Managing Brand Dynamics (Chapter 8) - What are your thoughts on the below scenarios?

1.Extending the brand involves using an existing brand in a different context, such as a different product category or a different price tier.

True

False

2.Vertical brand extensions stretch the brand to a product or service in a different product category.

True

False

3.How do upscale brand extensions influence a company's offerings and brands?(Check all that apply)

A. Upscale brand extensions tend to raise the image of the core brand

B. Upscale brand extensions tend to weaken the image of the core brand

C. Using the same brand when moving upscale tends to hurt the upscale extension

D. Using the same brand when moving upscale typically has no impact on the core brand

4.How do downscale brand extensions influence a company's offerings and brands?(Check all that apply)

A. Downscale brand extensions tend to raise the image of the core brand

B. Downscale brand extensions tend to weaken the image of the core brand

C. Extending a brand downscale tends to hurt the downscale extension

D. Extending a brand downscale typically benefits the core brand

5.How do horizontal brand extensions influence a company's offerings and brands?(Check all that apply)

A. Horizontal brand extensions can dilute the image of the core brand

B. Horizontal brand extensions typically benefit from being associated with the core brand

C. Horizontal brand extensions help fulfill the variety-seeking needs of customers who are loyal to the brand

D. Horizontal brand extensions help increase a brand's visibility across a variety of usage occasions

6.Giorgio Armani licensing its name to luxury hotels and upscale vacation resorts is an example of which branding strategy?(Check all that apply)

A. Downscale brand extension

B. Vertical brand extension

C. Horizontal brand extension

D. Upscale brand extension

7.Unlike brand extensions, which typically aim to preserve the meaning of the brand and expand it to a broader range of offerings, brand repositioning aims to change the meaning of the brand.

True

False

8.Italian luxury brand Gucci's decision to change its image to appeal to the millennial generation is an example of which of the following strategies?(Select one)

A. Brand repositioning

B. Vertical brand extension

C. Horizontal brand extension

9.Brand realignment typically involves relatively minor adjustments in brand tactics without changing the overarching strategy.

True

False

10.Enlarging the image of the mermaid on the Starbucks' logo exemplifies brand realignment.

True

False

11.Dropping the word "coffee" from Starbucks' name exemplifies brand realignment.

True

False

12.Licensing can strengthen the brand by increasing its visibility across different purchase and usage occasions.

True

False

13.Licensing generates incremental revenues for the brand owner by increasing the range of products associated with the brand.

True

False

14.Licensing helps the brand owner to gain direct control over the brand and ensure meaningful and consistent brand positioning.

True

False

15.Licensing can lead to a dilution of the brand name due to overexposure across different product categories and retail outlets.

True

False

16.Licensing is particularly beneficial to companies with expertise in manufacturing and distribution that lack the resources to build their own brands.

True

False