BRA301-Review chapter 11

Which statement best describes the residual approach to measuring brand equity?

• It calculates the total revenue of a brand.

• It isolates the value of the brand after accounting for marketing mix effects.

• It measures the market share of private labels.

• It surveys consumers’ perceptions only.

The scanner panel data method proposed by Kamakura & Russell (1993) primarily uses:

• Consumer surveys about purchase intentions.

• Qualitative interviews about brand image.

• Supermarket purchase histories to estimate brand equity.

• Experimental design in laboratory settings.

In Kamakura & Russell’s model, the “residual term” represents:

• The influence of price promotions.

• Random consumer errors.

• Brand equity unexplained by other marketing factors.

• Product quality differences.

The revenue premium approach (Ailawadi, Lehmann & Neslin, 2003) measures brand equity by:

• Subtracting a brand’s revenues from its total advertising expenses.

• Comparing revenues of a brand and a private label in the same category.

• Measuring differences in consumer perceptions.

• Calculating profit margins across multiple product lines.

In the revenue premium model, a higher revenue premium indicates:

• Stronger price promotions.

• Weaker retailer dependence.

• Higher brand equity and consumer preference.

• Lower perceived risk.

The equalization price proposed by Swait & Erdem is:

• The price that maximizes brand profit.

• The price at which branded and unbranded products have equal utility.

• The average price difference across competitors.

• The consumer’s reservation price for a brand.

Choice experiments help marketers to:

• Measure the psychological meaning of a brand logo.

• Understand trade-offs consumers make between price, brand, and attributes.

• Track brand sales over time.

• Estimate market share directly from scanner data.

In choice-based brand equity estimation, which factor is often used as a proxy for equity?

• Advertising recall score

• Market share index

• Equalization price

• Retail margin percentage

The multi-attribute attitude model developed by Srinivasan, Park & Chang focuses on:

• The physical characteristics of the product only.

• The emotional imagery of the brand.

• The relative importance of attributes and the brand’s performance on them.

• The effect of distribution channels on brand value.

According to the multi-attribute attitude model, brand equity arises when:

• Consumers rank attributes similarly across brands.

• Consumers perceive higher performance on important attributes.

• Prices are constant across all brands.

• All brands have the same perceived quality.