CBM Brand Performance & Management 3 — Questions and Answers
Question 1: Which framework divides brand value drivers into 'strength' (consumer perceptions) and 'stature' (market performance)?
- Keller's Brand Resonance Model
- Young & Rubicam's Brand Asset Valuator (Correct answer)
- Aaker's Brand Equity Model
- Interbrand's Best Global Brands methodology
Correct answer: Young & Rubicam's Brand Asset Valuator
Young & Rubicam's BAV model evaluates brands on Differentiation, Relevance, Esteem, and Knowledge, grouped into strength and stature pillars.
Question 2: A brand manager is tasked with improving 'brand salience.' What should be the primary focus?
- Ensuring the brand is noticed and thought of in relevant purchase situations (Correct answer)
- Increasing the number of brand logo placements in stores
- Expanding the product line to cover more SKUs
- Improving customer service response times
Correct answer: Ensuring the brand is noticed and thought of in relevant purchase situations
Brand salience, as defined in Keller's resonance model, is about the depth and breadth of brand awareness in buying situations.
Question 3: Return on Brand Investment (ROBI) is best calculated by comparing:
- Brand equity value to total company revenue
- Incremental brand-driven sales to brand-related marketing spend (Correct answer)
- Social media impressions to advertising budget
- Market share gain to competitor spend
Correct answer: Incremental brand-driven sales to brand-related marketing spend
ROBI measures the revenue lift attributable to brand investment relative to the cost of that investment, isolating brand impact from other factors.
Question 4: A portfolio brand manager is deciding whether to 'sunset' a sub-brand. Which criterion is LEAST relevant to this decision?
- The sub-brand's cannibalization of other portfolio brands
- The sub-brand's historical advertising spend (Correct answer)
- The sub-brand's contribution to portfolio revenue
- Overlap between sub-brand and master brand customer bases
Correct answer: The sub-brand's historical advertising spend
Historical advertising spend is a sunk cost and should not drive a forward-looking sunset decision; strategic fit and current performance matter most.
Question 5: In brand performance dashboards, a 'funnel conversion rate' from awareness to trial is typically used to diagnose:
- Manufacturing efficiency issues
- Barriers preventing aware consumers from trying the brand (Correct answer)
- The effectiveness of brand licensing agreements
- Distribution network coverage gaps
Correct answer: Barriers preventing aware consumers from trying the brand
The awareness-to-trial conversion rate identifies how effectively a brand converts knowledge into first-time purchase behavior.
Question 6: Which approach to brand valuation relies primarily on estimating future earnings attributable to the brand?
- Cost-based valuation
- Market-based valuation
- Income-based valuation (Correct answer)
- Royalty relief method
Correct answer: Income-based valuation
Income-based valuation (e.g., the Interbrand method) projects future brand-driven earnings and discounts them to a present value.
Question 7: A 'brand vulnerability assessment' is primarily used to:
- Audit trademark registrations across markets
- Identify risks that could damage brand equity (Correct answer)
- Calculate the cost of brand insurance policies
- Benchmark brand performance against industry averages
Correct answer: Identify risks that could damage brand equity
Brand vulnerability assessments map internal and external threats — such as competitive moves, crises, or relevance shifts — that could erode equity.
CBM Brand Performance & Management 3
Which framework divides brand value drivers into 'strength' (consumer perceptions) and 'stature' (market performance)?