1. Loyal customers tend to be which of the following?
A) Less price sensitive
B) More price sensitive
C) Not price sensitive at all
D) Extremely price sensitive
E) None of the above statements are true
2. Which of the following is not a benefit of branding?
A) Consumers find it easier to recognise
B) Ability to charge price premiums
C) Achieving distribution more readily
D) Sustaining high and stable sales and profits through brand loyalty
E) All of the above are benefits of branding
3. The strength of a brand's position in the marketplace is built upon six elements. Which of the following is not one of these elements?
A) Brand heritage
B) Brand domain
C) Brand values
D) Brand loyalty
E) Brand reflection
4. The element that makes the brand distinctive from other competing brands such as symbols, features, images and relationships is referred to as which of the following?
A) Brand association
B) Brand assets
C) Brand reflection
D) Brand association
E) Brand value
5. Family brand names are sometimes referred to as which of the following?
A) Corporate brands
B) Linked brands
C) Umbrella brands
D) Pyramid brands
E) Partner brands
6. Brand stretching is which of the following?
A) Brand stretching is the exploitation of untapped foreign markets
B) Brand stretching is when an established brand name is used for brands in unrelated markets
C) Brand stretching is revitalising a brand name with new and fresh advertising campaigns which prolong the life of a brand
D) Brand stretching is the use of an established brand name on a new brand within the same broad market
E) None of the above
7. Pan-European or global brands have which of the following advantages?
A) Standardised channels of distribution
B) Match various cultures
C) Reflects national differences
D) Tremendous economies of scale
E) All of the above
8. According to the BCG matrix, "Cash Cows" are described as which of the following?
A) These are the market leaders in high growth markets
B) These are products with a high market share in low growth markets
C) These are products which have absorbed large amounts of cash in their launch, however little or no gains have been made in terms of market share
D) These are weak products that compete in low growth markets
E) These are products which are absorbing large amounts of advertising cash due to stagnant growth
9. Which of the following is the correct order of a product life cycle?
A) Expansion, Introduction, Maturity, Decline
B) Growth, Expansion, Decline, Maturity
C) Introduction, Growth, Maturity, Decline
D) Introduction, Growth, Decline, Maturity
E) Growth, Expansion, Maturity, Decline
10. Which of the following is the correct order for the seven-step new product development process?
A) Screening, idea generation, concept testing, product development, market testing, business analysis, and commercialisation
B) Business analysis, idea generation, concept testing, screening, market testing, product development, and commercialisation
C) Business analysis, idea generation, screening , concept testing, product development, market testing, and commercialisation
D) Idea generation, screening, concept testing, business analysis, product development, market testing, and commercialisation
E) Idea generation, business analysis, concept testing, screening, product development, market testing, and commercialisation
11. Test marketing involves which of the following?
A) Test marketing involves the launch of the new product on a nationwide basis for a limited time frame
B) Test marketing involves the consumer testing of a new product under laboratory conditions
C) Test marketing involves the launch of the new product in one or a few geographical areas chosen to be representative of its intended market
D) Test marketing involves the functionality, usability, consumer adoption and benchmark testing in an chosen geographical area
E) All of the above
12. Which of the following is not a unique characteristic of services?
A) Conditionality
B) Intangibility
C) Variability
D) Inseparability
E) Perishibility