 Types of Products
99. Shopping products/services are products consumers either do not normally think of buying
or do not know about.
FALSE
Unsought products/services are products consumers either do not normally think of buying
(e.g. funeral services, fire extinguishers) or do not know about.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-02 Identify the types of consumer products.
Topic: 09-03 Types of Products
100. Within each product category, there are often multiple product lines.
FALSE
Within each product line, there are often multiple product categories. A product category is an
assortment of items that the customer sees as reasonable substitutes for one another.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
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101. Firms often add new product lines to capture new or evolving markets, increase sales,
and compete in new venues.
TRUE
Firms often add new product lines to capture new or evolving markets, increase sales, and
compete in new venues.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-05 Change Product Mix Breadth and Depth
102. Stock keeping units (SKUs) are added or deleted in existing categories to stimulate sales
or react to consumer demand.
TRUE
A very common and ongoing activity for many firms is the addition or deletion of stock
keeping units (SKUs) in existing categories to stimulate sales or react to consumer demand.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
103. Brands enable customers to make quick decisions.
TRUE
Brands are often easily recognized by consumers and, because they signify a certain quality
level and contain familiar attributes, brands help consumers make quick decisions.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers.
Topic: 09-06 Branding
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Chapter 09 - Product, Branding, and Packaging Decisions
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104. Some manufacturers prefer to make only private-label merchandise because the costs of
national branding and marketing are prohibitive.
TRUE
Some manufacturers prefer to make only private-label merchandise because the costs of
national branding and marketing are prohibitive, whereas other firms manufacture both their
own brand and merchandise for other brands or retailers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
105. Cobranding occurs when a brand extension adversely affects consumer perceptions about
the attributes the core brand is believed to hold.
FALSE
Cobranding is the practice of marketing two or more brands together, on the same package or
promotion.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
106. Brand licensing is the practice of using the same brand name for new products being
introduced to the same or new markets.
FALSE
Brand licensing is a contractual arrangement between firms, whereby one firm allows another
to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
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Chapter 09 - Product, Branding, and Packaging Decisions
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107. One of the disadvantages for a licensor in brand licensing is the dilution of the brand
equity through overexposure of the brand.
TRUE
Licensing is an effective form of attracting visibility for the brand and thereby building brand
equity while also generating additional revenue. However, for the licensor, a major risk
involved is the dilution of its brand equity through overexposure of the brand, especially if the
brand name and characters are used inappropriately.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-14 Brand Licensing
108. The package of a product can be an important marketing tool for a manufacturer if it is
used to convey a brand's positioning.
TRUE
Packaging is an important brand element with more tangible or physical benefits than the
other brand elements because packages come in different types and offer a variety of benefits
to consumers, manufacturers, and retailers. The package can also be an important marketing
tool for the manufacturer if it is used to convey the brand's positioning.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
109. The only reason that packaging is important in marketing is product protection.
FALSE
Packaging can be used as promotional tool, point of differentiation, and way of
communication.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
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Chapter 09 - Product, Branding, and Packaging Decisions
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110. Many consumers experience "wrap rage"
—
a great frustration with packaging that makes
it seemingly impossible to get at the actual products.
TRUE
Many consumers experience "wrap rage"
—
a great frustration with packaging that makes it
seemingly impossible to get at the actual products.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
111. A product label on a package is a communication tool.
TRUE
A product label is much more than just a sticker on the package; it is a communication tool.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-16 Labelling
112. Many of the elements on a product label are required by laws and regulations;
subsequently, the other elements of the label also remain outside the control of a
manufacturer.
FALSE
Many of the elements on a product label are required by laws and regulations (i.e.,
ingredients, fat content, sodium content, serving size, calories), but other elements of the label
remain within the control of the manufacturer.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-16 Labelling
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Chapter 09 - Product, Branding, and Packaging Decisions
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113. A product label is a sticker on the package of products.
FALSE
A product label is much more than just a sticker on the package, it is a communication tool.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-16 Labelling
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Chapter 09 - Product, Branding, and Packaging Decisions
9-57
Short Answer Questions
114. Explain the division of consumer products based on the ways they are used and
purchased. Provide one example for each product type to support your answer.
Marketers classify consumer products according to the ways they are used and purchased.
Specialty products/services: Specialty products/services are products or services toward
which customers show such a strong preference that they will expend considerable effort and
time to search for the best suppliers. For example, road bike enthusiasts will devote lots of
time and effort to selecting just the right bike.
Shopping products/services: Shopping products/services are products or services, such as
furniture, apparel, fragrances, appliances, and travel alternatives, for which consumers will
spend a fair amount of time comparing alternatives. When people need new sneakers, for
instance, they will go from store to store shopping
—
trying on shoes, comparing alternatives,
and chatting with salespeople.
Convenience products/services: Convenience products/services are those products or
services for which the consumer is not willing to spend any effort to evaluate prior to
purchase. They are frequently purchased commodity items, usually purchased with very little
thought, such as common beverages, bread, or soap.
Unsought products/services: Unsought products/services are products consumers either do
not normally think of buying or do not know about. Because of their very nature, these
products require lots of marketing effort and various forms of promotion. When new-to-the-
world products, such as GPS systems, are first introduced, they often represent unsought
products.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-02 Identify the types of consumer products.
Topic: 09-03 Types of Products
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Chapter 09 - Product, Branding, and Packaging Decisions
9-58
115. Explain how firms can increase or decrease product mix breadth. Support your answer
with examples.
Firms may change their product mix breadth by either adding to or deleting entire product
lines. Firms often add new product lines to capture new or evolving markets, increase sales,
and compete in new venues.
For example, with the introduction of VIA Ready Brew, Starbucks changed the way people
thought about instant coffee. The line is expected to produce more than a billion dollars in
sales. And when the company learned that more than 60 percent of its consumers enjoyed
flavoured coffee, it introduced Natural Fusions, a line of premium coffee available for sale in
grocery stores in vanilla, cinnamon, and caramel flavours. As part of Starbucks' business
strategy, it was a natural way to grow its consumer products business. Sometimes it is
necessary to delete entire product lines to address changing market conditions or meet internal
strategic priorities. A few years ago, SC Johnson sold off many products in its skin care line,
including its successful Aveeno brand, to Johnson & Johnson. The firm no longer competes in
the skin care business but it remains a strong competitor in its original product lines, such as
home cleaning (Pledge, Windex), air care (Glade), and home storage (Saran, Ziploc).
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-05 Change Product Mix Breadth and Depth
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Chapter 09 - Product, Branding, and Packaging Decisions
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116. Explain how firms can change product line depth with one example.
Firms occasionally either add to or delete products from a product line to change their product
line depth. Firms may add new products within a line to address changing consumer
preferences or preempt competitors while boosting sales.
For example, firms may add a product with a different price point to a product line to reach
new target markets by selling through additional retailers. This can help a firm to get a much-
needed sales boost in the face of tough competition. A firm may also add new products to its
product line to serve new target segments.
From time to time, it is necessary to delete product categories to realign resources. The
decision to delete products is never taken lightly. Generally, substantial investments have
been made to develop the brand and manufacture the products.
Consumer goods firms, such as P&G and Unilever, make pruning decisions regularly to
eliminate unprofitable items and refocus their marketing efforts on more profitable items. This
move helps firms be more competitive with rivals and frees up resources for future
acquisitions.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-05 Change Product Mix Breadth and Depth
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Chapter 09 - Product, Branding, and Packaging Decisions
9-60
117. Explain how brands add value for both customers and a firm.
Brands are often easily recognized by consumers and, because they signify a certain quality
level and contain familiar attributes, brands help consumers make quick decisions. When
consumers see a brand such as Honda, they immediately know what it is, its level of quality
and engineering, its relative status, how much it generally costs, and, most important, whether
they like it and want to buy it.
Over time and with continued use, consumers learn to trust certain brands. As a result of such
loyalty, these companies can maintain great depth in their product lines since their customers
will buy other brands within their product mix. Firms with well-known brands can spend
relatively less on marketing costs than firms with little-known brands because the brand sells
itself. Brands are also assets that can be legally protected through trademarks and copyrights
and thus constitute a unique ownership for the firm. Firms sometimes have to fight to keep
their brands "pure." Having well-known brands can have a direct impact on the company's
bottom line. The value of a brand can be calculated by assessing the earning potential of the
brand over the next 12 months.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers.
Topic: 09-07 Value of Branding
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Chapter 09 - Product, Branding, and Packaging Decisions
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118. Explain how brand-loyal customers are an important source of value for firms.
Brand loyalty occurs when a consumer buys the same brand's product or service repeatedly
over time rather than buying from multiple suppliers within the same category. Brand-loyal
customers are an important source of value for firms. First, such consumers are often less
sensitive to price. In return, firms sometimes reward loyal consumers with loyalty or customer
relationship management (CRM) programs, such as points that customers can redeem for
extra discounts or free services, advance notice of sale items, and invitations to special events
sponsored by the company. Second, the marketing costs of reaching loyal consumers are
much lower because the firm does not have to spend money on advertising and promotion
campaigns to attract these customers. Loyal consumers simply do not need persuasion or an
extra push to buy the firm's brands. Third, loyal customers tend to praise the virtues of their
favourite products, retailers, or services. This positive word-of-mouth reaches potential
customers and reinforces the perceived value at no cost to the firm. Fourth, a high level of
brand loyalty insulates the firm from competition because brand-loyal customers do not
switch to competitors' brands, even when provided with a variety of incentives.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-05 Summarize the components of brand equity.
Topic: 09-08 Brand Equity
119. Explain the concept of generic brands.
Generic products are those sold without brand names, typically in commodities markets. For
instance, shoppers can purchase unbranded salt, grains, produce, meat, or nuts in grocery
stores. Hardware stores often sell unbranded screws, nuts, and lumber. However, even in
these markets, the popularity and acceptance of generic products has declined. Consumers
question the quality and origin of the products, and retailers have found better profit potential
and the ability to build brand equity with manufacturer and store brands. For example, many
fruits and vegetables sold through supermarket chains now carry either the manufacturer's
brand name (e.g., Dole bananas) or the store's.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
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Chapter 09 - Product, Branding, and Packaging Decisions
9-62
Samsung is one of the largest multinational companies in the world. The company offers a
very diverse products such as computers (PC and Laptops), TVs, Monitors, Printers,
Projectors, Smart Phones, Tablets, Refrigerators, Washers, Dryers, Dish washers,
Microwaves, Ovens, Digital Cameras, Camcorders, Blue-Rays, Home Theatres, and DVD
players. All products are sold under Samsung brand.
120. Draw Samsung product mix and discuss product mix breadth and product line depth.
Student answers will vary. Here is one way example:
1
2
3
4
5
Home Appliance Computing
Camera
Media
Smart phone &
Tablet
Refrigerators
PC
Digital Cameras TVs
Smart phones
Dish washers
Laptops
Camcorders
Home theatres
Tablets
Washers
Dryers
Monitors
Blue-Rays
Ovens
Printers
DVD players
Microwaves
Projectors
Students may categorize the products differently. In the above example, the produce line
breadth is 5 and produce line depth is between 2 to 6.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
9-63
121. Provide one example on how Samsung can increase breadth, decrease breadth, increase
depth, and decrease depth of its product mix.
Student answers will vary.
Increase breadth: add a new product lines. For example, Samsung can add a new product line
"insurance" and sell life/home/product insurance policies.
Decrease breadth: Samsung may delete the entire Camera product line and focus more on
smart phone and tablet line.
Increase depth: Samsung may add gaming console to computing product line.
Decrease depth: Samsung may delete DVD Players from Media product line.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-05 Change Product Mix Breadth and Depth
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Chapter 09 - Product, Branding, and Packaging Decisions
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122. How do you categorize Samsung brand in terms of brand ownership? What is Samsung
brand name strategy?
Samsung is a manufacturer, therefore, it is a national brand.
It uses the same brand for all the products, therefore, it is using family brand strategy.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-10 Brand Ownership
123. If Samsung observes a growth in the healthy frozen food industry and plans to enter that
market, what branding strategy should Samsung implement to be successful? Explain your
answer.
Frozen food industry is very different than industries that Samsung is currently in. Extending
Samsung brand to frozen food industry could create brand dilution. The brand extension to
frozen food industry will distance Samsung from its brand-specific associations. If Samsung
wants to enter that industry, it is better to use different brand (Individual branding) for that
product line.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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Chapter 09 - Product, Branding, and Packaging Decisions
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124. Explain the advantages of using the same brand name for new products.
There are several advantages to using the same brand name for new products.
First, because the brand name is already well established, a firm can spend less in
developing consumer brand awareness and brand associations for the new product.
Second, if the brand is known for its high quality, that perception will carry over to the new
product. For example, consumers who had not used the Neutrogena brand before trying the
brand extension, Neutrogena Wave power cleanser, might be encouraged to try Neutrogena's
core product line of cleansers and moisturizing lotions, especially if their experience with the
Wave has been positive.
Third, when brand extensions are used for complementary products, a synergy exists
between the two products that can increase overall sales. For example, Frito Lay markets both
chips and dips under its Frito-Lay and Doritos brand names. When people buy the chips, they
tend to buy the dips as well.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
125. Explain the risks associated with cobranding. Provide examples to support your answer.
There are some risks associated with cobranding, especially when customers for each of the
brands are vastly different. For example, the Burger King and Häagen-Dazs cobranding
strategy failed because the customer profiles for each brand were too different. Cobranding
may also fail if the brands' owners cannot resolve financial disputes about revenue or royalty
sharing.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-13 Cobranding
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Chapter 09 - Product, Branding, and Packaging Decisions
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126. Explain why packaging is important for retailers. Provide examples to support your
answer.
Packaging is an important brand element with more tangible or physical benefits than the
other brand elements because packages come in different types and offer a variety of benefits
to retailers. Packaging provides the unique product code (UPC) label used by retail scanners
as well as contents, directions, and other additional product information. Packaging is
considered by many marketers to be the last frontier in advertising because of its role in
promoting products to consumers on the floor of the store at the point of purchase. Packaging
may also affect consumers' emotions and drive impulse buying. Many children also pressure
their parents to buy products, like breakfast cereal, more because of the packaging than for the
product. In these instances, packaging acts as a point of differentiation and makes consumers
feel proud to own the brand.
Retailers' priorities for packaging are as follows. They want convenience in terms of
displaying and selling the product. For customers, Coca-Cola's Fridge Pack of 12 cans offers
customers a compact shape and convenience when carrying it home and storing it in their
refrigerators; for retailers, the packaging offers the means to easily stack the packages on their
shelves. In addition, items may be packed into larger cartons, pallets, or containers to
facilitate shipment and storage from the manufacturer to the retailer. These shipping packages
benefit the manufacturer and the retailer in that they protect the shipment during transit; aid in
loading, unloading, and storage; and allow cost efficiencies because of the larger order and
shipment sizes.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
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Chapter 09 - Product, Branding, and Packaging Decisions
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127. Explain the purpose of labels.
Labels on products and packages provide information consumers need for their purchase
decision and consumption of the product. In that they identify the product and brand, labels
are also an important element of branding and can be used for promotion. The information
required on them must comply with general and industry-specific laws and regulations,
including the constituents or ingredients contained in the product, where the product was
made, directions for use, and/or safety precautions.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-16 Labelling
128. Suppose you want to open a consumer electronics store. What would be the product mix
breadth of your company? What would be the product line depth?
Student answers will vary. Students will need to indicate the following in their answers:
Product mix breadth: The number of product lines, or variety, offered by a firm
Product line depth: The number of products within a product line
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth.
Topic: 09-04 Product Mix and Product Line Decisions
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Chapter 09 - Product, Branding, and Packaging Decisions
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129. Your company has taken over a garment manufacturing company that is struggling to
manufacture kidswear in the face of increased competition. An opportunity in the sports
apparel market presents itself. What kind of branding strategies would you implement to
allow the acquired company to regain its standing in the kidswear market and be an important
player in the sportswear segment?
Student answers will vary but may include references to the following:
Brand extension: The use of the same brand name for new products being introduced to the
same or new markets
Cobranding: The practice of marketing two or more brands together, on the same package or
promotion
Brand licensing: A contractual arrangement between firms, whereby one firm allows
another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
Topic: 09-13 Cobranding
Topic: 09-14 Brand Licensing
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Chapter 09 - Product, Branding, and Packaging Decisions
9-69
130. Explain what steps firms should take to prevent the potentially negative consequences of
brand extensions.
To prevent the negative consequences of brand extensions, firms must consider the following:
Marketers should carefully evaluate the fit between the product class of the core brand and
that of the extension. If the fit between the product categories is high, consumers will consider
the extension credible, and the brand association will be stronger for the extension. When
Starbucks introduced VIA, its line of instant coffee, it made sense to consumers.
Firms should carefully evaluate consumer perceptions of the attributes of the core brand and
seek out similar attributes for the extension because brand-specific associations are very
important for extensions. For example, if HP printers were associated with reliability,
performance, and value, consumers would expect the same brand-specific attributes in other
products that carried the HP brand name.
Firms should refrain from extending the brand name to too many products and product
categories to avoid diluting the brand and damaging brand equity. For example, while Donald
Trump has been quite successful lending his name to real estate properties and TV shows, he
was unsuccessful in extending his name to branding steaks.
Firms should consider whether the brand extension will be distanced from the core brand,
especially if the firm wants to use some but not all of the existing brand associations. Marriott
has budget, mid-tier, and luxury hotels. Its luxury hotels, including the Ritz-Carlton, Edition,
and Renaissance, do not use the name Marriott at all.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-06 Describe the types of branding strategies used by firms.
Topic: 09-12 Brand Extension
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Chapter 09 - Product, Branding, and Packaging Decisions
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131. Explain how packaging could be used as a marketing tool. Provide one example to
support your answer.
Packaging can be used as an important marketing tool for manufacturers if it is used to
convey the brand's positioning. Cosmetics giant Estée Lauder considers packaging to be
primarily about brand image, so its packages portray a modern, sophisticated look that is
immediately recognizable. Packaging is considered by many marketers to be the last frontier
in advertising because of its role in promoting products to consumers on the floor of the store
at the point of purchase. Some packaging choices can drive users to a company's website.
Packaging may also affect consumers' emotions and drive impulse buying. The shapes of
fragrance, perfume, and deodorant bottles and containers are good examples of marketers
extending the use of packaging beyond a distribution function to encourage purchase and
differentiation. Many children also pressure their parents to buy products, such as breakfast
cereal, more because of the packaging than for the product. In these instances, packaging acts
as a point of differentiation and makes consumers feel proud to own the brand.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
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Chapter 09 - Product, Branding, and Packaging Decisions
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132. Describe the innovations in design and materials over the years that have helped
packaging to play an increasingly important role in brand positioning and shelf appeal.
Packaging is critical to a firm's brand positioning and shelf appeal, and therefore, many
innovations in design and materials have occurred in the past few decades.
examples include:
Stand-up, reclosable zipper pouches: Capri Sun's stand-up pouch juice drink took the lead;
now a variety of products and pouch types are available, including pouches with reclosable
zippers.
Aluminum beverage cans: First introduced in 1965, cans dominated the beverage market by
1985.
Aseptic packaging: Tetra Pak and IP provided designs and machinery that increased the
shelf life of beverages without refrigeration. They are used primarily by juice marketers but
also by some soup companies.
Child-resistant/senior-friendly packages: Products that are harmful to children under the age
of five years, such as drugs and medicines, solvents, chemicals, and pesticides, now are
packaged with child-resistant tops. Seniors appreciate packages that are light, easy to handle,
easy to read, and easy to open.
Green and biodegradable packaging: Today's environmentally conscious consumers are
demanding less packaging and want to be able to easily recycle it. Vancouver-based
Earthcycle Packaging launched compostable palm fibre-based packaging for items such as
takeout food and produce. Palm fibre takes about 90 days to decompose and is being used by
Loblaw and Walmart. P&G converted all of its liquid laundry brands (e.g., Tide, Gain, Cheer)
to a concentrated formula in containers half the previous size. Retailers appreciated the
storage and shelf-space savings of the smaller packages.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy.
Topic: 09-15 Packaging
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