CHAPTER 2 - CUSTOMER BASED BRAND EQUITY

1. The power of a brand lies in what resides in the minds of the customers. 2. The differential effect that brand knowledge has on consumer response to the marketing of that brand is Customer Based Brand Equity. 3. According to the CBBE model, Consumer knowledge drives the differences that manifest themselves in terms of brand equity. 4. Brand equity provides marketers with a vital strategic bridge from their past to their future. 5. The quality of the investment in brand building is the most crucial factor, not the quantity beyond some minimal threshold amount. 6. Brand knowledge is the key to creating brand equity. 7. The associative network memory model views memory as consisting of a network of nodes and connecting links. 8. In associative network memory model, nodes represent concepts, and links represent the strength of association between the concepts. 9. The components of Brand knowledge are brand awareness and brand image. 10. Brand awareness is related to the strength of the brand node or trace in memory. 11. The consumers ability to identify the brand under different conditions is Brand awareness. 12. Brand image is consumers perceptions about a brand, as reflected by the brand associations held in consumer memory. 13. CBBE occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory. 14. Brand awareness consists of brand recognition and brand recall performance. 15. Brand recognition is consumers ability to confirm prior exposure to the brand when given the brand as a cue. 16. Brand recall is consumers ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue. 17. Raising brand awareness increases the likelihood that the brand will be a member of the consideration set. 18. Brand attributes are those descriptive features that characterize a product or service. 19. Brand benefits are the personal value and meaning that consumers attach to the product or service attributes. 20. The more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger the resulting brand association will be. 21. Achieving the right brand identity means creating brand salience with customers. 22. Brand salience measures awareness of the brand. 23. The depth of brand awareness measures how likely it is for a brand element to come to mind, and the ease with which it does so.

24. A brand we easily recall has a deeper level of brand awareness than one that we recognize only when we see it. 25. The breadth of brand awareness measures the range of purchase and usage situations in which the brand element comes to mind and depends to a large extent on the organization of brand and product knowledge in memory. 26. In consumers minds, a product hierarchy often exists, with product class information at the highest level. 27. In consumers minds, a product hierarchy often exists, with product category information at the second-highest level. 28. In consumers minds, a product hierarchy often exists, with brand information at the lowest level. 29. The product hierarchy shows us that not only the depth of awareness matters but also the breadth. 30. Brand meaning is made up of two major categories of brand associations related to performance and imagery. 31. Brand performance describes how well the product or service meets customers more functional needs. 32. Brand performance transcends the products ingredients and features to include dimensions that differentiate the brand. 33. Reliability measures the consistency of performance over time and from purchase to purchase. 34. Durability is the expected economic life of the product. 35. Serviceability is the ease of repairing the product if needed. 36. Service effectiveness measures how well the brand satisfies customers service requirement. 37. Service efficiency describes the speed and responsiveness of service. 38. Service empathy is the extent to which service providers are seen as trusting, caring and having the customers interest in mind. 39. Brand imagery depends on the extrinsic properties of the product or service. 40. Brand imagery is the way people think about a brand abstractly, rather than what the brand actually does. 41. Brand meaning is what helps to produce brand responses, or what customers think or feel about the brand. 42. Brand judgements are customers personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and brand imagery associations. 43. To create brand equity, it is important that the brand have some strong, favorable and unique associations in that order. 44. Brand feelings are customers emotional responses and reactions to the brand.

45. Brand resonance is characterized in terms of intensity, or the depth of psychological bond that customers have with the brand, as well as the level of activity engendered by this loyalty.

CHAPTER 1- BRANDS AND BRAND MANAGEMENT

1. Whenever a marketer creates a new name. logo, or symbol, he or she has created a .. a) b) c) d) Product Brand element Brand Differentiation

2. Different components of a brand that identify and differentiate it are. a) b) c) d) Products Brand levels Product levels Brand elements

3. Anything offered to a market for attention, acquisition or consumption that might satisfy a need or want is a) b) c) d) Product Brand Generic product Consumer good

4. A .. may be a physical good, a service, a retail outlet, a person, an organization, a place or even an idea. a) b) c) d) Product Brand Potential product Augmented product

5. A basic no-frills version of the product that adequately performs the product function is .. a) b) c) d) Core benefit level Generic product level Expected product level Potential product level

6. The is the fundamental need or want that consumers satisfy by consuming the product or service. a) b) c) d) Core benefit level Generic product level Expected product level Potential product level

7. The . Is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. a) b) c) d) Core benefit level Generic product level Expected product level Potential product level

8. The augmented product level includes .product attributes, benefits or related services that distinguish the product from competitors. a) b) c) d) Basic Additional Necessary Adequate

9. The .includes all the augmentations and transformations that a product might ultimately undergo in the future. a) b) c) d) Augmented product level Generic product level Expected product level Potential product level

10. Brands identify the source or maker of a product and allow consumers to assign responsibility to particular a) b) c) d) Brand element Person Manufacturer Need

11. A brand is a signal of quality level to satisfied customers, this is an important function of brand for . a) b) c) d) Manufacturer Consumer Marketer Brand level

12. The product is not worth the price paid, this is a a) b) c) d) Functional risk Financial risk Social risk Physical risk

13. . results in an opportunity cost of finding another satisfactory product. a) b) c) d) Financial risk Psychological risk Physical risk Product failure

14. A .... is a product so basic that it cannot be physically differentiated in the minds of consumers. a) b) c) d) Commodity Goods Product Computer

15. The key to . Is that consumer perceive differences among brands in a .. a) Product, Brand elements b) Branding, Product

c) Marketing, Product d) Branding, Product category 16. As a result of .., a brand name may now be identified with a number of different products with varying degrees of similarity. a) b) c) d) Brand proliferation Media fragmentation Increased competition Brand equity

17. From the following options, identify which is NOT a challenge to brand builders. a) b) c) d) Media Fragmentation Maturing Markets Savvy Customers Strategic Brand Management

18. . allow consumers to lower the search cost for products both internally and externally. a) b) c) d) Brands Marketers Internet Advertisements

19. Among the roles that brand plays for consumers, which of the following is NOT relevant for consumers. a) b) c) d) Identification of source of product Source of competitive advantage Risk reducer Signal of quality

20. If a product does not perform up to expectations, then it is a a) b) c) d) Financial risk Functional risk Physical risk Psychological risk

21. If the product affects the mental well-being of the user then it is a) b) c) d) Time risk Psychological risk Social risk Physical risk

22. The product poses a threat to physical well-being or health of the user or others, it involves .risk. a) b) c) d) Time risk Psychological risk Social risk Physical risk

23. The product results is embarrassment from others, it is .. a) Time risk

b) Psychological risk c) Social risk d) Physical risk 24. Among the roles that brand plays, which of the following is NOT relevant for manufacturers. a) b) c) d) Means of identification to simplify handling or tracing Signal of quality level to satisfied customers Search cost reducer Source of financial returns

25. Brands create with product performance and non-product related means. a) b) c) d) Competitive advantage Associations Monopoly Awareness

26. Fundamentally branding is all about endowing products and services with the power of .. a) b) c) d) Brand equity Brand loyalty Brand proliferation Strategic brand management

27. The brand names can be protected through .. a) b) c) d) Labels Registered trademarks Patents Packaging

28. Manufacturing processes can be protected through a) b) c) d) Labels Registered trademarks Patents Packaging

29. Packaging can be protected through a) b) c) d) Labels Registered trademarks Patents Copyrights and designs

30. A brand is a ., but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. a) b) c) d) Product Product level symbol name

31. Differences in outcomes arise from the .. endowed to a product as a result of past marketing activity for the brand. a) Brand

b) Added value c) Name d) Power 32. .. provides a common denominator for interpreting marketing strategies and assessing the value of a brand. a) b) c) d) Brand equity Brand perception Brand values Brand positioning

33. When the consumers can evaluate product attributes like size, color, style, design, weight, and ingredient composition by visual inspection, such products are classified as .. a) b) c) d) Experience goods Consumer goods Search goods Credence goods

34. The product attributes of like automobile tires cannot be assessed so easily by inspection, and actual product trial and experience is necessary to judge durability, service quality, safety, and ease of handling or use. a) b) c) d) Experience goods Consumer goods Search goods Credence goods

35. For , consumers may rarely learn product attributes. Given the difficulty of assessing and interpreting product attributes and benefits for experience, brands may be particularly important signals of quality and other characteristics to consumers. a) b) c) d) Experience goods Consumer goods Search goods Credence goods

36. .. is defining and establishing brand vision and positioning. a) b) c) d) Brand positioning Brand vision Brand loyalty Brand equity

CUSTOMER-BASED BRAND EQUITY (Mcqs)

Date: 20/10/2012

1. The basic premise of the -------- is that the power of a brand lies in what customer have
learned, felt seen, and heard about the brand as a result of their experience over time. (pg70)

A) B) C) D)

Brand mantra CBBE model Brand equity Product category structure

2. CBBE is the differential effect that----------- has on consumer response to the marketing of
that brand.(pg 70)

A) B) C) D)

Brand equity Brand association Brand relation Brand knowledge

3. Three key ingredients of CBBE are----------- (pg70) A) B) C) D) Differential effect, brad persona, consumer response to marketing Differential effect, brad knowledge, consumer response to marketing Differential effect, brad image, company response to marketing Differential effect, brad knowledge, company response to marketing

4. Marketer should consider all the dollars spent on manufacturing and marketing products
each year not so much as ----------- but as -------------- (pg71)

A) B) C) D)

Investments, expenses Expenses, liabilities Expenses, investments None of the above

5. The brand knowledge that marketers create overtime dictates appropriate and
inappropriate---------- for the brand. (pg73)

A) B) C) D)

Past experiences Knowledge Future directions None of the above

6. The associative network memory model views memory as consisting of a network of ------- and connecting -------------. (pg73)

A) B) C) D)

Associations, joints links, relations Nodes, links None of the above

7. -------------- is the consumers ability to identify the brand under different

conditions.(pg73)

A) B) C) D)

Brand awareness Brand depth Brand image None of the above

8. ------------ is consumers perception about the brand, as reflected by the brand associations
held in consumer memory. (pg73)

A) B) C) D)

Brand awareness Brand image Brand breadth Brand depth

9. -------------- occurs when the consumer has a high level of awareness and familiarity with
the brand and holds some strong, favorable and unique brand associations in memory. (pg75)

A) Customer based brand equity B) Brand depth C) Brand equity 10. The consumers ability to confirm prior exposure to the brand when given the brand as a
cue is -----------------------. (pg76)

A) B) C) D)

Brand awareness Brand recognition Brand recall Top of the mind awareness

11. The consumers ability to retrieve the brand from memory when given the product
category is ------------- .(pg76)

A) B) C) D)

Brand recognition Brand recall Brand awareness None of the above

12. Advantages of brand awareness are--------------. (pg76) A) B) C) D) Learning, consideration, choice Strength, favorable, uniqueness Knowledge, variety, preference None of the above

13. Creating brand awareness means increasing the familiarity of the brand through ------------.
(pg77)

A) B) C) D)

Value propositions Repeated exposure Brand associations None of the above

14. Two factors that strengthen association to any piece of information are its --------- and --------- with which it is presented over time. (pg78)

A) B) C) D)

Significance, reliability Relations, stability Personal relevance, consistency Connection, regularity

15. ------------- are those descriptive features that characterize a product or service. (pg79) A) B) C) D) Brand elements Brand benefits Brand attributes None of the above

16. -------------- are the personal value and meaning that consumers attach to the product or
service attributes. (pg79)

A) B) C) D)

Brand elements Brand attributes Brand benefits None of the above

17. Favorable associations for a brand are those associations that are ---------- to consumers, ------- by the product and ----------- by the supporting marketing program. (pg 80)

A) Useful, brought, accessible B) Attractive, distributed, sustainable C) Desirable, delivered, conveyed 18. Desirability depends on 3 factors i.e. ------------. (pg80) A) B) C) D) Strength, favorable, uniqueness Relevant, distinctive, believable Associated, distinguishable, credible None of the above.

19. Uniqueness of brand association belongs to -----------. (pg80) A) B) C) D) Unique difference Unique selling proposition Competitive advantage All of the above

20. There are --------- steps in brand building. (pg81) A) B) C) D) 5 4 3 6

21. Brand salience measures ----------- of the brand. (pg82) A) Brand equity B) Brand awareness C) Brand image 22. The ----------- of brand awareness measures how likely it is for a brand element to come to
mind, and the ease with which it does so. (pg83)

A) B) C) D)

Brand recognition Brand breadth Brand depth All of the above

23. The ---------- of brand awareness measures the range of purchase and usage situations in
which the brand element comes to mind. (pg83)

A) B) C) D)

Brand breadth Brand depth Brand recall None of the above

24. -------------- describes how well the product or service meets consumers more functional
needs. (pg86)

A) B) C) D)

Brand resonance Brand salience Brand performance None of the above

25. User profiles, purchase situations, history, heritage, experience are the points of -------------.
(pg87)

A) B) C) D)

Brand judgments Brand imagery Brand resonance None of the above

26. The consistency of performance over time and from purchase to purchase is ---------.
(pg87)

A) Credibility B) Reliability C) Durability 27. ----------- is the expected economic life of the product. (pg87) A) B) C) D) Credibility Reliability Durability Product life cycle

28. ---------- measures how well the brand satisfies customers service requirements. (pg87) A) B) C) D) Service effectiveness Service efficiency Serviceability All of the above

29. The speed and responsiveness of service is -----------. (pg87) A) B) C) D) Service effectiveness Service efficiency Serviceability None of the above

30. Brand meaning is what helps to produce ------------ or what customers think or feel about
the brand. (pg89)

A) B) C) D)

Brand image Brand responses Brand identification Brand equity

31. --------------- are Customers personal opinions about and evaluation of the brand. (Pg89) A) Brand opinions B) Brand feelings C) Brand judgments 32. Quality, credibility, consideration and superiority fall into ----------- (pg90) A) B) C) D) Brand imagery Brand judgments Brand resonance None of the above

33. Brand credibility describe the extent to which the customer see the brand as credible in
terms of ------------- (pg90)

A) B) C) D)

knowledge, trust, credibility Capability, expectations, credibility Perceived expertise, trust worthiness, likeability None of the above

34. ------------ measures the extent to which customers view the brand as unique and better
than other brands. (Pg90)

A) B) C) D)

Consideration Credibility Superiority None of the above

35. Advertising designed to change consumers perceptions of the actual usage experience
with the product is------------- (pg 90)

A) B) C) D)

Transitional advertising Transformational advertising All of the above None of the above

36. The brand makes consumers feel energized and that they are experiencing something
special falls into-----------. (pg91)

A) B) C) D)

Warmth Fun Excitement All of the above

37. Hallmark is a brand typically associated with ------------. (pg91) A) B) C) D) Warmth Security Fun None of the above

38. ------------ describe the nature of the relationship and the extent to which consumers feel
that they are in sync with the brand. (pg94)

A) Brand imagery B) Brand resonance C) Brand feelings 39. The first step in building brand equity is to register the brand -----------. (pg76) A) B) C) D)
77)

In the market In the minds of customers All of the above None of the above

40. Low involvement results when consumers lack either purchase ----------- or --------------. (pg A) B) C) D) Power, capability Desirability, capacity Motivation, ability None of the above

CHAPTER 3: BRAND POSITIONING (Mcqs)

Date: 20/10/2012

1. The act of designing the companys offer and image so that it occupies a distinctive and
valued place in the target customers minds is -------------------. (pg 120)

A) B) C) D)

Brand mantra Brand equity Brand positioning All of the above

2. According to CBBE model, deciding on a position requires determining a frame of

reference and the ideal POP and POD brand associations. (pg120)

A) True B) False

3. A market segment is the set of all actual and potential buyers who have sufficient interest
in, income for, and access to a product. (pg 121)

A) True B) False

4. User status, usage rate, brand loyalty, benefits sought are the bases for -----------segmentation. (pg121)

A) B) C) D)

Demographic Psychographic Behavioral None of the above

5. ---------- seeking flavor and product appearance. (pg124) A) B) C) D) Sensory segment Sociable Worriers Independent segment

6. The independent segment seek low price. (pg124) A) True B) False

7. The model segments users of a brand into four groups based on strength off commitment,
are: (pg124)

A) B) C) D)

Convertible , shallow, typical, established Convertible, shallow, average, entrenched Convertible, shallow, average, ingrained Convertible, shallow, usual, entrenched

8. Ambivalent refers to: (pg125) A) B) C) D) Prefer the other brand but have not yet switched Strongly prefer their current brand Attracted to other brand as to their current choice None of the above

9. In order to guide segmentation and target market decisions, the criteria will be based on:
(pg125)

A) Identifiable, size, accessibility, responsiveness B) Identifiable, volume, convenience, receptiveness C) Identifiable, volume, convenience, responsiveness 10. PODs are attributes or benefits that consumers strongly associate with a brand positively
evaluate and believe that they could find to the same extent with a competitive brand. (pg129)

A) True B) False

11. The concept of PODs has much in common with the concepts of unique selling proposition
or sustainable competitive advantage. (pg 129)

A) True B) False

12. Category and competitive are two types of PODs. (pg131) A) True B) False 13. Category POPs represent necessary and sufficient conditions for brand choice. (pg131) A) True B) False

14. ----------- are those associations designed to negate competitors points of difference. (pg
131)

A) B) C) D)

Competitive POD Competitive POP Sustainable competitive advantage Competitive frame of reference

15. Defining a competitive frame of reference for a brand positioning is to determine --------(pg132)

A) B) C) D)

Category POP Competitive POP Category Membership Product category structure

16. Sometimes consumers know a brands category membership but may not be convinced the
brand is a true, valid member of the category. (pg 133)

A) True B) False

17. 3 key desirability criteria for PODs are: (pg136) A) Relevance, distinctive, believability B) Feasibility, delivered, sustainable C) significance, community, believability

18. The product and marketing must be designed in a way to support the desired associations.
This refers to feasibility criteria. (pg 137)

A) True B) False

19. One challenge for marketers is that many of the attributes or benefits that make up the
POPs or PODs are not negatively correlated. (pg 137)

A) True B) False

20. An expensive but sometimes effective approach to address the problem of negatively
correlated POPs and PODs is to separate the attributes. (pg 138)

A) True B) False

21. Laddering refers to respond to competitive challenges that threaten an existing

positioning. (pg140)

A) True B) False 22. ----------- are those abstract associations that characterize the 5 to 10 important aspects or
dimension of a brand. (pg 143)

A) B) C) D)

Core brand associations Brand mantra Mental map None of the above

23. A mental map inaccurately portrays in detail all salient brand associations and responses
for a particular target market. (pg 143)

A) True B) False

24. ------------ is similar to brand essence or core brand promise. (pg 144) A) B) C) D) Brand image Brand positioning Brand mantra None of the above

25. ------------ help the brand present a consistent image. (pg 144) A) B) C) D) Brand judgments Brand mantra Brand resonance None of the above

26. ----------- describes the nature of the product or service or the type of experience or the
benefits the brand provides. (pg 145)

A) Brand mantra B) Brand functions C) Brand descriptive modifier 27. The descriptive modifier clarifies the brands nature. (pg 145) A) True B) False

28. ---------------typically is a result of an in-depth examination of the brand through some form
of brand audit or other activities. (pg 145)

A) B) C) D)

Brand positioning Brand mantra Brand audit None of the above

29. There will always be a level of meaning beneath the brand mantra itself that will need to
be articulated. (pg 147)

A) True B) False

30. ------------- making sure that members of the organization are properly aligned with the
brand and what it represent. (pg147)

A) B) C) D)

Brand audit Internal branding Brand inventory None of the above

31. ------------ is a comprehensive examination of a brand to discover its source of brand

equity. (pg 148)

32. The descriptive modifier for Disney will be ---------- (pg 145) A) B) C) D) Fun Family Entertainment None of the above

A) Brand audit B) Internal branding C) Brand inventory

33. A brand audit is a comprehensive, systematic, independent and periodic examination of a

companys marketing environment, objectives, strategies and activities with a view of determining problem areas and opportunities and recommending a plan. (pg 149)

A) True B) False

34. The purpose of ------------ is to provide a current comprehensive profile of how all the
product and services sold by a company and marketed and branded. (pg 150)

A) B) C) D)

Brand audit Brand exploratory Brand inventory All of the above

35. Brand exploratory is to provide detailed information about what companies think of the
brand. (pg151)

A) True B) False