QUESTION Most of us are likely familiar with the simple elegance of the containers associated with the Method brand of cleaning products. How does the packaging help the brand outside of the packaging’s normal purposes? What will be an ideal response? ANSWER Answer: It helps promote brand awareness. Explanation: Brand awareness means that consumers […]
QUESTION Give an example from your own life about brand preference. What will be an ideal response? ANSWER Answer: Answers will vary. Sample answer: I prefer to purchase organic yogurt from a local dairy but will buy other brands if my grocery store is out of the organic. Explanation: Brand preference means that consumers […]
QUESTION Give a real-world application of co-branding. What will be an ideal response? ANSWER Answer: Answers will vary. Sample answers from the text include: Target and Visa credit card; L.L.Bean and Subaru car; American Airlines Arena (Dallas); Staples SportsCenter (Los Angeles); AT&T Park (San Francisco). Explanation: Sometimes two companies or entities will get together […]
QUESTION Think of the functions of packaging and then tell how consumers might judge a book by its cover. What will be an ideal response? ANSWER Answer: One function of packaging is to protect the product. A hard cover will protect a book better than a soft cover. Another function of packaging is to […]
QUESTION Differentiate among brand awareness, brand preference, and brand insistence. What will be an ideal response? ANSWER Answer: Brand awareness means that consumers recognize the product. Brand preference means that consumers habitually buy the product if it is easily available but will try alternatives if they can’t find it. Brand insistence means that consumers […]
QUESTION What is “driving traffic”? What are the two pricing strategies associated with driving traffic? What will be an ideal response? ANSWER Answer: Driving traffic means attracting customers. Stores use loss leaders, products advertised at or below cost, to attract customers. Low pricing can also be used to increase market share, the percentage of […]
QUESTION Which of the following is an example of price skimming? A) Gourmet Pizza shop sells special-topping pizzas for $15.99. B) Walmart sells all products at a low price every day. C) When Macy’s introduces new clothing every season, it starts out selling the items at a high price. After a few weeks, the store […]
QUESTION What is price skimming? A) In this strategy, the cost of producing or buying the product—plus making a profit—is the primary basis for setting price. B) In this strategy, price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty. C) This strategy is […]
QUESTION What is competitive pricing? A) Price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty. B) A company sets a high price to make a large profit; this can work when there is little competition. C) A company sets a low price to […]
QUESTION An athletic equipment company wants to make a new exercise bicycle with a speedometer, an odometer, a heart-rate monitor, and a small television. Which of the following describes target costing of that bicycle? A) The company will find out how many similar products already exist and the price of those products. The company will […]
