Brand Adoption, Naming, & IP Issues: Exam Study Guide, Exams of Business Economics

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TRUE/FALSE

1. The notions of trial and repeat purchase are particularly apt for inexpensive consumer packaged goods.

ANS: T PTS: 1

2. Huge investments and concerted efforts to introduce new products and services almost always guarantee success.

ANS: F PTS: 1

3. The three main stages through which an individual becomes an adopter of a new or even established product are the awareness, trier, and repeater classes.

ANS: T PTS: 1

4. The first step in facilitating adoption is to make the consumer aware of a new product's existence.

ANS: T PTS: 1

5. The four variables that influence the awareness class include free samples, coupons, advertising, and price.

ANS: F PTS: 1

6. Distribution is one of the variables that influences the awareness class.

ANS: T PTS: 1

7. Free samples is one of the variables that influences the trier class.

ANS: T PTS: 1

8. Demographics, distribution, and price are the variables that affect the trier class.

ANS: F PTS: 1

9. Repeat purchasing is a function of advertising, coupons, distribution, and product satisfaction.

ANS: F PTS: 1

10. Consumer satisfaction is the major determinant of repeat purchasing.

ANS: T PTS: 1

11. Relative advantage is a function of consumer perception and whether a product is better by objective standards.

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22. Providing detailed warranty and complaint-procedure information on labels or in package inserts can minimize perceptions of risk.

ANS: T PTS: 1

23. A brand is a company's unique designation, or trademark, which distinguishes its offering from the other product category entries.

ANS: T PTS: 1

24. The name chosen for a brand affects the speed with which consumers become aware of the brand.

ANS: T PTS: 1

25. Brand names can influence consumers' perceptions and attitudes.

ANS: T PTS: 1

26. A good brand name should be similar to its major competitor’s brand name.

ANS: F PTS: 1

27. A good brand name will help consumers to identify who your competitors are.

ANS: F PTS: 1

28. The Clayton Act of 1995 protects owners of brand names and logos from other companies using identical or similar names.

ANS: F PTS: 1

29. In legal terms, brand names and logos are referred to as trademarks.

ANS: T PTS: 1

30. Stealing well-known brand names is widely practiced in some newly emerging market economies, such as China.

ANS: T PTS: 1

31. Suggestive brand names provide consumers with the freedom to interpret benefit claims that best meet their needs.

ANS: F PTS: 1

32. Brand names sometimes are made-up names rather than selected from actual words found in dictionaries.

ANS: T PTS: 1

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33. Individual sounds provide meaning about a brand through a process of sound transference.

ANS: F PTS: 1

34. Research has demonstrated that brand names that include back vowels (versus front vowels) convey attribute qualities such as smallness, lightness, mildness, thinness, femininity, weakness, and prettiness.

ANS: F PTS: 1

35. Because there has been a significant amount of research on brand names, new products don't succeed without following the "rules."

ANS: F PTS: 1

36. Brand names are sometimes selected based on the empty-vessel philosophy.

ANS: T PTS: 1

37. The first step of the brand naming process is to create candidate brand names.

ANS: F PTS: 1

38. The last step in the brand naming process is to register a trademark.

ANS: T PTS: 1

39. A brand logo is a graphic design element of a brand.

ANS: T PTS: 1

40. Generally speaking, good logos are those that convey essentially the same meaning to all target members.

ANS: T PTS: 1

41. Complexity enhances the likeability of a logo.

ANS: F PTS: 1

42. Logos with abstract designs were found to produce more favorable consumer responses than those with more concrete, natural designs.

ANS: F PTS: 1

43. One purpose of the package is to break through competitive clutter at the point of purchase.

ANS: T PTS: 1

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d. magazine advertising e. product satisfaction

ANS: A PTS: 1

7. Repeat purchasing is a function of. a. advertising b. price c. distribution d. product satisfaction e. All of these are correct.

ANS: E PTS: 1

8. A variable that does NOT influence the repeater class would be. a. product satisfaction b. free samples c. distribution d. price e. advertising

ANS: B PTS: 1

9. The degree to which a product innovation is perceived as better than existing alternatives is termed . a. relative advantage b. compatibility c. complexity d. trialability e. observability

ANS: A PTS: 1

10. Relative advantage is a function of. a. consumer perception b. increased comfort c. savings in time and effort d. immediacy of reward e. objective standards

ANS: A PTS: 1

11. The degree to which an innovation is perceived to fit into a person's way of doing things is termed . a. observability b. complexity c. trialability d. compatibility e. relative advantage

ANS: D PTS: 1

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12. A new cosmetic product that matches consumers' needs, personal values, beliefs, and past experiences has the innovation-related characteristic that increases the likelihood of adoption. a. relative advantage b. compatibility c. observability d. complexity e. trialability

ANS: B PTS: 1

13. Aerobics was initially considered a woman’s sport, but societal attitudes toward aerobics have changed and many health clubs are now offering co-ed aerobics classes. The change in societal attitudes toward men engaging in aerobics represents an increased for this activity. a. relative advantage b. trialability c. compatibility d. observability e. complexity

ANS: C PTS: 1

14. Rugby was initially considered a men's sport, but societal attitudes have changed and more schools have women's rugby teams. This change in societal attitudes toward women playing rugby represents increased for this activity. a. relative advantage b. trialability c. compatibility d. complexity e. observability

ANS: C PTS: 1

15. An innovation's degree of perceived difficulty is referred to as. a. compatibility b. relative advantage c. complexity d. trialability e. observability

ANS: C PTS: 1

16. The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment is referred to as. a. relative advantage b. compatibility c. complexity d. observability e. trialability

ANS: E PTS: 1

17. Trialability is tied closely to the concept of.

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b. silent salespersons c. consumer cues d. fact facilitators e. sensation transferers

ANS: A PTS: 1

23. The name chosen for a brand does three things—affects the speed with which consumers become aware of the brand, influences the brand’s image, and. a. increases sales b. reduces the impact of competitive offerings c. plays a major role in brand equity formation d. increases consumers’ knowledge of the product e. enhances share-of-voice

ANS: C PTS: 1

24. A good brand name should. a. distinguish the brand from competitive offerings b. describe the brand and its attribute benefits c. achieve compatibility with a brand's desired image d. be memorable and easy to pronounce e. All of these are correct.

ANS: E PTS: 1

25. The protects owners of brand names and logos from other companies using the identical or similar names. a. Sherman Act b. Magnuson Moss Act c. Federal Trademark Dilution Act d. Clayton Act e. Robinson Patman Act

ANS: C PTS: 1

26. brand names are those that imply particular attributes or benefits in the context of a product category. a. Objective b. Subjective c. Implicit d. Symbolic e. Suggestive

ANS: E PTS: 1

27. Compaq, Acura, and Lexus are names created from , which are the semantic kernels of words. a. adverbs b. phonemes c. synonyms d. morphemes e. compounds

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ANS: D PTS: 1

28. Individual sounds, called phonemes, provide meaning about a brand through a process of. a. sound symbolism b. morphing c. encoding specificity d. sound morphing e. telephony

ANS: A PTS: 1

29. Research has demonstrated that brand names that include convey attribute qualities such as smallness, lightness, mildness, thinness, femininity, weakness, and prettiness. a. consonants b. front vowels c. back vowels d. short vowels e. long vowels

ANS: B PTS: 1

30. Which philosophy implies that when a name does not have much preexisting meaning, subsequent marketing communications are able to create the exact meaning desired without contending with past associations already accumulated in people’s memories? a. phonemic symbolism philosophy b. empty-vessel philosophy c. clean-slate philosophy d. suggestive philosophy e. blank-slate philosophy

ANS: B PTS: 1

31. Which of the following is NOT a step of the brand naming process? a. register trademark b. specify objectives for the brand name c. evaluate candidate names d. determine communication priorities e. create candidate brand names

ANS: D PTS: 1

32. In evaluating candidate names during the Brand Naming Process, names are evaluated using criteria such as. a. managers’ subjective judgment of the suitability of the name b. consumers’ awareness level c. technological aspects of the product d. favorability of association conjured up by the name e. economic conditions that may impact the market

ANS: D PTS: 1

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e. trademark

ANS: C PTS: 1

39. For how many years does a patent grant the holder exclusive rights to use an invention? a. 5 years b. 15 years c. 20 years d. 75 years e. forever

ANS: C PTS: 1

40. How many types of patents exist in the United States? a. 1 b. 3 c. 5 d. 10 e. 100

ANS: B PTS: 1

41. Which type of patent is the most frequent type in the United States? a. utility b. design c. plant d. copyright e. trademark

ANS: A PTS: 1

42. Patents for inventions including biological, business method, chemical, and software patents are of the type. a. utility b. design c. plant d. copyright e. trademark

ANS: A PTS: 1

43. Patents that protect the appearance of shape, rather than the utilitarian function of an invention, is of the type. a. utility b. design c. plant d. copyright e. trademark

ANS: B PTS: 1

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44. patents offer protection for discovery of certain naturally occurring and previously uncultivated plants or for the breeding of novel plants. a. Utility b. Design c. Plant d. Copyright e. Trademark

ANS: C PTS: 1

45. VOSS water has an unusual shape. It may hold a patent. a. utility b. design c. plant d. copyright e. trademark

ANS: B PTS: 1

46. All of the following are required in order for a patent to be obtained except. a. the filer must demonstrate the innovation is novel b. the filer must demonstrate the innovation is useful c. the filer must demonstrate the innovation is not obvious in process or product d. the filer must demonstrate the tangible nature of the innovation e. None of these are correct.

ANS: D PTS: 1

47. A is a set of exclusive rights for the form in which an idea or invention is expressed in a tangible medium. a. patent b. copyright c. trademark d. tradedress e. design mark

ANS: B PTS: 1

48. A song scored on sheet music can receive protection with a. a. patent b. copyright c. trademark d. tradedress e. design mark

ANS: B PTS: 1

49. Brand associations including signs, marks, colors, smells, and sounds are part of a brand’s. a. trademark b. copyright c. trade dress d. slogan

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2. Compatibility. This is the degree to which an innovation is perceived to fit into a person’s way of doing things, and adoption rapidity is increased with greater compatibility. In general, a new product is more compatible to the extent that it matches consumers’ needs, personal values, beliefs, and past consumption habits.
3. Complexity. This refers to an innovation’s degree of perceived difficulty, and the more difficult an innovation is to understand or use, the slower the rate of adoption.
4. Trialability. This refers to the extent to which an innovation can be used on a limited basis prior to making a full-blown commitment, and products that lend themselves to trialability tend to be adopted more rapidly. Trialability is tied closely to the concept of perceived risk, and the trial experience serves to reduce the consumer’s risk of being dissatisfied with a product after having permanently committing to it through an outright purchase. Sampling is an incomparable promotional method for encouraging trial.
5. Observability. This is the degree to which the product user or other people can observe the positive effects of new-product usage, and high observability/visibility generally results in more rapid adoption.

PTS: 1

3. List the four requirements for a good brand name, and discuss how some brands succeed while appearing to be entirely at odds with the "rules" for creating good brand names.

ANS: Brand names should satisfy four fundamental requirements:

1. Distinguish the brand from competitive offerings.
2. Describe the brand and its attributes or benefits.
3. Achieve compatibility with a brand’s desired image and with its product design or packaging.
4. Be memorable and easy to pronounce.

Some brands succeed even though they are exceptions to these rules. For example, some brands become successful in spite of their names. The first brand in a new product category can achieve tremendous success regardless of its name if the brand offers customers distinct advantages over alternative solutions to their problems. Sometimes, brand managers intentionally select names that, at inception, are virtually meaningless. The empty-vessel philosophy implies that when a name does not have much preexisting meaning, subsequent communications are able to create the exact meaning desired without contending with past associations already accumulated in people’s memories.

PTS: 1

4. List and explain the steps of the brand naming process. Describe how a brand manager for a new brand of detergent would go through the process.

ANS: Step 1: Specify objectives for the brand name. Most managers are concerned with selecting a name that will successfully position the brand in the minds of the target audience, provide an appropriate image for the brand, and distinguish it from competitive brands. Step 2: Create candidate brand names. Candidates often are selected using creative-thinking exercises and brainstorming sessions.

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Step 3: Evaluate candidate names. Evaluate names using criteria such as relevance to the product category, favorability of associations conjured up by the name, and overall appeal. It is critical that names be easily recognized and recalled. Step 4: Choose a brand name. In many firms, choice is a matter of subjective judgement rather than the product of rigorous marketing research. Step 5: Register a trademark. Many companies submit several names for registration because some may be rejected.

Students’ answers will vary when applying this process to developing a name for a new brand of detergent.

PTS: 1

5. Explain the role of the fair use doctrine in copyright protection.

ANS:

The fair use doctrine is part of the Copyright Act and it states that use of copyrighted work for the purpose of criticism, comment, news reporting, teaching, scholarship, or research is not a copyright infringement.

PTS: 1