CPM Brand Equity & Positioning Models 2 — Questions and Answers
Question 1: In Keller's Brand Resonance Pyramid, which layer directly follows 'Brand Salience' as you move up the pyramid?
- Brand Judgments
- Brand Performance and Imagery (Correct answer)
- Brand Feelings
- Brand Resonance
Correct answer: Brand Performance and Imagery
After establishing salience (identity), the second level splits into Brand Performance and Brand Imagery, addressing what the brand does and what it stands for.
Question 2: Which of the following best describes 'brand salience' in Keller's CBBE model?
- The emotional connections customers feel toward a brand
- How easily and frequently the brand comes to mind during purchase situations (Correct answer)
- The degree to which customers recommend the brand to others
- The perceived quality relative to competitors
Correct answer: How easily and frequently the brand comes to mind during purchase situations
Brand salience refers to the depth and breadth of brand awareness — how readily the brand is recalled and recognized at relevant purchase moments.
Question 3: A company repositions its brand by targeting a younger demographic without changing its core product. This strategy is best described as:
- Product line extension
- Psychographic repositioning (Correct answer)
- Competitive repositioning
- Price-based repositioning
Correct answer: Psychographic repositioning
Psychographic repositioning involves shifting the target audience based on lifestyle, values, or age cohort without altering the physical product.
Question 4: Brand equity based on the firm's perspective (financial valuation) is sometimes called:
- Consumer-based brand equity
- Company-based brand equity (Correct answer)
- Shareholder brand equity
- Market-based brand equity
Correct answer: Company-based brand equity
Company-based (or firm-based) brand equity views the brand as a financial asset and estimates its monetary value on the balance sheet.
Question 5: The concept of 'brand parity' in competitive positioning refers to:
- A brand matching a competitor's price point exactly
- Points of difference that justify premium pricing
- Shared attributes that make a brand a legitimate category member (Correct answer)
- Equal distribution of market share among all brands
Correct answer: Shared attributes that make a brand a legitimate category member
Brand parity (points of parity) are associations that are not unique to the brand but are necessary for it to be considered a credible competitor in its category.
Question 6: According to the Young & Rubicam Brand Asset Valuator model, a brand with high 'Relevance' but low 'Differentiation' is most likely:
- A niche luxury brand
- An eroding or declining brand (Correct answer)
- A newly launched challenger brand
- A leading power brand
Correct answer: An eroding or declining brand
In BAV, when Relevance exceeds Differentiation, the brand has become commoditized and is at risk of erosion or decline.
Question 7: Which positioning strategy involves a brand claiming the highest quality in its category regardless of price?
- More for less
- More for more (Correct answer)
- Same for less
- More for the same
Correct answer: More for more
'More for more' positioning claims superior quality and charges a premium price, targeting customers willing to pay for the best.
CPM Brand Equity & Positioning Models 2
In Keller's Brand Resonance Pyramid, which layer directly follows 'Brand Salience' as you move up the pyramid?