Chapter 5: Brand-Based SCA

Question 1

What are the three benefits from Brand Equity?

Answer 1

1. Sales growth
2. Profit enhancement
   Ability to charge higher prices due to
   high demand
3. Loyalty effects

Question 2

What is true loyalty?

Answer 2

High levels of behavioural and attitudinal loyalty

Question 3

What is spurious loyalty?

Answer 3

Buys products but has ambivalent or negative feelings (low attitudinal)

Question 4

What is latent loyalty?

Answer 4

Positive attitudes but does not buy the products

Question 5

What is brand equity?

Answer 5

“Lies in the mind of the consumer”
- Difficult for competitors to copy
- Adds to sustainability of brand-based
barriers

Question 6

Brand Image

Answer 6

Links of the brand name node to other informational nodes in the model

Example: Movie placements like James Bond driving a BMW

Question 7

Brand awareness and familiarity

Answer 7

Size and strength of node

Question 8

Brand architecture

Answer 8

How the brand is used at different levels in the organization

Question 9

House of Brand Architecture

Answer 9

Many independent brands

Example: Proctor and Gamble owning Tide, Crest, Pampers, Gilette, Olay

Question 10

Branded House Architecture

Answer 10

Single master brand used for all products

Example: Google Search, Google Maps, Google Drive, Google Photos
- General Electric

Question 11

Endorsed Brands

Answer 11

Individual brands are linked to an endorsing brand to produce a supportive foundation

Example: Courtyard by Marriott

Question 12

Sub-brands

Answer 12

Closer link to parent brand than do endorsed brands but behave similarly

Question 13

Brand Line Extensions

Answer 13

New offering, same product category, different customer segment, slightly different set of attributes

Example: Crest kids toothpaste

Question 14

Brand Category Extensions

Answer 14

New offering, completely different product category

Example: Crest dental floss

Question 15

Brand Extension Benefits

Answer 15

1. Increases acceptance by reducing perceived risk
2. Lowers cost of new product launches
3. Reduces time needed to build product brand
4. Increased probability of gaining channel access
5. Helps enhance image of parent brand

Question 16

When do brand extensions succeed?

Answer 16

1. When there’s a relevant fit between the original brand and the new product
2. Implemented incrementally
3. Accepted easily with high-quality brands

Question 17

Vertical Extensions

Answer 17

Moving up or down a market

Example: Armani offering Armani exchange for younger consumers, McPizza fail

Question 18

What is perceived fit between parent and extension based on?

Answer 18

1. Product attributes and benefits
2. User types and situations
3. Manufacturing

Question 19

What are the 3 steps to building brand equity?

Answer 19

1. Build a high level of brand awareness
2. Link brand name to the brand’s points of parity and difference
3. Build a relationship / connection between brand and consumer
   Example: share a coke

Question 20

What is Integrated Marketing Communications (IMC)?

Answer 20

Delivering relevant + consistent marketing messages to consumers

Question 21

Give examples of IMC formats

Answer 21

Advertising, influencer marketing, PR, WOM

Question 22

The Think-Feel-Act model is based on what?

Answer 22

Attention
Attitudes
Intentions
Behave

Question 23

What are the two approaches for measuring brand equity?

Answer 23

1. Brand audit
2. Qualitative analysis
3. Quantitative analysis

Question 24

What is brand audit?

Answer 24

Evaluation of a brand’s health to understand its strengths and weaknesses.

Question 25

What are the elements of a brand strategy?

Answer 25

1. Brand objectives 2. Brand awareness 3. Brand relative advantage: Brand's point of difference and points of parity 4. Brand sustainability: How brand maintains its relative advantage 5. Brand image 6. Brand associations 7. Brand identity