What are private distributor brands? Describe their characteristics. ...

Answer to #1

Private distributor brands also called private brands, store brands, or dealer brands are initiated and owned by resellers-wholesalers or retailers. The major characteristic of private brands is that the manufacturers are not identified on the products. Retailers and wholesalers use private distributor brands to develop more efficient promotion, generate higher gross margins, and change store image. Private distributor brands give retailers or wholesalers freedom to purchase products of a specified quality at the lowest cost without disclosing the identities of the manufacturers. Familiar retailer brand names include Sears's Kenmore and JCPenney's Arizona. Many successful private brands are distributed nationally. Kenmore appliances are as well known as most manufacturer brands. Sometimes retailers with successful private distributor brands start manufacturing their own products to gain more control over product costs, quality, and design in the hope of increasing profits. Sales of private labels have grown considerably as the quality of store brands has increased.

Answer to #2

C

Answer to #3

Sellers benefit from branding because each company's brands identify its products, which makes repeat purchasing easier for customers. Branding helps a firm to introduce a new product that carries the name of one or more of its existing products because buyers are already familiar with the firm's existing brands. It facilitates promotional efforts because the promotion of each branded product indirectly promotes all other similarly branded products. Branding also fosters brand loyalty. To the extent that buyers become loyal to a specific brand, the company's market share for that product achieves a certain level of stability, allowing the firm to use its resources more efficiently. Once a firm develops some degree of customer loyalty for a brand, it can maintain a fairly consistent price rather than continually cutting the price to attract customers.

Answer to #4

E

Answer to #5

Brand loyalty is a customer's favorable attitude toward a specific brand. If brand loyalty is strong enough, customers may purchase this brand consistently when they need a product in that product category. Customer satisfaction with a brand is the most common reason for loyalty to that brand.
There are three degrees of brand loyalty: recognition, preference, and insistence. Brand recognition occurs when a customer is aware that the brand exists and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar. This is the mildest form of brand loyalty. The term loyalty is clearly used very loosely here.

Brand preference is a stronger degree of brand loyalty. A customer definitely prefers one brand over competitive offerings and will purchase this brand if it is available. However, if the brand is not available, the customer will accept a substitute brand rather than expending additional effort finding and purchasing the preferred brand.

When brand insistence occurs, a customer strongly prefers a specific brand, will accept no substitute, and is willing to spend a great deal of time and effort to acquire that brand. If a brand-insistent customer goes to a store and finds the brand unavailable, he or she will seek the brand elsewhere rather than purchase a substitute brand. Brand insistence is the strongest degree of brand loyalty; it is a brander's dream. However, it is the least common type of brand loyalty.

Answer to #6

A

Answer to #7

A brand name is the part of a brand that can be spoken-including letters, words, and numbers-such as 7UP or V8. A brand name is often a product's only distinguishing characteristic. Without the brand name, a firm could not differentiate its products. To consumers, a brand name is as fundamental as the product itself. Indeed, many brand names have become synonymous with the product, such as Scotch Tape, Xerox copiers, and FedEx delivery. Through promotional activities, the owners of these brand names try to protect them from being used as generic names for tape, photocopiers, and overnight shipping.
A trademark is a legal designation indicating that the owner has exclusive use of a brand or a part of a brand and that others are prohibited by law from its use. To protect a brand name or brand mark in the United States, an organization must register it as a trademark with the U.S. Patent and Trademark Office.

Correct!