Part 4: Building Strong Brands

Chapter 9: Creating Brand Equity

GENERAL CONCEPT QUESTIONS

Multiple Choice
1. At the heart of a successful brand is ________, backed by creatively designed and
executed marketing.
a. price
b. promotion
c. a great product or service
d. a great slogan
e. a brand concept
Answer: c
Page: 273
Level of difficulty: Easy
2. The strategic branch management process involves four main steps. Which of the
following would NOT be among those steps?
a. Measuring consumer brand knowledge.
b. Identifying and establishing brand positioning.
c. Planning and implementing brand marketing.
d. Measuring and interpreting brand performance.
e. Growing and sustaining brand value.
Answer: a
Page: 274
Level of difficulty: Hard
3. The American Marketing Association defines a ________ as a name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate them from those of
competitors.
a. holistic product concept
b. product concept
c. service concept
d. brand
e. brand image
Answer: d
Page: 274
Level of difficulty: Medium

234

Part 4: Building Strong Brands

4. The earliest signs of branding in Europe were medieval ________ requirement that
craftspeople put trademarks on their products to protect themselves and consumers
against inferior quality.
a. kings
b. churches
c. consumers
d. governments
e. guilds
Answer: e
Page: 274
Level of difficulty: Medium
5. Consumers learn about brands through ________ and product marketing programs.
a. the mass media
b. past experiences with the product
c. the sales force
d. shopping bots
e. independent information sources
Answer: b
Page: 274
Level of difficulty: Medium
6. The worlds strongest brands share common attributes. Which of the following would
NOT be among those common attributes?
a. The brand that spends the most is the most respected and valued.
b. The company monitors sources of brand equity.
c. The pricing strategy is based on consumer perceptions of value.
d. The brand stays relevant.
e. The brand excels at delivering the benefits consumers truly desire.
Answer: a
Page: 275
Level of difficulty: Hard
7. ________ is endowing products and services with the power of a brand.
a. Brand image
b. The branding concept
c. Branding
d. Brand positioning
e. Brand partitioning
Answer: c
Page: 275
Level of difficulty: Easy
8. Brand ________ is the added value endowed to products and services.
a. loyalty
b. equity
c. preference
d. satisfaction
e. benefits
Answer: b
Page: 276
Level of difficulty: Medium

235

Chapter 9: Creating Brand Equity

9. The premise of ________ models is that the power of a brand lies in what customers
have seen, read, learned, thought, and felt about the brand over time.
a. product-based brand equity
b. service-based brand equity
c. functional-based brand equity
d. mission-driven brand equity
e. consumer-based brand equity
Answer: e
Page: 276
Level of difficulty: Hard
10. ________ can be defined as the differential effect that brand knowledge has on
consumer response to the marketing of that brand.
a. Mission-driven brand equity
b. Consumer-based brand equity
c. Product-driven brand equity
d. Service-driven brand equity
e. Function-based brand equity
Answer: b
Page: 277
Level of difficulty: Medium
11. When a consumer expresses thoughts, feelings, images, experiences, beliefs, and so
on that become associated with the brand, the consumer is expressing brand
________.
a. knowledge
b. loyalty
c. behavior
d. preference
e. equity
Answer: a
Page: 277
Level of difficulty: Easy
12. ________ is what drives the differences that manifest themselves in brand equity.
a. Brand image
b. Consumer income
c. Consumer purchasing power
d. Consumer knowledge
e. Brand perception
Answer: d
Page: 277
Level of difficulty: Medium
13. Strong brands possess all of the following marketing advantages EXCEPT ________.
a. greater loyalty
b. larger margins
c. guaranteed profits
d. improved perceptions of product performance
e. more elastic consumer response to price decreases
Answer: c
Page: 277
Level of difficulty: Medium

236

Part 4: Building Strong Brands

14. When a marketer expresses his or her vision of what the brand must be and do for
consumers, they are expressing what is called ________.
a. a brand promise
b. a brand mission
c. brand equity
d. a brand position
e. a brand concept
Answer: a
Page: 278
Level of difficulty: Hard
15. There are four key componentsor pillarsof brand equity. Which of those
components or pillars measures the breadth of a brands appeal?
a. Differentiation
b. Relevance
c. Esteem
d. Knowledge
e. Value
Answer: b
Page: 278
Level of difficulty: Hard
16. Two pillars that point to the brands future value, rather than just reflecting its past,
are differentiation and relevance. Differentiation and relevance combine to determine
what is called brand ________.
a. position
b. image
c. depth
d. knowledge
e. strength
Answer: e
Page: 279
Level of difficulty: Medium
17. David Aaker views brand equity as a set of five categories of brand assets and
liabilities linked to a brand that add or subtract from the value provided by a product
or service to a firm and/or that firms customers. All of the following would be among
Aakers five categories EXCEPT ________.
a. brand loyalty
b. brand awareness
c. perceived quality
d. brand price
e. brand associations
Answer: d
Page: 279
Level of difficulty: Hard

237

Chapter 9: Creating Brand Equity

18. According to Aaker, a particularly important concept for building brand equity is
________the unique set of brand associations that represent what the brand stands
for and promises to consumers.
a. brand knowledge
b. brand preference
c. brand identity
d. brand vision
e. brandable differences
Answer: c
Page: 279
Level of difficulty: Medium
19. General Motors states that its ________ is a world class car with employees who
treat customers with respect and as friends.
a. core identity
b. perceived identity
c. extended identity
d. defensible identity
e. competitive identity
Answer: a
Pages: 280
Level of difficulty: Medium
20. According to the BRANDZ model of brand strength, brand building involves a
sequential series of steps. Which of these steps would address or answer the question
Do I know about it?
a. Relevance
b. Presence
c. Performance
d. Advantage
e. Bonding
Answer: b
Page: 280
Level of difficulty: Medium
21. The MasterCard priceless ad campaign is a good example of brand duality. Two
advantages of the brand are demonstrated in this campaign. What are those
advantages?
a. Positive and negative advantages.
b. Local and global advantages.
c. Rational and emotional advantages.
d. Segmented and differentiated advantages.
e. Price and promotional advantages.
Answer: c
Page: 280
Level of difficulty: Hard

238

Part 4: Building Strong Brands

22. All of the following are considered to be among the six brand building blocks
EXCEPT ________.
a. brand salience
b. brand performance
c. brand imagery
d. brand feelings
e. brand pride
Answer: e
Page: 280
Level of difficulty: Medium
23. With respect to the six brand building blocks, ________ focus on customers own
personal opinions and evaluations.
a. brand salience
b. brand performance
c. brand imagery
d. brand judgments
e. brand resonance
Answer: d
Page: 280
Level of difficulty: Medium
24. With respect to the brand resonance pyramid, at which of the following building
block levels would we expect the consumer to have developed an intense, active
loyalty?
a. Salience
b. Imagery
c. Feelings
d. Judgments
e. Resonance
Answer: e
age: 281
Level of difficulty: Hard
25. From a marketing management perspective, there are three main sets of brand equity
drivers. Which of these drivers was most applicable when McDonalds decided to use
the golden arches and Ronald McDonald as symbols of their brand?
a. The product and all accompanying marketing activities and supporting marketing
programs.
b. The service and all accompanying marketing activities and supporting marketing
programs.
c. The initial choices for the brand elements or identities making up the brand.
d. Associations indirectly transferred to the brand by linking it to some other entity.
e. The profitability associated with brand development.
Answer: c
Page: 281
Level of difficulty: Medium

239

Chapter 9: Creating Brand Equity

26. ________ are those trademarkable devices that serve to identify and differentiate the
brand.
a. Brand elements
b. Brand value
c. Brand perception
d. Brand image
e. Brand tracks
Answer: a
Page: 281
Level of difficulty: Medium
27. Six brand elements assist in brand building. Which of the following would NOT be
among those preferred brand elements?
a. Adaptable
b. Protectable
c. Memorable
d. Likeability
e. Subliminal nature
Answer: e
Page: 282
Level of difficulty: Medium
28. If a brand element can be used to introduce new products in the same or different
categories, the brand element is said to be ________.
a. memorable
b. meaningful
c. likeable
d. transferable
e. adaptable
Answer: d
Page: 282
Level of difficulty: Medium
29. Before selecting a brand name, marketers must be assured that the brand name will be
well received and understood by the consumers. In order to do this several tests may
need to be performed. A(n) ________ asks such questions as How easily is the name
pronounced?
a. association test
b. learning test
c. memory test
d. preference test
e. design test
Answer: b
Page: 282
Level of difficulty: Medium
30. Brand names are not only important brand element. Often, ________, the more
important it is that brand elements capture the brands intangible characteristics.
a. the less concrete brand benefits are
b. the more concrete brand benefits are
c. the more varied brand perceptions are
d. the less varied brand perceptions are
e. the more sophisticated brand benefits are
Answer: a
Pages: 282283
Level of difficulty: Hard

240

Part 4: Building Strong Brands

31. With respect to powerful brand elements, a ________ is an extremely efficient means
to build brand equity. The element can function as useful hooks or handles to
help consumers grasp what the brand is and what makes it special.
a. spokesperson
b. product shape
c. slogan
d. patent
e. promotional descriptor
Answer: c
Page: 283
Level of difficulty: Medium
32. Brand elements and secondary associations can make important contributions to
building brand equity; however, the primary input comes from ________.
a. the product or service and supporting marketing activities
b. marketing research
c. the consumer
d. the distributors
e. the organizational mission statement
Answer: a
Page: 284
Level of difficulty: Medium
33. A ________ can be defined as any information-bearing experience a customer or
prospect has with the brand, the product category, or the market that relates to the
marketers product or service.
a. brand value
b. brand element
c. brand trait
d. brand character
e. brand contact
Answer: e
Page: 284
Level of difficulty: Medium
34. Chupa Chups has the distinction of being the worlds largest maker of ________ and
has begun to diversify its brand beyond its original market (children). Today, Chupa
Chups is targeting teens and youth through nonendorser endorsers such as Jerry
Seinfeld.
a. veggie chips
b. apple juice
c. roller skates
d. lollipops
e. granola
Answer: d
Page: 284
Level of difficulty: Hard

241

Chapter 9: Creating Brand Equity

35. Considering holistic marketing activities, the rapid expansion of ________ has
created opportunities to personalize marketing.
a. target marketing
b. globalization
c. the Internet
d. standardization
e. CD technology
Answer: c
Page: 284
Level of difficulty: Hard
36. ________ is about making sure that the brand and its marketing are as relevant as
possible to as many customers as possiblea challenge, given that no two customers
are identical.
a. Personalizing marketing
b. Segmenting marketing
c. Brand imagery
d. Emotionalizing brands
e. Rationalizing brands
Answer: a
Page: 284
Level of difficulty: Medium
37. The traditional marketing-mix concept and the notion of the 4 Ps may not
adequately describe modern marketing programs. ________ is about mixing and
matching marketing activities to maximize their individual and collective effects.
a. Personalizing marketing
b. Individualizing marketing
c. Globalizing marketing
d. Institutionalizing marketing
e. Integrating marketing
Answer: e
Page: 285
Level of difficulty: Medium
38. Godin identifies five specific steps to enhance effective permission marketing. Which
of the following would NOT be among those steps?
a. Offer the prospect an incentive to volunteer.
b. Offer the interested prospect a curriculum over time that teaches the consumer
about the product or service.
c. Reinforce the incentive to guarantee that the prospect maintains the permission.
d. Always offer a monetary incentive to demonstrate sincerity of the offer.
e. Over time, leverage the permission to change consumer behavior toward profits.
Answer: d
Page: 285
Level of difficulty: Hard

242

Part 4: Building Strong Brands

39. ________ is the consumers ability to identify the brand under different conditions, as
reflected by their brand recognition or recall performance.
a. Brand awareness
b. Brand image
c. Brand alternation
d. Brand perception
e. Brand reflection
Answer: a
Page: 286
Level of difficulty: Medium
40. A marketing manager has decided to study the perceptions and beliefs held by
consumers, as reflected in the associations held in consumer memory. Which of the
following terms is most closely associated with the marketing managers objective of
study?
a. Brand awareness
b. Brand image
c. Brand element
d. Brand concept
e. Brand trait
Answer: b
Page: 286
Level of difficulty: Medium
41. For a brand to succeed, marketers must walk the walk and ensure that employees
and marketing partners do the same. Marketers often must use ________ to motivate
those groups to support the brand.
a. global branding
b. retro-branding
c. internal branding
d. external branding
e. dual branding
Answer: c
Page: 286
Level of difficulty: Medium
42. Mark Thomas has observed that Shell delivers on its promises to supply the best
gasoline possible to the driving public. Shell promotions, employees, and distributors
send a common and consistent message about delivering on Shell promises to Mr.
Thomas. A good term that describes what occurs when customers experience the
company as delivering on its brand promise is the term ________.
a. brand image
b. brand enhancement
c. brand belief
d. brand attitude
e. brand bonding
Answer: e
Page: 286
Level of difficulty: Medium

243

Chapter 9: Creating Brand Equity

43. The main secondary sources of brand knowledge come from all of the following
EXCEPT ________.
a. other brands
b. people
c. things
d. local, state, and federal governments
e. places
Answer: d
Page: 287
Level of difficulty: Easy
44. Brand equity can be measured in two ways. Which of the following would be a good
representation of one of those ways?
a. Statistical analysis of demographics.
b. Secondary evaluation of governmental statistics.
c. Directly assessing the actual impact of brand knowledge on consumer response to
different aspects of marketing.
d. Evaluating published statistics of competitors.
e. Hiring independent evaluators.
Answer: c
Page: 288
Level of difficulty: Medium
45. A structured approach to assessing the sources and outcomes of brand equity and the
manner in which marketing activities create brand value is called ________.
a. the brand value chain
b. the brand portfolio
c. the brand life cycle
d. brand partitioning
e. brand positioning
Answer: a
Page: 288
Level of difficulty: Medium
46. A brand manager is concerned that his organizations brand image and physical sales
are slipping in the marketplace. The manager has decided to query consumers about
the health of the brand and try to discover ways to leverage the brands equity. Which
of the following terms will most likely provide the structure and process for the
managers investigation?
a. A brand demographic matrix analysis.
b. A secondary search of good brand characteristics.
c. A brand audit.
d. An organizational audit.
e. A brand positioning study.
Answer: c
Page: 289
Level of difficulty: Medium

244

Part 4: Building Strong Brands

47. Within a brand audit, the ________ has as its purpose to provide a current,
comprehensive profile of how all the products and services sold by a company are
marketed and branded.
a. cost curve calculation
b. product balance sheet
c. strategic plan
d. brand inventory
e. product assessment
Answer: d
Page: 289
Level of difficulty: Medium
48. Many firms use ________ to supplement traditional focus groups. They study
consumers in their everyday habitats at home, at work, at play, or shopping.
a. ethnography
b. demography
c. geodemography
d. psychographics
e. product profiles
Answer: a
Page: 290
Level of difficulty: Hard
49. Irene and Dave Washburn are part of a long-term ________. The Washburns supply a
national research firm with information about their brand habits, preferences, dislikes,
and beliefs on a monthly basis for a period of two years.
a. image study
b. demographic study
c. psychological profile study
d. promotion management study
e. tracking study
Answer: e
Page: 290
Level of difficulty: Medium
50. ________ has the job of estimating the total financial value of the brand.
a. Brand tracking
b. Brand auditing
c. Brand equity
d. Brand valuation
e. Brand partitioning
Answer: d
Page: 290
Level of difficulty: Medium
51. According to 2004 Brand Value estimates, ________ was ranked number-one in the
world with a brand value of $67.39 billion.
a. Microsoft
b. IBM
c. Coca-Cola
d. GE
e. McDonalds
Answer: c
Page: 291
Level of difficulty: Medium

245

Chapter 9: Creating Brand Equity

52. A companys major enduring asset is ________.

a. its leadership
b. its brand
c. its culture
d. its shareholders
e. its workers
Answer: b
Page: 291
Level of difficulty: Easy
53. According to Interbrands Brand Strength formula, the most important factor in the
equation is ________ with a 25 percent weight.
a. stability
b. market
c. geographic spread
d. trend
e. leadership
Answer: e
Page: 292
Level of difficulty: Hard
54. According to Scott Bedburys book, A New Brand World, all of the following are
considered to be important principles for twenty-first century branding EXCEPT
________.
a. consumers will tell you what your brand image should be
b. relying on brand awareness has become marketing fools gold
c. you have to know it before you can grow it
d. great brands establish enduring customer relationships
e. all brands need good parents
Answer: a
Page: 294
Level of difficulty: Hard
55. When a firm uses an established brand to introduce a new product, it is called a(n)
________.
a. sub-brand
b. brand value
c. brand extension
d. brand mix
e. brand posture
Answer: c
Page: 296
Level of difficulty: Medium
56. All of the following would be examples of companies that use family branding as one
of their branding strategies EXCEPT ________.
a. Campbell Soup
b. Sears
c. Heinz
d. General Electric
e. Hunts
Answer: b
Page: 297
Level of difficulty: Hard

246

Part 4: Building Strong Brands

57. According to Ries and Trout, Cadbury suffered from the ________ when the
company allowed its brand to become diluted by putting their name on such variants
as mashed potatoes, powdered milk, soups, beverages, as well as chocolates and
candies.
a. greed is good trap
b. pyramid principle
c. branding fallout concept
d. image syndrome
e. line-extension trap
Answer: e
Page: 299
Level of difficulty: Hard
58. A ________ is the set of all brands and brand lines a particular firm offers for sale to
buyers in a particular category.
a. brand partition
b. brand position
c. brand portfolio
d. brand concept
e. brand image
Answer: c
Page: 301
Level of difficulty: Medium
59. ________ brands are positioned with respect to competitors brands so that more
important (and more profitable) flagship brands can retain their desired positioning.
a. Flanker
b. Attacker
c. Defender
d. Blitzkrieg
e. Individual
Answer: a
Page: 302
Level of difficulty: Medium
60. The role of ________ in the brand portfolio often may be to attract customers to the
brand franchise. Trading up will often occur with this type of brand.
a. the cash cow
b. flanker brand
c. fighting brand
d. high-end prestige brand
e. low-end entry-level brand
Answer: e

Page: 303

Level of difficulty: Medium

247

Chapter 9: Creating Brand Equity

True/False
61. At the heart of a successful brand are the successful people that run the organization.
Answer: False
Page: 273
Level of difficulty: Medium
62. Googles successful brand name was derived from the word googolthe number
represented by a 1 followed by 100 zeroes.
Answer: True
Page: 273
Level of difficulty: Medium
63. The American Marketing Association defines a brand as a name, term, sign, symbol,
or design, or a combination of them, intended to identify the goods or services of one
seller or group of sellers and to differentiate them from those of competitors.
Answer: True
Page: 274
Level of difficulty: Easy
64. One of the attributes shared by the worlds strongest brands is that the brand becomes
invulnerable to attack from competitors due to the support of the marketplace.
Answer: False
Page: 275
Level of difficulty: Hard
65. The added value endowed to products and services is called brand equity.
Answer: True
Page: 276
Level of difficulty: Medium
66. Brand knowledge is indicated when the consumer refuses to purchase competitive
brands.
Answer: False
Page: 277
Level of difficulty: Medium
67. One of the advantages of having a strong brand is the ability to have a more elastic
consumer response to price decreases of the brand.
Answer: True
Page: 277
Level of difficulty: Medium
68. The marketers vision of what the brand must be and do for consumers is called a
brand promise.
Answer: True
Page: 278
Level of difficulty: Medium
69. There are four key componentsor pillarsof brand equity; one of these
components is called knowledge.
Answer: True
Page: 278
Level of difficulty: Medium
70. An illustration of the extended brand identity of GMs Saturn brand is a world-class
car with employees who treat customers with respect and as friends.
Answer: False
Page: 280
Level of difficulty: Hard
71. Under the BRANDZ model of brand strength, the brand objective of bonding is
translated to mean nothing else beats it.
Answer: True
Page: 280
Level of difficulty: Easy

248

Part 4: Building Strong Brands

72. Brand resonance is associated with how a brand name sounds when said by
spokespersons or consumers.
Answer: False
Page: 280
Level of difficulty: Hard
73. Brand salience relates to how often and easily the brand is evoked under various
purchase or consumption situations.
Answer: True
Page: 280
Level of difficulty: Medium
74. Brand imagery is the consumers emotional responses and reactions with respect to
the brand.
Answer: False
Page: 280
Level of difficulty: Medium
75. In the brand resonance pyramid, the lowest level (e.g., identityWho are you?) is
associated with what is called salience.
Answer: True
Page: 281
Level of difficulty: Hard
76. A few good illustrations of power brand elements are Nikes swoosh logo, the
empowering Just Do It slogan, and the mythological Nike name based on the
winged goddess of victory.
Answer: True
Page: 281
Level of difficulty: Medium
77. One of the selection criteria for creating a successful brand element is that it should
be projectable.
Answer: True
Page: 282
Level of difficulty: Medium
78. If a brand element has the characteristic of being memorable, it is said to mean that
the brand is credible and suggestive of its corresponding category.
Answer: False
Page: 282
Level of difficulty: Hard
79. One of the ways for testing a brand element is to ask consumers how well they
remember the brand name; this is called a learning test.
Answer: False
Page: 282
Level of difficulty: Medium
80. A powerfulbut sometimes overlookedbrand element is slogans.
Answer: True
Page: 283
Level of difficulty: Easy
81. A classic case of a company using a slogan to build brand equity is that of Aviss 41year-old We Try Harder ad campaign.
Answer: True
Page: 283
Level of difficulty: Easy
82. A brand contract is defined as any information-bearing experience a customer or
prospect has with a brand.
Answer: True
Page: 284
Level of difficulty: Medium

249

Chapter 9: Creating Brand Equity

83. Personalizing marketing is based on the fact that all customers are identical in several
ways.
Answer: False
Page: 284
Level of difficulty: Medium
84. Gillette sent 1,000 young males a new, innovative razor product. In return, the
company asked the young males to supply their e-mail addresses so future contacts
could be initiated. This would be an example of what is called permission marketing.
Answer: True
Page: 285
Level of difficulty: Medium
85. Brand awareness can be perceived as being the consumers ability to identify the
brand under different conditions, as reflected by their brand recognition or recall
performance.
Answer: True
Page: 286
Level of difficulty: Medium
86. Internal branding is the perceptions and beliefs held by consumers, as reflected in the
associations held in consumer memory.
Answer: False
Page: 286
Level of difficulty: Hard
87. Marketers must now walk the walk to deliver the brand promise. Often internal
branding is necessary to make sure that all employees assist in meeting the brand
promise.
Answer: True
Page: 286
Level of difficulty: Medium
88. The brand promise will not be delivered unless everyone in the company lives the
brand.
Answer: True
Page: 286
Level of difficulty: Easy
89. The indirect approach to assessing brand equity assesses the actual impact of brand
knowledge on consumer response to different aspects of marketing.
Answer: False
Page: 288
Level of difficulty: Medium
90. A brand value chain often does not exist because of an organizations commitment to
its service value chain.
Answer: False
Page: 288
Level of difficulty: Medium
91. The brand audit can be used to set strategic direction for the brand.
Answer: True
Page: 289
Level of difficulty: Easy
92. The purpose of brand strength (an assessment tool) is to provide a current,
comprehensive profile of how all the products and services sold by a company are
marketed and branded.
Answer: False
Page: 289
Level of difficulty: Hard
93. In order to explore more detailed information about brands, many firms are now using
ethnography to supplement traditional focus groups.
Answer: True
Page: 290
Level of difficulty: Medium

250

Part 4: Building Strong Brands

94.

Tracking studies collect information from consumers on a

routine basis over time.

Answer: True
Page: 290

Level of difficulty: Easy

95. In essence, brand equity is basically the same concept as brand valuation.
Answer: False
Page: 290
Level of difficulty: Medium
96. At present, the most valuable brand in the world is Microsoft.
Answer: False
Page: 291
Level of difficulty: Medium
97. A companys most enduring asset is its intellectual capital generated by the top
officers of the organization.
Answer: False
Page: 291
Level of difficulty: Medium
98. With respect to brand revitalization, the primary strategy for recovery is to hire a
public relations firm to think of a new image for the firm and its products.
Answer: False
Page: 294
Level of difficulty: Hard
99. When Honda expanded its brand into such areas as automobiles, motorcycles,
snowblowers, lawnmowers, marine engines, and snowmobiles, it was pursuing a
strategy called category extension of its brand.
Answer: True
Page: 296
Level of difficulty: Medium
100. Brand dilution occurs when consumers no longer associate a brand with a specific
product or highly similar products and start thinking less of the brand.
Answer: True
Page: 299
Level of difficulty: Medium

Essay
101.

The worlds strongest brands share a list of common attributes. List and briefly
characterize five of those attributes.
Suggested Answer: According to information presented in the text, the worlds
strongest brands possess ten common characteristics. Those characteristics appear
as: (1) the brand excels at delivering the benefits consumers truly desire; (2) the
brand stays relevant; (3) the pricing strategy is based on consumer perceptions of
value; (4) the brand is properly positioned; (5) the brand is consistent; (6) the
brand portfolio and hierarchy makes sense; (7) the brand makes use of and
coordinates a full repertoire of marketing activities to build equity; (8) the brands
managers understand what the brand means to consumers; (9) the brand is given
proper, sustained support; and, (10) the company monitors sources of brand
equity. The students may choose any five of the above ten for their discussion.
See chapter material for addition discussion material.
Page: 275
Level of difficulty: Hard

251

Chapter 9: Creating Brand Equity

102.

Explain the concept of brand equity.

Suggested Answer: Brand equity is the added value endowed to products and
services. This value may be reflected in how consumers think, feel, and act with
respect to the brand, as well as the prices, market share, and profitability that the
brand commands for the firm. Brand equity is an important intangible asset that
has psychological and financial value to the firm.
Page: 276
Level of difficulty: Medium

103.

Advertising agency Young and Rubicam (Y&R) developed a model of brand

equity called Brand Asset Valuator (BAV). What is the intent of the BAV model?
List and briefly characterize the four key components (pillars) of brand equity.
Suggested Answer: The BAV model is based on research of almost 200,000
consumers in 40 countries. BAV provides comparative measures of the brand
equity of thousands of brands across hundreds of different categories. There are
four key componentsor pillarsof brand equity. These pillars are: (1)
differentiationmeasures the degree to which a brand is seen as different from
others; (2) relevancemeasures the breadth of a brands appeal; (3) esteem
measures how well the brand is regarded and respected; and (4) knowledge
measures how familiar and intimate consumers are with the brand. For additional
information on the BAV model, see chapter section.
Pages: 278279
Level of difficulty: Medium

104.

The creation of significant brand equity involves reaching the top or pinnacle of
the brand pyramid. List and briefly characterize the six components of the brand
resonance pyramid.
Suggested Answer: The six components of the brand resonance pyramid include
brand: (1) saliencerelates to how often and easily the brand is evoked under
various purchase or consumption situations; (2) performancerelates to how the
product or service meets customers functional needs; (3) imagerydeals with the
extrinsic properties of the product or service, including the ways in which the
brand attempts to meet the customers psychological or social needs; (4)
judgmentsfocus on consumers own personal opinions and evaluations; (5)
feelingscustomers emotional responses and reactions with respect to the brand;
and, (6) resonancerefers to the nature of the relationship that customers have
with the brand and the extent to which customers feel that they are in sync with
the brand. For additional information on the brand resonance pyramid, see chapter
material.
Pages: 280281
Level of difficulty: Hard

105.

There are six criteria used in creating brand elements. The first three can be
characterized as brand building in terms of how brand equity can be built
through the judicious choice of a brand element. The latter three are more
defensive and are concerned with how the brand equity contained in the brand

252

Part 4: Building Strong Brands

element can be leveraged and preserved in the face of different opportunities and
constraints. List and briefly characterize the six criteria.
Suggested Answer: The six elements are: (1) memorable, (2) meaningful, (3)
likeability, (4) transferable, (5) adaptable, and (6) protectible. For
characterizations, see chapter materials.
Page: 282
Level of difficulty: Medium
106.

Describe the similarities and differences between the concepts of brand awareness
and brand image.
Suggested Answer: Brand awareness is consumers ability to identify the brand
under different conditions, as reflected by their brand recognition or recall
performance. Brand image is the perceptions and beliefs held by consumers, as
reflected in the associations held in consumer memory. Integration is especially
critical with marketing communications. From the perspective of brand building,
all communication options should be evaluated in terms of ability to affect brand
equity. Each communication option can be judged in terms of the effectiveness
and efficiency with which it affects brand awareness and with which it creates,
maintains, or strengthens brand image.
Page: 286
Level of difficulty: Medium

107.

Describe the meaning and function of a brand audit.

Suggested Answer: To better understand their brands, marketers often need to
conduct brand audits. A brand audit is a consumer-focused exercise that involves a
series of procedures to assess the health of the brand, uncover its sources of brand
equity, and suggest ways to improve and leverage its equity. The brand audit can
be used to set strategic direction for the brand. As the result of this strategic
analysis, the marketer can develop a marketing program to maximize long-term
brand equity. Marketers should conduct a brand audit whenever they consider
important shifts in strategic direction.
Page: 289
Level of difficulty: Medium

108.

According to top brand valuation firm Interbrand, brand valuation is based on an

assessment of what the value is today of the earnings or cash flow the brand can
be expected to generate in the future. The Interbrand Brand Strength Formula uses
seven components to make this assessment. What are those seven components and
their associated weights in the formula?
Suggested answer: The Interbrand Brand Strength Formula includes: (1)
leadership (25 percent), (2) stability (15 percent), (3) market (10 percent), (4)
geographic spread (25 percent), (5) trend (10 percent), (6) support (10 percent),
and (7) protection (5 percent). For additional information on the Interbrand
formula, see chapter materials.
Page: 292
Level of difficulty: Hard

253

Chapter 9: Creating Brand Equity

109.

The decision as to how to brand new products is especially critical. When a firm
introduces a new product, it has three main choices. What are those choices?
Suggested Answer: The firm can: (1) develop new brand elements for the new
product, (2) apply some of its existing brand elements, or (3) use a combination of
new and existing brand elements.
Page: 296
Level of difficulty: Medium

110.

There are a number of specific roles brands can play as part of a brand portfolio.
List and briefly describe the four roles described in the text.
Suggested Answer: The four roles are: (1) flankersor fighting brands. These
are positioned with respect to competitors brands so that more important (and
more profitable) flagship brands can retain their desired positioning; (2) cash
cowssome brands may be kept around despite dwindling sales because they still
manage to hold on to a sufficient number of customers and maintain their
profitability with virtually no marketing support. These cash cow brands can be
effectively milked by capitalizing on their reservoir of existing brand equity; (3)
low-end entry-levelthe role of the relatively low-priced in the brand portfolio
often may be to attract customers to the brand franchise. Retailers like to feature
these traffic builders because they are able to trade up customers to a higherpriced brand; and, (4) high-end prestigethe role of a high-priced brand in the
brand family often is to add prestige and credibility to the entire portfolio. For
additional information on the four roles, see chapter materials.
Pages: 302303
Level of difficulty: Hard

APPLICATION QUESTIONS
Multiple Choice
111.

Based on a public poll conducted in 2002, ________ was named Brand of the
Year by Interbrand branding consultants; in fact, the brand name has become a
verb that is used to describe an online search.
a. Yahoo!
b. Microsoft
c. Linux
d. Google
e. America Online
Answer: d
Page: 273
Level of difficulty: Easy

254

Part 4: Building Strong Brands

112.

Marketers of successful twenty-first-century brands must excel at ________the

design and implementation of marketing activities and programs to build,
measure, and manage brands to maximize their value.
a. promotional planning
b. brand personification
c. strategic brand management
d. brand awareness
e. competitive differential advantage
Answer: c
Page: 274
Level of difficulty: Medium
113.

All of the following are valuable functions performed by brands for firms
EXCEPT ________.
a. they simplify product handling or tracing
b. helps to organize inventory and accounting records
c. offers the firm legal protection through registered trademarks
d. intellectual property rights can be protected
e. a branded product is almost always guaranteed to be profitable
Answer: e
Page: 274
Level of difficulty: Medium
114.

If a brand has the attributes of staying relevant, is properly positioned, is

consistent, and makes use of and continues a full repertoire of marketing activities
to build equity, the brand is most likely to be a ________.
a. successful brand
b. domestic brand
c. regional brand
d. global brand
e. service brand
Answer: a
Page: 275
Level of difficulty: Easy
115.

Coca-Cola, Calvin Klein, Gucci, Tommy Hilfiger, Marlboro and others have
become leaders in their product categories by understanding ________ and
desires and creating relevant and appealing images around their products.
a. consumer perceptions
b. consumer motivations
c. consumer behaviors
d. consumer demographics
e. consumer market segments
Answer: b
Page: 276
Level of difficulty: Hard

255

Chapter 9: Creating Brand Equity

116.

Brands must create strong, favorable, and unique brand associations with
customers, as has been the case with Volvo (safety), Hallmark (________), and
Harley-Davidson (adventure).
a. caring
b. love
c. happiness
d. giving
e. humorous
Answer: a
Page: 277
Level of difficulty: Medium
117.

Apple achieves incredible brand loyalty largely by delivering on its mission as

defined by CEO Steve Jobs. That mission is best described as: ________.
a. To dominate through technology
b. To create great things that change peoples lives
c. To think fast; introduce new products faster
d. To appeal to independent thinkers
e. To make the Mac world a reality
Answer: b
Page: 277
Level of difficulty: Medium
118.

A marketing manager stresses to a newly hired brand manager the importance of

having a strong brand. All of the following would be advantages that the
marketing manager might stress to his subordinate EXCEPT ________.
a. improved perceptions of product performance
b. greater loyalty
c. less vulnerability to marketing crises
d. lower margins
e. possible licensing opportunities
Answer: d
Page: 277
Level of difficulty: Medium
119.

Virgin, the brainchild of Englands flamboyant Richard Branson, vividly

illustrates the power enjoyed and responsibility assumed by a strong brand. Which
of the following most accurately describes Bransons brand strategy?
a. Compete by offering severe discounts to meet competitors normal pricing
strategies.
b. Use the credibility of the brand to challenge the dominant players in a range of
industries where the perception is that consumers are not getting value for
money.
c. Use promotion to inspire brand loyalty and mass consumption.
d. Compete by using guerrilla-marketing tactics.
e. To copy, copy, copy whenever possible to save funds for promotional warfare.
Answer: b
Page: 278
Level of difficulty: Hard

256

Part 4: Building Strong Brands

120.

If a manager is looking for a report card on past performance of a brand, he or

she should turn to an examination of the brand ________.
a. strength
b. compatibility
c. stature
d. image
e. dominance
Answer: c
Page: 279
Level of difficulty: Medium
121.

According to Aaker, brand identity consists of twelve dimensions organized

around four perspectives. Which of the four perspectives would apply to the
dimensions of brand personality and brand-customer relationships?
a. Brand-as-product
b. Brand-as-organization
c. Brand-as-person
d. Brand-as-symbol
e. Brand-as-competitor
Answer: c
Page: 279
Level of difficulty: Hard
122.

Any time a consumer thinks of a dependable car battery that might be needed in
an emergency situation such as a snow storm, the consumer thinks first of Die
Hard batteries. This would be an example of what is called brand ________.
a. salience
b. imagery
c. judgments
d. feelings
e. scope
Answer: a
Page: 280
Level of difficulty: Medium
123.

The famous Plop, plop, fizz, fizz! Oh, what a relief it is! campaign is a good
example of what is called a brand ________.
a. element
b. tagline
c. visual
d. personification
e. perception
Answer: a
Page: 281
Level of difficulty: Medium

257

Chapter 9: Creating Brand Equity

124.

One of the advantages enjoyed by Apple Computers is how aesthetically

appealing its products are perceived to be. Which of the following brand element
choice criteria matches to Apples aesthetic appeal?
a. memorable
b. meaningful
c. likeability
d. protectible
e. adaptable
Answer: c
Page: 282
Level of difficulty: Medium
125.

The idea for the famous Avis slogan We Try Harder came from an unusual
source. Which of the following would be most closely associated with that
source?
a. From an Avis manager during a meeting with ad agency account executives.
b. From a customer during a sponsored contest.
c. From a high school student during a career day.
d. From factory worker during a scheduled management/union meeting.
e. From a member of the National Transportation and Safety Board.

Answer: a

Page: 283

Level of difficulty: Hard

126.

According to Seth Godin, marketers can no longer use ________. Instead,

marketers should turn to permission marketing as a way to ensure long-term
customer relationships and loyalty.
a. task-oriented marketing
b. interruption marketing
c. hard core selling
d. advocacy marketing
e. one-to-one marketing
Answer: b
Page: 285
Level of difficulty: Medium
127.

If the Olive Garden sends employees to special classes to teach them the value of
the brand and how pasta is much more than just pasta, Olive Garden is using
________ to accomplish this task.
a. interruption marketing
b. loyalty marketing
c. cohort marketing
d. macrobranding
e. internal branding
Answer: e
Page: 286
Level of difficulty: Medium

258

Part 4: Building Strong Brands

128.

If an organization has as one of its objectives to collect information from

consumers on a routine basis over time, the organization will most likely use a
technique called ________ to accomplish the desired objective.
a. tracking studies
b. nonmetric-multidimensional scaling
c. Likert scaling
d. brand visualization
e. internal branding
Answer: a
Page: 290
Level of difficulty: Easy
129.

According to Interbrand, brand earnings are calculated by subtracting a number of

items from brand sales. All of the following would be among those items
EXCEPT ________.
a. costs of brand sales
b. marketing costs
c. variable and fixed overheads
d. all employee costs and benefits
e. remuneration of capital charge
Answer: d
Page: 292
Level of difficulty: Medium
130.

Four general strategies can be used in branding. Which of the following strategies
is the one used by Kelloggs when it follows a sub-branding policy with Kelloggs
Rice Krispies, Kelloggs Raisin Bran, and Kelloggs Corn Flakes?
a. Individual names.
b. Blanket family names.
c. Separate family names for all products.
d. Global names for all products.
e. Corporate name combined with individual product names.
Answer: e
Page: 297
Level of difficulty: Medium

Short Answer
131.

Assume you are a marketing manager that wishes pursue a process of strategic
brand management. List the four main steps that you would most likely go
through to accomplish this task.
Suggested Answer: The steps would be: (1) identifying and establishing brand
positioning; (2) planning and implementing brand marketing; (3) measuring and
interpreting brand performance; and, (4) growing and sustaining brand value.
Page: 274
Level of difficulty: Hard

132.

How does the American Marketing Association define the term brand?
Suggested Answer: A brand, according to the AMA, is a name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods or

259

Chapter 9: Creating Brand Equity

services of one seller or group of sellers and to differentiate them from those of
competitors.
Page: 274
Level of difficulty: Easy
133.

Assume that you are marketing manager attempting to explain the concept of
brand equity to a new employee in your department. What would be your
explanation?
Suggested Answer: Brand equity is the added value endowed to products and
services. This value may be reflected in how consumers think, feel, and act with
respect to the brand, as well as the prices, market share, and profitability that the
brand commands for the firm. Brand equity is an important intangible asset that
has psychological and financial value to the firm.
Page: 276
Level of difficulty: Medium

134.

Your company desires to have positive customer-based brand equity. What has to
occur for this to happen?
Suggested Answer: A brand is said to have positive customer-based brand equity
when consumers react more favorably to a product and the way it is marketed
when the brand is identified as compared to when it is not.
Page: 277
Level of difficulty: Easy

135.

Volvo has a strong brand association with respect to brand knowledge when
consumers perceive it as a very safe care (safety). Explain the concept of brand
knowledge.
Suggested Answer: Brand knowledge consists of all the thoughts, feelings,
images, experiences, beliefs, and so on that become associated with the brand. In
particular, brands must create strong, favorable, unique brand associations with
customers.
Page: 277
Level of difficulty: Medium

136.

As a marketing manager, you have made a commitment to having a strong brand.

List five advantages shared by other strong brands that you will most likely have
to emulate to accomplish this objective.
Suggested Answer: Strong brands have the following advantages: (1) improved
perceptions of product performance; (2) greater loyalty; (3) less vulnerability to
competitive marketing actions; (4) less vulnerability to marketing crises; (5)
larger margins; (6) more inelastic consumer response to price increases; (g) more
elastic consumer response to price decreases; (7) greater trade cooperation and
support; (8) increased marketing communications effectiveness; (9) possible
licensing opportunities; and, (10) additional brand extension opportunities.
Students are to pick five of the above.
Page: 277
Level of difficulty: Hard

260

Part 4: Building Strong Brands

137.

Brand equity has four componentsdifferentiation, relevance, esteem, and

knowledge. How are these components combined to produce brand strength and
brand stature?
Suggested Answer: Differentiation and relevance combine to produce brand
strength. Esteem and knowledge together create brand stature.
Pages: 278279
Level of difficulty: Medium

138.

According to Aaker, a particularly important concept for building brand equity is

brand identity. Brand identity is organized around four perspectives. What are
those perspectives?
Suggested Answer: The four perspectives are: (1) brand-as-product, (2) brand-asorganization, (3) brand-as-person, and (4) brand-as-symbol.
Page: 279
Level of difficulty: Hard

139.

According to the BRANDZ model of brand strength, brand building involves a

series of five sequential steps. What are those five sequential steps?
Suggested Answer: The steps are in ascending order: (1) presence, (2) relevance,
(3) performance, (4) advantage, and (5) bonding.
Page: 280
Level of difficulty: Medium

140.

Most strong brands employ multiple brand elements. Nike has three such
powerful brand elements. According to the text, what are those brand elements?
Suggested Answer: Nikes brand elements are: (1) the distinctive swoosh logo,
(2) the empowering Just Do It slogan, and (3) the mythological Nike name
base on the winged goddess of victory.
Page: 281

141.

Level of difficulty: Medium

As a brand manager you would like to have your brand (brand name) to be
protectible. Explain what you mean by protectible and give an illustration.
Suggested Answer: As a brand manager you would have to consider the
questions of How legally protectible is the brand element? How competitively
protectible? and Can it be easily be copied? It is important that names that
become synonymous with product categoriessuch as Kleenex, Kitty Litter,
Jell-O, Scotch Tape, Xerox, and Fiberglassretain their trademark rights and not
become generic. Answers on examples may vary. The above are a few
illustrations that demonstrate the protectible characteristic.
Page: 282
Level of difficulty: Medium

261

Chapter 9: Creating Brand Equity

142.

Jones Soda is presented in the text as an example of a company that has succeeded
in personalizing their brand. Discuss how the company has accomplished this
feat.
Suggested Answer: As indicated in the text, Peter van Stolk founded Jones Soda
on the premise that Gen Y consumers would be more accepting of a new softdrink brand if they felt they discovered it themselves. Jones Soda initially was
sold only in shops that sell surfboards, snowboards, and skateboards. The Jones
Soda Web site encourages fans to send in personal photos for possible use on
Jones Soda labels. Although only maybe 40 or so are picked annually from the
tens of thousands of entries, the approach helps to create relevance and an
emotional connection.
Page: 285
Level of difficulty: Hard

143.

Permission marketing is becoming increasingly popular with marketers. Seth

Godin, a pioneer in the technique, recommends five steps in becoming an
effective permission marketer. List Godins five steps.
Suggested Answer: Godins five steps are: (1) offer the prospect an incentive to
volunteer (e.g., free sample, sales promotion, or contest); (2) offer the interested
prospect a curriculum over time that teaches the consumer about the product or
service; (3) reinforce the incentive to guarantee that the prospect maintains the
permission; (4) offer additional incentives to get more permission from the
consumer; and, (5) over time, leverage the permission to change consumer
behavior toward profits.
Page: 285
Level of difficulty: Hard

144.

Given that the power of a brand resides in the minds of consumers and how it
changes their response to marketing, there are two basic approaches to measuring
brand equity. Briefly, describe each of these approaches.
Suggested Answer: The two approaches are: (1) an indirect approach assesses
potential sources of brand equity by identifying and tracking consumer brand
knowledge structures; and (2) a direct approach assesses the actual impact of
brand knowledge on consumer response to different aspects of the marketing.
Page: 288
Level of difficulty: Easy

145.

If your marketing manager asked you to design and implement a brand value
chain, explain what you have been asked to do.
Suggested Answer: The brand value chain is a structured approach to assessing
the sources and outcomes of brand equity and the manner in which marketing
activities create brand value. The model assumes that a number of linking factors
intervene between the stages and determine the extent to which value created at

262

Part 4: Building Strong Brands

one stage transfers to the next stage. For additional insight and discussion, see
chapter section.
Page: 288
Level of difficulty: Medium
146.

A marketing research manager has just asked you to conduct a brand exploratory.
What have you been asked to do? Explain.
Suggested Answer: The brand exploratory is research activity conducted to
understand what consumers think and feel about the brand and its corresponding
product category to identify sources of brand equity. For additional details, see
chapter section.
Page: 290
Level of difficulty: Easy

147.

Distinguish between brand equity and brand valuation.

Suggested Answer: According to information provided in the text, brand equity
is the added value endowed to products and services. Brand valuation has the job
of estimating the total financial value of the brand.
Pages: 276290
Level of difficulty: Easy

148.

Volvo is a good illustration of a company that has been successful in defending its
brand equity. However, when Volvo deviated from its brand heritage, sales
slumped. What is the key concept on which the Volvo brand was built and, when
reinforced, eventually revived the companys slumping sales?
Suggested Answer: According to information provided in the text, Volvos key
branding concept is safety.
Page: 293
Level of difficulty: Easy

149.

Scott Bedbury, author of A New Brand World, cites eight principles on which
twenty-first-century branding should be built. List four of those principles.
Suggested Answer: Bedburys eight principles are: (1) relying on brand
awareness has become marketings fools gold; (2) you have to know it before
your can grow it; (3) always remember the Spandex rule of brand extension; (4)
great brands establish enduring customer relationships; (5) everything matters; (6)
all brands need good parents; (7) big is no excuse for being bad; and, (8)
relevance, simplicity, and humanity. Students may choose from any of the above
eight. See chapter section for additional discussion.
Page: 294
Level of difficulty: Hard

150.

As a branding manager, you have recommended to your board of directors a

corporate policy of blanket family branding. Write a brief statement outlining the
advantages of blanket family branding.
Suggested Answer: This policy is followed by Heinz and General Electric. A
blanket family name has advantages. Development cost is less because there is no

263

Chapter 9: Creating Brand Equity

need for name research or heavy advertising expenditures to create brand-name

recognition. Furthermore, sales of the new product are likely to be strong if the
manufacturers name is good. Campbells introduces new soups under its brand
name with extreme simplicity and achieves instant recognition.
Page: 297
Level of difficulty: Medium

264