CMP Brand Management and Promotion 2 — Questions and Answers
Question 1: A company discovers that consumers associate its brand with 'reliability' but internal research shows the product's actual differentiator is 'innovation.' This gap is best described as:
- Brand dilution
- Brand identity-image gap (Correct answer)
- Brand extension failure
- Brand cannibalization
Correct answer: Brand identity-image gap
A brand identity-image gap occurs when the intended brand identity (how the company sees itself) differs from the brand image (how consumers perceive it).
Question 2: Which pricing strategy is most consistent with a premium brand positioning that emphasizes exclusivity and high quality?
- Penetration pricing
- Economy pricing
- Prestige pricing (Correct answer)
- Competitive parity pricing
Correct answer: Prestige pricing
Prestige pricing sets prices higher than competitors to signal superior quality and reinforce an exclusive, premium brand image.
Question 3: A brand manager wants to measure the financial value of a brand as a standalone intangible asset on the balance sheet. Which metric is most appropriate?
- Net Promoter Score
- Brand equity
- Brand valuation (Correct answer)
- Share of voice
Correct answer: Brand valuation
Brand valuation is the process of estimating the financial worth of a brand as an intangible asset, often appearing on balance sheets during acquisitions.
Question 4: Coca-Cola launching 'Coca-Cola Energy' is an example of which brand growth strategy?
- Brand licensing
- Line extension (Correct answer)
- Brand extension
- Co-branding
Correct answer: Line extension
A line extension introduces a new product variant under the same brand within the same product category, as Coca-Cola Energy does within the beverage category.
Question 5: Which element of Keller's Brand Resonance Model represents the deepest level of brand-customer relationship?
- Salience
- Performance
- Judgments
- Resonance (Correct answer)
Correct answer: Resonance
Resonance is the pinnacle of Keller's pyramid, representing intense loyalty, active engagement, and a strong psychological bond between customer and brand.
Question 6: A brand uses the same logo, color palette, and messaging across its website, social media, packaging, and advertising. This practice is known as:
- Brand architecture
- Integrated brand consistency
- Omnichannel branding (Correct answer)
- Visual identity standardization
Correct answer: Omnichannel branding
Omnichannel branding ensures a seamless and consistent brand experience across all customer touchpoints and channels.
Question 7: When a well-known brand's name is used without authorization on counterfeit products, the primary legal protection the brand owner would invoke is:
- Copyright law
- Patent law
- Trademark law (Correct answer)
- Trade secret law
Correct answer: Trademark law
Trademark law protects brand names, logos, and distinctive marks from unauthorized use by competitors or counterfeiters.
CMP Brand Management and Promotion 2
A company discovers that consumers associate its brand with 'reliability' but internal research shows the product's actual differentiator is 'innovation.' This gap is best described as: