Luxury Brand Extension Quiz

10 Questions | Total Attempts: 68

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Luxury Brand Extension Quiz - Quiz

Please base your answers on the article text.


Questions and Answers
  • 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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