PCM Brand Management & Positioning 2 — Questions and Answers
Question 1: A brand that stretches its name across a wide range of unrelated product categories risks what primary consequence?
- Increased brand equity across all lines
- Brand dilution and loss of clear identity (Correct answer)
- Higher customer switching costs
- Stronger retailer relationships
Correct answer: Brand dilution and loss of clear identity
Overextension into unrelated categories dilutes brand meaning and weakens the core associations consumers hold.
Question 2: Which concept describes the mental space a brand occupies in the consumer's mind relative to competitors?
- Brand salience
- Brand resonance
- Perceptual positioning (Correct answer)
- Brand parity
Correct answer: Perceptual positioning
Perceptual positioning refers to the distinct place a brand occupies in consumers' minds compared to competing brands.
Question 3: A company launches a new budget product under a different name to avoid harming its premium brand. This strategy is called:
- Co-branding
- Brand flanking
- Fighter brand strategy (Correct answer)
- Brand cannibalization
Correct answer: Fighter brand strategy
A fighter brand is created to compete at a lower price point without tarnishing the parent brand's premium image.
Question 4: The concept of 'brand resonance' in Keller's CBBE pyramid represents:
- The rational performance attributes consumers associate with a brand
- The deep psychological bond and loyalty between brand and consumer (Correct answer)
- The visual identity elements that make a brand recognizable
- The price premium a brand can command over generics
Correct answer: The deep psychological bond and loyalty between brand and consumer
Brand resonance, the apex of Keller's CBBE model, reflects the intensity of the consumer-brand relationship including loyalty, attachment, and community.
Question 5: Which pricing strategy is most consistent with a brand positioning built on exclusivity and prestige?
- Penetration pricing
- Everyday low pricing (EDLP)
- Premium pricing (Correct answer)
- Bundle pricing
Correct answer: Premium pricing
Premium pricing reinforces exclusivity positioning by making the brand aspirational and signaling superior quality.
Question 6: Brand licensing allows companies to:
- Merge two competing brands into a single identity
- Grant other manufacturers the right to use the brand name on their products for a fee (Correct answer)
- Transfer brand ownership permanently to a partner company
- Replace an existing brand with a new one in the same category
Correct answer: Grant other manufacturers the right to use the brand name on their products for a fee
Brand licensing is an agreement where the brand owner permits another party to use its brand name, trademarks, or logos in exchange for royalties.
Question 7: When Marriott operates Courtyard, Marriott, and Ritz-Carlton as separate brands for distinct customer segments, this is an example of:
- Brand extension
- A branded house strategy
- A house of brands strategy (Correct answer)
- Co-branding
Correct answer: A house of brands strategy
A house of brands strategy maintains separate brand identities for different segments, minimizing risk of brand association across tiers.
PCM Brand Management & Positioning 2
A brand that stretches its name across a wide range of unrelated product categories risks what primary consequence?