Which of the following best describes a car company's value proposition?
A) We charge a 20% premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.

Page: 276

C

Which of the following best describes BR Chicken's value proposition?
A) We sell chicken at most major malls.
B) We undertake home delivery services.
C) We target quality-conscious consumers of chicken.
D) We sell tender golden chicken at a moderate price.
E) We charge a 10% premium on our chicken.

Page: 276

D

The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis

Page: 276

D

________ refers to the products or sets of products with which a brand competes and which function as close substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
E) Demand field

Page: 277

C

________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups

Page: 278

B

A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another.
A) community
B) task force
C) industry
D) focus group
E) umbrella brand

Page: 278

C

Which of the following statements about blue ocean thinking is true?
A) It involves designing creative business ventures to positively affect both a company's cost structure
and its value proposition to consumers.
B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive rules of the game are known.
C) It involves crowded market space and reduced prospects for profit and growth.
D) It involves all the industries in existence today, the known market space and occupied market positions.
E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has previously offered.

Page: 278

A

Which of the following terms is most closely associated with the statement: "attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand"?
A) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence

Page: 280

B

________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands.
A) Points-of-parity
B) Points-of-difference
C) Points-of-inflection
D) Points-of-presence
E) Points-of-divergence

Page: 280

A

The three criteria that determine whether a brand association can truly function as a point-of-difference are ________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability

Page: 280

D

Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?
A) deliverability
B) authenticity
C) desirability
D) differentiability
E) feasibility

Page: 280

C

Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers?
A) differentiability
B) peculiarity
C) desirability
D) believability
E) deliverability

Page: 280

E

Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors?
A) desirability
B) differentiability
C) believability
D) deliverability
E) deviance

Page: 280

B

The brand must demonstrate ________, for it to function as a true point-of-difference.
A) clear superiority on an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors' weakness

Page: 280

A

The two basic forms of points-of-parity are ________ and ________.
A) conceptual points-of-parity; competitive points-of-parity
B) strategic points-of-parity; conceptual points-of-parity
C) category points-of-parity; deliverable points-of-parity
D) competitive points-of-parity; peculiar points-of-parity
E) category points-of parity; competitive points-of-parity

Page: 280

E

________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.
A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference

Page: 280

D

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good?
A) points-of-difference
B) points-of-presence
C) points-of-parity
D) points-of-conflict
E) points-of-inflection

Page: 280-281

C

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling?
A) points-of-difference
B) points-of-conflict
C) points-of-parity
D) points-of-presence
E) points-of-inflection

Page: 280- 281

A

Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________.
A) competitive points-of-difference
B) competitive points-of-parity
C) category points-of-difference
D) category points-of-parity
E) conceptual points-of-parity

Page: 280- 281

D

Nivea became the leader in the skin cream class on the "gentle", "protective" and "caring" platform. The company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colorful enough. This is an example of ________.
A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence

Page: 280- 281

C

________ are associations designed to overcome perceived weaknesses of the brand.
A) Conceptual points-of-parity
B) Category points-of-difference
C) Competitive points-of-parity
D) Competitive points-of-difference
E) Category points-of-parity

Page: 281

C

As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?
A) to point out competitors' points-of-difference
B) to emphasize competitors' points-of-difference
C) to rationalize competitors' perceived points-of-difference
D) to globalize competitors' perceived points-of-difference
E) to negate competitors' perceived points-of-difference

Page: 281

E

A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following?
A) the soap is one-quarter cleansing cream
B) Dove products include bar soaps and shampoos
C) Dove soap helps users have softer skin
D) the soap brand has global presence
E) the brand has recently launched soap for men

Page: 283

C

Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________ allows the brand to create a point-of-parity (POP) on taste and a point-of-difference (POD) on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés.
A) Category-based positioning
B) Need-based positioning
C) Noncomparitive positioning
D) Straddle positioning
E) Price-quality positioning

Page: 283

D

BMW positioned itself as the only automobile that offered both luxury and performance. At that time, consumers saw U.S. luxury cars as lacking performance. It was able to achieve a point-of-difference on performance and a point-of-parity on luxury with respect to U.S. luxury cars like Cadillac. This is an example of ________.
A) straddle positioning
B) category-based positioning
C) need-based positioning
D) noncomparitive positioning
E) price-quality positioning

Page: 283

A

Marketers typically focus on ________ in choosing the points-of-parity and points-of-difference
that make up their brand positioning.
A) brand equity
B) brand awareness
C) brand benefits
D) brand architecture
E) brand extensions

Page: 283

C

________ are visual representations of consumer perceptions and preferences.
A) Procedural maps
B) Brain maps
C) Perceptual maps
D) Procedural models
E) Cognitive maps

Page: 283

C

Straddle positions ________.
A) help firms to analyze who their competitors are
B) allow brands to expand their market coverage and potential customer base
C) are a necessity while creating a firm's vision and mission statement
D) assist firms in collecting information on competitors that will directly influence their strategy
E) are ambiguous moral principles behind the operation and regulation of marketing

Page: 283

B

Which of the following statements about brand mantras is true?
A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating what it is not.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.

Page: 285

D

American Express'- "Worldclass Service, Personal Recognition," Mary Kay's - "Enriching women's lives," Hallmark's- "Caring Shared," and Starbucks'-"Rewarding Everyday Moments" are examples of ________.
A) brand mantras
B) brand parity
C) brand identity
D) brand architecture
E) brand extension

Page: 284- 285

A

________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and ensure that the company's own employees understand what the brand represents.
A) Brand mantras
B) Brand symbols
C) Brand logos
D) Brand alliances
E) Brand extensions

Page: 284- 285

A

A ________ is a translation of the brand mantra that attempts to creatively engage consumers and others external to the company.
A) brand vision
B) brand extension
C) brand architecture
D) brand slogan
E) brand alliance

Page: 286

D

BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.
A) brand slogan
B) brand personality
C) brand mission
D) brand architecture
E) brand vision

Page: 286

A

A brand mantra should be ________.
A) original, ambiguous, and straightforward
B) unique, complex, and inspirational
C) communicative, simple, and inspirational
D) competitive, sensitive, and simple
E) unique, sensitive, and explanatory

Page: 286

C

Brand mantras typically are designed to capture the brand's ________, that is, what is unique about the brand.
A) points-of-conflict
B) points-of-parity
C) points-of-inflection
D) points-of-difference
E) points-of-presence

Page: 286

D

Points-of-parity are important while designing brand mantras for brands facing ________.
A) rapid growth
B) market saturation
C) slow and steady growth
D) rapid decline
E) stability in sales volume

Page: 286

A

For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on ________.
A) points-of-difference
B) points-of-presence
C) points-of-inflection
D) points-of-parity
E) points-of-conflict

Page: 286

A

Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed?
A) comparing to exemplars
B) relying on the product descriptor
C) announcing category benefits
D) focusing on reliability
E) persuasion based on believability

Page: 288

C

The typical approach to positioning is to inform consumers of a brand's category membership before stating its ________,
A) point-of-parity
B) point-of-difference
C) point-of-conflict
D) point-of-weakness
E) point-of-presence

Page: 288

B

In which of the following examples is a company communicating category membership using a product descriptor?
A) Use Zipex for quick and thorough cleaning.
B) Barry's Oats, when you want nutrition and flavor.
C) Clarity offers you the best prices for the best quality.
D) Choose Grissom's for an unparalleled shopping experience.
E) Chloe: All you need for a beautiful you.

Page: 288

B

Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's category membership by ________.
A) relying on the product descriptor
B) comparing to exemplars
C) announcing category benefits
D) communicating deliverability variables
E) identifying counter examples

Page: 288

C

A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes

Page: 288

A

Which of the following ways to conveying a brand's category membership relates to well-known,
noteworthy brands in a category helping a brand specify its category membership?
A) comparing to exemplars
B) communicating deliverability variables
C) identifying counter examples
D) announcing category benefits
E) relying on the product descriptor

Page: 288

A

SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes

Page: 288

B

When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________.
A) relying on the product descriptor
B) focusing on reliability
C) comparing to exemplars
D) announcing category benefits
E) identifying counter examples

Page: 288

C

Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid association with its Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a "sports wagon". According to the given scenario, Ford Motor Co. conveyed their brand's category membership by ________.
A) announcing category benefits
B) identifying counter examples
C) relying on the product descriptor
D) focusing on reliability
E) comparing to exemplars

Page: 288

C

One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________.
A) negatively correlated
B) always correlated
C) directly proportional
D) never correlated
E) positively correlated

Page: 288

A

________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
A) Brand positioning
B) Market research
C) Competitive advantage
D) Competitor analysis
E) Competitive intelligence

Page: 289

C

A ________ is one that a company can use as a springboard to new advantages.
A) sustainable advantage
B) leverageable advantage
C) realistic advantage
D) rational advantage
E) distinct advantage

Page: 289

B

Which of the following types of differentiation relates to companies having better-trained personnel
who provide superior customer service?
A) channel differentiation
B) services differentiation
C) employee differentiation
D) image differentiation
E) product differentiation

Page: 290

C

Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an example of ________ differentiation.
A) image
B) services
C) product
D) employee
E) channel

Page: 290

D

Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding?
A) service differentiation
B) channel differentiation
C) image differentiation
D) product differentiation
E) employee differentiation

Page: 290

B

Dayton, Ohio––based Iams found success selling premium pet food through regional veterinarians, breeders, and pet stores. This is an example of ________ differentiation.
A) service
B) employee
C) image
D) product
E) channel

Page: 290

E

Which of the following is an example of channel differentiation?
A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.

Page: 290

D

Which of the following is an example of image differentiation?
A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.

Page: 290

B

Which of the following is an example of services differentiation?
A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.

Page: 290

C

A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher quality because of the way the farmers treat their cows. They said that the difference comes from how comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers and those moving toward organic products. This is an example of ________.
A) personnel differentiation
B) channel differentiation
C) service differentiation
D) product differentiation
E) image differentiation

Page: 290

E

A company which can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers is most likely using ________ differentiation.
A) services
B) channel
C) image
D) product
E) employee

Page: 290

A

Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most likely to be differentiated based on ________.
A) resilience
B) innovativeness
C) insensitivity
D) reliability
E) expertise

Page: 290

D

Suppliers who are better at handling emergencies, product recalls, and inquiries are most likely to be differentiated based on their ________.
A) innovativeness
B) thoroughness
C) resilience
D) insensitivity
E) reliability

Page: 290

C

A supplier creates better information systems, and introduces bar coding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________.
A) innovativeness
B) reliability
C) insensitivity
D) resilience
E) accuracy

Page: 290

A

Which of the following traits of a brand's ability to become a lovemark relates to drawing together stories, metaphors, dreams, and symbols?
A) intimacy
B) mystery
C) insensitivity
D) sensuality
E) practicality

Page: 291

B

Which of the following traits of a brand's ability to become a lovemark keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, music, and other such stimuli?
A) sensuality
B) intimacy
C) mystery
D) practicality
E) sensitivity

Page: 291

A

Which of the following traits of a brand's ability to become a lovemark implies empathy, commitment, and passion?
A) practicality
B) sensuality
C) morality
D) mystery
E) intimacy

Page: 291

E

Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to
people's memories, associations, and stories.
A) cultural branding
B) narrative branding
C) brand journalism
D) emotional branding
E) personal branding

Page: 292

B

Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the time, place, and context of the brand story?
A) cast
B) pitch
C) narrative arc
D) setting
E) language

Page: 292

D

Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany?
A) language
B) pitch
C) cast
D) setting
E) narrative arc

Page: 292

E

Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs?
A) narrative arc
B) context
C) language
D) setting
E) cast

Page: 292

C

Which of the following statements about the branding guidelines for a small business is true?
A) A small business must creatively conduct low-cost marketing research.
B) A small business must avoid leveraging secondary brand associations.
C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image.
D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers.
E) A small business must focus on building more than two strong brands based on a number of associations.

Page: 293- 294

A

All marketing strategy is built on segmentation, targeting, and positioning.

Page: 275

true

Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.

Page: 276

true

The result of positioning is the successful creation of an employee-focused value proposition.

Page: 276

false

Positioning requires that marketers define and communicate only the differences between their brand and its competitors.

Page: 276

false

The competitive frame of reference defines which other brands a brand competes with.

Page: 276

true

Category membership is seen as the products which function as close substitutes of a brand.

Page: 277

true

A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

Page: 277

false

The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.

Page: 278

false

Using the industry approach, competitors are defined as companies that satisfy the same customer need.

Page: 278

false

To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.

Page: 279

true

Associations that make up points-of-difference are based exclusively on product features.

Page: 280

false

Points-of-parity are attributes or benefits consumers strongly associate with a brand and believe that they could not find to the same extent with a competitive brand.

Page: 280

false

Points-of-parity may be shared among two or more brands.

Page: 280

true

Category points-of-parity are unique to a brand.

Page: 280

false

Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends.

Page: 281

true

Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.

Page: 281

false

A competitive point-of-parity negates competitors' perceived points-of-difference.

Page: 281

true

Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective.

Page: 282

false

Straddle positioning refers to a brand using different positioning with different categories of competitors.

Page: 283

false

Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity.

Page: 283

true

Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.

Page: 283

true

The purpose of brand mantras is to ensure that employees and external marketing partners understand what the brand is to represent to the customers.

Page: 284

true

Brand mantras must communicate both what a brand is and what it is not.

Page: 285

true

Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand.

Page: 286

false

Brands are never affiliated with categories in which they do not hold membership.

Page: 287

false

There are situations in which consumers know a brand's category membership but may not be convinced the brand is a valid member of the category.

Page: 287

false

The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.

Page: 288

true

The product descriptor that follows the brand name is often a concise means of conveying category origin.

Page: 288

true

If Barry compares his organization's products to those of leaders in the field, then he is conveying category membership by "comparing to exemplars".

Page: 288

true

A good illustration of negatively correlated attributes or benefits is good taste versus bad taste.

Page: 288

false

A leverageable advantage is one that a company can use as a springboard to new advantages.

Page: 289

true

Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match.

Page: 289

true

The means of differentiation that are often most compelling to consumers relate to aspects of the product and service.

Page: 290

true

Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.

Page: 290

false

A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components.

Page: 290

false

Brand storytelling is a less-structured approach to brand positioning.

Page: 291-292

true

Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.

Page: 292

true

Cultural branding is essential for small firms, but ineffective for large companies.

Page: 293

false

Small businesses must focus on building one or two strong brands based on one or two key associations.

Page: 293

true

While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms.

Page: 293

false