From a Marketing Management Perspective, There Are Three Main Sets

question 12

Multiple Choice

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand?

• A) the product and all accompanying marketing activities and supporting marketing programs
• B) the service and all accompanying marketing activities and programs
• C) the initial choices for the brand elements or identities making up the brand
• D) associations indirectly transferred to the brand by linking it to some other entity
• E) the profitability associated with brand development

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Definitions:

Fixed Costs

Expenses that do not change in total despite fluctuations in production or sales volume, such as rent, insurance, and salaries.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Common Cost

A cost that is incurred to support a number of cost objects but that cannot be traced to them individually. For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the aircraft. Without the pilot, there would be no flight and no passengers. But no part of the pilot’s wage is caused by any one passenger taking the flight.

Arbitrarily Allocated

The process of distributing amounts in a somewhat random or subjective manner, often used in allocating costs to different departments or projects without a strict formula.