Luxury Brand Extension Quiz
Please base your answers on the article text.
- 1.Why are luxury brand extensions tempting to brand managers?
- A.
They make the brand more popular
- B.
They increase the brand capital
- C.
They make the brand more desirable
- D.
If successful, they bring in big profits
- 2.What does "high premium degree of a brand" mean?
- A.
Customers think it is better quality and more desirable than other brands
- B.
Customers think it is very expensive
- C.
The brand earns higher profits than other brands
- D.
The brand is more expensive than other brands
- 3.According to the article, what is brand adjacency?
- A.
The brand is licensed to other products
- B.
There are many brands that are similar
- C.
Brand sells products that are closely related to each other
- D.
It is a measure of brands premium degree
- 4.What was said about Louis Vuitton?
- A.
It has recovered from past mistakes
- B.
Its focus on quality and marketing make it a star brand
- C.
It has expanded its production to Asia
- D.
Economic downturns can hurt its sales
- 5.What is said about Porsche and SUVs?
- A.
SUVs do not make money to Porsche
- B.
Porsche should exit SUV category
- C.
SUVs can be made into sports cars
- D.
Porsche managed to expand into a category that appeared very different from sports cars
- 6.What kind of brands have the best chance of becoming star brands, according to the article?
- A.
Brands that have the best brand managers
- B.
Brands with a long and established heritage
- C.
Brands that have a lot of money
- D.
Premium brands
- 7.What is the important lesson from Diane von Furstenberg story, according to the article?
- A.
Many extensions bring a lot of money
- B.
She was like Coco Chanel
- C.
Free publicity helps to create a strong brand
- D.
Multiple extensions may work in the beginning but erode the brand value later
- 8.What does the article say about Mercedes?
- A.
Quality issues hurt the company
- B.
Competition from BMW and Audi hurt the company
- C.
Its long history makes it a luxury brand
- D.
Mercedes should not make cheap cars
- 9.What is said about dying star brands?
- A.
The only choice is to go downmarket
- B.
Increasing sales is most important
- C.
Regaining star brand status means increasing quality despite the cost
- D.
Increasing prices is a must if you want to be a star brand
- 10.What does the article claim about brand profitability?
- A.
Premium degree decides how profitable a brand is
- B.
Number of extensions decides how profitable a brand is
- C.
High premium degree and cohesive brand portfolio make a brand highly profitable
- D.
High quality of products means high gross margins
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