Brand Equity & Positioning Models Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Brand Equity & Positioning Models flashcards as text
A brand extension transfers equity from the parent brand to a new product. The greatest risk of a brand extension is:
Answer: Brand dilution if the extension fails or is too distant from the core
If an extension fails or strays too far from the parent brand's associations, it can weaken or dilute the parent brand's equity.
The 'perceptual map' tool in brand positioning is primarily used to:
Answer: Visualize how consumers perceive competing brands on key attributes
A perceptual map plots brands in a two-dimensional space based on consumer perception scores on two key attributes, revealing competitive gaps and opportunities.
Which Interbrand valuation component measures how strongly the brand influences customer choice in its category?
Answer: Role of Brand
Interbrand's 'Role of Brand' index estimates what fraction of the purchase decision can be attributed to the brand versus other factors like price or feature set.
A company launches a premium sub-brand (e.g., Honda → Acura) primarily to:
Answer: Avoid diluting the parent brand while capturing a new segment
Sub-brands like Acura allow the parent to enter a new price tier or segment without risking the positioning or associations of the core brand.
In brand equity measurement, 'brand knowledge' is defined by Keller as comprising:
Answer: Brand awareness and brand image
Keller defines brand knowledge as the combination of brand awareness (recognition/recall) and brand image (the network of associations in consumer memory).
When a marketer uses a 'ladder of benefits' in positioning, what is the highest rung?
Answer: Emotional and self-expressive benefits
The benefit ladder moves from attributes → functional benefits → emotional benefits, with self-expressive benefits at the top representing personal identity values.
Which metric is most directly used to assess 'brand loyalty' as a component of brand equity?
Answer: Customer retention rate and repeat purchase frequency
Customer retention rate and repeat purchase frequency directly measure behavioral loyalty, a core dimension of brand equity models like Aaker's.