CPM Brand Equity & Positioning Models 3

Question 1

A brand extension transfers equity from the parent brand to a new product. The greatest risk of a brand extension is:

Accepted Answer

Brand dilution if the extension fails or is too distant from the core

Answer

If an extension fails or strays too far from the parent brand's associations, it can weaken or dilute the parent brand's equity.

Question 2

The 'perceptual map' tool in brand positioning is primarily used to:

Accepted Answer

Visualize how consumers perceive competing brands on key attributes

Answer

A perceptual map plots brands in a two-dimensional space based on consumer perception scores on two key attributes, revealing competitive gaps and opportunities.

Question 3

Which Interbrand valuation component measures how strongly the brand influences customer choice in its category?

Accepted Answer

Role of Brand

Answer

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.

Question 4

A company launches a premium sub-brand (e.g., Honda → Acura) primarily to:

Accepted Answer

Avoid diluting the parent brand while capturing a new segment

Answer

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.

Question 5

In brand equity measurement, 'brand knowledge' is defined by Keller as comprising:

Accepted Answer

Brand awareness and brand image

Answer

Keller defines brand knowledge as the combination of brand awareness (recognition/recall) and brand image (the network of associations in consumer memory).

(CPM) Certified Professional Marketer Practice Test

(CPM) Certified Professional Marketer Practice Test

CPM Brand Equity & Positioning Models 3