TEST BANK for Advertising and Integrated Brand Promotion 7th Edition. Thomas O'Guinn Chris Allen Ric by StudyGuide

Advertising and Integrated Brand Promotion 7e Thomas O'Guinn Chris Allen Richard Semeni (Test Bank All Chapters, 100% Original Verified, A+ Grade) Ch_01__The_World_of_Advertising_and_Integrated_Brand_Promotion 1. In the new world of advertising, mass media is nonexistent. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 2. Consumer preferences and new technologies are reshaping the communication environment. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 3. The organization that pays for an advertisement is referred to as the client. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 4. A brand that does not meet customer needs can still be very successful if it advertises its products extensively. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

5. Kristen Cross, an actress, was interviewed by news reporters about what she thought her fans should know about her new movie. This would be considered as an advertisement. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 6. A television commercial showing the effects of smoking displays a fresh apple and another that has decayed. The ad states, "Smoking kills." The commercial was paid for by a medical company. This is an example of a public service announcement. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 7. A firm that manufactures a device that alleviates sleep apnea, produces a television commercial that delivers facts about the product. Therefore, the objective of the ad is not to persuade the customer because the ad is purely informational. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

8. Orange Inc., a cell phone manufacturer, has launched promotions of its new product in local newspapers, billboards, and the company's website, and has distributed flyers in local universities. This is an example of an integrated brand promotion. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 9. Integrated brand promotion (IBP) tools include various types of advertising, but does not include traditional advertising forms. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. An advertisement refers to a specific message that an organization has created to persuade an audience. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Knowledge

11. Mass-mediated communication has three major components: production, accommodation, and distribution. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Knowledge

12. A target audience is a particular group of consumers singled out by an organization for an advertising or IBP campaign. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 13. A producer of educational materials wants to deliver an advertising message to an audience of teachers and

principals. In this scenario, personal selling would be the best option because this tool is appropriate for large groups of people. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 14. Government officials are the most conspicuous audience category in that most mass media advertising is directed at them. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Knowledge

15. Blitz, a popular kitchen appliances manufacturer, launches its new line of blenders. To promote its product, it uses the same billboard ads across different countries around the world. This is an example of international advertising. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

16. Harry's World is a department store that operates in three different states in the country of Rhodia. Harry's World advertises its stores only in these three states. This is an example of regional advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 17. The marketing mix involves four areas of responsibility—conceiving, pricing, promoting, and distributing—involved in the promotion of goods, services, or ideas. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 18. Advertising is only one area of the marketing mix, and it represents only one of the many different integrated brand promotion tools used in the marketing mix. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Comprehension

19. A brand variant is created when a company adapts and expands its current brand into a new product area. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS:

Bloom's: Knowledge

20. Brand equity occurs over a short period of time. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 21. Consumers’ perceptions can be based on tangible differences or on image and style factors. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 22. The essential task for advertising is to develop a message that is different and unmistakably linked to a company’s brand. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 23. Cuddles, a baby's retail clothing brand, uses the softest cotton wool that enables its products to stand out from those of its competitors. Cuddles has used external positioning to stand out over its competitors. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

24. The marketing process is designed to generate revenue for the firm. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 25. When an organization creates large-scale demand for its brand, the quantity of product produced is increased which leads to higher unit production costs. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 26. Primary demand stimulation is likely to have an impact only on those products that have been in the market for a long time. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 27. A late-night television commercial for kitchen appliances urges viewers to respond to the ad. It states, “Call this toll-free number in the next 30 minutes to receive a free cutting board” and assures them that “Operators are on duty.” This is an example of direct response advertising. a. True b. False ANSWER:

28. Delayed response advertising relies on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 29. Gross domestic product is the measure of the total value of goods and services produced by an organization. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 30. Advertising is related to the gross domestic product in that it can contribute to levels of overall consumer demand when it helps introduce new products. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 31. When a brand is perceived by consumers as one in which the value of products is lower than its costs, the brand is said to have brand equity. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

32. Symbolic value differs from social meaning in that social meaning refers to what a product or services means to an organization in a non-literal way. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 33. Social meaning refers to what a product or service means in a societal context. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge 34. Integrated marketing communication lays emphasis on communication, and not on the brand. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 35. To survive in today’s marketplace, contemporary businesses and organizations are strongly focusing on one single concept—communication. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge

36. Firms have not fully exploited all the opportunities that smartphones or iPads. a. broadcast media b. mobile marketing c. personal selling

has to offer through communication via devices like

d. print media ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analyitc STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 37. Which of the following is true regarding advertising? a. Advertising is a external to the social interaction process. b. Advertising is solely responsible for the increase of product sales. c. Advertising plays a pivotal role in world commerce. d. Advertising is a simple communication process. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thin - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 38. KidsCause, a metropolitan outreach organization that collects and donates toys for needy children, buys airtime on WXXY (a local TV station) to promote its annual toy collection. Amazing Ads, a local ad agency, shoots the video and produces a 30-second commercial and Downtown Deli donates sandwiches for volunteers on the days that KidsCause collects, wraps, and distributes toys. In this promotional effort, who is the client? a. Amazing Ads b. Downtown Deli c. WXXY d. KidsCause ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

39. Public service announcements (PSAs): a. are a type of advertising that are run by nonprofit organizations. b. are commercial they way that ads are. c. attempt only persuade and not to inform. d. are not paid for like an ad. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thin - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 40. Rachel, the mayor of Genovia, had recently appeared on a local news telecast. She stated that she should be reelected because she contributed to the increased rate of employment in the metropolitan area. In order for her message to be considered as an advertisement, which of the following conditions should be met? a. The message must be noncommercial. b. There must be a public service announcement included. c. The airtime must be paid for. d. The message must involve the promotion of a product. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 41. "Make love, not war" stated at the end of a radio station broadcast is an example of: a. a mobile advertisement. b. influencer marketing. c. personal selling. d. a public service announcement. ANSWER: d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

42. Which of the following is an essential criteria for communication to be considered as an advertisement? a. The communication must be noncommercial. b. It must be a mass-mediated attempt to persuade. c. The message conveyed must be short. d. It must involve face-to-face communication. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Comprehension

43. Based on the criteria that defines advertising, which of the following examples would be considered as advertising? a. A candidate for city council going door-to-door urging people to vote for her b. A car manufacturer stating the efficiency of its product to motivate customers to make a purchase c. A public service announcement about the dangers of talking on the phone while driving d. An actor being interviewed on television about his campaign to aid people with physical disabilities ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 44. YouStock, an online broker, pays for a 60-second television commercial to be telecast during the Football World Cup. The commercial promotes the reliability of YouStock’s advice, expertise, and personal attention in assisting online customers with stock portfolio creation and management. The spot created by YouStock is: a. a public service announcement. b. a point-of-purchase advertisement. c. representative of personal selling. d. an advertisement promoting a service. ANSWER:

45. Integrated brand promotion (IBP) can be defined as: a. the collaboration of two or more brands within a single advertisement with the intent of sharing costs. b. the coordination of a number of promotional tools to create widespread brand exposure. c. a company's decision to focus on a wide range of traditional advertising forms to replace nontraditional forms. d. a unique concept seen mainly in local advertising campaigns. ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 46. Which of the following is true of integrated brand promotion (IBP)? a. It is a simple process. b. It uses promotional tools that do not need to be evaluated. c. It prevents the exposure of a brand. d. It allow marketers to reach target customers in different ways. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 47. Nature Fresh, a local grocery store chain, has decided to run a series of advertisements. For this to be considered as an advertising campaign, Nature Fresh's ads must: a. focus on store products rather than store services. b. target a mass audience. c. appear in print media. d. be unpaid communication. ANSWER: b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

48. The two major components of the mass-mediated communication model are: a. primary demand and selective demand. b. advertiser and consumer. c. internal position and external position. d. production and reception. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 49. In the model of mass-mediated communication, the: a. producers of the message control the reception of the content. b. producers of the message control the interpretation of the content. c. consumers interpret ads in a way that makes sense to them individually and serves their needs. d. receiver's interpretations are invariably compatible with what the producer intended to convey. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 50. Brad and his wife, Carla are watching a commercial that they’ve never seen before. Brad thinks that the ad is humorous. However, Carla finds the ad monotonous and uninteresting. This example illustrates that: a. ads are interpreted differently based on a person's experiences and beliefs. b. what a message means to any given consumer is a function an isolated solitary thinker. c. the ad is communicated effectively to its target audience. d. the ad contains the same meaning for all audience members. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

51. During the National Basketball Championship, a national sports equipment manufacturer runs an edgy, fast-paced commercial featuring a well-known hip hop artist. A group of university students watching the ad in a fraternity house interprets the commercial in roughly the same way. Which of the following is a reason why audience members share a similar interpretation of the ad? a. The backgrounds and value systems of audience members are similar. b. The interpretation of an ad is a function of an isolated solitary thinker. c. Ads contain a single meaning for all members of a target audience. d. Communication is inherently an individual process and not a social process. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

52. A particular group of consumers that is singled out by an organization for its advertising or integrated brand promotion campaign is called: a. a target audience. b. cooperative advertising. c. a focus group d. a sponsorship. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 53. The promotional tool used most often to communicate with members of a trade channel is personal selling. Which of the following is a reason behind this? a. Personal selling is the most inexpensive form of communication. b. Members of trade channels are the most conspicuous audience. c. Members of trade channels are the target audience for producers of only household products. d. The target audience represents a relatively small, easily identifiable group. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

54. HireUp Inc., a recruitment agency, has launched a series of advertisements about its capabilities in effectively managing firms’ labor forces. Which of the following audience categories is HireUp most likely targeting? a. Household members b. Members of business organizations c. Professionals d. Government employees ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 55. Members of trade channels include: a. not-for-profit businesses. b. retailers. c. household consumers. d. government officials. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

56. Which of the following is considered as a member of a trade channel? a. Wholesalers b. Household consumers c. Government employees d. Philanthropic groups ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

57. Which of the following would be considered as a trade journal? a. A publication written for health professionals b. An e-zine for emerging writers to publish their work c. A magazine for fitness enthusiasts d. A newspaper carrying news articles about a particular city ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 58. The advertising aimed at government officials and employees is dominated by: a. local and regional television commercials. b. point-of-purchase advertising and influencer marketing. c. direct mails, catalogs, personal selling, and Web ads. d. event sponsorships. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 59. Samsonic is the leading manufacturer of televisions in the world. It has created a new advertisement that it wants to be aired all over the world, changing only the language for each country. This is an example of: a. national advertising. b. international advertising. c. regional advertising. d. global advertising. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

60. Which of the following is an example of international advertising? a. Crispy Cracks promoting their new line of cracker at the Olympics b. Flextronic advertising its flat-screen TVs in different states of a country c. Radicle creating different versions of its new detergent ad for various countries d. Unicorn featuring its “unicorn” logo on gear worn by tennis players ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 61. Cryptic Inc., a literary publisher, has established offices in more than 20 states in Lentasia. Additionally, it has advertised in all states of the country. This is an example of advertising. a. local b. national c. regional d. global ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 62. WoodChuck Inc., a furniture retailer, establishes itself in the North-east state of Largonia and has spread to many other states within the country. It has conducted promotional activities in all of these states to create awareness among the public about its products. This is an example of advertising. a. global b. local c. cooperative d. regional ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

63. A family-owned meat shop has expanded to four locations within the Preston area and suburbs, running regular promotions in the daily editions of The Preston City Star newspaper. These newspaper ads are forms of advertising. a. local b. trade c. regional d. national ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 64. When national companies and local merchants share advertising expenses, they are taking part in a. brand extension b. international advertising c. cooperative advertising d. trade channeling ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 65. Which of the following is one of the four areas of responsibility in the marketing mix? a. Price b. Communication c. Convenience d. Process ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

66. Which of the following is an example of a brand extension? a. Tracker, a company selling security systems, advertises its product on a local television network. b. Dog Handler, a manufacturer of leashes for dogs, collaborates with a competitor to expand its market base. c. Blossoms, a women’s perfume line, advertises its new line through sales promotions and point-of-purchase advertising at department stores. d. The manufacturers of Cocoa flakes, a popular cereal, launches a biscuit called "Cocoa crunch" in a new product category. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 67. Market segmentation is the process of: a. creating advertising strategies to reach out to a wide consumer base. b. creating a new product line that is relatively different from the firm's existing product line. c. breaking down a large widely varied market into more similar sub-markets. d. identifying competitors in the market that could be possible threats to the success of the company. ANSWER:

is the process of creating a perceived distinction between an organization's brand and a competitor's brand. a. Market analysis b. Co-op advertising c. Market segmentation d. Differentiation ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

69. Which of the following is a similarity between the market strategies, positioning and differentiation? a. Both involve standardizing and regularizing products. b. Both depend on a perceived image of tangible or intangible features. c. Both involve marketing products in a way that make them seem similar to competitors' products. d. Both involve targeting a small market segment. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 70. Effective internal positioning is accomplished by: a. distributing products to a market that is wider than those of one's competitors. b. using advertising to compare a product's distinctions from those of one's rival firms. c. developing brand features and values that are distinctive from the competition. d. developing vastly different products within the firm's product line. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 71. If Caltec Corp., a computer manufacturer, increased the number of computers produced to twice the amount it used to, the economies of scale would: a. lower the fixed cost per unit. b. increase the fixed cost per unit. c. increase the variable costs. d. lower the defect rate of products. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

72. The customers of TimeZone watches have high brand loyalty and although the watches are priced at high rates, TimeZone's customers are willing to pay the market price of the product. This is an example of . a. low brand equity b. market segmentation c. economies of scale d. inelasticity of demand ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 73. Which of the following is true of inelasticity of demand? a. The supply of the product is greater than its demand. b. Consumers are less sensitive to price increases. c. Customers have low brand loyalty. d. It leads firms to decrease profit margins. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 74. CoolNature, a manufacturer of mineral water, has recently launched its product in the market. It starts a rigorous advertising campaign to highlight the benefits of its product. This is an example of . a. selective demand stimulation b. economies of scale c. market segmentation d. primary demand stimulation ANSWER:

75. RomTech, a cell phone manufacturer, displays in its advertisement that its products are better than others in the market because they are waterproof and scratch proof. This is an example of . a. selective demand stimulation b. economies of scale c. inelasticity of demand d. direct response advertising ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 76. Sparkles Inc. has launched an advertisement on a local television channel. The ad promotes the new set of Acrylic paints and informs customers that the first five people who call in the next two days would receive a free sample. This is an example of . a. direct response advertising b. personal selling c. delayed response advertising d. internal positioning ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: 77.

Bloom's: Application

attempts to develop brand awareness and preference over time, as well as emphasize the benefits of using that brand. a. Delayed response advertising b. Co-op advertising c. Direct response advertising d. Sales promotion ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Knowledge

78. Which of the following slogans is an example of corporate advertising? a. “OhhSooGood" by Yummy's, a biscuit company b. “The quick fix stick" by Quicks, a glue manufacturer c. "Fizzy! Bubble! Guzzle!" by Fizzy Pop, a soft drink company d. “Think creatively" by Helix phones ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: 79.

Bloom's: Application

is a type of advertising that communicates the specific features, values, and benefits of a product offered by a particular company. a. Advocacy advertising b. Corporate advertising c. Brand advertising d. Institutional advertising ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

80. CarlBerrys, a department store, has launched a series of advertisements inviting people to do their holiday shopping at their store. This is an example of . a. institutional advertising b. delayed response advertising c. corporate advertising d. advocacy advertising ANSWER:

81.

is the measure of the total value of goods and services produced within an economic system. a. Gross domestic product b. Residual income c. Net present value d. Gross domestic income ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Knowledge

82. A brand of soup is perceived by consumers as a “good deal,” one that provides a certain level of comfort and satisfaction that goes well beyond the money it takes to purchase a few cans. In this example, the soup is considered to have: a. low brand loyalty. b. elasticity of demand. c. economies of scale. d. value. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 83. Radical, a men's deodorant brand, displays its product in advertisements as being worn by men who are attractive and popular. This is an example of . a. symbolic value b. direct response advertising c. selective demand stimulation d. internal positioning ANSWER:

84. The purchase of certain products, such as cars, shoes, and sunglasses, signify class membership. This indicates that these brands have . a. economies of scale b. social meaning c. internal positioning d. low brand equity ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 85. The mixing of various promotional tools is known as a. integrated marketing communications b. a marketing mix c. cooperative advertising d. market segmentation

ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 86. Which of the following is a difference between IBP and IMC? a. IBP ignores the importance of communication whereas IMC does not. b. IBP focuses more on the need for coordinated and synergistic messages. c. IMC emphasizes the brand, whereas IBP does not. d. IBP goes beyond the parameters of IMC. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Analysis

87. In today's world, what three elements do marketers want to build and maintain through their promotional and advertising efforts? a. Awareness, identity, and preference b. Attention, curiosity, and response c. Demand, value, and interaction d. Information, message, and communication ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge Scenario 1-1 In 1996, a graduate from the University of Maryland, Kevin Plank founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes since the company’s inception. "Along with the new product line, the company must have a new brand image," said Plank. “I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away.” The company has also removed all advertisements carrying the word “apparel,” and will begin exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall “performance” company, which will ultimately enable it to compete with footwear from powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share. 88. (Scenario 1-1) One of Under Armour’s new retail outlets in the U.S. sends a direct mail to 500 households within a one mile radius of the new store. In the email, the store announces the introduction of its new line of basketball shoes and offers incentives to any customer that walks into the store to purchase a pair of shoes from the new line. This direct mail: a. is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered as advertising. b. is paid for and is an attempt to persuade; however, it is only distributed locally and therefore, cannot be considered as advertising. c. is not received by a large enough number of people to be considered as advertising. d. is not a part of an advertising campaign and thus, cannot be considered as advertising. ANSWER:

89. (Scenario 1-1) Under Armour hopes that changing the company’s image from an apparel company to a “performance” brand will help increase its footwear sales. To make consumers aware of the change, Under Armour designs a number of commercials, print ads, and Internet advertisements all focusing on the company’s new motto, and immediately begins to apply them. All these elements make up a(n) . a. international advertising campaign b. cooperative advertising campaign c. advertising campaign d. promotional mix ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

90. (Scenario 1-1) John receives a direct mail from Under Armour that offers a free poster of basketball star, Brandon Jennings wearing a pair of the company’s new shoes. John likes the company's promotional offer. Chang, who also receives the same direct mail, is not impressed by the offer and puts it aside after glancing through it. The differing reactions to the promotional effort are most likely the result of: a. varying content. b. different interpretations of the ad. c. similar characteristics of the target market. d. the rules and regulations of the direct mail medium. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 91. (Scenario 1-1) To promote Under Armour’s new brand image, the firm has launched large scale advertising in three different countries, making a minor change in the physical appearance of the ad by using a different actor from each country. This is an example of advertising. a. international b. global c. cooperative d. national ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application

92. (Scenario 1-1) The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and running pleasurable. Marketing the shoes in this manner creates a perceived difference in the minds of customers. This is an example of . a. internal positioning b. brand extension c. differentiation d. market segmentation ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI. 15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 1-2 Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink in the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. 93. (Scenario 1-2) To help build brand awareness, customer preference, and loyalty, Chug Enterprises plans a coordinated campaign using a variety of tools such as advertising in mass media, direct marketing, and Internet advertising. This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprises's products to their lives and value systems is known as . a. brand extension b. integrated brand promotion c. advocacy advertising d. institutional advertising ANSWER:

94. (Scenario 1-2) For its second product to be successful, Chug Enterprises believes that it must effectively target the youth. To do this, the company uses influencer marketing. In such a scenario, which of the following is the company most likely using? a. Personal selling b. Free sampling c. Peer-to-peer persuasion d. Coupons and rebates ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 95. (Scenario 1-2) The company launched the third product for senior citizens in the Baltonian market and their efforts were highly successful. Chug Enterprises now plans to introduce it worldwide. However, the way senior citizens perceive products vary from culture to culture. Thus, Chug Enterprises should engage in: a. cooperative advertising. b. international advertising. c. national advertising. d. regional advertising. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 96. (Scenario 1-2) Chug Enterprises created the three products in a way that it appeals to separate target markets. This was done to prevent its products from competing with one another for market share. This shows that Chug Enterprises understands the importance of: a. internal positioning. b. external positioning. c. inelasticity of demand. d. selective demand stimulation. ANSWER:

97. (Scenario 1-2) Chug's three different sports drinks are very popular in markets across the world. Now, the company plans to launch a similar range of carbonated drinks by building on the popularity of the previous products. This is an example of . a. market segmentation b. national advertising c. a brand extension d. a differentiation strategy ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application Scenario 1-3 In 2006, gaming giant Nintendo launched an innovative motion-sensing gaming console called the Wii. The Wii quickly took over as the leading gaming console because of its unique activity-enabling qualities, and for nearly four years, dominated hardware sales in the gaming industry as any true competition for the product was yet to be introduced. However, this changed in late 2010 as Sony introduced its own motion-detecting gaming system to the market, the Playstation Move. Sony has marketed the product as a superior product to Nintendo’s, claiming that it is more precise and flaunts the Playstation’s high-quality graphics. Sony’s Move has been a topic of great debate, but the reception of the product over the long haul is yet to be seen. To dethrone the Wii, Sony will need to find a way to appeal to those that have not yet bought into “motiongaming.” And of course, it wouldn’t hurt if Sony somehow found a way to entice Nintendo followers to switch over to its newest addition to the gaming industry. 98. (Scenario 1-3) Sony created advertisements for its new motion-detecting gaming system to attract the attention of school going children. The school going children are Sony's . a. trade channel b. target audience c. sponsors d. clients ANSWER:

99. (Scenario 1-3) Which of the following activities, if performed, would be considered as part of Sony's marketing mix? a. Forecasting a five year financial plan to expand the firm b. Restructuring the organization to increase employee efficiency c. Hiring more workers into the firm d. Launching an advertisement campaign in schools ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 100. (Scenario 1-3) Individuals who have been using the Wii do not want to switch to the Move because they relate it to a superior gaming experience and also because it has been in the market for a long time. The Wii is an example of a product that has . a. brand equity b. brand variance c. brand extension d. elasticity of demand ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 101. (Scenario 1-3) If Sony uses advertisements that focus on the niche characteristics of Move that Wii does not have, the company is using: a. external positioning. b. institutional advertising. c. brand extension. d. internal positioning. ANSWER:

Scenario 1-4 Target, a global discount retailer, generates around 65 billion dollars in sales, annually. Additionally, the company employs more than 360,000 people worldwide. Target stores carry just about every major brand imaginable. Additionally, Target carries a number of its own brands including Market Pantry, Archer Farms, and Up and Up. Each of the brand labels appears on different products throughout the store—for example, the Archer Farms label appears on the retailer’s highest quality foods. The Market Pantry label appears on food items as well, however these items are often sold at a significantly lower price. The Up and Up label is on a large range of products ranging from paper products to household cleaning supplies. 102. (Scenario 1-4) The company's goal is for a product with any one of Target’s in-house brand labels on it to be known by consumers for the values of the brand—both tangible and intangible. Thus, in this scenario, Target's goal is to _____. a. create elasticity of demand b. conduct market segmentation c. establish brand loyalty d. stimulate latent promotion ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 103. (Scenario 1-4) In one city, Walmart, a competing retail outlet, opens a store across the street from Target and a battle for business follows. To distinguish their stores from one another, both retailers create a series of new commercials to help promote their brand. Target’s commercials emphasize the fast, fun and friendly service that it provides for its guests, and uses several celebrity endorsements. Meanwhile,Walmart runs three different commercials that focus on the low prices of its products. This is an example of: a. corporate advertising. b. internal positioning. c. external positioning. d. product placement. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

104. (Scenario 1-4) In a majority of Target’s promotions, the store is marketed as “upscale,” and this is demonstrated through its prices, which are generally higher than its biggest competitor, Walmart. Still, even in times of recession, Target continues to increase its annual revenues and retain many of its customers. This can be attributed to: a. Target’s low brand equity. b. the inelasticity of demand shown by many of the company’s customers. c. Target’s increase in gross domestic product (GDP). d. the elasticity of demand shown by many of the company’s customers. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 105. (Scenario 1-4) In a local newspaper, Target purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees from each of its national stores contribute to community projects such as The United Way. This is an example of: a. corporate advertising. b. a public service announcement. c. direct response advertising. d. advocacy advertising. ANSWER:

a DIFFICULTY: Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 1-5 Exodus Moving is a small business that was created to serve local furniture stores’ delivery needs in the Boulder Colorado area. They have specialized equipment that allows them to lift and transfer large, bulky pieces of furniture with less risk of damage than most traditional movers. Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need. As a result, most such stores are very interested in outsourcing delivery service needs. Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve. Eventually, Exodus hopes to attract the business of other retailers who might require delivery services. 106. (Scenario 1-5) Exodus marketers limit their advertising to furniture store publications because they perceive that readers of these publications are: a. their target audience. b. their trade channel. c. their sponsors. d. price sensitive. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 107. (Scenario 1-5) Exodus advertises in the trade magazine, Western Interiors, which is read by furniture retailers and interior decorators throughout twelve Western states. Which of the following best describes this type of advertising? a. Local advertising b. Regional advertising c. Advocacy advertising d. Corporate advertising ANSWER:

108. (Scenario 1-5) In its sales promotions, Exodus Moving uses the slogan “Swift, Yet Gentler.” This process of creating a distinct place in the customer's mind which is relative to other movers in the market is known as: a. positioning. b. co-op advertising. c. advocacy advertising. d. product standardization. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 109. (Scenario 1-5) As a result of vigorous advertising, Exodus has created inelasticity of demand to price changes. Which of the following will hold true in such a situation? a. The company's customers will have low brand loyalty. b. The customers will be less sensitive to price increases by the company. c. The company will need to lower the price of its delivery services. d. The company will have low brand equity. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 110. (Scenario 1-5) Exodus has launched a new camping equipment line which it has promoted on local television networks and magazines. This is an example of: a. corporate advertising. b. a primary demand stimulation. c. direct response advertising. d. a selective demand stimulation. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 1-6 Gillette M3Power—a MACH3 razor innovation—is a groundbreaking, powered wet shaving system for men that delivers a totally new shaving experience resulting in Gillette’s best shave. M3Power builds on the heritage of MACH3 and combines Gillette’s latest and best razor and blade technologies. M3Power outperforms all other blades and razors in closeness, comfort, and safety during and after the shave. Gillette M3Power features other innovations beyond power: new blades featuring PowerGlide™—an enhanced blade coating for incredible glide and maximum comfort, a moisturizing Indicator Lubrastrip and a technologically-advanced handle (www.Gillette.com). Recently, Gillette Co. sent direct mailers to users of competing male products, throughout the United States, a free MACH3Power razor with blades and a coupon offer. In addition, a series of coordinated advertisements to male customers were developed to increase awareness of this product. Gillette said that its goal was to have a market awareness rate of 70 percent within four months. 111. (Scenario 1-6) Gillette advertises its razors at every popular sports event that takes place in the country. It also uses billboard ads and television commercials to display a person using a multi-blade razor with the slogan "the best a man can get". This is an example of . a. integrated brand promotion b. direct response advertising c. institutional advertising d. mobile marketing ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 112. (Scenario 1-6) In Largonia, Gillette advertises in the three states that it operates in. This is an example of advertising. a. co-operative b. global c. national d. regional ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Bloom's: Application

113. (Scenario 1-6) Gillette has launched a new advertisement in which it describes how its unique protective layer above the blades prevents cuts, and a rubberized grip which enables steady handling of the razor while shaving. This is an example of . a. trade channeling b. selective demand stimulation c. corporate advertising d. direct response advertising ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application 114. (Scenario 1-6) The functional goal of Gillette's advertising of the Mach3Power razor is to get male consumers to shift their preferences from other brands. This is an example of: a. corporate advertising. b. direct response advertising. c. selective demand stimulation. d. market segmentation. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 115. What is advertising? Define. What are the three criteria that must be met for communication to be considered as an advertisement? How does a public service announcement differ from advertising in the ways that it meets, or fails to meet, each of these criteria? ANSWER:

Advertising is a paid, mass-mediated attempt to persuade. The three criteria that must be met for a communication to be considered as an advertisement are that it must be paid for, it must be mass mediated, and it must be an attempt to persuade. A public service advertisement is mass mediated and involves an attempt to persuade. However, by definition, a public service announcement is not paid for and cannot be considered advertising.

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Comprehension

116. Describe briefly what a target audience means. Discuss any two audience categories. ANSWER:

A target audience is a particular group of consumers singled out by an organization for an advertising or IBP campaign. These target audiences are singled out because the firm has discovered that these specific audience members like the product category and might prefer their particular brand within that product category. Target audiences are always potential audiences because a company can never be sure that the message will actually get through to them as intended. Audience Categories: Household consumers: They are the most conspicuous audience because most mass media advertising is directed at them.

Members of business organizations: They are the target of advertising for firms that produce business or industrial goods and services. Not-for-profit businesses such as universities, some research laboratories, philanthropic groups, and cultural organizations also represent an important and separate business audience for advertising. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 117. Define marketing. Describe the marketing mix and the role of advertising in it. ANSWER:

DIFFICULTY:

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. These four areas of responsibility and decision making in marketing are referred to as the "marketing mix." The word mix is used to describe the blend of strategic emphasis on the product versus its price versus its promotion (including advertising) versus its distribution when a brand is marketed to consumers. This blend, or mix, results in the overall marketing program for a brand. Advertising is important, but it is only one of the major areas of marketing responsibility and it is only one of many different IBP tools relied on in the marketing mix. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge

118. A brand is greatly shaped and impacted by advertising. List five ways in which advertising influences brand management and explain each of them briefly. ANSWER:

Advertising can affect a brand in five broad ways: By informing and persuading: Target audiences can learn about a brand’s features and benefits through advertising. No other variable in the marketing mix is designed to accomplish this communication. By introducing new brands or brand extensions: Advertising is absolutely critical when organizations introduce a new brand or extensions of existing brands to the market.When brand extensions are brought to market, advertising and IBP play a key role in attracting attention to the brand—so much so that researchers now suggest that “managers should favor the brand extension with a greater allocation of the ad budget. This is often accomplished with advertising working in conjunction with other promotional activities such as sales promotions and point-of purchase displays. By building and maintaining loyalty among consumers: Loyalty to a brand is one of the most important assets a firm can have. Brand loyalty occurs when a consumer repeatedly purchases the same brand to the exclusion of competitors’ brands. Even though brand features are the most important influence on building and maintaining brand loyalty, advertising plays a key role in the process as well. Advertising reminds consumers of those brand features—tangible and intangible. By creating an image and meaning for a brand: Advertising can communicate how a brand fulfills needs and desires and therefore plays an important role in attracting customers to brands that appear to be useful and satisfying. It can also help link a brand’s image and meaning to a consumer’s social environment and to the larger culture, and in this way, advertising can actually deliver a sense of personal connection for the consumer.

By building and maintaining brand loyalty within the trade: Wholesalers, retailers, distributors, and brokers can favor one brand over others given the proper support from a manufacturer. Advertising and particularly advertising integrated with other brand promotions is an area where support can be given. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Comprehension

119. Briefly explain the concepts of market segmentation, differentiation, and positioning. ANSWER:

Advertising helps a firm implement the important market strategies of market segmentation, differentiation, and positioning. Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics. Underlying the strategy of market segmentation are the facts that consumers differ in their wants and that the wants of one person can differ under various circumstances. Differentiation is the process of creating a perceived difference, in the mind of the consumer, between a brand and its competition.The perceived differences can be tangible differences, or they may be based on image or style factors. The critical issue in differentiation is that consumers perceive a difference between brands.

Positioning is the process of designing a brand so that it can occupy a distinct and valued place in the target consumer’s mind relative to other brands. This distinctiveness can be communicated through advertising. The importance of positioning can be understood by recognizing that consumers create a perceptual space in their minds for all the brands they might consider purchasing. A perceptual space is how one brand is seen on any number of dimensions—such as quality, taste, price, or social display value—in relation to those same dimensions in other brands. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 120. What is integrated marketing communication (IMC)? Discuss the differences between integrated marketing communication and integrated brand promotion (IBP). ANSWER: Beginning in about 1990, the concept of mixing various promotional tools was referred to as integrated marketing communications (IMC). However, the reality of promotional strategies in the 21st century demands that the emphasis on communication give way to an emphasis on the brand. IMC emphasizes the communication effort per se and the need for coordinated and synergistic messages. IBP retains the emphasis on coordination and synergy of communication but goes beyond the parameters of IMC. In IBP, the emphasis is on the brand and not just communication. With a focus on building brand awareness, identity, and ultimately preference, the IBP perspective recognizes that coordinated promotional messages need to have brand-building effects in addition to the communication effects. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.1-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension

Ch_02__The_Structure_of_the_Advertising_and_Promotion_Industry__ 1. Media fragmentation is a big plus for consumers but a disadvantage for advertisers and agencies. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 2. The underlying role and purpose of advertising and promotion has changed drastically and will continue to change. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 3. Despite the explosion of new media in recent years, today’s media options have reduced from those available during the past decades. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Bloom's: Knowledge

4. The simplest example of Web 2.0 is when consumers log on to the Internet and visit sites they choose to visit for either information or shopping. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

5. Blogs have emerged as sophisticated sources of brand and product information. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 6. Due to the backlash against advertising that clutter can cause, advertisers are integrating more tools within the overall promotional effort to reach more consumers in different ways. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 7. Advertisers focusing on integrating more tools into promotional efforts has resulted in an enhanced role of traditional media. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 8. The idea behind crowdsourcing is to prevent ideas about a new brand from becoming public to consumers. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

9. The goal of creating persuasive communication is to attract attention and develop preference for a brand. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 10. Advertisers cannot function without the services of external facilitators. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 11. Advertisers include business organizations, but exclude not-for-profit organizations. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 12. Trade resellers of consumer products and services are the most prominent users of advertising and promotion. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

13. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 14. At the local level, small retail shops deal only with household customers. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15. It is common for social organizations to advertise at the national, state, and local levels. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 16. The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

17. Caltec Inc. has a department that is responsible for coming up with ideas and innovative ways to advertise the company's products in newspaper ads and billboards. This is an example of a full-service agency. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 18. The creative boutique’s greatest advantage is its niche expertise. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 19. A creative boutique’s niche expertise can be its greatest liability if the creative boutique is an extra expense that advertisers cannot afford. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 20. Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

21. The task of strategic coordination of media and promotional efforts has become simpler because of the proliferation of media options and extensive use of promotional tools beyond advertising. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 22. A disadvantage of using media specialists is that they buy media in small quantities. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 23. Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 24. It is mandatory for designers and graphic specialists to be involved in strategy planning. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

25. Advertisers do not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26. The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 27. Under the commission system, the rate of commission is raised to 25 percent for outdoor media. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 28. A typical markup charge for outside services is five to ten percent. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS:

Bloom's: Knowledge

29. A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 30. Database consultants are particularly useful in planning coupon or direct mail campaigns. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 31. Radio and satellite are examples of broadcast media. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 32. Individuals collectively creating and sharing content through blogs, social media, wikis, and video sites is referred to as _____. a. a commission system b. broadcasting c. Web 2.0 d. interactive production ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

33.

has emerged as the most significant form of consumer control over information creation and communication. a. Web advertising b. Social media c. Interactive television d. Direct marketing ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Comprehension

34. Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as . a. paywalls b. blogs c. infomercials d. creative boutiques ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 35. Which of the following is true of crowdsourcing? a. It refers to managing the supply chain system in a way that will most effectively reach the target markets. b. It aims at getting consumers more involved with and committed to a brand. c. It indicates the process of describing the firm’s objectives for the brand in the near term and long term. d. It refers to passive, intrusive advertising. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

36.

has become a media conglomerate on the Web and amasses its own media empire of diverse Internet sites. a. ABC broadcasting network b. Facebook c. Dell d. InterActiveCorp ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Knowledge

37. With media clutter and fragmentation,: a. advertisers are developing a lack of faith in advertising alone. b. the probability of any one advertisement making a real difference has increased manifold. c. there are very few media choices available to advertisers. d. promotion options are no longer attractive to advertisers. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 38.

is used by organizations to get consumers committed to brands in a way that passive advertising cannot. a. Co-op advertising b. Phishing c. Crowdsourcing d. Broadcasting ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

39. Advertisers are also known as a. consultants b. facilitators c. sponsors d. clients ANSWER:

by their advertising and promotion agency partners.

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 40. Which of the following advertisement tools would be best suited for a regional application? a. Podcasts b. Internet advertisements c. Television advertisements d. Coupons and samples ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

41. A is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers. a. sponsor b. media buyer c. media specialist d. trade reseller ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

42. The most visible reseller advertisers and promoters are: a. retailers who deal solely with household consumers. b. retailers that sell in national or global markets. c. those who sell at the local level. d. those who cater to regional markets. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 43. Which of the following modes of advertisement do wholesalers and retailers prefer to utilize? a. Personal selling b. Branded entertainment c. Radio advertisements d. Infomercials ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 44. In which of the following areas is the federal government’s spending on advertising and promotion concentrated? a. The internal revenue services b. Political campaigns c. Armed forces recruitment d. Trade and commerce ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

45. Barlow and Baley Inc., an advertisement agency, has been approached by Crescent Corp. to help promote their new line of air conditioners. Barlow and Baley Inc. have advised Crescent Corp. that newspaper and television ads will be the best promotional tool for the product. They have also created a demo ad for the product. Barlow and Baley Inc. is an example of a(n) . a. full-service agency b. in-house agency c. interactive agency d. database consultant ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 46. Bedwick Resorts has acquired the services of Elegant Inc. to develop advertisements for their organization. Elegant Inc. has advised them to add a panoramic view to billboard ads and portray tourists lounging by the sea. Elegant Inc. is an example of a(n) . a. media specialist b. creative boutique c. digital/interactive agency d. in-house agency ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 47. Which of the following best describes digital agencies? a. They focus on ways to use Web-based solutions for direct marketing and target market communications. b. They implement direct response campaigns using all forms of media. c. They design direct marketing campaigns that mainly use emails and telemarketing. d. They specialize in buying media time and space and offer media strategies to advertisement agencies. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

48. A(n) is often known as the advertising department in a firm. a. creative boutique b. full-service agency c. interactive agency d. in-house agency ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 49. Which of the following acts as a support to direct marketing agencies and follow-up on the delivery of their direct mail? a. Creative boutiques b. In-house agencies c. Media specialists d. Fulfillment centers ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: 50.

Bloom's: Knowledge

are specialists that design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. a. Creative boutiques b. Sales promotion agencies c. Database agencies d. Fulfillment centers ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

51. PinBall Inc. sought the help of Blazer Corp. to help them reach a niche group of vendors that they have been trying to do business with. Blazer offers the solution of publishing an advertisement in a trade journal which would help create awareness about the firm's product. In this scenario, Blazer Corp. specializes in . a. the management of databases b. creative services c. consumer sales promotions d. trade-market sales promotions ANSWER:

are experts in designing incentive programs, point-of-purchase materials, and in-store merchandising. a. Database agencies b. Sales promotion agencies c. Fulfillment centers d. Event-planning agencies ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: 53.

Bloom's: Comprehension

are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional activity. a. Event-planning agencies b. Creative boutiques c. Fulfillment centers d. Direct marketing agencies ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

54.

help firms in creating the visual impression of its advertising material. a. Sales promotion agencies b. Fulfillment centers c. Designers d. Bloggers ANSWER:

ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 56.

entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. a. Administrative services b. Creative services c. Account services d. Media planning and buying services ANSWER:

57. A(n) coordinates the research effort of an advertisement agency. a. graphic designer b. media specialist c. account planner d. fulfillment center ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 58. Which of the following services of an advertising agency involves expressing the benefits of a company's brand in interesting and memorable ways? a. Creative services b. Billing services c. Administrative services d. Media buying services ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 59. The services department of an advertising agency typically includes the company's art directors, illustrators, and copywriters. a. creative b. media buying c. marketing d. administrative ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

60. Which of the following services in an advertisement firm involves taking creative ideas and turning them into advertisements, direct mail pieces, and other IBP materials? a. Administrative services b. Creative services c. Account services d. Production services ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 61. The services group in a full-service advertising agency is a part of the personnel department, accounting, and billing department. a. creative b. administrative c. marketing d. production ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 62. Though many agencies no longer use the traditional commission system for compensation, Starr Agency does. Using the standard percentage rate, how much would Starr Agency receive for a bill of $500,000? a. $150,00 b. $125,000 c. $100,000 d. $75,000 ANSWER:

63. Under the commission system, percent of the total amount billed by a media organization is retained by the advertising agency as compensation for all costs in creating ads for the advertiser. a. 15 b. 2 c. 30 d. 20 ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Knowledge 64. A compensation system that adds a percentage amount to a variety of services the agency purchases from outside suppliers is known as a . a. markup charge b. fee system c. pay-for-results compensation d. commission system ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 65. CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the ten hours it spent designing an advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize? a. A fee system b. A commission system c. A markup charge system d. A pay-for-results system ANSWER:

66. Harper & Kane advertising agency sets an hourly rate for the services it provides to its clients. This rate is based on the average salary of all the members in the creative department. Harper & Kane uses the system. a. commission b. cost-plus c. markup charge d. fee ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Pricing Bloom's: Application

67. Which of the following is an example of a fixed fee system of compensation? a. 15 percent of the total amount billed by XL Inc. was retained by Tesco advertisers as compensation for all costs in creating the advertisement. b. Largo advertisers was paid $50,000 by their client based on the effect their ads had on the sale of the company's products. c. Purple Corp. paid RL Designs $150,000 based on the positive responses it received for their promotions from their customers. d. HK advertisers and their client agreed on which supplies, materials, travel costs, and other expenses will be reimbursed. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 68. A compensation system that is based on the achievement of specific objectives of the client is known as a a. pay-for-results compensation b. a markup charge c. commission system d. fee-based system ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension

69. Kowalski and Associates has been a successful mid-sized, full-service advertising agency for more than two decades. In an attempt to serve its clients more efficiently in a competitive marketplace, the agency has changed its compensation package to include payments based on results. In such a scenario, compensation packages for Kowalski and Associates are likely to be based on: a. brand recognition. b. workforce strength. c. competitive advantage. d. economies of scale. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 70. McMann and Young advertisers has been hired by Broadway Bicycles to assist with promotions for a chain of bicycle stores in Vermont. The agency has agreed that a certain level of awareness and interest in Broadway Bicycles will be generated in order to gain the sales targets the company desires, and they have agreed to be paid accordingly. This is an example of a system of compensation. a. markup charge b. commission c. cost-plus d. pay-for-results ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 71. A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the services of a firm to collect the data needed to expand into the new market. In such a scenario, which of the following firm's services would it hire? a. A marketing research firm to conduct surveys to understand the potential market b. An advertising agency to create innovative ads c. A consultant to create message strategies and message themes d. Media organizations for placing ads in broadcast and print media to create awareness for the restaurant ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

72. Ocean Waves Resorts wants to purchase land and construct a resort on the shorefront in San Clemente. Ocean Waves would also like to construct a golf course and needs help in understanding local regulations and zoning restrictions in the country. Which of the following companies should Ocean Waves hire to assist with the project? a. A consulting firm b. A creative boutique c. A digital/interactive agency d. A production facilitating firm ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Application

73. A helps firms identify and manage information that allow for the development of integrated marketing communications programs. a. media organization b. sales agency c. database consultant d. trade reseller ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 74. Advertisers and their agencies rely primarily on external facilitators for: a. consumer research. b. media buying. c. assessing the effectiveness of promotional programs. d. production processes. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS:

Bloom's: Knowledge

75. Carmel Inc. has come up with the idea of creating a television ad for its new range of assorted cookies. The marketing executives approached RT Designs who will be filming the ad, preparing a set to record the ad, and employing an actress to play the role of a little girl enjoying her cookies. RT Designs is an example of a . a. creative boutique b. production house c. fulfillment center d. media specialist ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 76.

provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting. a. Production houses b. Creative boutiques c. Fulfillment centers d. Interactive agencies ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

77.

is a high-speed technology that allows consumers to customize their programming and target very specific audiences. a. Transit b. Crowdsourcing c. Broadband d. Cable ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS:

United States - Ohio - DISC: Online/Computer

KEYWORDS:

Bloom's: Knowledge

78.

is one of the world’s largest media conglomerates and provides broadcasting, film, music, cable, print, publishing, and a dominant Internet presence. a. News Corp b. Fox Broadcasting Company c. Sony Corporation d. Time Warner ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 79. Which of the following best describes a media conglomerate? a. It is a firm that operates multiple media combinations. b. It is a firm that is a specialist in one particular form of media. c. It is a firm that specializes solely in buying media time and space. d. It is a firm that uses print media instead of broadcast media ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 80. Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country. It also has a number of websites for its television channels and online sports news. Design Solutions is an example of a . a. creative boutique b. media conglomerate c. media specialist d. digital/interactive agency ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application

81. Which of the following is an example of outdoor support media? a. Podcasts b. Billboards c. Catalogs d. Electronic directories ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 82. Which of the following is an example of interactive media? a. Banners b. Electronic directories c. Catalogs d. CD-ROMs ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 83. Which of the following is an example of premiums, a type of support media? a. Transit b. Cable c. Calendars d. Billboards ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 2-1 As one of the world’s largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company’s new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign. 84. (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. However, full-service agencies do provide a number of advantages— one of these advantages is that they: a. are always large, employing thousands of people. b. can provide the physical facilities for broadcast production. c. have an array of talented professionals to meet all the needs of a client. d. are the only way to create an ad campaign. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 85. (Scenario 2-1) In order to reinvent the company’s image, Dell puts together a team comprising members from its marketing department who will be responsible for every aspect of the advertising campaign. The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign. This team will be an example of a(n): a. creative boutique. b. full-service advertising agency. c. fulfillment center. d. in-house agency. ANSWER:

86. (Scenario 2-1) To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is an example of a(n): a. fulfillment center. b. database agency. c. sales promotion agency. d. market research firm. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 87. (Scenario 2-1) Dell plans to strengthen its relationships with the media, industry associations, and its various competitors. In such a scenario, Dell would be hiring to help strengthen their relationships. a. a public relations firm b. a market research firm c. a creative boutique d. a database agency ANSWER:

Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University’s football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this. 88. (Scenario 2-2) Which one of the following would Brush Strokes’s full-service agency be least qualified to handle? a. Researching about the buying trends of the company's customers b. Creating a 30-second television commercial c. Forecasting dividend earnings of stockholders d. Generating awareness about the brand ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 89. (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising. The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan. In such a scenario, which of the following services is the agency offering? a. Media buying services b. Billing services c. Account services d. Marketing services ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

90. (Scenario 2-2) Brush Strokes is looking for a way to increase sales. The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing. Which of the following agency services is the company using? a. Billing services b. Creative services c. Administrative services d. Media buying services ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 91. (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a system of compensation. a. commission b. fee c. pay-for-results d. markup charge ANSWER:

Scenario 2-3 Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad. 92. (Scenario 2-3) Which of the following agencies would help improve the ideas that Axel Corp. has for its advertisement? a. A direct marketing agency b. A creative boutique c. A database agency d. A fulfillment center ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 93. (Scenario 2-3) Which of the following is most likely to provide Axel Corp. with a reasonable amount of media time at a rate lower than that provided by an advertiser? a. Production houses b. Sales promotion agencies c. Database consultants d. Media specialists ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 94. (Scenario 2-3) Axel Corp. plans to to reach out to local fashion stores and wholesale distributors. Axel Corp. can achieve this by employing an advertising agency specialized in . a. consumer sales promotions b. trade-market sales promotions c. infomercials d. a commission system ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

95. (Scenario 2-3) A(n) using traditional media. a. database consultant b. public relations firm c. fulfillment center

can help Axel Corp. in designing and executing direct response advertising campaigns

d. interactive agency ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 2-4 Caltech Corp. has a 15 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech Corp. airtime on its television network, and has offered to advertise its product on its website as an act of goodwill. 96. (Scenario 2-4) Caltech Corp. has a 15 minutes long advertisement that explains to the public about its product. This is an example of a(n) . a. podcast b. electronic directory c. blog d. infomercial ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97. (Scenario 2-4) Sparkles Inc. is an example of a a. production facilitator b. full-service agency c. media conglomerate d. fulfillment center

ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

Scenario 2-5 In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various “deals of the day.” At the time, Groupon had a unique business model—each day, one “groupon” would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010. Continuing the company’s rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company’s success. 98. (Scenario 2-5) As Groupon’s services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the best choice to create these slogans? a. A digital/interactive agency b. A media specialist c. A creative boutique d. An production facilitator ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 99. (Scenario 2-5) Groupon’s management has budgeted $20,000 for social media advertising this year. How much can their advertising agency expect to earn if they are using a traditional commission system? a. $2,000 b. $3,000 c. $5,000 d. $8,000 ANSWER:

100. (Scenario 2-5) Groupon decides to hire a full-service advertising agency to create a new campaign for the company. The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site. This is an example of a(n) system of compensation. a. fixed fee b. commission c. incentive-based d. markup charge ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 101. (Scenario 2-5) Groupon decides to find a firm that can help them in planning, preparing, and executing promotional campaigns. The company whose services Groupon is seeking is referred to as a(n): a. client. b. database consultant. c. sponsor. d. external facilitator. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 2-6 Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services. 102. (Scenario 2-6) Ripple Effects is an example of a . a. media specialist b. creative boutique c. database consultant d. production house ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 103. (Scenario 2-6) Glamour is an example of a a. media specialist b. direct marketing agency c. creative boutique d. digital/interactive agency

ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 104. (Scenario 2-6) Glamour follows a a. commission b. cost-plus

system of compensation.

c. markup charge d. fee ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension

105. (Scenario 2-6) Pink Inc. has chosen to advertise using key chains and complementary pens with the firm's logos on them. The type of media chosen by Pink Inc. is referred to as . a. infomercials b. print media c. interactive media d. support media ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

106. What is crowdsourcing? Explain. ANSWER:

Crowdsourcing involves the online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers. The idea behind crowdsourcing is to get consumers more involved with and committed to a brand in a way that passive, intrusive advertising simply cannot. Consumers help “build the brand” with recommendations for features or even advertising campaign images. They also can communicate about the brand to audiences in ways that seem natural and credible— something corporate-launched advertising struggles with. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension

107. Describe the role advertisers play for trade resellers. ANSWER:

A trade reseller is a general description for all organizations in the marketing channel of distribution that buy products to resell to customers. Resellers can be retailers, wholesalers, or distributors. These resellers deal with both household consumers and business buyers at all geographic market levels.

Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. Regional retail chains, typically grocery chains or department stores serve multistate markets and use advertising suited to their regional customers. At the local level, small retail shops of all sorts rely on newspaper, radio, television, and are a completely different breed of reseller. Technically, these types of companies deal only with business customers, since their position in the distribution channel dictates that they sell products either to producers (who buy goods to produce other goods) or to retailers (who resell goods to household consumers). Wholesalers and distributors have little need for mass media advertising over media such as television and radio. Rather, they use trade publications, directory advertising such as the Yellow Pages and trade directories, direct mail, personal selling, and their Internet websites as their main advertising media. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

108. Describe any three types of services commonly offered by advertising and promotion agencies. ANSWER:

The types of services commonly offered by advertising and promotion agencies are as follows: Account Services: These services are offered by managers who have titles such as account executive, account supervisor, or account manager and who work with clients to determine how the brand can benefit most from advertising and IBP. Account services entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. Marketing Research Services: Research conducted by an agency for a client usually consists of the agency locating studies (conducted by commercial research organizations) that have bearing on a client’s market or advertising and IBP objectives. The research group will help the client interpret the research and communicate these interpretations to the creative and media people.

Creative Services: The creative services group in an agency comes up with the concepts that express the value of a company’s brand in interesting and memorable ways. In simple terms, the creative services group develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

109. List and describe the four methods of agency compensation. ANSWER:

Commission system: The traditional method of agency compensation is the commission system, which is based on the amount of money the advertiser spends on media. Under this method, 15 percent of the total amount billed by a media organization is retained by the advertising or promotion agency as compensation for all costs in creating advertising/promotion for the advertiser. The only variation is that the rate typically changes to 16 percent for outdoor media. Markup charges: This method of agency compensation adds a percentage markup charge (sometimes referred to as cost-plus) to a variety of services the agency purchases from outside suppliers. In many cases, an agency will turn to outside contractors for art, illustration, photography, printing, research, and production. The agency then, in agreement with the client, adds a markup charge to these services. Fee system: A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. The hourly rate can be based on average salaries within departments or on some agreed-on hourly rate across all services. This is the most common basis for promotion agency compensation.

Pay-for-results: Many advertisers and agencies alike have been working on compensation programs called pay -for-results or incentive-based compensation that base the agency’s fee on the achievement of agreed-on results. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 110. Describe the three new types of consultants have emerged in recent years. ANSWER:

Three new types of consultants have emerged in recent years.

The first is a database consultant, who works with both advertisers and agencies. Organizations of this type help firms identify and then manage databases that allow for the development of integrated marketing communications programs. Another new type of consultant specializes in website development and management. These consultants typically have the creative skills to develop websites and corporate home pages and the technical skills to advise advertisers on managing the technical aspects of the user interface. The third type of consultant works with a firm to integrate information across a wide variety of customer contacts (including social media activities) and to organize all this information to achieve customer relationship management (CRM). DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.2-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_03__The_History_of_Advertising_and_Brand_Promotion 1. When the Western world turned to capitalism as the foundation of an economic system, the foundation was also laid for advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. The rise of communism was one of the four major factors that gave rise to advertising. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 3. The Industrial Revolution was an economic force that yielded the need for advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 4. In the preindustrialization era, the expansion of newspaper circulation was fostered by the railroads and growing urban centers. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

5. In the late 1880s, a few companies began putting names and labels on previously unmarked products, and branding began. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 6. Peerless, Foley's, and Pepsi-cola were some of the first branded goods found on store shelves. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge 7. With the invention of the telegraph in 1844, a communication revolution was set in motion. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 8. Without the rise of mass media, there would be no national brands, and no advertising. a. True b. False ANSWER:

9. Advertising changed commerce, but not society. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. In the late 1800s, consumers were willing to pay more for brands than for unmarked commodities, even if they were identical. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 11. In the mid-1800s, mass-circulation magazines began to make national advertising possible, and national advertising began to make national brands possible. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. It is critical to realize that for the most part, mass media are supported by advertising. a. True b. False ANSWER: True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

13. Media vehicles—television networks, radio stations, newspapers, magazines, and websites—exist so they can sell audiences and make money. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 14. In the 17th century, printed advertisements were published in the newsbooks. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 15. In the 1700s, a middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 16. Advertising was highly regulated during the industrial era which limited the scope for advertisers to come up with creative ads. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

17. Advertising in the early 1800s was widely considered an embarrassment, and firms risked their credit ratings due to their advertising, because banks considered its use a sign of financial weakness. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 18. By 1900, an increase in the supply of mass-produced goods, and the increasing demand for these goods by a growing urban population, led to the growth of advertising. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

19. The first regulatory initiative by the federal authorities was the Pure Food and Drug Act that required manufacturers to list the active ingredients of their products on their labels. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

20. Manufacturers were required to list the active ingredients in their products after the creation of the Pure Food and Drug Act in the early 1900s. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge

21. The Pure Food and Drug Act had only a minimal effect on advertising because it did not restrict advertisers' claims. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 22. The prewar movement to reform and regulate advertising was dissipated in the 1920s by the distractions of war and advertising’s role in the war effort. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 23. Men became the major target of advertisers in the 1920s because they were the head of households and made most purchase decisions. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 24. During the 1920s, "fantasy" advertisements dominated the ad industry. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

25. In 1924, Bruce Barton in his book, The Man Nobody Knows, portrayed Jesus as the archetypal ad man. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26. Advertisers responded to the Depression by adopting a tough, no-frills style in their ads. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

27. During the widespread poverty of the Great Depression, most segments of the population believed in the power of advertising. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 28. During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

29. After WWII and into the 1950s, ads began to take on an air of self-awareness, conveying the sentiment that “you know it’s an ad and so do we.” a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. The creative revolution was a period of time in which advertising started to take on the themes, language, and look of the revolutionary 1960s. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 31. In the 1970s, there was a growing concern over what effect $200 million a year in advertising had on children. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 32. Product/show blends for toys made regulation of television content more easy. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

33. Advertisements during the 1980s reflected traditional American values. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 35. In the 1970s, cable programming grew in quality with several viewing options and advertisers learned how to reach more specific audiences. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 36. The mid-1990s presented insecure moments for advertisers heavily invested in traditional advertising. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

37. E-business is a form of e-advertising in which companies sell to household consumers. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 38. Branded entertainment gets lesser First Amendment protection than ordinary advertising does. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

39. Which of the following is a major factor that gave rise to advertising? a. The industrial revolution b. The rise of socialism c. The reduced importance of branding d. The rise of social media ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Knowledge

40. The foundation was laid for advertising to become a prominent part of the business environment when the Western world turned to as the foundation of economics. a. socialism b. communism c. capitalism d. syndicalism ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Comprehension

41. During the 1840s, the emerged as a way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures. a. creation of business insurance b. principle of limited liability c. concept of dividend distribution d. process of double taxation ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 42. Which of the following was a result of the principle of limited liability gaining acceptance in the 1840s? a. Lower number of businessmen investing money in ventures b. Higher risk for investors in business ventures c. Lower risk of losing shares in a corporation for businessmen d. Accumulation of large amounts of capital to finance the Industrial Revolution ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Analysis

43. National firms started putting names on their products because: a. it would increase the economies of scale of their product. b. their incomes were protected by the principle of unlimited liability. c. brands commanded a higher price than commodities. d. strict government regulations required them to do so. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 44. By the late 1800s, manufacturers were developing brand names. This helped them: a. steer clear from advertising their products. b. lower their economies of scale. c. gain power. d. lower their prices of products. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 45. How did early marketers establish a degree of power with their brands? a. By getting consumers to identify them and pay higher prices for them b. By creating normal and ordinary products so that consumers would easily accept them c. By motivating general stores and grocers to replace branded products with unmarked products d. By reducing their prices of products ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

46. Which of the following is true about advertisements in the preindustrialization era? a. The advertisements were published in magazines. b. The advertisements in dailies were the most popular. c. The advertisements ushered in a dominant consumer culture. d. The messages were informational in nature. ANSWER:

c. newsbooks d. periodicals ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 48. During the , advertising messages were primarily informational in nature. a. preindustrialization era (pre-1800) b. designer era (1980 to 1992) c. P.T. Barnum era (1875 to 1918) d. 1920s (1918 to 1929) ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

49. In the mid-1800s, advertising was done through a. radio broadcasts b. dailies

c. infomercials d. magazines ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 50. The expansion of newspaper circulation in America was fostered by: a. traveling circuses, carnivals, and theatrical performances. b. increased interest among readers for television program listings. c. extended railroads and growing urban centers. d. highly differentiated but unbranded products. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 51. Which of the following is true about advertising in the industrialization era? a. Banks considered advertising to be a sign of financial weakness. b. Strict laws on advertising prevented advertisers from lying about their products. c. Advertising was considered as prestigious by most segments in a society. d. Advertisements appeared solely in the form of newsbooks. ANSWER:

52. By the early 1900s, the “power of advertising” was based on the reality that consumers: a. believe that branding was no longer the norm. b. like durable, reliable products with a no-frills advertising style. c. are willing to pay more money for brands. d. see advertising suspiciously that tempt them into excessive consumption. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 53. Ads for products during the “P.T. Barnum Era” (1875 to 1918) were characterized by: a. a bold and garish style filled with incredible claims. b. a no-frills advertising style. c. simple ads with information and truthful claims. d. informational messages in the dailies. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 54. Why did women become the primary target for advertisers in the 1920s? a. They enjoyed a significantly higher standard of living than men. b. They made most of the purchasing decisions for the household. c. Public pleasure was considered more of a sin than in the Victorian era. d. The chain of needs existed mainly more women, and not men. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

55. Ads in the 1920s showed slices of life in a way that depicted: a. garish designs illustrating unrealistic situations. b. ads that were purely informational in nature. c. how consumers should have a good time. d. less visual ads than in the past. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 56. Which of the following advertising agencies dominated the 1920’s ad industry? a. Doyle Dane Bernbach b. J. Walter Thompson c. Leo Burnett d. Wells Rich and Green ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 57. Which of the following types of advertisements evolved during the 1920s? a. Demonstration b. Research-based c. Endorsement d. Slice-of-life ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

58. During which era were big businesses and advertising viewed with suspicion? a. The Depression (1929 to 1941) b. 1920s (1918 to 1929) c. The P.T. Barnum Era (1875 to 1918) d. The Designer Era (1980 to 1992) ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

59. Which of the following is true about advertising during the Great Depression? a. Advertising found respectability, fame, and glamour during this era. b. Consumers believed that ads helped them choose the right product. c. Advertisers adopted a tough, no-frills advertising style. d. Consumers believed blindly in advertisements and brands. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

60. Beginning in 1938, the U.S Congress began to pass real advertising reform, including a law banning “deceptive acts of commerce.” This meant that advertisers were now: a. expected to promote family values. b. banned from advertising cigarettes and alcohol. c. held liable for making false claims. d. banned from using inappropriate sexual content. ANSWER:

c DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

61. For advertisers, one main difference between the period immediately after World War I and the period immediately following World War II was that after World War I, . a. advertising was distrusted by people b. rigid government regulations were established for ads c. ads were classy and sophisticated d. ads were subtle and clutter-free ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Analysis 62. During which of the following eras did consumer culture become the new normal, a permanent central feature of society? a. The Depression (1929 to 1941) b. World War II and the 1950s (1942 to 1960) c. The Preindustrialization Era (Pre-1800) d. The Era of Industrialization (1800 to 1875) ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 63. During the 1950s, Americans began to fear: a. that they were being seduced by subliminal advertising. b. that ads were not based on modern science. c. purchasing unbranded goods. d. that the consumer culture was disappearing. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

64. How were women depicted by advertisers in the 1950s? a. As free spirits with new-found equality and respect b. As prominent members of the business community c. As leading men in large multinational companies d. As following strict gender roles and sexual norms ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

65. Who added to the fear and hysteria over advertising in the 1950s? a. Bruce Barton and his book called The Man Nobody Knows b. Helen Resor and James Webb Young from the J. Walter Thompson advertising agency c. James Vicary’s false claim about the effect of subliminal messages d. Heads of advertising agencies, Leo Burnett and David Ogilvy ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 66. Which of the following is true about advertisements in the 1960s? a. The emphasis in advertising turned from creative products to ancillary services. b. Advertising discouraged consumption and was no longer a symbol of consumption. c. The advertisements were bold, garish, and carnivalesque. d. There was an emphasis on art, inspiration, and intuition. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

67. Which of the following were among the four agencies most noted for their role in the creative revolution of the 1960s? a. Doyle Dane Bernbach and Wells Rich and Green b. J. Walter Thompson and N. W. Ayer c. BBDO d. Ted Bates agency and Lord and Thomas ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 68. By the late 1960s, advertisers had realized that advertisements had become: a. uncreative. b. ineffective to increase the sale of products. c. a symbol of consumption. d. purely informational in nature. ANSWER:

, and the advertising of the time reflected this.

c. adopting traditional values d. serious, meaningful ads ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

70.

became the biggest word of the 1970s, a word that was integrated into the promotional theme of the decade. a. “We” b. “Society” c. “Me” d. “Modern” ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Comprehension

71. During the 1970s, the demanded a higher standard of honesty and disclosure from the advertising industry. a. National Security Council b. Federal Reserve Board c. Action for Children’s Television d. Federal Trade Commission ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 72. During which era of advertising did consumers first begin to surround themselves with devices related to communication? a. The 1970s (1973 to 1980) b. Peace, Love, and the Creative Revolution (1960 to 1972) c. World War II and the 1950s (1942 to 1960) d. The Depression (1929 to 1941) ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

73. Ads in the designer era were marked by . a. social-class consciousness b. values that limited consumption and considered it irreligious c. rebellion, youth, and revolution d. values that conflicted with traditional American values ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 74. Which of the following is true about the designer era of advertising? a. It was marked by the advent of the Internet. b. Ads no longer reflected traditional values. c. Consumers preferred unbranded products over branded products. d. Ads openly promoted consumption, but in a conservative way. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 75. One of the changes seen in advertising during the 1980s was the: a. growth and impact of British agencies. b. fear of subliminal advertising. c. advent of documentary advertising. d. separation of business and politics. ANSWER:

76. In the mid-1990s, William T. Esrey, chairman and CEO of Sprint, announced that clients were going to hold ad agencies more closely accountable than ever before. He said this because: a. billing scandals had undermined the confidence of advertisers in their agencies. b. interactive media was being replaced by the wide range of traditional media. c. the technology to measure advertising impact had improved. d. the fundamental reasons to advertise had changed. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

77. In the 1990s, the measurement of ROI in advertising was a. elusive

b. accurate c. irrelevant d. precise ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 78. Which of the following is true about advertising during the period between1993 and 2000? a. Traditional advertising gained a stronger foothold than ever before. b. Interactive media hindered the direct measurement of ad exposure and impact. c. It was understood that Internet adverting was going to change the advertising landscape. d. The Internet was able to yield precise measurements of ROI in advertisement. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

79. In today’s age of Web 2.0,: a. companies find consumers primarily through mass exposure. b. firms have replaced all pull strategies with push strategies. c. consumers have much lesser access to information. d. consumers can communicate with each other. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 80. One of the elements that characterizes present day advertising is that consumers: a. rely more on advertisers and agencies for information. b. are empowered. c. are no longer brand-conscious. d. can no longer co-create brand messages like before. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 81. Which of the following is true of branded entertainment? a. It blends advertising and integrated brand promotion with entertainment. b. It is a subset of product placement. c. It uses solely television programming to create entertainment. d. It is also known as consumer-generated content. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

82. A certain form of a commercial message is seen by courts as artistic speech, not as the less protected “commercial speech.” , therefore, gets more First Amendment protection than ordinary advertising does. a. Print ads b. Radio slots c. The information on a product label d. Branded entertainment ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 83. With the addition of new channels like mobile apps and other new technologies,: a. advertising is no longer a paid attempt to persuade. b. firms spend relatively smaller amounts of money on traditional advertising. c. advertising is no longer a primary marketing mix tools that contribute to revenues. d. e-commerce and m-commerce has changed the way people shop. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 3-1 In the early and mid-1800s, soaps were made from animal fats. The perishable quality of the soap, however, allowed manufacturers to sell a product with only regional appeal. This changed when soap makers began to use vegetable fats and perfume in the soap-making process. According to Procter & Gamble, one batch of this vegetable-based soap was left to mix too long. The result was a product that floated in water due to an excess amount of air. The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales—Ivory soap—with the slogans “It floats” and “9944/100 percent pure.” (Stephen Fox, The Mirror Makers, [New York: Random House, 1984], 24.) 84. (Scenario 3-1) If the Ivory soap was promoted during the era of industrialization, in which of the following mediums would their ads appear? a. Magazines b. Newsbooks c. Dailies d. Radio broadcasts ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 85. (Scenario 3-1) Which of the following eras does Ivory soaps belong to? a. The pre industrialization era b. The industrialization era c. The P.T. Barnum era d. The Great Depression ANSWER:

86. (Scenario 3-1) By 1900, shortly after Ivory soaps were originally branded, a. advertising was generally distrusted and looked at with suspicion b. the consumer culture was replaced by minimalist lifestyles c. the branding of products became the norm d. the period was marked by the advent of dailies

ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 87. (Scenario 3-1) One effect of the passage of the Pure Food and Drug Act of 1906 was that: a. Ivory soap had to become hundred percent pure. b. advertising claims for products like Ivory soap became strictly regulated. c. the manufacturer of Ivory soap had to list its ingredients on the label. d. branded products like Ivory had to trademark their brand names. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 88. (Scenario 3-1) If an advertisement for Ivory soap was reflective of the style of ads during the period known as the “P.T. Barnum Era,” it would: a. consist of exaggerated claims. b. have extensive photography. c. reflect conservative values. d. use very limited copy. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 3-2 When referring to the period of advertising known as the creative revolution, advertising pundit and practitioner Jerry Della Femina wrote, “Volkswagen was being handled in the United States by Fuller & Smith & Ross. Doyle Dane took over the account around 1959. One of the first ads that came out for Volkswagen was the first ad that anyone can remember when the new agency style came through with an entirely different look. The ad simply said, ‘Lemon.’ The copy for ‘Lemon’ said that once in a while we turn out a car that’s a lemon, in which case we get rid of it. We don’t sell them. And we are careful as hell with our cars, we test them before we sell them, so the chances are you’ll never get one of our lemons. “For the first time in history an advertiser said that he was capable, on rare occasions, of turning out an inferior product . . . By today’s standards, of course, this is pretty tame stuff.” (Jerry Della Femina, From Those Wonderful Folks Who Gave You Pearl Harbor, [New York: Simon and Schuster, 1970], 26-27.) 89. (Scenario 3-2) Which one of the following is an accurate description of the era in which Bill Bernbach created the Volkswagen campaign? a. The ads were filled with wild and unsubstantiated claims. b. The focus was on clean and minimalist advertising. c. Advertising was motivated by the need to sell the vastly increased supply of goods. d. Radio was the only advertising medium available to advertisers. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 90. (Scenario 3-2) The “Lemon” ad is characteristic of the style of advertising for which the creative revolution is known. The ad can be described as having a: a. well-researched, hard-sell approach. b. simple style and self-effacing humor. c. complex, intelligent execution. d. dense copy with incredible claims. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

91. (Scenario 3-2) One notable characteristic of the creative revolution was that: a. it immediately started responding to the massive social revolution. b. advertising played a role in discouraging consumption. c. art directors and copywriters began to have more say over how agencies were run. d. advertising as an institution was unaware of its own role in consumer culture. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 92. (Scenario 3-2) During the creative revolution, advertising: a. was dominated by subliminal advertising. b. reverted back to focusing on the product instead of the brand. c. became aware of its own role in consumer culture. d. reaffirmed gender roles and sexual norms. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension Scenario 3-3 Zooppa, a pharmaceutical company, started its business in 1850. Its advertisements helped their drugs to grow in popularity and was well-known for a brief period. It had developed a logo and had made itself known by their symbol on all of its product wrappers. 93. (Scenario 3-3) Which of the following eras would Zooppa belong to? a. The industrialization era b. The P.T. Barnum era c. The preindustrialization era d. The era of Great Depression ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

94. (Scenario 3-3) With reference to the era in which Zooppa was formed, which of the following mediums of advertisement would most likely be utilized? a. Radio b. Cable television c. Magazines d. Dailies ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 95. (Scenario 3-3) With reference to the era in which Zooppa was formed, Zooppa's advertisements would most likely be: a. deceiving and filled with false facts. b. patriotic and centered on consumption. c. bold and carnivalesque. d. creative and revolutionary. ANSWER:

Scenario 3-4 In 2010, Procter & Gamble, the world’s largest ad spender, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films were designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys. This was not the first time the two major brands teamed up to push family-oriented entertainment—in the late 1990s, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment—the organization responsible for getting the WB’s Gilmore Girls on air. The two have each found great success as a result of the movies, with each seeing an increase both in sales and brand favorability scores. Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one. 96. (Scenario 3-4) During the P.T. Barnum era, life in the United States began to change rapidly. Consumers began taking pride in their ability to purchase material goods, and advertising efforts became far more important. This new purchase-oriented attitude is commonly referred to as: a. the progressive movement. b. differentiation. c. consumer culture. d. brand entertainment. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97. (Scenario 3-4) A recent advancement makes the use of various forms of advertising more desirable because it allows the amount of ad exposure and impact to be directly measured, and allows companies such as P&G and Walmart to measure the success of their experimental methods. This advancement is in: a. print media. b. sublimal advertising. c. broadcast media d. interactive media. ANSWER:

98. (Scenario 3-4) The partnership between P&G and Walmart to create family-oriented movies is a perfect example of: a. e-business. b. consumer empowerment. c. interactive media. d. branded entertainment. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 99. (Scenario 3-4) Branded entertainment has become popular in recent years because of its many advantages. One of its main advantages is that: a. it can avoid consumers’ well-trained avoidance mechanisms to advertisements. b. it is looked at as commercial speech rather than artistic speech and is protected by the first amendment. c. it is required to go through all the ad regulations. d. it enables the traditional advertising industry to become clutter-free. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension Scenario 3-5 Jerome Brown is a student of marketing and advertising at a small college in the Midwest. He has been given the task of researching the history of modern advertising as a part of a group presentation. Jerome is sitting in the school’s library, carefully looking at a wide variety of magazine ads of different time periods of the 20th century to try to understand how advertising has evolved. Here are some descriptions of the ads that he found: 100. (Scenario 3-5) Ads of a particular era focused on the product itself, using lots of copy while lacking the real-world context of accurate information. This is a dominant characteristic of the era. a. designer b. peace, love, and the creative revolution c. World War II and the 1950s d. P.T. Barnum Era ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

101. (Scenario 3-5) Ads that first showed the “male” domain as the office and the “feminine” space as the home were a part of the _____ era. a. World War II and the 1950s b. Great Depression c. 1920s d. peace, love, and the creative revolution ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 102. (Scenario 3-5) During which period did product show blends for products such as the Strawberry Shortcake toy make regulation more difficult and enrage regulators? a. World War II and the 1950s b. The Designer Era c. The 1970s d. Peace, Love, and Creative Revolution ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 103. (Scenario 3-5) Ads in the designer era . a. were about public consumption status b. were free from the influence of the rapid-cut editing style of MTV c. focused on modern, contemporary values d. rebelled against traditional American values ANSWER:

104. (Scenario 3-5) Which of the following is true of advertising during the 1980s? a. It was dominated by Internet adverting and other e-brand promotions. b. Television advertising was influenced by rapid cuts with a very self-conscious character. c. New interactive media allowed direct measurement of ad exposure and impact. d. E-commerce and m-commerce changed the way people shop. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 105. Describe how the Industrial Revolution was a major factor that gave rise to advertising. ANSWER:

The Industrial Revolution was an economic force that yielded the need for advertising. It took Western societies away from household self-sufficiency as a method of fulfilling material needs to dependency on a marketplace as a way of life. It was a basic force behind the rapid increase in mass-produced goods that required stimulation of demand—something that advertising can sometimes be good at. By providing a need for advertising, the Industrial Revolution was a basic influence in its emergence and growth in Western economies. Part of the Industrial Revolution was a revolution in transportation, dramatically symbolized by the east–west connection of the United States in 1869 by the railroad. This connection represented the beginnings of the distribution network needed to move the mass quantities of goods for which advertising would help stimulate demand. In the 1840s, the principle of limited liability gained acceptance and resulted in the accumulation of large amounts of capital to finance the Industrial Revolution.

DIFFICULTY:

Rapid population growth and urbanization began taking place in the 1800s. Modernity gave rise to both urbanism and advertising. Overall, the growth and concentration of population provided the marketplaces that were essential to the widespread use of advertising. As the potential grew for goods to be produced, delivered, and introduced to large numbers of people residing in concentrated areas, the stage was set for advertising to emerge and flourish. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.3-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Bloom's: Comprehension

106. Outline the characteristics of the era of industrialization. ANSWER:

Users of advertising in the mid-to late 1800s were trying to cultivate markets for growing production in the context of an increasing urban population. A middle class, spawned by the rise of regular wages from factory jobs, was beginning to emerge. This newly developing population with the economic means to consume was concentrated geographically in cities.

By 1850, circulation of the dailies, as newspapers were then called, was estimated at 1 million copies per day. With the expansion of newspaper circulation fostered by the railroads and growing urban centers, a new era of opportunity emerged for advertising. Further, there were virtually no laws or regulations to restrict advertisers from saying or doing anything they cared to. Advertisers could outright lie, deceive, and otherwise cheat with little or no threat of being punished by government. Many advertisers took advantage of the situation and advertising was commonly considered an embarrassment (or worse) by many segments of society. At one point, firms even risked their credit ratings if they used advertising— banks considered the practice a sign of financial weakness. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

107. How did the advertising industry of the 1920s undergo major changes as it evolved into the very different industry of the 1930s? Describe the change in consumer perception that occurred and the reasons for these social shifts. ANSWER:

The ads of the 1920s exhorted the public to consume and enjoy life. The world of advertising found a previously unknown level of respectability, fame, and glamour as it persuaded Americans to live it up, enjoy life, and have it all, which could only be obtained by purchasing goods and services. Advertising instructed consumers how to be thoroughly modern and how to avoid the pitfalls or side effects of this new age. During this era, an endless consumption chain was created. Needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products solve even newer needs, and on and on. The style of 1920s ads howed slices of life, or carefully constructed “snapshots” of social life with the product. In these ads, the relative position, background, and dress of the people using or needing the advertised product were carefully crafted, as they are today.

All this changed by the 1930s with the Great Depression, however. The harsh reality of massive poverty changed forever the way people thought about money, spending, government, and business, as well as advertising. Advertising was part of big businesses, and people believed that big business and big greed got America into the great economic depression. Advertising was now seen as a villain, blamed for seducing people into the excesses of the 1920s. Ads at this time reflected these dramatic changes. Advertisers responded to the depression by adopting a tough, nofrills advertising style. The stylish ads of the 1920s gave way to harsher, more cluttered, inappropriately sexual, and often egregiously unethical advertising. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

108. What medium of advertising expanded and evolved during the Great Depression? Describe its role during the 1930s. ANSWER:

DIFFICULTY:

A notable event during ion years was the emergence of radio as a significant advertising medium. During the 1930s, the number of radio stations rose from a handful to 814 by the end of the decade, and the number of radio sets in use more than quadrupled to 51 million. Radio was in its heyday as a news and entertainment medium. An important aspect of radio was its ability to create a sense of community in which people thousands of miles apart listened to and became involved with their favorite radio soap opera, so named in reference to the soap sponsors of these shows. Radio’s contribution to advertising history should not be underestimated, it not only ushered in the idea of broadcasting, but it also socialized consumers to depend on a connection to distant characters, programs, brands, and the idea that there were other people “out there” who shared this connection—a mass audience. Voices of radio friends from afar made good company particularly during hard times. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 109. How did Americans view advertising after WWII? What overall emotions arose after WWII and how did ad agencies play on these sentiments? ANSWER:

During this period, that consumer culture became the new normal, a permanent central feature of society. However, public sentiment toward advertising itself was different from what it had been in the 1920s, following World War I. Public attitudes toward advertising were more negative, more skeptical, and the public largely assumed that it was very powerful. At the same time, there was great concern about the rise of communism and its use of “mind control” in the Cold War.

The 1950s were about fear, and advertisers again leveraged the accompanying disruption. Fearful people might be coaxed into anything that made them feel more secure. But at the same time, that fear of being manipulated by “modern science” and “mind control” made them very wary of advertising. Like other times, advertisers would turn these anxieties, contradictions, and social disruptions into advertising strategies. In this environment of mass fear, stories began circulating that advertising agencies were doing motivation research and using the “psychological sell,” which served only to fuel an underlying suspicion of advertising. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

110. In the late 1960s, explain how advertising had changed in meaningful ways. ANSWER:

In the late 1960s, advertising had finally changed in meaningful ways. For one, it became fairly self-aware. Advertising admitted being advertising. Ads during the late 1960s and into the early 1970s conveyed the sentiment, “ok, here’s an ad, you know it’s an ad—and so do we.” Advertising began to trade on insider status (we’re all in on it)—making fun of the straight and now silly ads of the 1950s and by playing to a sense of irony. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.3-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_04__Social__Ethical__and_Regulatory_Aspects_ 1. Societies tend to monitor advertising to determine what is irresponsible, unethical, or illegal. Despite social shifts and technological advances, a culture’s views on what is acceptable and unacceptable never change. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

2. As a promotional tool and an industry, advertising gets a lot of attention, scrutiny, and criticism today because it is so conspicuous and has established a global presence. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 4. Critics of advertising claim that advertising carries little of any good product information and that most advertising is biased, limited, and inherently deceptive. a. True b. False ANSWER:

5. Critics of advertising claim that advertisements do much more than just "shuffling of total demand," but contribute to the increase of total demand. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 6. Proponents of advertising claim that advertising addresses a wide variety of basic human needs. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 7. Advertisers of “controversial products” are in danger of deceiving the public when they attempt to show social responsibility, such as beer companies spending millions a year promoting responsible drinking. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 8. Critics of advertising argue that advertising creates a tendency of conformity and status-seeking behavior. a. True b. False ANSWER:

9. It is possible to make a reasonable argument that the massive consumption that advertising upholds and glorifies is actually quite good for American society, and for other cultures around the world. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 10. Subliminal advertisement has been proved to be an effective way of embedding images and messages into an advertisement that influences the unconscious minds of people. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

11. Even those who view advertising positively for other reasons often admit that it rarely contributes to art and culture, and art and culture have little room for advertising. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. Advertisers have historically been responsible for buying air time on educational and cultural programs despite their smaller audiences, thereby boosting the overall quality of American television. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

13. In advertising, deception refers to making false or misleading statements in advertisements. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knoweldge 14. It is almost impossible to legislate against emotional appeals in ads, since even if they seem exaggerated or inaccurate, they are unquantifiable so there is no way to prove this. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15. The calls for restrictions on advertising to children over the years have been based on a number of concerns, one of which is the promotion of superficial material things as necessary and valuable. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 16. The Children’s Food and Beverage Advertising Initiative is a voluntary commitment, signed by many well-known corporations, to stop advertising on children’s television programs. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

17. The FTC has regularly issued warnings to tobacco companies about ads that have been shown to cause young people to start smoking, backed up by decades of substantial evidence to this effect published by reputable medical journals. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 18. The three primary areas of advertising regulation are obscenity and profanity, deception, and unsolicited or direct marketing. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 19. The FTC’s regulations on deception have no authority over omissions or missing information about a product, but only cover those false statements or misleading claims actually made by the advertiser. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 20. Vertical cooperative advertising is an advertising technique whereby a manufacturer and dealer share the expense of advertising. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

21. An advertisement for a peanut butter product, of one firm, that compares itself to the peanut butter product, of another firm, would be considered illegal because it mentions brand-name goods produced by another firm. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 22. Consumer groups have been just as successful as the FTC in restricting children’s advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 23. The FTC’s advertising substantiation program, set up in the 1970s, requires that documented evidence supporting any claims is made available to consumers, and that such evidence provides a “reasonable basis” for believing that the claims are true. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 24. In a cease-and-desist order by the FTC, an advertiser agrees voluntarily to stop running the ad but doesn’t have to admit any guilt or wrongdoing. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

25. When an NFL football player begins endorsing a line of energy bars and protein drinks, he is required to genuinely demonstrate using the product in the advertisement although does not have to utilize the product in day to day life. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 26. State governments have very little authority over promotional activities of firms, and since most companies conduct interstate commerce, any violations are federal issues. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 27. Supporters of industry self-regulation claim that self-regulation helps avoid unnecessary government meddling. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 28. A relatively new federal agency is the National Advertising Division (NAD), empowered to create and enforce strict standards for packaging, labeling, distribution, and merchandising through its National Advertising Review Board (NARB). a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

29. The three divisions within a local Better Business Bureau—merchandise, financial, and solicitations—investigate advertising practices of companies in their geographic area. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. Since there has been little regulation of advertising and promotion on the Internet to date, the industry itself has had to act as its main governing body. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 31. Consumer and industry groups are free to make attempts at shaping and restricting the advertising process, but in reality have little voice or power compared to the federal government. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 32. The CAN SPAM Act does not outlaw all unsolicited emails. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

33. The main restriction of direct mail sweepstakes, as imposed by Congress, involves the requirement that they are randomly and fairly distributed to a wide range of communities and addresses throughout the 50 states. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowldge 34. The first government restriction on telemarketing required companies to remove households from their dialing lists when residents requested this. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 35. The field of public relations is not restricted by the same types of laws as other business elements of the promotional and marketing mix. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

36. Which of the following is one of the four major aspects of advertising that lower the overall cost of products, according to proponents? a. Market segmentation b. Operating costs c. Inelasticity of demand d. Economies of scale ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 37. The cost of products are lowered: a. when there are high success rates of a product. b. by lowering the economies of scale of a product. c. when there is a high inelasticity of demand for a product. d. when there are little or no competitors with a similar product. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 38. Which of the following forms the lowest order of needs in Maslow's hierarchy of needs theory? a. Physiological needs b. Needs for affiliation c. Self-actualization needs d. Intrinsic needs ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

39. According to Maslow’s hierarchy of needs structure, ads for breakfast cereals and soft drinks can be thought of as promotions for products that address: a. physiological needs. b. love and belonging needs. c. self-actualizing needs. d. esteem needs. ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge 40. Many consumers buy products that they perceive to have prestige and status which would be considered needs under Maslow's hierarchy theory. a. growth b. affiliation c. self-actualization d. esteem ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

41. A high-end specialty store, recognized nationwide for its prestigious reputation, is busy with customers eyeing and buying costly items of clothing with designer labels. They’re also adding $400 purses, $500 shoes, and $1,000 bracelets and necklaces to their ensembles. Which of the following basic needs of Maslow’s Hierarchy are most likely being fulfilled by these purchases? a. Extrinsic needs b. Need for affiliation c. Esteem needs d. Physiological needs ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Application

42. According to Maslow's hierarchy of needs theory, which of the following is the highest order of all human needs? a. Esteem needs b. Physiological needs c. Safety needs d. Self-actualization needs ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 43. Stephen Fox, a history and social observer, concludes on the history of American advertisement as: a. genuine and trustworthy. b. simple and smart. c. irrelevant and incoherent. d. superficial and hedonistic. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 44. In their 2004 “Campaign for Real Beauty,” the people creating the groundbreaking Dove ads attempted to be realistic, show sensitivity, and fight stereotypes by featuring: a. plus-size models who do not fit the narrow norm of beauty. b. women, who were not models, displaying various ethnicities, looks, and sizes. c. both men and women using Dove products. d. endorsements by famous elderly actresses with young-looking skin. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

45. In recent years, the U.S. Senate has approved a tenfold increase in fines for advertising situations that are determined to step over the line regarding American society’s basic ethical principles. What issues are being regulated in this way? a. Ad agencies that knowingly make false claims b. Advertisers that lure children into dangerous or unhealthy behaviors c. TV and radio stations that violate rules on airing profanity or sexually explicit materials d. Print media with ads that include erotic images or language ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI: 15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 46. It is believed that advertisers deceive via subliminal advertising by: a. influencing people to buy things via word of mouth advertisement. b. providing offers to the public that would stimulate them to buy their products. c. exaggerating the features of a product and providing assurances to stimulate people to buy a product. d. embedding hidden messages or images within an advertisement. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI: 15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 47. Well-known illustrator Andy Warhol felt strongly that the American ads that had promoted the nation’s most popular products over the decades were: a. visual manifestations of a sick society overtaken with consumerism and greed. b. anti-elitist artworks for the masses depicting ordinary goods used by both rich and poor. c. pioneering graphic innovations that visually displayed the power of elitism. d. flashy images and tasteless visuals that cluttered the cultural landscape. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

48. Which of the following best describes stealth sponsorship? a. It is when corporations pay journalists to give negative opinions about their competitors in their editorials. b. It is when corporations embed hidden messages in newspaper advertisements to unconsciously stimulate people to want something. c. It is when journalists are paid by corporations to receive favorable treatment in their editorials. d. It is when corporations partner with ancillary firms that they deal with to receive monetary favors from them. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 49.

are moral standards and principles against which behavior is judged. a. Ethics b. Appropriations c. Sects d. Dailies ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

50. Which of the following is true about ethics? a. It is based on personal judgement. b. It is applicable to business alone. c. It is strongly looked down upon in society. d. It is the basic structure of business. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Comprehension

51. What is the most fundamental ethical issue in advertising? a. Exaggeration, which is a serious but increasingly common practice b. Taste, particularly regarding society’s exposure to offensive messages c. Materialism, which also is a key legal issue d. Deception, particularly false or misleading statements ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Comprehension

52. Which of the following claims demonstrates puffery in advertising? a. "Only Crest Earns the Dental Seal of Approval Among All Major Brands!" b. "Ford Trucks Have Lower MPG than Chevy Trucks!" c. "Tide Beats Cheer in Sales 8th Year in a Row!" d. "World’s Best Cup of Coffee Served with a Smile Here!" ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 53. Which aspects of advertising are legal but fall into an ethical gray area, making them almost impossible to legislate against? a. Disclaimers b. Emotional appeals c. Testimonials d. Contests and sweepstakes ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

54. What was one of the government’s earliest restrictions that targeted specific techniques and policies being used in programming and advertising designed for children? a. The Children’s Food and Beverage Advertising Initiative b. The Nutrition Labeling and Education Act c. The “Cheeseburger Bill” d. The Children’s Television Act ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowldge 55. Three teenage girls who hang around together all start to smoke cigarettes, and eventually start to drink beer on weekends. With reference to recent research results of the Federal Trade Commission, the cause for the teenage girls' habits: a. would most strongly influenced by families, friends, and peers. b. have been influenced by advertisements portraying it as cool. c. stem from hereditary traits. d. directly relate to advertising campaigns of criminally negligent firms. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 56. Which of the following is true about advertising of alcohol and cigarettes? a. Brands in these categories don’t spend a lot of money on advertisements to truly influence consumers. b. These ads are usually designed to be subliminal, suggesting but not causing behavior. c. Brands in these categories are only advertised as part of other programs which do not interest children. d. Advertising cannot create primary demand in mature product categories such as these. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

57. Which of the following best describes primary demand? a. It is the demand for an entire range of various products. b. It is the demand for a specific brand. c. It is the demand for a specific product. d. It is the demand for an entire product category. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 58. Sarah, a 13-year-old girl, came across an advertisement that displayed a new trendy hair color aimed at a mature audience. Intrigued by the advertisement, Sarah goes out and buys the product. This is an example of . a. primary demand stimulation b. subliminal advertising c. vertical cooperative advertising d. phishing ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 59. The Cheeseburger bill passed by the U.S. House of Representatives: a. restricts advertisements featuring high-calorie and high-fat foods during children’s programming. b. prevents falsifying nutrition information for fast foods. c. bars the promotion of toys to children that tie in with fast foods, sugary drinks, and salty snacks. d. blocks people from suing food companies for their obesity. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

60. Although the courts and the FTC have been quite specific about defining many other practices, the definition of has always been relatively vague. a. unfair advertising b. copyright infringement in advertising c. false labeling and packaging d. phishing in online advertising ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 61.

is an advertising technique whereby a manufacturer and dealer share the expense of advertising. a. Differentiation b. Subliminal advertising c. Market segmentation d. Vertical cooperative advertising ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

62. Vertical cooperative advertising is usually legal, except when: a. unquantifiable emotional appeals are involved. b. a representation, omission, or practice is misleading. c. a firm uses monopoly power to dominate the other. d. bogus advertising allowances are given in the form of hidden price concessions. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

63. If firms decide to use comparison advertisements, they: a. may be required by the FTC to substantiate their claims. b. share the costs of advertising with local dealers and distributors. c. are acting in opposition to the recommendations of the American Association of Advertising Agencies. d. cannot legally mention a competing firm or brand by name. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 64. TetraCom, a personal computer manufacturer, launched an advertisement comparing its computer with a competitor's computers. However it was found to be an unfair claim. In order to justify its fairness, TetraCom would be required to include a(n) . a. testimonial b. stealth sponsorship c. consent order d. disclaimer ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: 65.

Bloom's: Application

was established by the Better Business Bureau to evaluate ads directed at children based on guidelines that encourage sensitivity to their level of sophistication and knowledge, as well as emphasis on positive social traits such as friendship and kindness. a. The Family Research Council b. The Children’s Food and Beverage Advertising Initiative c. The Children’s Advertising Review Unit d. The Children's Television Act ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

66. The was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. a. Library of Congress b. Federal Communications Commission c. Consumer Finance Protection Agency d. National Consumer Agency ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion TOPICS: Bloom's: Knowledge 67. The Wheeler-Lea Amendment in 1938 greatly influenced the future of advertising in America by: a. establishing the powerful Federal Trade Commission (FTC). b. allowing the FTC to stop practices that were misleading, regardless of their impact on competition. c. granting industries the right to form self-regulatory organizations to reduce FTC interference. d. broadened the FTC's power to practices that were unfair to competitors alone. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 68. In a legislation passed in the 1990s, the FTC’s role in regulating advertising was expanded regarding: a. nutrition labeling. b. spam. c. telemarketing. d. direct mail. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

69. The of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for claims available to consumers. a. Wheeler-Lea Amendment b. advertising substantiation program c. Robinson-Patman Act d. fair packaging program ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 70. Wrinkle Free were served a notice by the FTC for releasing a deceptive advertisement regarding a cream they had launched. However, the advertising agents of Wrinkle Free failed to comply to the notice. Which of the following remedies would FTC employ following noncompliance by Wrinkle Free? a. The FTC will dissolve the firm for non-compliance. b. The FTC would issue a cease-and-desist order to Wrinkle Free. c. The FTC would allow Wrinkle Free to continue airing the advertisement if it agrees to add a disclaimer to all their products. d. The FTC would order that Wrinkle Free pay a fine and double the fee to air the advertisement. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 71. An established cereal manufacturer is being investigated by the FTC for claims that its oatmeal can repair damaged arteries and prevent heart disease. Its executives are aware that if the claims are found to be false, the firm may receive the FTC’s most severe penalty, which involves: a. ordering corrective advertising. b. issuing a cease-and-desist order. c. an order to insert a disclaimer. d. dissolving the corporation. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

72. The outlines the responsibilities and social impact advertising can have and promotes high ethical standards of honesty and decency. It is also considered the most widely recognized industry standard. a. advertising substantiation program b. 4As Creative Code c. Federal Communications Commission d. Code Authority of the NAB ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 73. Which of the following is best describes the concept of "consumerism"? a. It is a relatively recent concept first observed in the 21st century. b. It involves consumer-oriented promotions such as coupons, premiums, and sweepstakes. c. It defines the tactics that individuals and groups use to enact laws, pressure firms, or target unethical practices regarding goods and services. d. It refers to the ongoing expansion of contemporary marketing beyond traditional production of ads and commercials, including e-commerce and behavioral targeting. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 74. Which of the four primary consumer protection organizations was the first to be established, and is best known for its publication of Consumer Reports? a. Consumer Federation of America b. Consumers Union c. Consumer Alert d. Commercial Alert ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

75. The describes itself as "an expert, independent, non-profit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves." a. Consumer Finance Protection Agency b. Consumer Federation of America c. Consumers Union d. Consumer Review Unit ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 76. Cloud9, a social networking site, has generated a large amount of revenue from selling information regarding its users preferences of soft drinks to a soft drink manufacturing and advertising firm. This is an example of . a. crowdsourcing b. appropriation c. phishing d. behavioral targeting ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application 77. The biggest concern over the future of behavioral targeting involves its growing ability to: a. tap into confidential credit card databanks. b. jam global traffic with billions of unwanted emails. c. hack into sensitive government websites. d. track a person’s movement on the Internet. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

78.

are unsolicited commercial messages sent through the e-mail system. a. Blogs b. Spam c. Premiums d. Infomercials ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

79.

Bloom's: Knowledge

is an insidious version of spam where Web users are enticed into entering personal information on a fake website that is forged to look like it is from a bank, the IRS, or other organizations. a. Puffery b. Appropriation c. Blogging d. Phishing ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Knowledge

80. Marketers have to be particularly cautious about using this area. a. coupons

as a form of promotion, because fraud abounds in

b. telemarketing c. premiums d. trade allowances ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

81. The Telephone Consumer Fraud and Abuse Prevention Act of the mid-1990s: a. required telemarketers to maintain a list of customers who do not want to be called. b. banned recorded messages and robocalls. c. restricted telemarketers from calling customers more than twice a month. d. allowed the use of "robocalls" that contain recorded messages. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 82. Despite being registered under the Do Not Call Registry, a person can receive calls from: a. businesses they've contacted in the last six months. b. politicians and pollsters. c. companies that have delivered something to the person in the last 24 months. d. co-operatives and insurance firms. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 83.

is the use of pictures or images owned by someone else without permission. a. Defamation b. Spamming c. Phishing d. Appropriation ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

84. What concept is involved when a statement that occurs in print is untrue and damages the reputation of a person, based on words found in magazine, newspaper, direct mail, or Internet reports? a. Libel b. Slander c. Larceny d. Appropriation ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge Scenario 4-1 A group called Adbusters has a website containing many pages that address issues of consumption and culture, media practices, and corporate responsibilities. For example, “The momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It’s now taking a toll beyond anything we could ever have imagined. What does it mean when one-sixth of the world’s population consumes without any real restraint?” Throughout the website, there are many references to advertising's role in creating and maintaining this situation. Not surprisingly, virtually all of the references to the practice of advertising are negative. (http://www.adbusters.org/home/) 85. (Scenario 4-1) Organizations like Adbusters see advertising as superficial. This view of advertising says that it: a. is not entertaining, or even interesting, to consumers. b. has no effect on demand for specific brands of products. c. offers little information based on function or performance. d. ignores the hedonic aspects of products. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Comprehension

86. (Scenario 4-1) Some philosophies regarding our path to overconsumption proposed by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is— beyond redemption—money-mad, hedonistic, superficial, rushing heedlessly down a railroad track called Progress." Fox then concluded that advertisers: a. are not creating the American way of life, but just reflecting it, good or bad. b. have nothing to do with the fact that all modern cultures have essentially become obsessed with consumption, not just America. c. are the self-serving manipulators and hidden persuaders who have created this situation. d. are to be blamed for the reckless lifestyle and behavior of modern day youth. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 87. (Scenario 4-1) In the past, Adbusters has cited 12 magazines that it said are responsible for pushing "a clean, exciting image for one of the dirtiest products around: tobacco." It suggested that Americans cancel their subscriptions to these magazines until they stopped accepting these ads. This is an example of: a. the social phenomenon called corrective advertising. b. a strategic tool for pressuring advertisers called boycott. c. a push for consumers to mobilize and take certain actions called behavioral targeting. d. the self-regulatory practice called corrective advertising. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

Scenario 4-2 Purple Inc. had recently been sued for the following reasons. The CEO had stated in a radio broadcast that Purple Inc's sunglasses were better than its rivals and that its competitors glasses was nothing but a fake piece of plastic. It had also published an article stating that its competitors glasses were fake and wouldn't be good for the customer's dog, let alone a human. 88. (Scenario 4-2) Purple Inc. launched an advertisement displaying an image of a model of its competitors sun glasses. However, it had not received consent from the party to utilize the picture. This is an example of . a. puffery b. appropriation c. spamming d. libel ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 89. (Scenario 4-2) The CEO of Purple Inc. stated that it's competitors sun glasses is nothing but a fake piece of plastic. This is an example of . a. spam b. puffery c. appropriation d. slander ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 90. (Scenario 4-2) Purple Inc. published an advertisement stating that its competitor's glasses were fake and would not be good for the customer's dog, let alone a human. This is an example of . a. libel b. accommodation c. puffery d. appropriation ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

Scenario 4-3 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says “Yes.” The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is “Lightning Rod—The Finest Rod Ever Cast.” After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC. 91. (Scenario 4-3) The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would be considered by U.S. courts to be: a. a false and misleading statement, which needs to be retracted. b. a superlative, which must be provable. c. unethical, but not truly deceptive. d. puffery, which doesn't need to be proved or disproved. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 92. (Scenario 4-3) The FTC investigates the claim of "20 percent more casting distance" when using the Lightning Rod. Castaway Sports admits that it has no actual data to support the claim but believes it to be true. However, the FTC rules that Castaway Sports should stop airing the ads, and in response the Lightning Rod advertisement was removed. This is an example of a(n): a. dissolution. b. cease-and-desist order. c. consent order. d. appropriation. ANSWER:

93. (Scenario 4-3) In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with a well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must: a. be considered an expert in the field of sport fishing. b. share 2 per cent of the expenses involved in the advertisement. c. actually use the Lightning Rod when fishing on his own. d. write the statements that he makes in the ad. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 94. (Scenario 4-3) The competitor who filed a complaint with the FTC also had the option of working with the media self-regulatory organization that evaluates ethical issues, the , which has the authority to review concerns over issues of truth, fairness, or good taste and make recommendations based on its findings. a. Consumer Federation of America b. NAB's Code Authority c. Family Research Council d. Better Business Bureau ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 4-4 Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys. He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability and the fact that it displayed the slogan " The best car in the world" urged him to look at the cars. After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance—$125.00." Joe asked a salesperson what that meant. The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer. After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expense for national and local advertising. 95. (Scenario 4-4) After Joe complained, the salesperson replied, "If our industry didn't do so much advertising you probably couldn't afford to buy that computer to do your own research." Which of the following "pros" of advertising is the salesperson likely using to support his comment? a. Advertising fosters a diverse and affordable mass media. b. Advertising fosters new product success and lowers costs. c. Advertising reflects the priorities of a society. d. Advertising contributes to art and culture in a society. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 96. (Scenario 4-4) The first time Joe had seen the Toyota Camry was in a magazine which displayed the slogan "The best car in the world." The slogan is an example of . a. unfair advertising b. slander c. subliminal advertising d. puffery ANSWER:

97. (Scenario 4-4) Joe saw a television ad that stated the Toyota Camry was "the world's best car for reliability." The use of such absolute superlatives in advertising is: a. an illegal use of advertising language. b. unethical but legal. c. a legal and quite common use of exaggeration. d. unfair advertising but not deceptive advertising. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

98. (Scenario 4-4) The Pederson dealership and Toyota share the expense of local advertising in this market. This is an example of advertising. a. subliminal b. vertical cooperative c. corporate d. institutional ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

99. (Scenario 4-4) Which government agency might eventually be reviewing the case if Joe felt he should file a complaint about advertising in the automotive industry? a. The Consumer Finance Protection Agency b. The Consumer Union c. The Federal Trade Commission d. The Consumer Federation of America ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

Scenario 4-5 Fritters, a fast food restaurant chain, known for its quick meals encountered an instance where a customer had blamed its food for his weight gain. Later on in the same year, Fritters launched an advertisement comparing its burger with a close rival's, which were very similar, and was asked to be corrected by the court. However, a second advertisement depicting a super model eating its fries and an obese person eating the fries of its competitors food chain had been deemed unethical and was ordered by the court to be removed, although Fritters continued airing the ad. 100. (Scenario 4-5) The would prevent Fritters from being sued by the customer blaming it for his obesity. a. Advertisement substantiation program b. Cheeseburger Bill c. Robinson-Patman Act d. Wheeler-Lea Amendment ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 101. (Scenario 4-5) Which of the following actions would help Fritters prove the fairness of its first comparison ad? a. By entering a stealth sponsorship with its competitor b. By including a disclaimer c. By sharing the profits of the ad with its competitor d. By mentioning the contents of the meals ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 102. (Scenario 4-5) Fritters's second advertisement is an example of a. subliminal b. comparison

advertising.

c. vertical cooperative d. corporate ANSWER: DIFFICULTY:

b Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking United States - Ohio - DISC: Promotion STATE STANDARDS: KEYWORDS:

Bloom's: Application

103. (Scenario 4-5) Fritters continued airing its advertisement despite being asked to remove it by court. As a result, Fritters would be asked by the court to remove the ad in 30 days. This is an example of . a. accommodation b. appropriation c. a consent order d. a cease-and-desist order ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 104. (Scenario 4-5) If Fritters had removed the advertisement soon after receiving a court order it would be an example of _____. a. a stealth sponsorship b. a consent order c. monopoly power d. puffery ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

Scenario 4-6 Rad productions has launched a series of advertisements. The first advertisement for a restaurant features an image of a child enjoying a burger. The second advertisement for a real estate firm depicts a cozy living room in a good locality in town. The third advertisement is for a designer wear firm depicting the sale of designer dresses and shoes. The fourth advertisement is for a university, depicting college students in business suits at a marketing class. 105. (Scenario 4-6) According to Maslow's Hierarchy theory, the first advertisement would satisfy a persons . a. existence needs b. physiological needs c. growth needs d. intrinsic motives ANSWER: b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

106. (Scenario 4-6) While some argue that advertising promotes materialism, others argue that advertising addresses a number of basic human needs. With reference to Maslow's Hierarchy, an advertisement for a high-end clothing company would likely be appealing to which of these needs? a. Physiological needs b. Safety needs c. Self-actualization needs d. Esteem needs ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 107. (Scenario 4-6) According to Maslow's Hierarchy theory, which of the following needs would the third advertisement most likely satisfy? a. Esteem needs b. Need for affiliation c. Extrinsic needs d. Self-actualization needs ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 108. (Scenario 4-6) With reference to Maslow's hierarchy theory, which of the following needs would the fourth advertisement most likely satisfy? a. Self-actualization needs b. Need for affiliation c. Growth needs d. Psychological needs ANSWER:

109. (Scenario 4-6) Rad productions is in the process of airing an advertisement which depicts a sports drink that provides athletes with more energy than other drinks. However, it is not stated what causes the added energy. It is most likely that the FTC would require a(n) from the manufacturing firm. a. appropriation b. stealth sponsorship c. disclaimer d. affirmative disclosure ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 110. Advertising educates consumers. In an essay, describe the pros of advertisement with reference to educating consumers. ANSWER:

Advertising Informs - Supporters of advertising argue that advertising educates consumers, equipping them with the information they need to make informed purchase decisions. By regularly assessing information and advertising claims, consumers become more educated regarding the features, benefits, functions, and value of products. Further, consumers can become more aware of their own tendencies toward being persuaded by certain types of product information. Historically, the very positive position has been offered that advertising is “clearly an immensely powerful instrument for the elimination of ignorance.” Now, that might be a little bit overstated, but according to this argument, better educated consumers enhance their lifestyles and economic power through astute marketplace decision making—can’t argue with that! A related argument is that advertising reduces product search time—that is, the amount of time an individual spends to search for desired products and services is reduced because of advertising, access to the Web, and mobile messages from advertisers. The large amount of information readily available through advertising and Web Sites allows consumers to easily assess information about the potential value of brands without spending time and effort traveling from retail store to retail store trying to evaluate each one. The information contained in an advertisement “reduces drastically the cost of search.”

DIFFICULTY:

Another aspect of informing the public has to do with the role advertising can play in communicating about important social issues. Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

111. List and describe the four aspects of how advertising lowers the cost of products. ANSWER:

Four aspects of the nature of advertising, supporters argue, help lower the cost of products are: 1. Due to the economies of scale (it costs less to produce products in large quantities), partly created by advertising’s contribution to stimulating demand, products cost less than if there were no advertising at all. As broad-based demand stimulation results in lower production and administrative costs per unit produced, lower prices are passed on to consumers. 2. Consumers have a greater variety of choice in products and services because advertising increases the probability of success that new products will succeed. The more products that succeed, the fewer losses firms incur from failed product introductions. In the end, this should make products cost less. 3. The pressures of competition and the desire to have fresh, marketable brands motivate firms to produce improved products and brands and introduce lower-priced brands.

4. The speed and reach of the advertising process aids in the diffusion of innovations. This means that new discoveries can be delivered to a large percentage of the marketplace very quickly. Innovations succeed when advertising communicates their benefits to the customer. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge

112. What are the three elements that declare an ad to be “deceptive”? What elements declare an ad to be “unfair”? How is “puffery” related to these concepts? ANSWER:

While any instance of a possibly unethical advertising message can always be debated, the law is quite clear about deception, but it is much more vague regarding unfairness. An ad is considered "deceptive" if the following three elements are present, based on the FTC’s ruling: if it involves a representation,omission, or practice that may mislead the consumer; if this representation, omission, or practice is judged from the perspective of a consumer acting reasonably; and if the representation, omission, or practice is a material one that would affect the consumer’s conduct or decision making about the advertised product or service. Very broadly, deception is defined as the presence of false or misleading statements in an advertisement. An ad is considered "unfair" based on 1990s legislation that says it needs to cause substantial injury to consumers that is not avoidable by consumers, and is not outweighed by benefits to consumers or competitors. This allows the FTC to assess both the benefits and costs of advertising, and it rules out reckless behaviors on the part of consumers, before a ruling can be made calling an ad unfair.

An ad includes "puffery" when superlatives or exaggerations are used that most reasonable people would understand as harmless claims or slogans. While such claims may not be technically “true” (“World’s Best Coffee!”), they are totally legal and are not considered to be either deceptive or unfair. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-2 AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

113. What are the three broad areas of advertising that are affected by the Federal Regulation? Briefly identify and explain each. ANSWER:

The three areas affected by federal regulation involve deception and unfairness, competition, and children. Issues involving "deception and unfairness" have historically been difficult to identify and prove. While most people would agree that both of these elements are unacceptable, there will always be differences in opinion as to exactly what is considered deceptive and exactly what is considered unfair. By the 1990s, the FTC and Congress worked together to more adequately define these concepts and the criteria involved. Issues involving "competition" involve unfair practices among competitors, including cooperative advertising, comparison advertising, and monopoly power.

Issues involving children involve the nature and content of ads aimed at children, the volume of advertising within children’s programming, and the limits and sensitivities involved in pitching products to those who are unsophisticated regarding consumption and are unaware of the power of persuasion. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

114. What are the four types of rulings that the FTC might enact in response to claims of unfairness or deception in an advertisement? Name and briefly define them, beginning with the most lenient and moving on to the strongest response. ANSWER:

The FTC has four options when it responds to claims of unfairness or deception in an advertisement: consent order, cease and desist order, affirmative disclosure, and corrective advertisement. A consent order allows an advertiser to agree to stop running a questionable ad without having to admit guilt. It is the simplest and least serious of responses that the FTC can enact. A cease-and-desist order requires that the advertiser stop running the questionable ad, usually within 30 days so a hearing can be held to determine whether it is truly deceptive or unfair. If a product may have a direct effect on consumer’s health or safety, an immediate cease-and-desist order can be enacted. An affirmative disclosure requires that the advertiser add important information that had been missing from previous ads, information that might cause consumers to make false assumptions about the product.

An order for corrective advertising requires that the advertiser run new ads that clarify misleading claims or that retract erroneous information that the consumer has been led to believe as true. This is the strongest and most extensive response that the FTC can enact. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.4-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

115. A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in the Houston area is filed with the local Better Business Bureau (BBB). Apparently, homeowners are expecting the price shown on the company’s direct mailings and newspaper coupons (a price confirmed at the time the appointment is made) but are quoted a much higher fee once the crew arrives and “inspects” the carpets. The company’s ads promise the latest in “green” cleaning materials and industrial techniques, but the cleaning fluids and equipment used by the crew are also suspect. Outline the path the complaint would take if it were to eventually arrive at the FTC. Specifically, list the organizations it would pass through, and in general terms, the actions that would need to be taken by each organization for the complaint to be forwarded on to federal regulators. ANSWER:

In a situation like this, the local BBB reviews the issue, often sent in the form of a complaint by consumers or competitors. It sends the complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus. If the NAD staff cannot resolve the complaint with the advertiser, in this case the carpet-cleaning service, it is passed along to the National Advertising Review Board (NARB). Its review panel hears the advertiser’s case, reviews other evidence, and deliberates. It may dismiss the case, or it may convince the cleaning service to change the wording in its advertising. If it does neither, it will then publicly identify the case, the advertiser, and its findings, and then forward the complaint to the FTC. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.4-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Ch_05__Advertising__Integrated_Brand_Promotion_ 1. When researchers study consumer behavior, they study a process that begins with product evaluation and ends with the perception of a need. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 2. The consumption process is based on the sequence of four stages: need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 3. Advertising has never been able to point out or activate a need state, but it has been able to provide information on how to alleviate the discomfort of an existing unfulfilled need. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 4. An internal search for information is never sufficient and requires an external search for consumers to find what they want. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

5. Advertising can influence both internal and external searches. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 6. Evaluative criteria are universal traits or attributes that pertain to all product categories and are used as rating factors when making purchases. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 7. Shortly after Juan bought a Ford truck, he began to doubt his purchasing decision and nervously questioned himself on whether the Toyota or Chevy trucks were better deals. He started wondering if he made the right purchase. The process Juan is experiencing is called an internal search. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

8. An individual would tend to have higher involvement in a purchase of an item if it is of a lower price. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

9. A consumer-brand relationship is the same as that between friends or siblings. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 10. While purchases based on brand loyalty are merely consumption simplifiers, purchases based on habit are the result of a strong commitment to a brand. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 11. Experience and involvement are both low in the extended problem solving decision making mode. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 12. When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Knowledge

13. Jerome always buys Coke, and only Coke—not Pepsi or any other cola brand. Consumers like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are demonstrating brand loyalty. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 14. While grocery shopping, Kate picks up the "Krispys" cereal instead of the usual cereal that she buys every day. This is an example of variety seeking. a. True b. False ANSWER:

True DIFFICULTY: Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 15. When consumers believe their brand to be more popular than it actually is, it is called an accessibility bonus. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 16. Without customer attention, there is no chance that an advertiser’s message will have its desired impact. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

17. Advertising clutter derives from the context in which ads are processed. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 18. Viewing consumers as social beings allows advertisers to focus on the attitudes they have toward brands, which are much more important than the meanings they associate with brands. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 19. Advertisements that are not consistent with the values of people, a society, or a culture are likely to stand out, demand attention, and be remembered and accepted. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 20. Although cultures participate in rituals, consumers do not participate in rituals. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Knowledge

21. Social class, race, and ethnicity are ways in which members of a culture are classified by systematic inequalities that affect their social standing and is known as stratification. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 22. In the past, advertisers believed that they could determine the social class of people based on what they consumed. This belief has remained an unchallenged foundation of marketing and promotion. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 23. When the prices and profit margins of brands become low, they become commodities, sold on price. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 24. If social class affects consumption through tastes, media preferences remain unaffected. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

25. Consumer preferences and strata have become more dependable than in the past. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 26. Gender's impact on consumer behavior is limited to heterosexual men and women. a. True b. False ANSWER:

False

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 27. The meaning of community is limited to the idea of a specific geographic place. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 28. Jamal manages a Chicago Jiffy Lube and Ted manages a Detroit Jiffy Lube. Though they have never met and have only emailed through their franchise network, they experience a sense of connectedness through their common experience called brand stratification. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Application

29. The basic idea of cultural branding is to find some rift in the seams of society and then use it to offer a solution in the form of a branded good. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 30. The text explores the concept of consumer behavior from two perspectives. These two perspectives are a. psychological and social

b. formal and informal c. local and global d. economic and political ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 31. The concepts of need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation represent the four stages of the: a. creation of brands. b. integrated brand promotion process. c. consumer decision-making process. d. cultural branding method. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

32. A(n) arises when a consumer experiences a mental discomfort or anxiety that motivates action. a. evoked set b. need state c. consideration set d. top-of-mind awareness ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 33. Peyton decides to make herself her morning cup of coffee. However, she realizes that she's run out of coffee powder which leaves her feeling discontent and craving for coffee. This is an example of . a. a need state b. cognitive dissonance c. an evoked set d. stratification ANSWER:

can tap into information that has accumulated in one's memory as a result of repeated advertising exposure. a. Involvement b. Stratification c. An internal search d. A life-stage variable ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

35. A young man tends to buy things that allow him to experience pleasure, avoid guilt, feel pride, or relieve fear. In doing so, he chooses products based on: a. emotional benefits. b. rituals. c. cognitive dissonance. d. life-stage variables. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

36. Once consumers decide that they need something, what is the first step they take as they begin to think about a product purchase? a. Use an external search process. b. Conduct an internal search for information. c. Use an alternative evaluation process. d. Determine the degree of cognitive dissonance. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

37. The set of brands that comes to mind when a category is mentioned is referred to as a. an external search b. conversion c. cognitive dissonance d. an evoked set ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

38. A new neighbor moves into the neighborhood and asks George, a person living next-door, where he could find good take-out food. Three places immediately come to George's mind, and he suggests them to his new neighbor. George's suggestions of good take-out food is an example of a(n): a. external search. b. need state. c. evoked set. d. stratification. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 39. A magazine advertisement for a home entertainment system contains detailed copy, technical information, and a long list of product design features. In general, this ad would be most appropriate for someone who is: a. conducting an external search. b. easily influenced by subliminal advertising. c. experiencing advertising clutter. d. trying to fulfill a basic need. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 40. Which of the following statements would be made by someone experiencing cognitive dissonance? a. “I sure need a new lawn mower, but I'm too lazy to find out what's out there.” b. “I’d like to buy one of those new Toro lawn mowers, but they’re kind of expensive.” c. “I hear the new Toro lawn mowers are one of the best in the market, but my neighbor says his is hard to start.” d. “I've bought a Toro lawn mower, but I now realize the new John Deere might have been a better choice.” ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Application

41. The concept of cognitive dissonance is more commonly referred to as: a. advertising clutter. b. buyer’s remorse. c. variety seeking. d. a need state. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

42. The idea of involvement in the context of consumer decision making refers to how: a. a person will use a product or service. b. much importance accompanies the choice of a product. c. an individual's past experience with a product makes the person more aware about it. d. the consumer first heard about a product or brand. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 43. A person is most likely to have a high degree of involvement while buying: a. laundry detergent. b. a notepad. c. paper towels. d. a car. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

44. Rita needs to buy a tent, sleeping bag, and hiking boots for a two-week camping trip in the mountains. She has never bought camping equipment before and assesses what other equipment she may require during her trip. She also asks her friends, who have gone camping before, what equipment she should buy. Once she has purchased all the camping gear, she evaluates whether she made the right purchases. In this situation, Rita is engaging in: a. extended problem solving. b. top of mind awareness. c. stratification. d. variety seeking. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 45. Which of the following modes of consumer decision making involves low involvement and low experience? a. Limited problem solving b. Habit or variety seeking c. Extended problem solving d. Brand loyalty ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 46. A young mother consistently buys Oreos for a special treat, which her kids love. However, every now and then, she buys Salerno Butter Cookies or Keebler Animal Crackers, for a change in taste. Which mode of consumer decision making does this demonstrate? a. Clutter b. Variety seeking c. Cognitive dissonance d. Stratification ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

47. Which of the following is a difference between brand loyalty and a habit? a. Habit involves low involvement, whereas brand loyalty involves high involvement. b. Brand loyalty is not based on emotional connections, whereas habit is based on emotional connections. c. Brand loyalty can be easily disrupted with skillful advertisement, whereas habit cannot be disrupted with advertisements. d. Unlike brand loyalty, habit is based on a conscious commitment to find the brand each time the consumer purchases from the category. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 48. Which of the following serves as a solution to a simple consumption problem and occurs in settings where a decision isn’t involving? a. Extended problem solving b. Habit c. Conversion d. Brand loyalty ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: 49.

Bloom's: Comprehension

refers to misrepresenting information in a positive way to favor a particular brand with which a consumer has an emotional connection. a. A need state b. Cognitive dissonance c. Predecisional distortion d. Stratification ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

50.

memory is very important where advertising is concerned and is the kind of memory through which names, words, and concepts are retrieved from people's minds. a. Iconic b. Episodic c. Emotional d. Semantic ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

51. A survey was conducted by Spotless, a dishwashing liquid manufacturer, at a department store. During the survey, the store manager asked customers which dishwashing liquid they utilized, to which most of them immediately replied, "Spotless." When asked why, the customers stated that they felt it was used by everyone and was the most popular. Based on the given scenario, it can be said that Spotless has . a. low brand loyalty b. high involvement c. an accessibility bonus d. a low economy of scale ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 52. Which of the following is a similarity between habit and variety seeking? a. They refer to the tendency of consumers to continue using a brand for many years. b. They both involve a high degree of brand loyalty. c. They involve a high degree of emotional connection to a brand. d. They occur in settings where a decision isn’t involving. ANSWER:

53. Ethan owns a Redwood Bicycle, a brand of high-tech bicycles known the world over. He is admired among his friends at the university for owning a Redwood Bicycle. This scenario demonstrates the concept of . a. an internal search b. conversion c. cultural capital d. variety seeking ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Bloom's: Application

54. Manuel wants to buy a Sony PlayStation because his friends have several versions of this technology and he has enjoyed playing games with them. However, he is distracted by the ads for other games and is not sure which product to purchase. In this scenario, Manuel is encountering: a. cognitive dissonance. b. a high degree of brand loyalty. c. advertising clutter. d. predecisional distortion ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 55. An elderly woman has always been happy with Ivory soap and does not believe in trying out another brand. In such a scenario, what type of an obstacle would a new brand experience in order to reach her and be effective? a. A consumer who is not exposed to massive volumes of ads b. A consumer who seeks variety c. A consumer who is resistant to changing rituals d. A consumer who misinterprets messages ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

56. While waiting for his wife to get ready to go out, Marcus picks up one of her interior design magazines and skims through the pages. Six ads in the magazine are for flooring and carpeting, but he and his wife don’t need new flooring or carpeting, and he barely glances at these ads. This is an example of: a. conversion. b. limited problem solving. c. cognitive dissonance. d. selective attention. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

57. Which of the following is true about branding and advertising based on social and cultural factors? a. Consumer behavior lacks the ability to be meaningfully social. b. Advertisements are purely socially isolated attempts to attitude manipulation. c. Consumers are merely information processors. d. Advertisers have meaning as a primary focus. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 58. Which of the following best describes the social meaning approach? a. It focuses on using beliefs and rituals to subconsciously manipulate people into buying something they don't need. b. It centers around viewing consumers solely as information processors. c. It involves knowing how to connect with human beings with reference to their consumption practices. d. It refers to connecting with people by using ads as mere socially isolated attempts to influence their attitudes. ANSWER:

59. In the world of advertising, culture is seen as: a. people’s rules and regulations. b. the way things are done. c. a sense of morality in society. d. the spiritual beliefs of people. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 60. Which of the following is true of culture? a. It is easier to observe culture when it’s more unfamiliar. b. It is purely national or global. c. It is most visible to those who are immersed in it. d. It is always geographic. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 61. A commercial for hot dogs says that it’s not the Fourth of July unless there is a cookout, and it’s not a cookout unless there is a grill full of hot dogs. This ad attempts to tie the product to a: a. social attitude. b. purchasing habit. c. cultural ritual. d. social class. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

62. A person’s standing in an American society is often based on social stratification, which reflects the systematic inequalities within that society regarding: a. caste and gender. b. cultural engagement and emotional intelligence. c. wealth, power, education, and status. d. religious beliefs, morals, and values. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Marketing Plan Bloom's: Knowledge

63. Which of the following is stratification based on? a. Political beliefs b. Emotional intelligence c. Religious beliefs d. Income ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 64. One of the main reasons why social class may not be completely reliable in predicting the preferences and tastes of Americans is that: a. it has little to do with demographics. b. it has a hierarchical structure and involves assigned membership. c. many people with a huge range of income call themselves "middle class." d. is static, unchanging, and permanent. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

65. Related to the way a consumer’s culture shapes his or her tastes and preferences is the concept of cultural capital. This refers to the: a. value that a culture places on certain consumption practices and objects. b. particular pattern of consumption that depends on fiscal stability. c. financial investment needed to create a brand. d. monetary value of a brand in a particular area. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 66. A designer handbag, used by a celebrity, would have a. high cultural capital b. high social capital c. low inelasticity of demand d. low economies of scale

ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 67. Advertisers track the youngest child living at home because when the child leaves home, the consumption patterns of the family changes. This planning criterion is known as . a. cultural capital b. a life-stage variable c. stratification d. accessibility bonus ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Comprehension

68. Identity is a sociological concept and it matters a great deal to advertisers. The current thinking is that the presence of celebrities in ads help contemporary consumers: a. minimize buying power. b. legitimize the symbolic value of consumption. c. work out their identity issues. d. reject conspicuous consumption behaviors. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 69. Which of the following has been found regarding advertising and gender? a. Advertisers have been reluctant to communicate to men and women in different ways. b. Advertisers have no definitive list of gender differences as the expression of gender depends on situational factors. c. Advertisers often find gender issues overly sensitive and tend to avoid them. d. There are no differences between men and women if they are the products of differential socialization. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: 70.

Bloom's: Comprehension

are groups of consumers who feel a commonality and a shared purpose attached to a consumer good or service. a. Brand ambassadors b. Trend setters c. Trade channels d. Brand communities ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

71. Advertisements—like books, movies, posters, and paintings—can act as sociocultural “texts” that are read and interpreted by consumers. In this case, advertising: a. is an entity separate from mass media. b. relies largely on words rather than images. c. helps to transmit meaning within a culture. d. lacks giving products a social meaning. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 72. Effective ads turn mere products into actual brands by: a. giving them cultural meaning. b. keeping prices lower than those of competitors. c. offering discounts and sales. d. repeating the message in more than one medium. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 73. Ads become part of our everyday landscape, language, and reality as a result of many people: a. being subjected to advertising clutter resulting from taglines, slogans, and jingles. b. being highly involved in purchasing decisions. c. picking up and adopting their phrases, ideas, slogans, and agendas. d. buying only certain, selective products based on trust and loyalty. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

74. Which of the following demonstrates the way we pick up phrases or slogans from advertisements and commercials, then make them part of our everyday conversation, and ultimately part of our popular culture? a. “Make my day.” b. “How are you?” c. “Yes we can.” d. “Just do it.” ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 5-1 As clothing and accessories retailer Gap, Inc. attempted to carry its brand to greater heights, executives felt that a great way to refresh the company’s logo would be to change it all together. However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision. A number of consumers stated that the new logo looked “cheap, like a crummy PowerPoint presentation,” and that was all company executives needed to hear. Gap admitted that the idea of changing the company’s logo was probably not the right move nor was it the right time to do so. The company will look for other ways to develop the brand. Clearly, Gap’s reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions. (Iko Han, “Gap’s New Logo Proves the Company Knows How to Listen.” Cornerline News, October 13, 2010.) 75. (Scenario 5-1) Gap's logo had been extremely popular, and most of its customers recognized and used their products for years. This is an example of . a. brand loyalty b. variety seeking c. advertising clutter d. cognitive dissonance ANSWER:

a DIFFICULTY:

Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

76. (Scenario 5-1) Gap’s loyal customers generally believed the company’s products are high-end and sophisticated. Judging by the initial responses, consumers felt Gap’s new logo represented lower-end products, and would, therefore, appeal to a lower social class. This concept of differing social levels is called: a. cognitive dissonance. b. advertising clutter. c. stratification. d. cultural capital. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 77. (Scenario 5-1) Facebook played an important role in Gap reversing its decision to change the company logo. Thousands of users posted status updates expressing their distaste for the new logo, and company executives could not overlook the opinions of their customers. In this situation, Gap had a strong: a. need state. b. brand community. c. internal search. d. reaction to advertising clutter. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

Scenario 5-2 Since its introduction to the market in 2007, Apple Inc.’s iPhone dominated other smartphones in terms of units activated per year. However, several years later, Apple faced stiff competition from Google’s Android software and Research in Motion, the maker of the Blackberry. The problem for Apple is that its competition, primarily phones powered by Android operating systems, largely outnumber the iPhone in terms of available options. In the U.S. alone, there are over twenty smartphones that run on the Android operating system, compared to Apple’s one iPhone. Americans are now buying more Android phones than iPhones. Experts claim that if the trend continues, Android will have erased the iPhone's once enormous lead in the high-end smartphone market in a little over a year. Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies. 78. (Scenario 5-2) Originally, one reason that the iPhone outsold other smartphones was the feeling of pride many consumers associated with owning one. This represents: a. an emotional benefit. b. a functional benefit. c. a need state. d. cognitive dissonance. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 79. (Scenario 5-2) While deciding on what brand of cell phone he should buy, Mark, a university student, asks his friend for suggestions on different models of cell phones. His friend immediately says that the iphone and Blackberry are good options. This is an example of . a. a need state b. stratification c. an evoked set d. cognitive dissonance ANSWER:

80. (Scenario 5-2) While searching for a phone with bluetooth and Wi-Fi features, Kate finds seven different advertisements stating that their phones have the best bluetooth and Wi-Fi features when compared to others. Kate is now confused about which brand to choose. This is an example of . a. advertising clutter b. cognitive dissonance c. predecisional distortion d. life-stage variables ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 81. (Scenario 5-2) After purchasing a cell phone, Melody states that she should have purchased an iphone rather than the one she purchased because the iphone is more popular and elegant. This is an example of . a. predecisional distortion b. life-stage variables c. cognitive dissonance d. a need state ANSWER:

Scenario 5-3 While grocery shopping, Carol selects items that she regularly buys because she knows they are good and she has used them for years. However, the usual Chucky's Cheddar cheese that she buys is not available and she buys a similar brand of cheese that she hasn't tried but has heard of before. Chucky's cheese being an extremely popular brand has managed to make itself known, and when most of the customers shopping at the store were asked which was the cheese that they bought, most of them stated Chucky's almost immediately. 82. (Scenario 5-3) When Carol finds out that Chucky's cheese is not available, she buys another brand of cheese which she hasn't purchased before. As cheese isn't the most important item on her list, she spends very little time picking an alternate brand of cheese. This is an example of . a. extended problem solving b. limited problem solving c. stratification d. cognitive dissonance ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 83. (Scenario 5-3) The management of Chucky's cheese had asked all store managers to check with their customers which cheese they preferred and thought was popular. When customers were asked this question, their immediate answer was Chucky's. Chuckys cheese has created a(n) . a. accessibility bonus b. external search c. process of variety seeking d. cognitive dissonance ANSWER:

84. (Scenario 5-3) When Carol saw that the cheese was out of stock, she immediately thought of Porky's, and Cubby Cow's cheese. This is an example of . a. an external search b. an internal search c. cognitive dissonance d. conversion ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 85. (Scenario 5-3) Chucky's cheese tries to get its customers to buy its cheese more than once. This is an example of _____. a. extended problem solving b. low involvement c. conversion d. an accessibility bonus ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application Scenario 5-4 Torque, a car manufacturer, aims to make its slogan "Burn Rubber" known to every individual in a way that they immediately associate it with the firm. The company has created a social media page where almost a thousand fans have registered. However, there are two competitors who advertise the same features as those of Torque's cars. The firm has a large number of customers who think it manufactures the best cars and there is no other manufacturer better than Torque. 86. (Scenario 5-4) Torque advertises its slogan in a way in which people will immediately associate it with its cars. Torque is using advertising which involves the . a. episodic memory b. emotional memory c. iconic memory d. semantic memory ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

87. (Scenario 5-4) A lot of fans have joined Torque's media page. This is an example of a a. life-stage variable b. variety seeking process c. brand community d. advertising clutter

ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 88. (Scenario 5-4) Torque has a large number of people who think that they have the best cars in the industry. They think of them whenever they need to buy a car. This is an example of . a. brand loyalty b. cognitive dissonance c. variety seeking d. stratification ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 89. (Scenario 5-4) Jake is about to buy a limited edition sports car from Torque. It is most likely that Jake will have while deciding to buy the car. a. advertising clutter b. high involvement c. cognitive dissonance d. limited problem solving ANSWER:

90. (Scenario 5-4) The people of Benson believe that a person driving a sports car marks success. It is most likely that owning a sports car manufactured by Torque would have . a. high cultural capital b. inequality of demand c. low economies of scale d. low involvement ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

Scenario 5-5 Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix the beverages that he knew his guests would like. Having never purchased a blender before, Jerome felt that he needed to shop carefully and take his friends' suggestions on which brand to buy. After visiting several stores and examining numerous models and brands, Jerome settled on a Kitchen-Aid model that cost $100. 91. (Scenario 5-5) The consumption process for the blender began when Jerome: a. brought home a blender from the store. b. identified the criteria he would use to look for blenders. c. made a mental list of the brands he would consider. d. realized he did not have a blender for the party. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 92. (Scenario 5-5) Jerome realized that he did not have a blender for the party. This is an example of a. an information search b. an alternative evaluation c. cognitive dissonance d. a need state ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

93. (Scenario 5-5) Jerome asked his friends for suggestions on which brand of blender he should purchase. This is an example of: a. need recognition. b. postpurchase use. c. top of mind awareness. d. information search. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

94. (Scenario 5-5) Which of the following best describes Jerome's mode of consumer decision making in buying a blender? a. Limited problem solving b. Low involvement c. Extended problem solving d. Predecisional distortion ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 95. (Scenario 5-5) Jerome mentions to another shopper at the store that low-quality blenders are made of plastic and high-quality blenders have a stainless steel base. This comment represents Jerome’s: a. beliefs. b. brand loyalty. c. brand attitude. d. habits. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

Scenario 5-6 Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office. Their recording time is limited to 120 seconds and the devices sell for less than $20. VoiceIt’s products are about the size of four credit cards stacked on top of one another and have a life of about a year. The slogan the firm uses on its packaging and advertising is “Don't Write It, VoiceIt!” 96. (Scenario 5-6) Most consumers who purchase Voice-It products buy them primarily when their preferred brand is out of stock. They also do not spend much time on information search. What mode of consumer decision making does this indicate? a. Brand loyalty b. Limited problem solving c. Extended problem solving d. Cognitive dissonance ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 97. (Scenario 5-6) The management of Voice-It Technologies believes in retaining their customer base and provide customers at their stores attractive offers which will help create brand loyalty and repeat purchases. This is an example of . a. predecsional distortion b. cognitive dissonance c. limited problem solving d. conversion ANSWER:

98. (Scenario 5-6) Mark feels that post-its are much more efficient and simpler than Voice-It and that it is more practical and purchases post-its instead of the Voice-It product. This is an example of . a. a predecisional distortion b. a habit c. a variety seeking process d. cognitive dissonance ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

99. (Scenario 5-6) The Voice-It products are more expensive than others in the market. They are mostly used by big businessmen and higher-level managers. It is most likely that Voice-It products would have . a. a high cultural capital b. low brand loyalty among higher-level managers c. advertising clutter d. life-stage variables ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI: 15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

100. Discuss the need recognition state of the consumer decision making process. ANSWER:

A need state arises when one’s desired state of affairs differs from one’s actual state of affairs. Need states are accompanied by a mental discomfort or anxiety that motivates action; the severity of this discomfort can be widely variable depending on the genesis of the need.

One way advertising works is to point to and thereby activate needs that will motivate consumers to buy a product or service. A variety of needs can be fulfilled through consumption, and it is reasonable to suggest that consumers’ needs are often sufficiently recognized and motivating to many consumers. Products and services should provide benefits that fulfill consumers’ needs; hence, one of the advertiser’s primary jobs is to make the connection between the two for the consumer. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

101. What is cognitive dissonance? Discuss how advertisers can prevent dissonance. ANSWER:

Advertising plays an important role in alleviating the cognitive dissonance that can occur after a purchase. Cognitive dissonance is the anxiety or regret that lingers after a difficult decision, sometimes called “buyer’s remorse.” Often, rejected alternatives have attractive features that lead people to second-guess their own decisions. If the goal is to generate satisfied customers, this dissonance must be resolved in a way that leads consumers to conclude that they did make the right decision after all. Purchasing high- cost items or choosing from categories that include many desirable and comparable brands can yield high levels of cognitive dissonance.

When dissonance is expected, it makes good sense for the advertiser to reassure buyers with detailed information about its brands. Postpurchase reinforcement programs might involve direct mail, email, or other types of personalized contacts with the customer. This postpurchase period represents a great opportunity for the advertiser to have the undivided attention of the consumer and to provide information and advice about product use that will increase customer satisfaction. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 102. How does the extended problem solving mode of decision making differ from the limited problem solving mode of decision making? ANSWER:

When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving. In this mode, consumers go through a deliberate decision-making process that begins with explicit need recognition, proceeds with careful internal and external search, continues through alternative evaluation and purchase, and ends with a lengthy postpurchase evaluation.

In contrast, limited problem solving is a more common mode of decision making. In this mode, experience and involvement are both low. A consumer is less systematic in his or her decision making. The consumer has a new problem to solve, but it is not a problem that is interesting or engaging, so the information search is limited to simply trying the first brand encountered. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.5-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Analysis

103. Discuss how emotion plays an important role in consumer behavior. ANSWER:

Emotion is incredibly important in consumer behavior. Researchers have shown that if a brand is associated with a positive emotion or feeling, the subsequent information about the brand is actually distorted in favor of the emotion-linked brand and against others. By this, we mean that consumers actually change the nature of incoming information to favor this emotional brand connection. It then affects subsequent consumer decisions in favor of the emotion-linked brand. This power favors the use of emotional branding techniques, brand relationship building, including advertising. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 104. Discuss culture as a major component in consumers' lives. ANSWER:

Culture surrounds the creation, transmission, reception, and interpretation of ads and brands, just as it touches every aspect of consumption.Culture is what people do and is the way things are done. Cultures may be large and national, or they may be regional or local, or not geographic at all. It’s usually easier to see and note culture when it’s more distant and unfamiliar. Further, members of a culture often find the ways they do things to be perfectly natural and normal. Culture is also said to be nearly invisible to those who are immersed in it.

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGU: 15.5-4 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension

105. Describe how ads transmit meaning. ANSWER:

Advertising can be thought of as a text. It is “read” and interpreted by consumers. One can think of it as being like other texts: books, movies, posters, paintings, and so on. It is a creative product. In order to understand ads, one has to know something of the cultural code, or they would make no sense. Advertisers place advertised products and a slice of social life in an ad to get the two to intermingle, to become part of the same social scene. In other words, the product is given social meaning by being placed within an ad that represents an idealized context. This slice of life, of course, is the type of social setting in which potential customers might find, or desire to find, themselves. According to McCracken’s model, meaning has moved from the world to the product (shoes) by virtue of its sharing space within the frame of the advertisement.

When advertisers put things within the frame of an ad, they want the reader of the ad to put them together seamlessly, to take them together as part of each other. When a consumer purchases or otherwise incorporates that good or service into his or her own life, the meaning is transferred to the individual consumer. Meaning is thus moved from the world to the product (via advertising) to the individual. When the individual uses the product, that person conveys to others the meaning he or she and the advertisement have now given it. Their use incorporates various rituals that facilitate the movement of meaning from the good to consumer. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI: 15.5-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_06__Market_Segmentation__Positioning__ 1. When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC Customer Bloom's: Comprehension

2. In the world of advertising, markets are positioned, but products are segmented. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge 3. STP marketing includes three factors—identifying, positioning, and informing. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG Analytic STATE STANDARDS: TOPICS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Knowledge

4. If General Mills decides to use the STP framework, it can divide its resources to reach a number of separate and distinct market segments. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Application

5. Positioning means to cut your market into pieces and focus on the piece or pieces that make the most sense. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Knowledge 6. Companies can do well by spending advertising dollars to target nonusers over other user groups, since they offer the highest level of opportunity. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 7. Spending advertising dollars to get “switchers” to buy your brand may seem like a good idea, but it often results in only one-time or random purchases. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Comprehension

8. Demographic segmentation is used in selecting target segments by focusing on consumers’ descriptors such as their values, beliefs, philosophies, and opinions. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

9. Demographics are rarely used to describe or profile target segments that have already been identified as prospects by other variables. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 10. Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 11. Today, advertising tends to be used almost exclusively by businesses targeting consumer markets, and only in very rare circumstances by businesses trying to sell products to other businesses. a. True b. False ANSWER:

False

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

13. One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Comprehension 14. Any meaningful positioning strategy needs to include several broad elements in its message—including attentiongetting, variety, flexibility, and complexity. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 15. A gourmet ice cream franchise advertises itself as offering thick, creamy, gooey treats, calling them delectable, desirous, and decadent—the richest and sweetest desserts found anywhere in America. The owner of the local shop buys ads focusing on extended hours and friendly service. This is an example of internal consistency. a. True b. False ANSWER: False DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

16. Haley Inc. is a company that manufactures products for babies and toddlers. It's advertising campaigns have carried various slogans over the years, but they have all revolved around the same thematic core. This is an example of consistent positioning approach. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 17. When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets at the same time, because it alerts consumers to a wide array of diverse functions and positive consequences related to the product. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Comprehension

18. The positioning model from Anne Bahr constitutes the overlapping of the proposition for the brand and persuasion tools. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Knowledge

19. Bayt Café is launching a new advertising campaign portraying its restaurant as having very fast service and a cheerful staff to target a younger crowd. The campaign alone will be enough to gain the loyalty of the younger segment. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 20. LivTo Inc. is a company that manufactures cosmetic products for women. It claims to have the best customer care services and is prompt to address the grievances of its customers. To be internally consistent, the company should invest in a better Research and Development department and also create a new image for its products. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 21. The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to the target segment. a. True b. False ANSWER:

22. A brand’s value proposition is a statement of the benefits of the brand that provide value to its target consumers and includes functional, emotional, and self-expressive benefits. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 23. When ad agency professionals are creating a campaign for a huge global retail firm with complex value propositions, in all likelihood, no single ad can be expected to reflect all aspects of the brand’s value. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 24. The strategic planning triangle suggested by Thorson and Moore features as its three main aspects the campaign’s segments, its value proposition, and its persuasion tools. a. True b. False ANSWER:

True DIFFICULTY:

Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 25. The process of cutting a market into pieces and focusing on the piece or pieces that make the most sense is termed a. segmentation b. integration c. rationalization d. differentiation ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

26. The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age. When the team chose to focus on just-graduated-20-somethings, it was a. benefit positioning. b. positioning. c. targeting. d. segmenting. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 27. What does T stand for in the term STP marketing? a. Tangible b. Technology c. Target d. Territory ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 28. What is the first step in STP marketing? a. market segmentation b. position strategy c. benefit positioning d. target marketing ANSWER:

29. The Folgers team aligned its marketing mix in a design that would represent a particular identity, showcasing certain themes and values, shaped to gain distinctive approval from the just-graduated-20-somethings. This demonstrates the process of a. switching. b. commoditization. c. segmenting. d. singularization. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 30. What does the acronym STP mean? a. Sales, Target, Product b. Sell To People c. Segmenting, Targeting, Positioning d. Sell The Product ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 31. In STP marketing, the term a. segmentation b. redistribution c. positioning d. targeting

refers to an attempt to give a brand a certain meaning relative to its competitors.

ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

32. For most products and services, some users will purchase much more, and more frequently, than others. These consumers are called . a. lead users b. switchers c. emergent consumers d. variety seekers ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: 33.

Bloom's: Knowledge

are consumers who are so committed to a brand that their consumer behavior toward it borders on the pathological. a. Emergent consumers b. Variety seekers c. Switchers d. Brand-freaks ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS:

Bloom's: Knowledge

34. What is a downside to adopting a heavy-user-focused segmentation plan? a. Heavy users usually form less than one percent of users by volume. b. Heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand, or their image of the brand. c. Heavy users are a costly target segment and much can be spent in getting their business merely to have it disappear just as quickly as it was won. d. Heavy users have little knowledge of the brand and negligible social influence. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

35. The consumers termed turn out to be a costly target segment; much can be spent in getting their business merely to have it disappear just as quickly as it was won. a. brand freaks b. lead users c. switchers d. heavy users ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 36. As a segment, variety seekers tend to a. be extremely committed to a brand. b. buy brands based on sales, discount coupons, or other incentives. c. need little encouragement to continue purchasing a brand. d. be unusually enthusiastic and often excessive in their purchasing activities. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 37. Which segment specifically offers marketers an important opportunity to build future business by luring first-time buyers? a. switchers b. brand-freaks c. lead users d. emergent consumers ANSWER:

38. The one key characteristic that all types of a. variety seekers b. brand-freaks c. heavy users d. emergent consumers ANSWER:

share is that their brand preferences are still under development.

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 39. Ultima Inc., a manufacturer of high-end cell phones and laptops, has designed a campaign that specifically targets a group of emergent consumers and aims to persuade them to try its products. This campaign is an example of: a. ambush marketing. b. guerilla marketing. c. heavy-user-focused marketing. d. point-of-entry marketing. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 40. Characteristics and traits such as age, gender, race, marital status, income, education, and occupation are widely used in segmentation. a. geographic b. psychographic c. competitive d. demographic ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

41. Which of the following is true about the demographic group known as "woopies"? a. They are identified as free spirits in their 20s and 30s who have yet to commit to long-term careers, relationships, lifestyles, or even geographic locations. b. They represent the youngest demographic segment in the U.S. c. They are identified as consumers over 50 years of age. d. They consist of pre-teens and early adolescents, who will have great buying power within a few years. ANSWER: DIFFICULTY:

c Difficult

LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 42. Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is the basis of segmentation. a. psychographic b. commitment-level-based c. geographic d. demographic ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 43. Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation? a. Thorson and Moore’s model b. PRIZM c. SIC Codes d. VALS ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

44.

is a term that advertisers created in the mid-1960s to refer to a form of research that emphasizes the understanding of consumers’ activities, interests, and opinions. a. Demographics b. Geodemographics c. Psychographics d. Micrographics ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 45. Why are systems such as PRIZM used widely by advertisers for segmentation? a. because they provide deep segment description b. because they allow for segmentation on the basis of frequency of usage c. because they provide deep insights into consumers' motivations d. because they emphasize the understanding of consumers’ activities, interests, and opinions ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

46. Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus? a. Estée Lauder b. Folgers c. Mobil d. Pillsbury ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

47. As highlighted in the text, “Careful Cooks,” “DownHome Stokers,” and “Functional Feeders” are all segments identified by Pillsbury based on segmentation. a. geopsychographic b. niche c. repositioned d. lifestyle ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 48. In recent years skillful marketers have merged information on where people live with the U.S. Census Bureau’s demographic data to produce a form of market segmentation known as segmentation. a. demographic b. micrographic c. reprographic d. geodemographic ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 49. A firm hires an agency to persuade hairdressers, spas, and hair salons to purchase its line of hair care products, grooming equipment, and professional tools. In this case, the agency is specifically involved in: a. psychographic research. b. business-to-business marketing. c. the competitive field d. lifestyle segmentation. ANSWER:

50. Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus: a. how much they are willing to pay for it. b. whether the segment is currently growing. c. how much they are willing to settle for. d. the organization’s ability to provide it. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Moderate

51. A major criterion to consider during segment selection is the segment’s business. a. ad clutter

, or the companies that are vying for that

b. business market c. competitive field d. target market ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Knowledge

52. What is a market niche? a. A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met b. A large group of heavy users who are loyal to a brand because it provides value at a relatively low price c. A market segment that is served by many firms and is characterized by high levels of competition d. A market segment that is characterized by high sales volumes and low prices ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

53. In Mobil’s positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did. But one issue that was NOT a factor was that the segment a. spent the largest amount of money at service stations. b. had the greatest number of consumers in sheer numbers. c. had potential for growth. d. bought extras besides just gas. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 54. A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds. To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one? a. expanding on its menu b. adding extra drive-up windows c. hiring more order-takers d. hanging up digital timers behind the counter ANSWER:

Bloom's: Application

55. The model shows that a brand’s best opportunity for success involves the overlapping of four important factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and “stretch” or the potential for consumer relevance over time. a. SWOT analysis b. PEST analysis c. Symantec brand opportunity d. Porter's four corners ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

56. One big plus from a product position that stays consistent over time, like State Farm's “Good Neighbor” campaign, is that it a. is more likely to break through advertising clutter. b. successfully reaches nonusers. c. doesn’t need to target a particular segment. d. is easily repositioned. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 57. Which firm did the text highlight as one with a long-term, successful campaign that epitomizes “simplicity” in defining its distinctiveness, a critical ingredient in a good positioning strategy? a. Exedrin b. Jack Daniels c. Nike d. Tylenol ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 58. Which of the following forms the final apex of the strategic planning triangle proposed by Esther Thorson and Jeri Moore? a. selection of a mix of persuasion tools b. identification of the target segment c. specification of the brand’s value proposition d. division of a market into segments ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

59. A potential downside of a heavy-user-focused segmentation plan is that: a. it can take resources away from those that require persuasion. b. heavy users usually require constant encouragement to keep consuming a product. c. heavy users do not differ significantly from infrequent users in terms of their motivations to consume. d. it shifts focus to emergent consumers who need to be convinced to purchase the product. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

60. Thorson and Moore place as the paramount apex in their model. a. specification of the brand’s value proposition b. identification and specification of the target segment c. identification of the various persuasion tools that may be deployed as part of the campaigns d. specification of niche segments within larger segments ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

61. A is a core idea that frames an ambition or aspiration for a brand that will be relevant to target audiences over time. a. brand extension b. brand orientation c. brand initial d. brand platform ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

62. What are the three fundamental options that advertisers have when choosing a positioning theme? a. demographic, psychographic, or geographic b. benefit, user, or competitive c. STP, VALS, or SIC d. functional, emotional, or psychological ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

63. The second important apex in Thorson and Moore's strategic planning triangle entails: a. identification and specification of the target segment. b. identification of the various persuasion tools that may be deployed as part of a campaign. c. specification of the brand’s value proposition. d. specification of niche markets within a large segment ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 64. The American Pork Producers has been running a long-term campaign with the tagline "Pork. The other white meat." This is an example of a. lifestyle segmentation. b. demographic segmentation. c. benefit positioning. d. competitive positioning. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application

65. Which of the following is true of segment selection? a. The number of heavy users in a segment is usually very large. b. It is enough to assess the size of a segment to select it as a company’s target segment. c. Growth potentials for all segments are generally very low. d. Marketers are inclined to devote resources to segments projected for dramatic growth. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

66. A brand’s is a statement of the functional, emotional, and/or self-expressive benefits delivered by the brand. a. universal product code b. memorandum of understanding c. value proposition d. warranty ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 67. A powerful value proposition in most situations today includes functional, emotional, and self-expressive benefits, a. though only tangible product benefits are truly emphasized. b. though no single ad can reflect all three aspects. c. all of which must be included in a given advertising campaign. d. though children are excluded because their decision making is controlled by parents. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

68. Veda Inc., a manufacturer of cosmetics, offers two product lines, each catering to a distinct segment. Its most popular brand, Alo, targets women who want makeup that will last at least ten hours after application. With its brand Amo the company targets a niche market of women who are looking for makeup with anti-ageing properties. What type of segmentation is Veda Inc. using? a. Benefit segmentation b. Heavy-user-focused segmentation c. Lifestyle segmentation d. Geographic segmentation ANSWER:

Bloom's: Application

69. The use of psychographics to focus on differences in consumers’ activities, interests, and opinions usually results in segmentation. a. heavy-user-focused b. benefit c. geographic d. lifestyle ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 6-1 Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors, and shaving preparations. Several years ago, Gillette announced the launch of two new highperformance women's razors, broadening the portfolio of the top-selling Venus brand, the world's most successful franchise in female shaving. The two new razors were Venus Vibrance the first power wet shaving system for women, and Venus Disposable, a premium-performing disposable razor. Both razors incorporated technological and design enhancements to better address the specific shaving needs of women, and will build on current market segments. More recently the company has launched Venus Embrace, the first five-blade women’s razor, with the tagline, “Reveal the Goddess in You.” According to its website, nearly 40 million women now use Venus products. (http://www.gillettevenus.com/en_US/products/index.jsp) 70. (Scenario 6-1) The position for any one market segment should a. also hold an appeal for those outside the segment. b. be identical to positions selected for other segments. c. change occasionally to break through advertising clutter. d. be easily communicated to consumers. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 71. (Scenario 6-1) The original plan to sell new products to the female market a. cannot be considered an STP effort because Gillette is targeting multiple segments. b. may or may not have been an STP effort, depending on whether Gillette has created sub-segments of these large segments. c. may or may not have been an STP effort, depending on whether all possible segments are being targeted by Gillette. d. fit all the criteria of an STP effort by Gillette. ANSWER:

72. (Scenario 6-1) According to the information provided here, Gillette has identified market segments along lines. a. benefit b. demographic c. geographic d. usage pattern ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 73. (Scenario 6-1) It appears that the management at Gillette has performed the fundamental task behind effective segmentation. Gillette has matched what members of different segments want with a. the company's ability to provide it. b. a single appeal. c. a heavy-user-focused campaign. d. a distinct geographic profile. ANSWER: a DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Application

74. (Scenario 6-1) is a tool more likely employed by Gillette to supplement the use of demographic data by providing information about consumers’ activities, interests, and opinions. a. Psychographics b. PRIZM c. STP d. Bass diffusion ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 6-2 Sunshine Meals Inc. is a company that sells breakfast foods such as cereals, pancake mixes, etc. The company conducts a study to segment its consumers. It finds that segment A consists of a small group of individuals who purchase four boxes of the brand’s cereal every week. The average user consumes one box every week. It targets segment A by providing them with samples of other Sunshine products with the purchase of one box. Segment B consists of a large number of college students and individuals who have recently begun living on their own, and require readymade mixes as their breakfast solution. It targets these consumers by providing more variety with pancakes and waffle mixes. Segment C consists of consumers who are not consistent buyers and targeting these consumers could prove a loss for the company. 75. (Scenario 6-2) The consumers of segment A can be classified as . a. fickle users b. heavy users c. variety users d. competitive users ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 76. (Scenario 6-2) Which of the following marketing strategies is more likely to have been used by the company to target segment B users? a. Niche marketing b. Geographic segmentation marketing c. Ambush marketing d. Point-of-entry marketing ANSWER:

77. (Scenario 6-2) Segment C consumers are more likely to be a. emergent consumers b. brand freaks c. lead users d. variety seekers

ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 78. (Scenario 6-2) If Sunshine Meals Inc. begins producing a range of sugar free marmalades to target a small segment of health conscious consumers who would be willing to pay a premium price for products appropriate for their diets, this would be an example of a. niche marketing b. geographic segmentation c. point-of-entry marketing d. geodemographic segmentation ANSWER: DIFFICULTY:

a Difficult

LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." 79. (Scenario 6-3) Instead of “mothers and daughters,” why didn’t Keds define its target segment simply as “women”? a. This concept already has a number of established companies targeting it. b. This is not based on a realistic approach to segmentation. c. This is based on demographic criteria for which media is difficult to define. d. This is poorly defined and provides no clear orientation or identity. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 80. (Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements? a. Emergent b. Lifestyle c. Geographic d. Usage pattern ANSWER:

81. (Scenario 6-3) The copy for this campaign features moms and daughters commenting on their close relationships, and Brandweek magazine said that the new Keds ads "really go for the heart." This points to the campaign’s focus on a. identifying emotional benefits. b. delivering its promise. c. targeting nonusers. d. using VALS data. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 82. (Scenario 6-3) The information provided says that Keds was trying to “turn around a long-term slide” in its shoe business, and that “for years, it had depended on its image as the women's no-frills summer shoe.” Obviously, things had changed and what Keds needed was a change in its once-successful strategy and identity to meet new market conditions. This change in strategy is called: a. internal consistency. b. self-expressive marketing. c. repositioning. d. business-to-business marketing ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 1824. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The seniors liked them because they became the focus of a hobby. The professionals did not buy them for any reason other than décor. 83. (Scenario 6-4) To attract the in the market, the Plantatarium offers a punch card that rewards buyers with a $10 discount each time they purchase $150 worth of plants and other goods from the store. a. emergent consumers b. demographic segment c. variety seekers d. heavy users ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 84. (Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40,000 a year. This is an illustration of a strategy. a. geographic segmentation b. demographic segmentation c. psychographic segmentation d. geodemographic segmentation ANSWER:

85. (Scenario 6-4) The owners of this business have decided to carry a great deal of plants that flower throughout the year because most consumers have said they like them for the cheerful feeling they give. This suggests that The Plantatarium is focusing on what different consumers want from its offerings, that is, segmentation. a. business-to-business b. psychographic c. benefit d. repositioning ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 86. (Scenario 6-4) A small group of customers have mentioned that they would like to browse through several varieties of cactus, so the Garretts have decided to devote a small corner exclusively to rare cacti. These customers constitute an example of a. market niche. b. psychographic segmentation. c. geographic segmentation. d. demographic segmentation. ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 87. (Scenario 6-4) The Plantatarium promotes itself in different media using the phrase "An out-of-this-world selection of unique plants." This phrase is a reflection of the firm's a. positioning strategy. b. VALS profile. c. target market. d. demographics. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion STATE STANDARDS: KEYWORDS:

Bloom's: Application

Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) • "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) • "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) 88. (Scenario 6-5) Based on the planned schedule described here, students who have maintained a 3.9 GPA would be described as one of the bowling team's a. nonuser groups. b. positioning strategies. c. target segments. d. diverse markets. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 89. (Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -- many are casual bowlers themselves -- have attended every match for nearly three years. These students would best be described as a. competitive users. b. emergent consumers. c. heavy users. d. variety seekers. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

90. (Scenario 6-5) Each summer, the MSU Athletic Director looks at the city map, chooses a different local neighborhood, and knocks on doors, encouraging residents to join one of the supporting clubs. He then keeps track of which neighborhoods are the strongest supporters, and which may need more prompting in the future. In this way he is using a segmentation strategy. a. psychographic b. heavy-user-focused c. geographic d. demographic ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 91. (Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action. This is an example of segmentation. a. emergent b. geographic c. lifestyle d. demographic ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 92. (Scenario 6-5) In marketing materials created to target fans, the slogan "Two hours of wholesome fun for all ages" is used to attract ticket-buyers. This philosophy is an example of segmentation. a. niche b. demographic c. geodemographic d. benefit ANSWER: DIFFICULTY:

d Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion STATE STANDARDS: KEYWORDS:

Bloom's: Application

93. Think about a product that you have used in the past week. Using this as an example, explain the differences between segmenting, targeting, and positioning in the STP approach to marketing. ANSWER:

Student examples will vary. Depending on the product, their approach to marketing will vary also. Segmenting involves breaking down large, heterogeneous, and diverse markets into manageable submarkets, or customer segments. For segmenting to be useful, a marketer must be able to reach these resulting submarkets with its message. One of the most common ways to approach this task is by analyzing consumption patterns and commitment levels (heavy users, nonusers, brand-loyal users, variety seekers or switchers, emergent consumers). Other methods that are used include demographic, geographic, geodemographic, psychographic, and benefit segmentation. Targeting involves choosing the specific subgroup—the target segment—as the focal point of the marketing efforts. Often, the largest segment is not chosen as the target, but rather, it is the particular segment made up of certain individuals with similar interests, needs, or lifestyles that may have a certain need or desire for the product. Positioning involves designing and representing a product so it will occupy a distinct and valuable space in the marketplace. Positioning strategy is created when a company selects key themes and concepts to feature regarding the product when communicating its distinctive qualities. Overall, markets are segmented, while products are positioned. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 94. Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation. They have targeted heavy users in the past, but they’re considering a new focus on college students. They are considering switching target segments even though this group is comprised largely of people who don’t drink coffee, or have just started to drink coffee and don't consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user strategy? What term is used to describe the college students the company is considering targeting? What are the advantages of targeting this new segment? ANSWER:

Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to keep consuming. A heavy-user focus by an advertiser takes attention and resources away from those who do need encouragement to purchase the marketer's brand. Perhaps most importantly, various heavy users may be significantly different in terms of their motivation to consume, their approach to the product, or their image of the product. The college students who may try Brownsworth Brothers Coffee are considered emergent consumers. Their preferences are still under development. This target audience may produce minimal profits in the short term. However, there is the strong opportunity for gains in the long-term if they begin their initial coffee drinking with this brand, like it, and get hooked on it. They may ultimately demonstrate brand preference, or possibly even brand loyalty, for Brownsworth. DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

95. What is the difference between a consumer market and a business market? Give an example of each. Then describe how business markets are segmented, and use your example to explain your answer. ANSWER:

Consumer markets are basically made up of individuals, or households—those markets for products and services that are purchased by people or their families and housemates to fulfill various personal needs. Business markets are made up of institutional and industrial buyers who purchase items, parts, equipment, supplies, or other materials to be used in the production of other goods and services, which are then resold to other businesses or directly to households. Business markets can be segmented in some ways similar to the methods used for consumer markets, such as analyzing their usage rates and geographic locations. But some methods used for consumers—such as psychographic or lifestyle segmentation— normally do not translate well to business buyers. Instead, simple sales-related methods are often used, such as identifying business markets based on their stage in the purchase process. In this way, potential prospects, first-time buyers, or those new to the market or industry can be targeted differently than long-standing business customers, and can be specifically addressed by the company’s advertisements and promotions. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 96. Describe the concept known as niche marketing. What are the competitive advantages of marketing to a niche? ANSWER:

Niche marketing is based on the premise that smaller is often better when selecting target segments. By definition, large segments are usually established segments that many companies have identified and targeted previously. However, these large segments may be poorly defined. Niche marketing involves identifying and serving a relatively small group of consumers who have a unique set of needs. Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. The small size of a market niche often means it would not be profitable for more than one organization to serve it. Thus, when a firm identifies and develops products for market niches, the threat of competitors developing imitative products to attack the niches is reduced. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Application

97. What is a positioning strategy? Explain the the Bahr–InterBrand positioning opportunity method. ANSWER:

A positioning strategy involves the selection of key themes or concepts that the organization decides to feature to communicate the distinctiveness of its product. It helps the consumer understand what the product does. It must be simple and distinctive. Once the firm has segmented the market and selected its targets, the positioning strategy should come naturally. It can involve several themes:

One of the best positioning strategies comes from Anne Bahr, the former CEO of InterBrand.This model shows that a brand’s best opportunity for success involves the overlapping of four important factors: current relevance to the consumer, credibility or consumer belief in the brand, differentiation or a recognition of uniqueness, and “stretch” or the potential for consumer relevance over time.The point at which these four meet is considered the best opportunity, the brand’s best position. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 98. What is a value proposition? Explain why it is useful—even critical—to an organization, to its brand, to its team, and to its target audience. ANSWER:

A value proposition is a statement of the functional, emotional, and self-expressive benefits offered by the brand. It acts as the basis for brand choice and customer loyalty, which is critical to the ongoing success of a firm. The value proposition offers a way to capture the full record of a brand and all of its characteristics and benefits. It also provides a foundation and structure that will maintain this information as new members join the team and work on new promotional efforts for the brand. It is basically a way to capture the brand strategy on paper. It makes things crystal clear about what is believed and known about the brand. That way, everyone on the team can share this clear set of values, benefits, and other pieces of information related to the brand. But more important, the value proposition is what keeps the brand consistent in the eyes of the target market. It consolidates all the customer benefits offered by a product, and reminds consumers of these benefits. Over time, different aspects can be built into the value proposition. Well-established benefits reinforce one another, and new benefits are added to current ones. Some brands -- national brands, and especially global brands -- are very involved and complex, with long histories and decades of marketing efforts. They may now involve branded entertainment, product placement, mobile marketing, online advertising, or other relatively new promotional formats. The value proposition for these products is even more important in order to keep all brand information clear and consistent throughout all promotional efforts. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.6-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_07__Advertising_Research 1. Developmental advertising and promotion research is used to generate opportunities and messages. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 2. Developmental advertising is conducted late in the advertising process, after the ads, branded entertainment, or other IBPs are created. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 3. A concept test seeks feedback designed to screen the quality of a new idea, using consumers as the judge and jury. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 4. AIO research uses survey data from consumers who have answered questions about themselves. a. True b. False ANSWER:

5. Long interviews are not a very popular research method since they last for more than an hour. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 6. The text stresses that for research methods to be truly useful to the client, they need to be trustworthy and meaningful. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 7. A focus group involves blind taste tests of products. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 8. Focus groups are for generating statistics and making scientific generalizations, not for gaining any real understanding or insight. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

9. In a testing situation, people are shown drawings depicting pairs of shoppers walking through grocery stores with empty dialogue balloons above them, and they are asked to fill in what the shoppers may be saying. This is an example of a concept test. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 10. ZMET is designed to draw out people’s buried thoughts and feelings about products and brands, based on their use of metaphors. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 11. A researcher is said to conduct field work when he or she joins in and actually takes part in the study, usually in a taste test or other form of product testing. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 12. Google Groups and Facebook are good sources of secondary research data today. a. True b. False ANSWER:

13. The main advantages of using online sampling are the generalizability and representativeness of data collected. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 14. The advantages of using online sampling are the ensured generalizability and representativeness of the data collected. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 15. Internal company data such as customer service reports and customer complaints are considered sources of primary data. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 16. One way to obtain information about marketing and advertising is to purchase data from commercial services such as Current Population Survey. a. True b. False ANSWER: DIFFICULTY:

False Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Knowledge

17. An agency staffer conducts a test to see how the message for her client's product, dishwasher detergent, compares to the way other ads in her product area have tested. In this way, she will gather qualitative test scores. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 18. Professional publications or periodicals in which marketing and advertising professionals report significant information related to industry trends are sources of secondary data. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

19. Copy testing is rarely a good idea, particularly because the account executives, the creative team, and the client usually dislike it. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Knowledge

20. Direct response research, also called attitude research, is the kind that evaluates ads just as they are about finished. a. True b. False ANSWER: DIFFICULTY:

False Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Knowledge

21. A communication test simply explores whether the people “get” the ad—whether they understand the main point, get the joke, or see the connection. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 22. Psychologists now believe that memory is more fluid than was once thought, and is more strongly influenced by motivation to remember, or not to remember. a. True b. False ANSWER:

True DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 23. Recognition tests are the industry standard for television ad testing. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 24. For print ads, recall testing is most commonly used. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

25. The Starch readership test measures readers of print materials who either noted the ad, associated the ad, or read most of the ad, then calculates these results into scores. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 26. Overall, recall is easier, because people are shown a stimulus and answer yes or no about having seen it, whereas recognition is harder, because people have to deliberately search their memories for concept without any prompting or stimulus. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 27. Many forms of pre-post attitude studies are becoming more popular than they once were due to a recent push to gather more rounded “before and after” data from potential consumers. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 28. The old physiological approaches to measuring physical responses during ad viewing have been replaced by PT or MRI scans of brain activity, and these are commonly used in copy research today. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

29. Eye-tracking technology systems basically measure how long a person gazes at a particular print ad or a particular part of the ad. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 30. It has been found that, overall, advertising has the greatest impact on sales early in the product life cycle, or soon after a new model or version of the product is released. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: 31.

Bloom's: Comprehension

is a type of thought process that emphasizes getting rid of any preconceived notions of what a good or service is currently and replaces it with a process in which designers partner with users/potential users to actually create from scratch what the good or service should actually look like. a. Design thinking b. Red-hat thinking c. Systems thinking d. Convergent thinking ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

32.

is a type of projective technique that offers consumers the chance to fill in the conversation of cartoonlike stories. a. Story construction b. ZMET c. Consumer report d. Dialogue balloon ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Knowledge

33. The type of advertising research undertaken before ads are made is known as a. copy research b. developmental research c. results-oriented research d. single-source research

ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 34. Developmental research looks at consumers’ identities, perceptions, wants, and habits early in the production process so these elements can influence the final ad before a lot of money is spent. This type of ad research is also called: a. account planning. b. design thinking. c. consumer insight. d. scientific advertising. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

35. Which new philosophy of advertising focuses on building a thought process that dismisses preconceived notions and instead attempts to create from scratch what a good or service should look like? a. Starch Readership Services b. Activities, interests, and opinions c. Design thinking d. Zaltman Metaphor Elicitation Technique ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 36. When consumers act as the final judge and jury through their feedback on the quality of a new idea, they are taking part in a(n): a. observation analysis. b. concept test. c. direct response d. tracking study. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 37. Identifying the activities, interests, and opinions of target audiences to help creatives produce better advertising is called: a. lifestyle research. b. embedded description. c. story construction. d. normative research. ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

38. Projective techniques test ads for consumer response with: a. in-depth, one-on-one, open-ended discussions. b. physiological techniques and brain scans. c. fragments of pictures or words that need to be completed. d. demographic profiles of market members. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 39. Dialogue balloons, story construction, and sentence and picture completion are all types of a. quantitative b. predictive c. survey d. projective

techniques.

ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 40. A consumer is shown a picture of a man looking into the oven while a woman sits at desk nearby with her back to him. The consumer is then asked to suggest what is going on in the picture, and to fill in blanks such as “The man is . . . ” and “The woman is . . . ” This method gathers consumer data through: a. metaphors. b. sentence and picture completion. c. dialogue balloons. d. field work. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

41. In a research study using the Zaltman Metaphor Elicitation Technique, participants: a. suggest alternative design options for a particular product. b. fill out surveys about their consumption habits. c. use the product in a controlled environment, while researchers observe them. d. visually represent their experiences with a product or service. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: 42.

Bloom's: Comprehension

involves observation in real-life situations, to obtain information about the consumption practices of real consumers in real settings. a. Online netnography b. Embedded field work c. Geographic clustering d. Consumer panel ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Application

43. A detailed version of Internet research called involves both gathering Web data as well as seeking unique information in online formats similar to that found in traditional face-to-face interviews. a. netnography b. projecting c. thought listing d. frame-by-frame testing ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

44. The is an ongoing survey that provides estimates of demographic, housing, social, and economic characteristics every year for states, cities, counties, metropolitan areas, and population groups of 65,000 people or more. a. American Demographics Survey b. Census of Population and Housing c. American Community Survey d. Current Population Survey ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 45. An advantage offered by secondary data from government sources is that the information is: a. less biased than that from other sources. b. always up-to-date. c. available even to small businesses with no research budget. d. gathered directly from consumers. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 46. PRIZM, which operates on the assumption that consumers in a particular ZIP code are more alike than different regarding their consumer practices, is a type of research technique. a. story construction b. embedded fieldwork c. geographic clustering d. copy research ANSWER:

47. When considering what is truly wanted from advertising research, the answer depends on whom you ask. If so, which of the following can be generally accepted as true? a. The ad agency wants numbers. b. The account team wants to know if the ad works. c. The client wants awards for creativity. d. The creatives want account planning. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 48. An advertising agency develops a humorous advertisement campaign for a client. However, some people at the agency are worried that the audience will not understand the jokes. What type of research can the agency conduct to check if the audience understands the ad? a. A communication test b. Developmental research c. Secondary research d. Projective techniques ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: 49.

Bloom's: Application

is a major type of research which usually occurs right before or after the advertisement is finalized to evaluate advertisements and promotions. a. Results-oriented research b. Copy research c. Developmental advertising research d. Promotional research ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

50. Which of the following is a particular kind of research done early on simply to prevent a major disaster—to avoid erroneous communications, unexpected interpretations, or unintended meanings in an ad, particularly in diverse or global markets? a. A communication test b. A recall test c. A normative test d. A subliminal test ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 51. Which of the following is an example of cognitive residue, as advertisers would define it? a. Being unable to recall anything about an ad when a brand name is mentioned to you b. Having a certain brand name in mind, above all others, and making a point to buy only that brand c. Vaguely remembering a slogan and a jingle for a product d. Knowing that you want to buy a product but not being sure why ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Application

52. Which type of research tries to identify specific cognitive responses that occur during an individual's exposure to a specific ad by having the person jot his or her thoughts down on the spot? a. Day-after recall b. Attitude-change study c. Communication test d. Thought listing ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

53. Which of the following is true of recall tests? a. They are more commonly used for print ads than for TV ads. b. Recall tests are ineffective for ads on online media. c. In a recall test, participants need to remember an ad and describe it from memory. d. A recall test involves less actual memory than a recognition test. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 54. What test takes place over several days, usually with viewers watching a show at a particular time, then being called later and questioned about its commercials? a. DAR b. MRI c. AIO d. ZMET ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 55. What is the basic premise behind a recall test? a. For an ad to work, it has to be remembered. b. To be effective, an ad has to be based on motivation. c. To activate the memory, ads need five repeat exposures. d. If people like the ad, they will buy the product. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

56. In a recognition test, participants are likely to be: a. given a brand name and asked to provide words that they associate with it. b. shown a print ad and asked if they've seen it before. c. asked to recall the details of a print or television ad. d. given a picture and asked to make up a story about it. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 57. Researchers are trying to determine which advertisements are the most effective for a cereal company that is running a number of commercial spots. After participating, viewers are asked if they saw a cereal commercial during a show; some require further prompting so are asked if they saw a Raisin Bran ad. What are the researchers attempting to determine? a. Aided and unaided recall of the commercial b. Implicit memory of the commercial c. The resonance of the commercial d. Recognition of the commercial ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 58. Which of the following is used when identifying and calculating the percentage of people who accurately remembered specific elements of an ad when tested? a. Developmental testing b. Related-recall testing c. Copy testing d. Recognition testing ANSWER:

59. The widely used recognition tests for print ads, with the Starch firm as the main supplier, have another name. What is it? a. Copy tests b. Cognitive residue measurements c. Readership tests d. Cognitive response analysis ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 60. A key advantage of using recognition scores to test an ad is that it: a. demonstrates whether or not a consumer will buy the brand being advertised. b. allows for comparison with the performance of other ads from past years. c. tells whether consumers will remember the brand when they are in the store. d. reassures the client that the ad agency knows what it is doing. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 61. Recall measurements make the most sense when the goal of the commercial is to make consumers: a. visualize a picture or image of the brand. b. feel an emotion connected to the brand. c. remember the brand name. d. think of a time when the brand can be used. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

62. Explicit memory measures are those in which consumers are required to: a. demonstrate their knowledge of a product. b. search their memories about a product by using word fragments or pictures. c. project their feelings about a brand onto an ambiguous image. d. recall their actual exposure to the test ad for a product. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 63. Which of the following is a tactic that might be used in an implicit memory measure? a. Completing a brand name after being given only half of its letters b. Filling in the blanks to finish a sentence about the ad just seen c. Visualizing the last time a particular commercial was seen on TV d. Describing what you think may be happening in a picture ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 64. A major problem associated with attitude tracking to evaluate advertising effectiveness is that although sometimes people’s attitudes toward a brand do change, they: a. cannot be accurately measured with a test. b. rely heavily on an artificial viewing experience. c. only occur with repetitive exposures. d. don’t always translate to sales increases. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

65. Which of the following are properties of emotions that make them potentially more important than thoughts in assessing ad reactions? a. They are good predictors of thoughts. b. They are hard to understand but indicative of eventual purchase behavior. c. They are easy to define and describe. d. They are clear indicators of subliminal reactions. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 66. Which method hopes to zero in on the emotional components of ads by having respondents turn dials to show their like or dislike while viewing commercials? a. Single-source tracking b. Eye-tracking system c. Pre- and post-exposure attitude measurement d. Frame-by-frame testing ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 67. The value of an inquiry/direct response measure is that it is: a. a straightforward measurement of ads designed to generate inquiries. b. cheaper than other forms of ad testing. c. versatile enough to be used for many different kinds of ads. d. available to consumers as they respond to the ad being tested. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension

68. Both advertising and promotion are used to build brands. For which of the two is it easier to measure effects that estimate contribution to sales, and why? a. Advertising, because memory of ad imagery is simple to measure b. Promotion, because statistical models can isolate the effect of the promotion c. Advertising, because consumer recall of taglines is unusually high d. Promotion, because responses can be specifically identified and tracked ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 69. Which of the following is accurate in the context of account planning? a. Agencies that implement it tend to do more quantitative and statistical research than their more traditional counterparts. b. Its cost is less than that of relying on secondary sources. c. Account planners are being appointed in place of account executive to work on each client's business. d. By implementing it, agencies put research in a more prominent role in the advertising process. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 70. Firms that track single-source data collect data from: a. individual cities. b. international research bodies. c. government research bodies. d. individuals or households. ANSWER:

Bloom's: Comprehension

71. What recent trend in advertising indicates that a new set of tests to measure ad acceptance is needed? a. The increasingly younger consumer population in the United States b. The move to a more visual advertising style from largely verbal approaches c. The expansion of research departments within established agencies d. The popularity of scientific evaluation and statistical proof of consumer behavior ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

Scenario 7-1 Scheduled to be released in the first quarter of 2011, Nintendo’s portable 3DS gaming system will likely revolutionize the video game industry. The 3DS is the newest in a long line of portable gaming systems made by Nintendo, but will now boast a number of new features—including 3-dimensional technology that does not require the use of any special viewing goggles or glasses. The new system will also allow consumers to play classic games from older generations of Nintendo products, watch 3-D movies, and create fictional “Mii” characters that were made famous by Nintendo’s Wii. Nintendo hopes its new gaming system will once again put Nintendo at the top of the video game industry, having lost some of its market share to Sony and Microsoft in recent years. 72. (Scenario 7-1) To determine which features to include in the 3DS, Nintendo did a large amount of research probing consumer opinions towards video games. To do so, Nintendo used a(n) that allowed consumers to be the “judge and jury” in evaluating the quality of their new idea. a. concept test b. attitude study c. frame-by-frame test d. physiological assessment ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension

73. (Scenario 7-1) In order to gather secondary research to support the company’s own primary research, Nintendo visited a number of social media sites hoping to find online communities with knowledge of the video game industry. This intense Internet searching is referred to as: a. web mining. b. tracking software. c. commercial browsing. d. normative test scoring. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Knowledge

74. (Scenario 7-1) Before the 3DS was released, Nintendo created a series of television commercials and print ads to promote the product. The ads are shown to a group of study participants, and then the participants are asked to express how they felt about the advertisement. This is an example of a: a. survey. b. recall test. c. communication test. d. recognition test. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

Scenario 7-2 You have been appointed director of research for the Rhode Island Runners, a new minor league baseball team that will make its debut in about six months. There have been minor league franchises in the area in the past, but due to a lack of fan support they all have folded. The Runners’ upper management is convinced that past failures were the result of improper marketing of the teams. Therefore, management has committed a substantial amount of money to developing smart, effective advertising. Management has put you in charge of an intensive one-year program to guide and track the advertising. 75. (Scenario 7-2) In designing the new marketing campaign, developmental advertising research would be helpful in a number of areas. When considering its marketing goals, the Rhode Island Runners staff want to execute it because the most important service developmental research provides is: a. ad acceptance data. b. product description. c. audience profiling. d. scientific evaluation. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 76. (Scenario 7-2) Your team has determined the main appeal that must be communicated in the advertising—that going to the ballpark is an affordable way to bring families closer together. Several print ads are in near-finished format. You want to directly measure the immediate and spontaneous responses of consumers, as ideas and reactions pop into their heads while viewing the ads and shortly afterwards. In this case, a good technique to use is: a. physiological measurement. b. thought listing. c. copy testing. d. attitude study. ANSWER:

77. (Scenario 7-2) You have determined that the major competitors in the family leisure market are movies, theme parks, and outdoor festivals. You use a theater test to measure attitude change resulting from a TV commercial being tested for the Runners. The spot does not do very well in the test. Still, your gut instincts say that the commercial is a good one. When reporting the results to the team owners, you should point out that: a. the commercial shouldn’t run as is, despite your own opinion of it. b. this kind of research is all too rarely useful to measure actual behavior. c. the identification of competitors may have been inaccurate. d. theater audiences are not considered scientifically reliable. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 78. (Scenario 7-2) Tracking studies will be good tools for this campaign, since they follow the apparent effect of the advertising over time, and this type of follow-up is required throughout the first year of this baseball team’s campaign. Tracking studies are usually done in which format? a. Focus group b. Survey c. Projective test d. Readership test ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 79. (Scenario 7-2) All the Rhode Island Runners’ advertisements feature a phone number to get more information and to order tickets. This allows you to use to assess advertising effectiveness. a. brand-talk b. split-cable and split-run testing c. inquiry/direct response d. single-source tracking ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

Scenario 7-3 After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers. The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and perhaps probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM’s top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company’s efforts have helped turn the company in the right direction. (“Consumer Reports: GM Reliability Makes Great Strides.” MSNBC.com, October 26, 2010.) 80. (Scenario 7-3) In its research, GM hoped to find why consumers liked certain features in their cars and disliked others. GM inquired about consumer wants and needs, and then looked to apply its findings to product development. This process is called: a. developmental advertising. b. design thinking. c. concept testing. d. audience profiling. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 81. (Scenario 7-3) GM relied heavily on focus groups to learn about some of its product shortfalls. Although focus groups may serve as a good source of qualitative information, many quickly downplay their overall effectiveness. One common criticism of focus groups is: a. they provide a great deal of insight. b. they are never valid. c. they are very low in reliability. d. focus group members feel compelled and pressurized. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

82. (Scenario 7-3) One technique used in the focus group involves the researcher presenting a scenario, and then the members of the group completing a phrase or sentence regarding the scenario. This technique is used in order to: a. create confusion within the group. b. let the researcher establish a dominant presence. c. create opportunities for idea development. d. understand consumers and observe the data being collected. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 83. (Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad. Peer influence can be observed, and hopefully, some level of post-test screening can be done to create increased validity. These elements are characteristic of what kind of studies? a. Attitude studies b. Cognitive response studies c. Behavioral studies d. Quantitative studies ANSWER:

Scenario 7-4 You are the director of advertising research at a large Minneapolis ad agency. Due to employee turnover and budget cuts, you're currently staffed with too many entry-level research assistants and too few management-level research group leaders. To make matters worse, one of the group heads is on vacation and another is out sick. Of course, your clients still expect their research to be done in a timely, professional manner. Therefore, you have gathered your department together and announced that your door is always open if anyone has any questions about any phase of any project. As a result, your entire day has been filled with questions. 84. (Scenario 7-4) An assistant comes in and says she needs some advice. One of the smaller clients of the agency needs some market information done very quickly—and very inexpensively. You tell her: a. to set up focus group interviews with consumers. b. to call a commercial service. c. to use direct mail surveys. d. to look through social media data. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 85. (Scenario 7-4) An assistant comes in and says that she can find relevant secondary information about the U.S. quickly because she is familiar with government web sites, but she is not sure about finding information from all over the world. You give her the Web address for: a. Eurobarometer. b. the Census. c. International Social Survey Programme. d. Current Population Survey. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS:

Bloom's: Application

86. (Scenario 7-4) One assistant comes in to show you the results of some recognition tests that have been run on a magazine advertisement. She is really excited by the high levels of recognition. You caution her not to get too excited, because high levels of recognition: a. rarely be judged by normative data. b. don’t always correlate to higher product sales. c. can be inaccurate since respondents don't get to see the ad beforehand. d. calculate feelings about an ad rather than thoughts about an ad. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 87. (Scenario 7-4) One research assistant is drafting a proposal for a research project. The client's primary objective is to find out whether the new ad rings true with consumers, or whether they feel the way the ad wants them to feel. The employee wants to know what test would specifically explore this aspect of the ad. You reply that would be best. a. thought listing b. resonance testing c. recall testing d. recognition testing ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 88. (Scenario 7-4) An assistant is working with a company that heard about using UPC data from packages to generate information on how households turn information from advertising into actual purchases. She’s never heard of it. What type of research is this? a. Inquiry/direct response measures b. Frame-by-frame testing c. Single-source tracking d. Split-transmission testing ANSWER: c DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

Scenario 7-5 The Solutions Group is a combination of companies that help clients better understand their target markets through creative research approaches. It has learned that many people have become quite adept at filtering out advertising messages and therefore do not respond to traditional research instruments such as surveys. The Solutions Group says that there must be a "research revolution" based on true dialogues with consumers, not one-way monologues often seen in traditional surveys. 89. (Scenario 7-5) The Solutions Group likes to ask its clients’ potential customers a wide variety of questions so they can share their thoughts about themselves, their lives, and all the daily elements that are important to them. What type of research does this represent? a. Dialogue balloon b. Frame-by-frame c. Projective d. Lifestyle ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 90. (Scenario 7-5) Solutions Group executives may consider trying , the popular technique in which people’s buried thoughts about brands are drawn out by having them define their feelings creatively with other visual representations. a. ZMET b. ISSP c. AIO d. ACS ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

91. (Scenario 7-5) The Solutions Group may want to center on field work as its primary research method because it is designed to measure “embedded” consumer practices, that is: a. those conducted on the spot in stores, malls, and on Internet retail sites. b. those tightly intertwined in the social lives of consumers. c. those previously subconscious thoughts or hidden feelings that are revealed. d. those habitual and almost automatic purchasing decisions. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

92. (Scenario 7-5) Solutions Group managers suggest that clients consider doing a resonance test when designing advertising, because this will help understand target consumers regarding their: a. recognition of the brand. b. potential purchase of the brand. c. emotional connection to the brand. d. attitude changes about the brand. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

93. (Scenario 7-5) A number of "revolutionary" techniques can be found by the Solutions Group in an attempt to unearth consumers' true feelings and honest opinions about brands and ads. But they should remember that problems with validity most likely arise in studies when respondents are asked to: a. taste products in blind taste tests. b. recall their memories about ads for a particular brand. c. share their thoughts and opinions about certain brands they don't like. d. do things they don't normally do in real life when viewing ads. ANSWER:

Scenario 7-6 Wood Carver Cabinet Makers recently developed a line of kitchen cabinets designed for new custom homes and kitchen remodeling jobs. The line of cabinets is to be called "Signature Hardwoods" and a new magazine advertising campaign is being tested. Each of the ads that is being tested has a photograph of a woodworker handcrafting some part of the cabinet. In addition, his or her signature is shown at the bottom of the page as an indicator that the cabinets are carefully hand made. 94. (Scenario 7-6) A marketing manager at Wood Carver said in a manager's meeting, "We have to get quick feedback on the overall quality and usefulness of these new ideas. We'll just have to let the focus group make the final judgment on these ads." Which research method is he considering? a. Survey b. Concept test c. Direct response measure d. Tracking study ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 95. (Scenario 7-6) Wood Carver might consider testing the magazine ad by recruiting a group of potential consumers to take part in story construction. What would a story construction technique ask these respondents to do? a. Provide a narrative about people depicted in a scene or picture b. Write a story about how they would use the product c. Fill in blanks in sentences that describe the ad d. Think visually about how they would represent their experiences with a brand ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

96. (Scenario 7-6) To target new markets, Wood Carver is looking for up-to-date information—the latest available—on employment, occupation, and income throughout the country without having to pay a fee for commercial data. National data on consumers is gathered by the U.S. Census through a number of avenues, but one of its survey instruments publishes monthly statistics on just these topics. Which is it? a. Pew Center Survey b. Current Population Survey c. American Demographics Survey d. International Social Survey ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 97. (Scenario 7-6) Wood Carver wants to know if readers remember having seen its magazine ads, and possibly its name. Unlike testing television ads, Wood Carver should use a as the standard to test these ads. a. print recall test b. tracking study c. brand-talk search d. recognition test ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 98. (Scenario 7-6) Wood Carver recruited a group of consumers who were thinking about remodeling their kitchens and asked them a series of questions about selecting brands for their new cabinets. Later, Wood Carver showed the consumers several of its magazine ads, after which they were asked several questions to measure their opinions towards the Wood Carver Cabinet products. What type of study did Wood Carver conduct? a. Attitude change b. Split-transmission c. Thought listing d. Physiological ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Application

99. Briefly trace the reasons for the rise of research—specifically, advertising and brand promotion research—after World War II. Why did agencies create large research departments? How did universities get involved? How did consumers feel about research? When was research at its height of popularity, and when did things change? Provide just a brief sketch of these issues. ANSWER:

After World War II, American business had great faith in what science could do, while at the same time American consumers felt an underlying concern about its manipulation for evil ends rather than for the public good. As for the industry, the 1950s was the heyday of marketing research. Some companies had already had research specialists for a hundred years, but now even the average firm felt the need to create an expansive research department for three basic reasons—the popularity of anything related to “science;” the birth of research departments at other agencies; and the real need to understand how ads worked. An economic boom, a focus on consumption, and a need to understand persuasion allowed agencies the luxury of demanding more psychological research, more motivational theories, more hidden meanings. Research became legitimatized and respected in the industry. As for universities, they embraced science and experimentation as the only way to understand persuasion, forming advertising departments and teaching courses during this time. And they began to turn out persuasion “experts” trained to advise the creatives on Madison Avenue. For consumers, things were different. On the surface there was a public adoration for all things scientific and technological—even reflected in books, plays, and movies— but also a focus on repressed subconscious and Freudian analysis. World War II propaganda had proven that the “science of persuasion” existed and could be exploited. There was real concern about mind-control techniques, subliminal methods, and hidden forms of mass persuasion that could now be used by Madison Avenue. Consumers were scared by the Cold War, the advancement of communism, the very real possibility of nuclear attack. Advertisers took advantage of these fears, a lesson that still applies and still influences many forms of promotion today. If consumers feel an underlying anxiety or fear, advertisers will use that anxiety or fear to sell products. By the 1980s, agencies began to voice their mistrust in these long-held research methods.Too often, research had asked the wrong questions, used inappropriate methods, or misinterpreted findings.

In the past decade, many agencies have considered research to be a luxury or an unnecessary element. Many have closed their departments, replacing them with account planning departments or contracting out research services only when needed. And now they are looking for qualitative information based on real-life use of the product, not quantitative data based on columns of numbers. Overall, quantitative research is seen as irrelevant or only rarely needed. And with the explosion of nontraditional sources of promotion and new forms of media, it is becoming even more rare. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Comprehension

100. What are the three broad forms of advertising research? Briefly describe each form, as well as when and how it is used. List the methods and techniques related to each. ANSWER:

The three broad forms of advertising research are developmental advertising and promotion research (used before ads are made), copy research (used as ads are being finished), and results-oriented research (used after ads are launched and running). Developmental advertising research (also called consumer insight) attempts to generate ideas and create effective messages that will reach the target audience. It helps creatives and account teams to understand this audience—their identity, their history, their perceptions of needs and wants, and their expectations regarding product use. It provides this information while they are actually visualizing and drafting ads, improving on early versions, and imagining final creations. Since this research takes place early in the process, it influences the way the ads, promotions, forms of branded entertainment, or entire IBP campaigns are shaped before a lot of mistakes are made and a lot of money is spent. This is why it is often considered the most valuable kind of advertising research. The types of developmental research include design thinking, concept testing, audience profiling, focus groups, and projective techniques (dialogue balloons, story construction, picture and sentence completion, ZMET), and field work. Copy research acts as a report card that evaluates the actual text or design of the ads, finished or unfinished. Its name comes from the original focus on the copy, though today it also involves visuals. It can provide valid data, but asking the wrong questions can lead to faulty ratings, especially when pressured to supply the client with numbers—usually normative test scores, which rate the ad based on those of competitors. Though many ads defy measurement, having a good score at least says that they “test well.” Creatives tend to hate arbitrary scores that compare their unique productions against “average” ads, while account execs tend to demand them because the client wants them. So copy research is often the main source of tension in an agency. The types of copy research include communication tests, thought listings or cognitive response analyses, recall tests, recognition tests, implicit memory measures, surveys, attitude studies, resonance tests, frame-by-frame tests, and eyetracking systems. Results-oriented research is conducted to see whether the ads out there are working. This can generate useful information, but the timing is the problem—the ad is already running, so the data is provided after the fact, after much time and money has been spent on producing and finalizing the ad and paying for media space. The types include tracking studies, inquiry/direct response measurements, sales estimates, or single-source data. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-1 AIBP.OGUI.15.7-3 AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

101. When should a marketer use secondary data? What are the advantages of using such data and what cautions should be taken? Name and briefly describe the four broad areas that offer secondary data used by today’s marketers. ANSWER:

Secondary data should be obtained before an advertiser begins primary research. Secondary data offer a low-cost and speedy method for gaining information about consumers’ lives and can lead to useful consumer insights. However, the data must be scrutinized for currency, the appropriateness of the measurement units for the marketer’s particular situation, the qualifications of the data collection organization, any special interests associated with the data generation effort, and, most importantly, relevance and meaning regarding products and brands. Data can be found through several broad channels: Internal company sources (annual reports, marketing plans, sales summaries, warranty cards, consumer letters, etc.) are usually the first places to look. Government sources (massive amounts of data on population, housing, transportation, recreation, and spending) Start with the U.S. Census Bureau, including its Census of Population and Housing (published every 10 years) and Current Population Survey (published annually) for the Bureau of Labor Statistics. Additionally, the National Archives and Records Administration offers a wide range of data on American culture. Global information can be found through Eurobarometer and the International Social Survey Program. Commercial sources specialize in geographic data-gathering, often at the household, neighborhood, or zip code level, as offered by such firms as PRIZM and the Pew Center. Internet sources have revolutionized developmental research, particularly for smaller firms and agencies. Common search engines allow access to enormous amounts of data, and human search costs have been slashed. Web-based interest groups, online communities, and social networking sites can be utilized. Advertisers can gain incredibly relevant data at virtually no cost if they are careful in their searches, though specialized engines can also be purchased. Additionally, the Web can be mined (through the relatively new practice of netnography) for answers to specific questions, to analyze chatter about products or competitors (brand-talk) by searching key words, or to conduct online surveys. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension

102. What is a recall test? How is it conducted, and how are its respondents measured and labeled? What is a recognition test? How is it conducted, and why does it usually produce a higher percentage of positive answers? ANSWER:

Recall tests ask respondents what ads they remember having seen in a given vehicle, then ask for data about specific message content they remember. These tests are the most commonly employed, but the most controversial, since they are based on the idea that the ads that are most remembered are the ones that work best. Since they do not provide an ad as an example, recall tests require a great deal of actual memory. They are used the most in evaluating television commercials. The day-afterrecall procedure involves phoning respondents after viewing the ad, prompting them based on their responses, and recording and transcribing their answers. Each individual may demonstrate one of two levels of recall: unaided (needing no prompting to remember the commercial and brand name) or aided (after prompting with the mention of the brand name). Aided recall can be further subdivided into two categories—claim recall (percent of respondents who claim they saw the ad), and related recall (percent who accurately relate elements of the ad). Recognition tests do provide a particular advertisement to evaluate. They show respondents an ad and ask if it looks familiar, or if they have seen it before.These tests require less actual memory, and have a higher percentage of positive answers than recall tests because the ad is in front of respondents and they are merely asked if they remember having seen it in a given vehicle at a previous time. They are used more often to evaluate print advertising. The big advantage is that firms can compare recognition scores to those of ads in the past. They are limited in that they often measure little more than exposure, often overestimating true effectiveness because respondents only need to answer that yes, they have seen the ad, even if they haven’t. A drawback of both types of test is that there is little evidence to prove that higher recall or recognition scores actually relate to higher sales. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension

103. One of your advertising agency’s clients has asked for a description of how an attitude study is performed on a television commercial in a theater test setting. Describe this process in general terms. (It is not necessary to describe the measurement scale.) In your answer, include a summary of the reasons why you would do such a test and the advantages and disadvantages of this method of pretesting ads. ANSWER:

The typical attitude study uses a before-and-after-ad-exposure design. People from the target market are recruited, and their pre-exposure attitudes toward the advertised brand as well as competitors' brands are taken. Then they are exposed to the test ad, along with some dummy ads. Following this exposure, their attitudes are measured again. The goal, of course, is to gauge the potential of specific versions of the ad to change brand attitudes before selecting the one most likely to do so for actual airing. The reliability of these procedures is fairly high. However, the meaning of the scores in terms of predicting changed brand perceptions is an issue, because the test is based on one or two advertising exposures in an unnatural viewing environment. Many advertisers believe that commercials don't even register their impact until after three or four exposures. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.7-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 104. What is account planning? In what three ways does it differ from traditional advertising research? ANSWER:

Account planning differs from traditional forms of marketing research in several ways. First, agencies using this system assign an account planner to work closely with an account executive and gather needed data for a particular client’s business—an ad, campaign, or entire IBP effort. Unlike a research department with its occasional input on any given project, the account planner stays with the project from beginning to end. Second, this system puts research into a different but more prominent role. As researchers, account planners are more actively involved throughout the entire process, though they often make a big push up front, tending to do more developmental research and less evaluative research. Third, these researchers do more qualitative and natural research than traditional research departments. In some ways, appointing an account planner has also been used as a sly method for downsizing or totally eliminating a costly full-time research department. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.7-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_08__Planning_Advertising_and_Integrated_ 1. An advertising plan should be a direct extension of a firm’s marketing plan. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 2. An advertising plan is designed to create sales strategies for the client in a process that is totally separate from the overall marketing plan. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 3. The initial section of the ad plan should be a budgeting section that directly states what it will cost to implement this plan. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 4. The situation analysis of an advertising plan includes historical context as well as evaluation of the industry, the market, and the competition. a. True b. False ANSWER:

Bloom's: Knowledge

5. Ethnocentrism is the tendency to view and value things from the perspective of another individual’s culture. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 6. Bias is another name for one’s subconscious guide for decision making and behavior. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 7. A historical background is a key element in an advertising plan, one that should include the history of all main players, the industry, the brand, and the corporate culture. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 8. The competition’s strengths, weaknesses, tendencies, and any threats they pose are included in the competitor analysis. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

9. Advertisers should set only one objective in an advertising plan. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 10. Few companies use purchase intent as the criterion in setting ad objectives because it tends to be much less accurate in predicting sales than other factors, such as attitude. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 11. Some argue that sales should not be set as an objective for advertising, since advertising is only one variable in an entire marketing mix and cannot be solely responsible for selling the product. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. Viewing advertising strictly from a communications perspective restricts marketers to a narrower range of advertising strategies. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

13. The tension between those who advocate sales objectives and those who push communications objectives precludes a marketer from using both types when developing an overall plan for a brand. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 14. Objectives for advertising are measurable only in the context of quantifiable variables. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 15. Well-stated objectives work best when they set a benchmark, specify a measurement method, and define a time frame. a. True b. False ANSWER: True DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

16. When an ad agency is asked to recommend a budget to the client, it is usually the account executive who handles this. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

17. A percentage-of-sales approach to budgeting is easy to understand and implement. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 18. Share of voice, or share of market, is a method that bases an ad budget on whatever significant competitors are spending. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 19. Share of voice is most often used when launching new products. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 20. The method of budget setting that focuses on the relationship between spending and advertising objectives is the margin-analysis approach. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

21. Every precaution should be taken to avoid having to radically alter a budget after it is submitted. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 22. Intentions and expectations for advertising are embodied in the process of setting objectives. a. True b. False ANSWER:

True DIFFICULTY:

Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 23. There are two elements to the execution of an advertising plan: determining the copy strategy and devising a media plan. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 24. The many forms of brand promotion that will supplement the advertising effort do not need to be spelled out in the ad plan, since this would add too much length and detail. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

25. It is at the evaluation stage of an advertisement plan where all the money is spent and where so much money could be saved. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26. When devising the evaluation stage of ad planning, it is determined how much time the agency has, how it will be graded, and what criteria will be applied when judging its efforts. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 27. It is critically important for an advertiser and agency to align around evaluation criteria upfront. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 28. Most marketers rely heavily on the expertise of an advertising agency. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

29. An agency’s crucial role is to translate the current market and marketing status of a firm and its advertising objectives into advertising strategy and, ultimately, finished advertisements and IBP materials. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 30. Apple used a wide array of options to create interest and communicate the value proposition for its brands like the iPad and iPhone. Which of the following would NOT be included in Apple’s advertising plan? a. Billboard ads b. Manufacturing schedule c. Product placement d. Promotional events ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Knowledge

31. Which of the following is a part of the situational analysis component of an advertising plan? a. Executive summary b. Time frame c. Historical context d. Copy Strategy ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

32. The first element to appear in an advertising plan is the a. executive summary; execution b. introduction; evaluation c. history; strategy d. overview; competitor analysis

, and the last element is the

ANSWER:

Bloom's: Knowledge

33. In an advertising plan, the is the section in which the client and the agency lay out the key factors that define the current conditions and then explain the importance of each factor. a. execution b. strategy c. situation analysis d. evaluation ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 34. The essence and take-away part of an advertising plan is the: a. situation analysis. b. executive summary. c. strategy. d. objectives. ANSWER:

35. An insurance company’s researchers spend a lot of time and money trying to understand various age-related markets, from WWII veterans and baby boomers to the younger generations. Based on their findings, the target markets that are ultimately chosen based on such demographics should be defined in the section of the ad plan. a. situational analysis b. competitor analysis c. executive summary d. strategy ANSWER:

DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 36. A young man heads the marketing team for a national electronics retailer. He has before him the task of drafting the ad plan for the company. From a long list of situational factors, which of the following is more likely to be the single most important one for him to consider? a. Projected industry growth b. Advertising spending by competitors c. Basic demographic trends d. Economic and regulatory restrictions ANSWER: c DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 37. A global jewelry retailer serving diverse markets is concerned that its agency is unaware of some cultural issues that may come up in its campaign, since none were addressed in the initial advertising plan. The client is worried that the agency staffers may be unconsciously relying only on their own personal values, experiences, and backgrounds to make promotional decisions, referring to a concept called a. ethnocentrism. b. purchase intent. c. share of voice. d. self-reference criterion. ANSWER: DIFFICULTY:

d Difficult

LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

38. The industry analysis and market analysis work together to form part of the overall situation analysis. The industry analysis focuses on and the market analysis focuses on . a. consumers; competitors b. brand; product c. supply; demand d. objectives; tasks ANSWER: c DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 39. Looking ahead to an expanding demand for burial plots as the huge population of baby boomers ages, the owner of a cemetery on the outskirts of a city hires an agency to create a sophisticated ad campaign. In knowing its current users and predicting its future users, the cemetery owner is identifying the factors on the demand side of the sales equation. In the advertising plan, this information a. should be explained in the industry analysis. b. can be listed as an objective. c. should be noted in the market analysis. d. belongs in the evaluation section. ANSWER: c DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Application

40. The part of an overall situation analysis commonly begins by stating who the current users are and why they are current users. a. historical context b. industry analysis c. competitor analysis d. market analysis ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

41. What does the objectives section of an advertising plan do? a. Defines those who use the product b. Notes possible barriers and problems c. Estimates probable costs d. Identifies concrete goals ANSWER:

Bloom's: Knowledge

42. The account planner at an Indianapolis ad agency has done a survey and found that a significant percentage of people already recognize the name of the cold remedy his client is about to advertise. When consumers know that a brand exists and recall its name to some degree, they are demonstrating a. brand loyalty. b. brand switching. c. brand awareness. d. top-of-the-mind awareness. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

43. A fragrance manufacturer wants its target customers to demonstrate top-of-the-mind awareness regarding its longstanding perfume, Bouquet. This means that when they are asked to think of perfumes, they would a. include the name Bouquet somewhere on their list. b. realize that they want to purchase Bouquet. c. think of Bouquet first. d. claim to be loyal consumers of Bouquet. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Application

44. To determine the public’s knowledge of a product, a marketer asks consumers to name five breakfast cereals. Cheerios is the cereal most often listed first, so it is considered to show a. top-of-the-mind awareness. b. purchase intent. c. ethnocentrism. d. market awareness. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 45. A common objective for many clients is to create, change, or reinforce attitudes. Sometimes a number of logical, well-written arguments can make a strong case and ultimately influence attitudes. What method of changing attitudes does this represent? a. Repeat purchase approach b. Information-dense approach c. Brand-switching approach d. Visual imagery approach ANSWER:

Bloom's: Comprehension

46. In theory, of the major options for advertising objectives, most. a. trial usage; brand awareness b. purchase intent; trial usage

asks the least of consumers and

demands the

c. trial usage; repeat purchase d. brand awareness; brand switching ANSWER: d DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

47. A frozen dessert manufacturer surveys consumers, asking them if they plan on buying desserts at one of its outlets soon. What is the manufacturer researching? a. Brand awareness b. Purchase intent c. Self-reference criterion d. Top-of-the-mind awareness ANSWER: DIFFICULTY:

b Difficult

LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 48. The account executive in charge of promoting a new perfumed bath soap for women is not expecting a sudden attachment and loyalty to the product—though that would be nice—but realistically, she would like women to at least buy it once and see how they like it. Which of the following is more likely to be her objective? a. Purchase intent b. Trial usage c. Repeat purchase d. Build-up purchase ANSWER:

is the tendency to view and value things from the perspective of one’s own culture. a. Cultural relativism b. Allophilia c. Endogamy d. Ethnocentrism ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Comprehension

50. Combining sales objectives with communications objectives: a. will almost certainly spell disaster for an advertising plan. b. may seem effective on paper but may confuse consumers during the campaign. c. is the only way to identify truly quantitative benchmarks for the campaign. d. can be an excellent way to develop an advertising campaign. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

51. Which element is essential to articulating a well-stated advertising objective? a. A time frame b. A budget c. An overview d. An evaluation ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 52. Costs associated with advertising to the trade and specialized research unique to the campaign are prominent examples of . a. principal finances b. ancillary costs c. major finances d. primary costs ANSWER:

53. The CEO of a small but growing sports equipment firm has just announced that sales went up significantly last year. The marketing director is happy because her budget will go up also. This indicates that the firm is using the to set the advertising budget. a. objective-and-sales approach b. share-of-market approach c. percentage-of-sales approach d. advertising response function ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 54. The percentage-of-sales approach to advertising budgeting a. is best used during times of declining sales. b. is difficult to understand and operationalize. c. often leads to overspending or underspending. d. relates advertising dollars to advertising objectives. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 55. Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars? a. Share-of-voice approach b. Objective-and-task approach c. Advertising response function d. Percentage-of-sales approach ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge

56. One big problem with marketers who rely on a share-of-voice budget plan is that they assume, often wrongly, that: a. their competition doesn’t know how to allocate its advertising dollars. b. their sales figures should automatically dictate their advertising figures. c. they know how much competitors are really spending. d. their ad is distinct, unique, and superior among all others in the field. ANSWER:

Bloom's: Comprehension function is a mathematical relationship that associates the money spent on advertising with the

b. communications c. task d. response ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

58. Theoretically, the leads to a point where an optimal advertising expenditure results in an optimal sales level and, in turn, an optimal profit. a. objective-and-task method b. share-of-market method c. percentage-of-sales system d. response model ANSWER:

DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

59. The only budgeting method that specifically relates spending to goals is the: a. share-of-market approach. b. percentage-of-sales approach. c. objective-and-task approach. d. share-of-voice approach. ANSWER:

Bloom's: Comprehension

60. What is the first step in implementing the objective-and-task approach? a. Identifying last year’s sales b. Determining costs based on a build-up analysis c. Comparing expenditures against industry benchmarks d. Calculating a marginal analysis ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 61. Within the advertising plan, what does a build-up analysis actually build up? a. The backlog of consumer profiles to be used b. The expenditure level for tasks to be done c. The sales expected to be seen d. The goals and objectives to be pursued ANSWER:

Bloom's: Comprehension

62. The strategy section of an advertising plan is the mechanism that states: a. why the advertising is needed for this product or service. b. what goals need to be reached. c. how things will be done so that objectives are achieved. d. who will handle various promotional tasks. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 63. The ways in which the creative objectives will be accomplished are described in the a. copy strategy section. b. build-up analysis. c. objective-and-task method. d. media plan. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 64. The media plan specifies: a. the objectives the advertiser intends to accomplish. b. exactly what strategy is behind the placement of ads. c. the prediction of profits based on new advertising. d. the analysis of the market, industry, and competition. ANSWER:

Bloom's: Comprehension

65. In a , the objectives state what the advertiser intends to accomplish in headlines, subheads, and text, while the methods describe how the objectives will be achieved. a. media plan b. budgetary plan c. copy strategy d. build-up analysis ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 66. A canned soup manufacturer and its agency are nailing down the responsibilities of each side as they begin their planning effort. In a nutshell, the agency will a. translate goals into strategies and create promotions and finished ads for the product. b. decide how they should grade themselves. c. leave it up to the client to decide the advertising plan. d. determine how long they will have to achieve the agreed on objectives. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 67. Regarding the relationship between the client and agency, things will go most smoothly and efficiently when a. you see them as equal forces with equal power and responsibility. b. you can identify two distinct entities with clearly defined roles and tasks. c. you can tell that the agency does everything the client wants without question. d. you can’t tell where the work of one ends and the other begins. ANSWER:

DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

68. Like many companies today, a young but growing electronics retailer knows it needs help. If it is like most clients, in what two areas does it need the most help from an ad agency? a. Creating value for the product, and setting objectives b. Integrating the brand within the media, and generating new ideas c. Defining the product, and creating brand awareness d. Creating the budget, and writing the copy ANSWER: DIFFICULTY:

b Difficult

LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Comprehension

Scenario 8-1 You are owner of a 15-person advertising agency in a major market. You've been invited to pitch the Girl Powerz account, the largest female-only fitness center chain in the region, one that could quickly grow into a national franchise. If you land the account, it will be your biggest revenue producer by far. You'll be able to staff up, move to a nicer space, and buy some decent office furniture. It also will put you, personally, in a position to make a ton of money by selling out to a larger agency some day. Considering the importance of the pitch to Girl Powerz execs, you have decided to spearhead the pitch yourself. 69. (Scenario 8-1) You announce that you will write the part of the ad plan that contains the crucial information that Girl Powerz execs need to know, even if they remember nothing else. This means you will write the section. a. situation analysis b. execution c. strategy d. executive summary ANSWER:

Bloom's: Application

70. (Scenario 8-1) One of the main tasks will be to work with the marketing director at Girl Powerz to determine exactly what she wants from its new advertising campaign. Which elements identify the specific goals that you will ask her to provide in concrete terms? a. strategies b. tactics c. objectives d. executions ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 71. (Scenario 8-1) In the past, Girl Powerz has set sales objectives for its advertising. You feel that this doesn't take into account the overall complexities presented in the situation analysis. Therefore, you are recommending combining sales objectives with a. ethnocentrism. b. marketing incentives. c. communications objectives. d. self-reference criteria. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 72. (Scenario 8-1) The folks at Girl Powerz initially consider using an advertising budgeting method that identifies a mathematical relationship associating ad dollars spent with sales generated. This would be the: a. percentage-of-sales approach. b. ethnocentric method. c. advertising response function. d. share-of-voice approach. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Application

73. (Scenario 8-1) It is ultimately decided that the ad budget will base spending on what needs to be accomplished from a communications standpoint. This would be the: a. objective-and-task approach. b. percentage-of-sales approach. c. share-of-voice approach. d. response model approach. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 8-2 Following the announcement that the world's largest e-tailer, Amazon.com, made a profit for the first time since it started business in the early 1990s, the company saw more than 90 percent of its market value disappear as part of the dot-com collapse. It is questionable whether or not Amazon figured out a profitable business model after changing its tune several times over those early years. Then it began circling back somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted to sell huge volumes of merchandise cheaply, and in the process eke out enough of a profit to satisfy Wall Street. Although investors had to wait some time for the e-tailer to work out the kinks, and it's uncertain how much longer they'll remain patient, Amazon's mainstay retail business may see further improvements as it grows. As we all have now witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and hire people to staff them, Amazon has been able to open new stores with minimal additional cost. Some years ago, it reported turning over its inventory 17 times a year—close to double that of traditional retailers at the time. And on average, it reported having gotten paid 32 days before it must pay its suppliers—in essence, providing millions of dollars in cash flow. Information updated for 2011, based on the following initial articles: (David Shook, "Can Amazon Turn Baby Steps Into Strides?," Businessweek Online, February 13, 2002.) (Rob Hof, “Why Amazon Could Keep Flowing,” Businessweek Online, January 5, 2005.) 74. (Scenario 8-2) Amazon.com began by facing a myriad of problems since its inception, with perhaps the biggest obstacle being the demise of hundreds of dot-com companies in the late 1990s and early 2000. Those dot-com companies that did survive initially had a difficult time making a profit, and over time a few began to face new competition. The issue as to who will supply online consumers has been continually evolving and changing since then. This type of information would most likely be noted in the section of an ad plan. a. historical context b. purchase intent c. market analysis d. budgeting ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Application

75. (Scenario 8-2) In the early days of Internet shopping, people were skeptical about the idea of buying things over the computer, largely due to their worries about privacy issues combined with their habitual patterns of purchasing at retail outlets. Some concerns remain today. But many years after the shake-out of companies in the dot-com world, players that survived have come back stronger. And new players have come onto the scene. The demand is there, and this has instilled a feeling of trust in millions of customers who make purchases online. The concept of customers having enhanced trust in e-tailing would most likely be contained in the section of the advertising plan. a. budget analysis b. market analysis c. industry analysis d. competitor analysis ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 76. (Scenario 8-2) Amazon was one of the first online retailers to launch advanced technology to track consumer visits and suggest products whenever they returned to the site. This ability to find out what customers have bought in the past, and project that they will buy similar items in the future, has been a key factor underlying Amazon's strategy and growth. When Amazon asks customers if they plan on buying certain products in the future, it is measuring a. share of market. b. brand awareness. c. share of voice. d. purchase intent. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 77. (Scenario 8-2) Like many firms, Amazon has refined its priorities over the years. Many firms begin by setting as their advertising objective something that is often disputed by communications-oriented marketers. They choose as their primary advertising objective. a. stimulating trial use b. boosting sales c. establishing brand recall d. identifying purchase intent ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application

78. (Scenario 8-2) When dealing with its advertising agency, Amazon wants a strategy that maximizes media expenditures to target the appropriate markets. It is Amazon’s primary responsibility to bring forth a well-articulated statement of the brand's , a key concept in reaching and informing the customer through promotion. a. analysis b. awareness c. competition d. value ANSWER: d DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 8-3 After working as an account executive in an advertising agency for 20 years, you've decided to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells the store and all the inventory, with one warning—he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan. 79. (Scenario 8-3) Due to the lack of records, you have no way of knowing what Springfield Hardware has gone through over the years. You can only guess about the hardware needs of the local population, and the store’s target market and customer base. This will be a major hindrance in writing the sections of your situation analysis. a. overview and executive summary b. industry analysis and historical context c. strategy and execution d. historical context and market analysis ANSWER:

80. (Scenario 8-3) There is one thing you’d like to see as a result of your ad campaign—you want local residents to not only know your name, but to think of it first when they need a hardware store. When you think of hardware, think of Springfield. Which concept defines this objective? a. top-of-the-mind awareness b. purchase intent c. trial usage d. repeat purchase ANSWER:

Bloom's: Application

81. (Scenario 8-3) Your goals are very important at this stage, and you want to avoid budgeting methods that neglect to consider goals. This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives, and since you have no past records, this method would be impossible to implement anyway. Which of the following methods is this? a. share-of-market approach b. share-of-voice approach c. percentage-of-sales approach d. objective-and-task approach ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 82. (Scenario 8-3) You're currently deciding exactly where and when ads will be placed, and determining the strategy behind each placement. This takes a while—with the explosion of Internet sites, outdoor advertising, and innovative promotions, the options are almost unlimited. In this way, you are a. setting up account services. b. creating a media plan. c. devising a budgeting method. d. doing advertising research. ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Application

83. (Scenario 8-3) You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you. Unfortunately, you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding: a. the value proposition and the marketing mix. b. the budget recommendation and the ad strategy. c. the competition and the media plan. d. the ad design and ad placement. ANSWER:

Bloom's: Application

Scenario 8-4 American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. 84. (Scenario 8-4) Within various sections of the portion of its advertising plan, American Express explains how and why Visa has been more successful at penetrating the small business market because of lower fees. a. evaluation b. execution c. strategy d. situation analysis ANSWER:

85. (Scenario 8-4) Within the portion of its advertising plan, American Express suggests that the most important outcome of the campaign will be for Visa customers to start to switch to American Express in this market segment. a. strategy b. execution c. situation analysis d. objectives ANSWER:

Bloom's: Application

86. (Scenario 8-4) American Express marketers say they do not use the sales begin to decrease in this segment, so will their budget. a. share-of-market approach

advertising budgeting method because if

b. percentage-of-sales approach c. share-of-voice approach d. objective-and-task approach ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 87. (Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario? a. Share-of-market approach b. Objective-and-task approach c. Percentage-of-sales approach d. Share-of-voice approach ANSWER:

88. (Scenario 8-4) American Express has decided to do a specific type of analysis that focuses on reach, frequency, time frame, production costs, media expenditures, and other specific elements. These factors are always included in a(n) analysis. a. market b. situation c. build-up d. industry ANSWER:

Bloom's: Application

Scenario 8-5 Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market in several months. In test marketing, many consumers liked the product but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis. 89. (Scenario 8-5) Helene Curtis has once again decided to use objective-and-task budgeting to set the advertising expenditures.This is the only budgeting method that focuses specifically on advertising spending: a. as leading to advertising sales. b. as calculated by a mathematical formula. c. as determined by percentage of gross profit. d. as related to advertising objectives. ANSWER:

90. (Scenario 8-5) The advertising agency for Helene Curtis is in the process of doing a build-up analysis. This means it is a. isolating the key costs in moving from awareness to preference to purchase of the shampoo. b. determining the cost of building up awareness of the new shampoo to a predetermined level. c. adding up each cost associated with a task identified in the advertising plan for the shampoo. d. determining the approximate time frame that will be necessary to meet all advertising objectives in promoting the shampoo. ANSWER:

Bloom's: Application

91. (Scenario 8-5) Which element of the build-up analysis will identify the demographic and geographic exposure that the advertising for the shampoo hopes to achieve? a. Frequency b. Media c. Production d. Reach ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 92. (Scenario 8-5) The build-up analysis will also address costs not listed elsewhere, particularly those associated with advertising to the trade and doing specialized research. Which factor does this involve? a. Ancillary costs b. Production costs c. Media expenditures d. Promotional costs ANSWER: a DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application

93. (Scenario 8-5) The number of exposures required to accomplish the advertising objectives for the shampoo, referred to as , will also be included in the build-up analysis for Helene Curtis. a. execution b. production c. frequency d. reach ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application 94. Describe the essential difference between an industry analysis and a market analysis. In what section of an ad plan are they typically included? What are the other considerations for an advertiser that should be part of this section? Where does the competitor analysis come in? ANSWER:

An industry analysis focuses on developments and trends within an industry and on any other factors that may make a difference in how an advertiser proceeds with an advertising plan. An industry analysis should enumerate and discuss the most important aspects of a given industry, or the supply side of the supply-demand equation. A market analysis is the flip side of an industry analysis. It describes the demand side of the supply-demand equation. An advertiser examines the factors that drive and determine the market of consumers for the firm's product or service. First, the advertiser needs to identify and define that market. An industry analysis and a market analysis are both part of a situation analysis. Advertisers should also include the historical context and a competitor analysis as part of this situation analysis. A competitor analysis, conducted after these initial analyses are completed, identifies the main competitors, their strengths and weaknesses, and any serious threats that they represent. DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

95. Define the terms: brand awareness, top-of-the-mind awareness, purchase intent, trial usage, repeat purchase, and brand switching. Choose two of these concepts and give real-life examples. ANSWER:

Brand awareness is an indicator of consumer knowledge about the existence of a brand and the ease with which that knowledge can be retrieved from the consumer’s memory. Top-of-the-mind awareness is the condition that occurs when one brand comes up first in the consumer’s list of preferred or remembered brands. Purchase intent is the expression by the consumer to buy the brand at some time in the future, presumably indicating that the consumer is closer to actual behavior than merely having a positive attitude toward the brand. Trial usage is the actual behavior of a consumer in trying a new brand and hoping that it will live up to the expectations created by the advertising. This concept is commonly used as an advertising objective. Repeat purchase is the instance in which a consumer tries a new product and then buys it a second time (also called conversion). It is considered a great milestone toward gaining new regular users.

Brand switching is the instance when a consumer discards one brand for another. It is a noble goal for advertisers, but reaching it can be a long and arduous task. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

96. Why is the objectives section of an advertising plan so important to an advertiser? Name at least three of the objectives described in the text. For each objective, list one important consideration for advertisers. ANSWER:

Advertising objectives identify the goals of the advertiser in concrete terms. Without them, there would be no solid direction for the campaign. Brand awareness is a popular advertising objective. Creating or maintaining brand awareness is an indicator of consumer knowledge about the existence of the brand and the ease with which that knowledge can be retrieved from memory. Ease of retrieval from memory is important because for many consumer goods or services, it is predictive of market share. Attitudes and beliefs can also be addressed in an advertising objective. This usually involves creating or changing attitudes and beliefs about the product. However, while attitudes may give a good indication of intentions and feelings about certain products, they do not necessarily predict actual buying behavior. Purchase intent is another popular criteria in objective setting. The appeal of influencing purchase intent is that, compared to consumer attitudes, consumer intentions are closer to actual behavior, and thus closer to the desired sale. Trial usage is an indicator of actual behavior and is commonly cited as an advertising objective. In the case of new products, stimulating trial use is critically important. Repeat purchase is aimed at the percentage of consumers who try a new product and then buy it a second time. The odds of long-term product success go way up when this percentage is high. Brand switching is a challenging advertising objective. Convincing consumers to permanently switch brands is a noble goal but it is not easy to accomplish—it can take a lot of time, effort, creativity, and money, and even then it may not be a successful venture. Sales is sometimes listed as an advertising objective, but it can be a controversial one. The idea that advertisements should directly increase product sales is often disputed by marketers, since advertising is only one element in a complex market mix, and many other factors can affect sales. DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

97. A marketer at a large advertising agency has been assigned the task of developing advertising objectives for a nationally known brand of orange juice called Sweet Sunshine. What are the advantages of viewing the advertising effort from strictly a communications viewpoint, as opposed to a sales objectives viewpoint? Regardless of which viewpoint is ultimately adopted, what characteristics should the objectives display to allow the Sweet Sunshine client to make intelligent decisions about resource allocation? ANSWER:

Many marketers would take the stance that communications objectives are the only legitimate objectives for advertising a brand like Sweet Sunshine. They would argue that it is not reasonable to set sales objectives for its advertising effort when other variables in the mix might undermine the advertising effort, or might be responsible for sales of Sweet Sunshine orange juice (or lack of sales) in the first place. In addition, viewing advertising as primarily a communications effort will allow the marketer to consider a broader range of ad strategies in promoting the Sweet Sunshine brand. Overall, communications objectives should create an awareness for the Sweet Sunshine brand, offer information about its features and benefits, and develop a favorable attitude toward the brand that may lead to consumer preference. These objectives have certain advantages over sales objectives—they consider a broader range of strategies, and they gain a greater appreciation for the overall communications process. But there is always the idea, even if it is in the background, that advertising must sell. So the marketer may use both types, as long as certain criteria are met. Any objectives that enable a firm to make intelligent decisions about resource allocation—whether based on communications or sales—must be stated in an advertising plan in terms specific to the organization. The objectives must establish a quantitative benchmark, specify measurement methods and criteria for success, and identify a time frame for the desired results to occur. DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application

98. You are the marketing manager for an online merchandiser of a diverse line of casual sportswear, athletic clothing, and outerwear for both men and women. Write a brief memo to your advertising agency. In the memo, explain why you'd like the agency to abandon its recommendation for a share-of-market strategy in creating the budget. Give several reasons why this approach is unfavorable. Then explain why you want the agency to adopt an objective-andtask method. Also, there are four main steps that must be taken to implement this approach after advertising objectives are determined. List as many as you can. (It is not necessary to describe the steps in detail.) ANSWER:

Share-of-market strategy. In the memo, you will want to explain that you can run into several problems associated with the share-of-market method of setting advertising objectives. First, it may be difficult to gain access to precise information about your competitors' expenditures. Second, there is no reason to believe that your competitors are spending their money wisely, or in a way even remotely related to what your firm wants to accomplish. Third, a likely outcome of budgeting in this fashion is that your firm will make little headway over the competition and but will simply maintain the status quo. Fourth, the flaw in logic behind this method is the presumption that every advertising effort has the same goals, is of the same quality, and will have the same effect from a creative execution standpoint. Objective-and-task strategy. Now your memo will address the preferred alternative. The objective-and-task approach will allow you to focus on the relationship between your spending and your advertising objectives. The budget is formulated by identifying the specific tasks necessary to achieve different aspects of the objectives. The four major steps that must be taken after advertising objectives have been set are (1) using a build-up analysis to determine costs; (2) comparing the costs against industry and corporate benchmarks; (3) reconciling and modifying the budget; and (4) determining the time frame for payout. DIFFICULTY: Difficult LEARNING OBJECTIVES: AIBP.OGUI.15.8-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Application

99. A good advertising plan is the result of combining the knowledge and talents of both the advertising agency and the client. In heading up a team that is creating the marketing plan for a large cosmetics firm, an account manager needs to make sure all goals are met and all responsibilities are assigned. For what issues does the client take primary responsibility? For what elements does the agency take primary responsibility? The client’s role is to produce all necessary information on the firm, the brand, the product, and the market. It should identify the firm's basis for offering value to customers. The client should also clearly identify the external environment and the opportunities and challenges that can be addressed with advertising. In addition, it should include a well-articulated statement of the brand's competitive position and the marketing mix strategies designed to gain and sustain competitive advantage. The agency's role is to use all that information and its own expertise to create finished ads. It should consider the conditions in the current market plus the firm’s marketing status and ad objectives, and then translate this information into promotional strategies and, ultimately, into finished advertisements. An agency best serves its client by taking charge of the preparation and placement stages. The agency needs to hammer out message strategies and tactics for the advertising effort and for the effective design and placement of ads—overall, it needs to manage the entire IBP process. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.8-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Application ANSWER:

Ch_09__Managing_Creativity_in_Advertising_ 1. Creativity in ads is required in order to break through ad clutter. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 3. The usefulness of creativity in advertising ends once the ad has captured consumer attention. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 4. Great brands don’t just get the attention of consumers, they make emotional connections with consumers. a. True b. False ANSWER:

5. Creativity is very different depending on the domain in which it exists. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 6. To be creative, a person must rely on everyday logic and "the way things are." a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

7. Howard Gardner's selection of seven of the greatest creative minds of the 20th century listed individuals from a variety of advertising and promotional fields. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 8. In his analysis of some of the most creative people of the 20th century, Gardner found that they had little interest in social life, usually neglected family members, and were significantly childlike. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension

9. According to Gardner, creative people have much less interest in playing by the rules, acting nice, and being socially acceptable than more ordinary people. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 10. According to Howard Gardner, absolute commitment to one's creative work is a positive trait and has no associated disadvantage to it. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

11. Gardner found that despite the passion for their work, widely recognized creative people are particularly shy about getting exposure for their work. a. True b. False ANSWER: False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 12. The thought processes of creative people are more complex, orderly, and logical than those of others. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

13. The creative person appears to strongly desire marginality—being an outsider—and this marginality provides the energy needed to push forward with innovative ideas. a. True b. False ANSWER:

True DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 14. Gardner's findings indicate that high levels of creativity lead to a satisfying personal life and a carefree professional life. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

15. Gardner's research indicates that a high level of creativity is tied to a high level of emotional stability. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 16. Creativity is viewed in the business world as a negative quality for employees because creative people are hard to work with. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

17. Conflict between management and creatives in an organization is unhealthy and ineffective. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 18. Those who really understand creativity and the world of advertising know that good ideas can come from anywhere —the managers, the accountants, even the clients. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 19. If you have a "creative" job, that means you are "creative." a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 20. Creatives and account managers in ad agencies typically share the same goals for a particular advertisement or campaign. a. True b. False ANSWER:

False

DIFFICULTY:

Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

21. As a social process, advertising is marked by the struggles for control and power that occur within departments, between departments, and between the agency and its clients on a daily basis. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 22. It is a common situation in ad agencies that the account services department and the creative department do not agree on the ultimate goal for an advertisement. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 23. Account executives are the liaison between the agency and the client. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 24. In the world of advertising, science is never allowed to judge art. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

25. In agencies, people in research departments are often put in the tough position of having to “judge” creative work. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 26. One of John Sweeney’s suggestions about creativity in ad agencies is that bad work is more a matter of talent than structure. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 27. Executing an IBP campaign is like performing as a symphony orchestra—many individuals are simultaneously making unique contributions to create a final piece. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 28. Preparing and executing a breakthrough IBP campaign is not people-intensive—it hinges on the creative work and the business acumen of a few key individuals. a. True b. False ANSWER: DIFFICULTY:

False Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

29. The most creative advertising results from individual effort rather than teamwork; teamwork does not generate synergy in advertising. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 30. The creative brief sets up the goal for any advertising effort in a way that gets everyone moving in the same direction. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 31. The creative brief provides guidelines for the creative process, which, unfortunately, defeats the purpose and ends up restricting creativity. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

32. Interpersonal abrasion is beneficial to creativity, while creative abrasion is not. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

33. There is a right way and a wrong way to brainstorm. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 34. Robert Sternberg has found that to be more creative, you need to spend time gaining knowledge but also avoid getting mired in so much knowledge that creativity is stifled. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 35. Robert Sternberg’s suggestions for boosting creativity stress that you should learn to see problems the way other people see them. a. True b. False ANSWER: False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

36. A popular fast food chain notices that its ads are indistinguishable from those of other fast food companies. All the ads usually feature young people enjoying fast food. As a result, this fast food chain launches a creative advertisement which shows elderly people buying food from it and acting like youngsters. The message that people get from this advertisement is that it is allowable for even old people to have fun. In the context of this scenario, what was the purpose of this advertisement for the fast-food chain? a. To reinforce the company's brand image b. To generate repeat sales from the company's customers c. To present logical reasons for customers to prefer the brand d. To break through the ad clutter and get attention ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

37. Which of the following purposes does creativity serve in advertising? a. It makes people work in a structured manner. b. It creates competing agendas in an agency. c. It gives meaning to a brand by making emotional connections with consumers. d. It makes people timid so that they can contribute more to work. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 38. Though it is almost impossible to define, creativity is essentially the ability to: a. see the world in a structured way. b. hold together seemingly inconsistent elements. c. think in terms of “the way things have to be.” d. be conventional and hardworking. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

39. Creativity: a. enriches personal lives and creates emotional stability. b. enables forming conventional decisions in life. c. makes social life or hobbies significant factors. d. reflects early childhood experiences and cognitive styles. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 40. Which individuals did Howard Gardner highlight in his book, Creating Minds, in his pursuit of the most creative people of the past century? a. Edison, Einstein, Twain, Roosevelt, Gandhi, Disney, and Vonnegut b. Picasso, Bernstein, Van Gogh, Nureyev, Frost, Hemingway, and Einstein c. Eliot, Bradbury, Ellington, Graham, Churchill, Wright, and Edison d. Freud, Einstein, Picasso, Stravinsky, Eliot, Graham, and Gandhi ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 41. Mia, Simone, Jackson, and Carlos work at the cutting-edge Zanadu Agency. Based on the common personality traits and professional characteristics of the seven greatest creative minds of the 20th century, which one probably works in the creative department? a. Mia, who is quiet, calm, humble, conforming, and friendly to everyone in the room b. Simone, who is self-effacing, timid, intelligent, and a great partner to clients c. Jackson, who is self-confident, alert, unconventional, hard-working, and driven to the point of obsession d. Carlos, who is edgy, intense, goal-oriented, logical, and focused on the bottom line ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

42.

is the ability to consider and hold together seemingly inconsistent elements and forces, making a new connection. a. Reason b. Creativity c. Motivation d. Synergy ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

43. According to Howard Gardner's research, creative people are more likely to be: a. self-effacing. b. self-confident. c. emotionally stable. d. self-giving. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 44. Howard Gardner discovered a number of positive traits that the greatest creative minds of the 20th century shared. He found that these individuals were all: a. shy. b. easygoing. c. social. d. conventional. ANSWER:

b DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

45. During Gardner’s work in identifying seven of the most creative people of the 20th century, he identified some negative sides to their lives. Which five characteristics did they appear to have in common? a. egotistical, narcissistic, obsessed, socially isolated b. delusional, irrational, antisocial, psychotic c. inattentive, unfocused, impatient, hyperactive d. dysfunctional, clingy, codependent, impulsive ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

46. Creativity reflects: a. following social norms. b. adopting structured thinking. c. retaining childlike thinking. d. conforming to everyday logic. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 47. The following comments were overheard at a huge party thrown by a well-known ad agency for its biggest corporate client. Which of the following comments is the most accurate representation of the way the corporate world views creative people? a. “They’re way overrated—what has creativity ever done for business, anyway?” b. “Nobody wants a creative employee—it’s just not a valued trait anymore.” c. “We all need them—but nobody really knows who they are or how they do it.” d. “They’re simple to spot—the smiling ones who get along with everybody.” ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

48. Which of the following is a problem with childlike thinking? a. The thinker starts to dislike being an outsider. b. The thinker is self-effacing and gives up personal goals in favor of collective goals. c. The thinker becomes charming even when his or her ambitions are not met. d. The thinker's social behavior becomes selfish. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

49. Most research concerning the contentious environment in the world of advertising places the position as a focus of the conflict. a. account executive

in a central

b. creative department c. client d. agency owner ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Comprehension

50. Various personnel view ads in different ways. People in the creative department tend to see an advertisement as a way to: a. go easy on their ambitions. b. showcase a personal ideology. c. grow the market share for the brand. d. reflect the client’s thinking. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

51. Which of the following is true about the roles of creatives and account executives in an advertising agency? a. Account executives work for awards; creatives work to please the client. b. Account managers must be generalists, whereas creatives must possess expertise in a single area. c. Creatives are more likely to see the goal of the communication as achieving some predetermined objective in the marketplace. d. Creatives serve as a liaison between the client and the advertising agency. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 52. Who is the liaison between the two main parties involved in promotion—the client and the agency? a. The agency owner b. The research department c. The creative director d. The account executive ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 53. What is the function of the account executive in an advertising agency? a. To assess the effectiveness of advertising communication developed by the agency b. To execute the advertising concepts developed by the creatives c. To ideate about possible creative concepts for advertisements d. To negotiate with clients and convey client instructions to the agency ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

54. Renee's job in an advertising agency involves talking to the clients to identify their goals and then conveying these goals to the creative team, which creates strategies to accomplish these goals. Her job often involves explaining the client's perspective to the agency and explaining the agency's creative strategy to the client. Renee is likely to be a(n): a. ad designer. b. media buyer. c. copywriter. d. account executive. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 55. Which of the following best describes the reason why account executives should not be fired even when ad agencies face lean times? a. They have the critical role of bridging the gap between clients and creatives. b. They execute sophisticated advertising and IBP campaigns. c. They do not get involved in struggles over control of the creative product. d. They have the vital responsibility of judging the work of the creatives. ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 56. According to John Sweeney, if you’re working with a pool of talented people, they’ll produce their best work if you: a. hand them over to the account executive. b. keep them out of any conflicts that arise. c. give them some structure. d. just agree with them. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

57. In teamwork, the term "synergy' implies that: a. one or two key members of a team are responsible for the creative output of the team, while the others merely follow. b. the output of the creative process is greater than the sum of the talents of individual team members. c. the output of team effort is similar to that of the most talented person in the team working alone. d. the output of the team depends on the negotiating skills of the strongest member of the team. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 58. Which of the following is true of teams in advertising? a. In advertising, teamwork needs no planning. b. Great teamwork is required for great advertising. c. In advertising, teams need no motivation to generate big ideas. d. Teams, by themselves, elevate the creative essence in advertising campaigns. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 59. Advertising is a(n): a. solo occupation. b. individual competition. c. team sport. d. business rather than an art. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

60. In the context of advertising, which of the following is true concerning teams? a. They try to blend diverse skills but are rarely successful. b. They have become the primary means for getting things done. c. They squash individuality and creativity all too often. d. They were popular in the 80s and 90s but are now considered a passing fad. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 61. In their book, The Wisdom of Teams, Katzenbach and Smith offered a number of insights about teams. Which of the following can be inferred from these insights? a. Teams focus on process rather than results. b. Teams operate on mutual synergy. c. Teams always look out for a number one. d. Teams restrict individual decision making. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 62. Which of the following is true of individualism in teams? a. An “always look out for number one” mentality can improve teamwork. b. Growing reliance on teams in the workplace means a devaluation of the individual. c. Teams find ways to let each individual bring his or her unique contributions to the forefront. d. Growing reliance on teams in the workplace implies greater emphasis on conforming to what the group thinks. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

63. Leadership over creative teams involves at least three main tasks, one of which is: a. excusing shortfalls in team performance when communicating with the client. b. emphasizing individual performances over mutual accountability for team performance. c. contributing ideas without dominating the group. d. suggesting a list of advertising objectives. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 64. Juan has just been assigned the role of team leader of his creative group for a new ad campaign. Which of the following should Juan do first? a. He should suppress any disagreements. b. He should meet with the client. c. He should provide a list of his ideas. d. He should build a consensus about goals. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 65. Leaders of creative teams do many things, but one thing they should never do is to: a. stick to the advertising plan. b. allow an individual to fail. c. jump in and do the real work. d. admit a team mistake. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

66. Members of all the following teams are part of the IBP account team, EXCEPT: a. accounting. b. public relations. c. direct marketing. d. the client. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 67. All members of an account team are also: a. employees of the client. b. assigned to the creative department. c. team leaders for their own groups of specialists. d. tied with the research team. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 68. Which of the following is a characteristic of a creative brief? a. It replaces teamwork with individuality. b. It sets primary goals for the client. c. It allows plenty of room for creativity. d. It results from brainstorming in the creative department. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

69. In essence, a creative brief is a(n): a. informal contract depicting the responsibilities of the creative team. b. set of guidelines to get the creative group moving in the right direction. c. solution to the primary problem of the ad campaign. d. list of results to be expected from the ad campaign. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 70. Who prepares the creative brief? a. The client lead and the account executive b. The owner(s) of the agency c. The client brand manager and the head of the creative department d. The research executive assigned to the campaign ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 71. Teams are able to liberate decision making when members: a. all think alike and agree with one another. b. allow the leader to make all the decisions. c. trust one another and feel it’s safe to contribute. d. just make suggestions but leave decisions to the client. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

72. Teams come up with ideas that are both creative and useful in the process of building brands if: a. they are allowed freedom in playing with their ideas. b. they are managed in a proactive way. c. structure is given more importance than talent. d. right expertise is preferred over diversity of thought. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 73. The stereotypes about business and advertising people serve to remind us that: a. people approach problem solving with different styles. b. advertising experts rely on their left brain. c. business types use both sides of their brain. d. people prefer to think about things in a conventional style. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 74. What concept refers to the unique preference that each person has for thinking and solving problems? a. Interpersonal abrasion b. Creativity framework c. Brainstorming d. Cognitive style ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

75. Well-known psychologist Carl Jung identified three sets, or dimensions, of cognition. Which of the following pairs are included in these dimensions? a. Sensing vs. intuiting, and thinking vs. feeling b. Thinking vs. feeling, and seeing vs. hearing c. Rational vs. emotional, and sensitive vs. intuitive d. Extraverted vs. introverted, and creative vs. logical ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 76. New ideas and breakthrough solutions result when there is just enough tension and just the right clash of ideas called: a. creative abrasion. b. interpersonal abrasion. c. interpersonal conflict. d. cognitive dissonance. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 77. In the context of creativity, which of the following should a team leader do to ensure a safe environment for team members? a. The team leader should not bring together people with diverse cognitive styles if he wants them to get truly engaged in the task. b. The team leader should create new ideas and ask the team members to incorporate them. c. The team leader should allow clients' ideas to be incorporated while making sure that team members only follow what the clients say. d. The team leader should allow creative abrasion to flourish while always looking to defuse interpersonal abrasion. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

78. Which of the following best defines brainstorming? a. It is an agreement on a concept for the good of a team's objectives. b. It is an ongoing clash of ideas and decisions that results in chaos. c. It is a different cognitive style for resolving team conflicts. d. It is an organized approach to generating ideas. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 79. Which of the following should be adopted when conducting brainstorming? a. Generating new ideas rather than building on each others’ ideas b. Encouraging individuals to learn about the problem before and after the group session c. Focussing on generating ideas rather than putting them to use d. Forming an appropriate team with no conflicts in cognitive styles ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 80. A good guideline to follow when trying to improve brainstorming within a team is to: a. foster an atmosphere of tranquility and ensure minimal changes to the environment. b. insulate the team from outside influences to help them focus on the task at hand. c. add more diversity to the group to increase creative abrasion. d. encourage interpersonal abrasion in order to generate creative conflict. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

81. Though individual achievement is important to foster, getting creative people to work as a team has its unique challenges. Which of the following guidelines are included in the list provided for heading a creative team? a. Allow for plenty of room between teams and clients, and foster competition between team members. b. Communicate your own personal preferences, and stress the use of a particular cognitive style. c. Take care in making your team assignments, and rotate assignments over time. d. Foster creativity by giving your team members free reign, and judge each creative idea as it is suggested. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 82. What do the three Ps stand for in the 3P’s creativity framework? a. Processes, Problems, and Perks b. Preparation, Pragmatism, and People c. Practicality, Problem-solving, and Production d. People, Process, and Place ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 83. You are most likely to be creative when: a. you are in your comfort zone. b. doing something you love. c. you avoid critiquing your own ideas. d. you avoid ambiguity. ANSWER:

84. According to Robert Sternberg, which of the following should you do for advancing your own creativity? a. Adopt the safe solution. b. Do not cherish ambiguity. c. Learn to doubt yourself. d. Analyze your own ideas. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 85. In his studies of creativity and intelligence, Yale psychologist Robert Sternberg has found that when you suggest a really creative idea, you need to: a. copyright it. b. be prepared for opposition to it. c. decide that it is a safe solution. d. base it on an accepted standard. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 86. Psychologist Robert Sternberg, an expert on creativity and intelligence, advises that if you want to be more creative, you should: a. do something you love. b. learn from the pros. c. expect to be disliked. d. head up a team. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

Scenario 9-1 The Xcellent Agency specializes in developing advertising campaigns for smaller retail clients. Xcellent was hired by Shadowleaf Shoes, a small regional chain of six shoe stores, to develop a slogan and specific ads to be used in a three-month newspaper campaign. Shadowleaf's marketing director, Manuel Margolis, was adamant while meeting with Xcellent's account executive, Kia Chin, that the campaign must be catchy and modern to appeal to a target audience that has an active lifestyle and is between the ages of 18 and 35. More importantly, Margolis wanted the slogan to be memorable and unique. Kia Chin, representing Xcellent, developed a campaign and presented it to Margolis, based on the slogan, "Do What You Do in a Shadowleaf Shoe." Visuals included men’s legs—different sizes, skin colors, etc.—walking, jogging, dancing, and otherwise moving in every type of Shadowleaf shoes. She felt that this campaign would target young male consumers, but would also get the attention of others regarding its comfortable shoes and would raise awareness of the Shadowleaf brand. After running the ads, the Xcellent Agency won an advertising effectiveness award. It seemed that the surprising and appealing visuals gave the slogan unexpectedly positive social meaning for people of all ages, not just men aged 18 to 35. 87. (Scenario 9-1) When Manuel Margolis insists on a measuring stick for the creativity of the campaign, what will the Xcellent Agency tell him, if Kia Chin is smart? a. “The award alone proves that this ad is loaded with creativity.” b. “If people like the ad, they’ll buy the product.” c. “We met the technical standards for this advertising effort.” d. “Great brands do more than just get attention, they make emotional connections.” ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 88. (Scenario 9-1) The Xcellent account manager, Kia Chin, explains to Margolis how they developed the slogan. “Before you can be believed, you have to be liked,” she says. “And what could be better than a new pair of shoes? Remember when you were little and you got a new pair of shoes? And when you learned to lace them up? No matter what their age, everybody likes putting on a new pair of shoes, right?” This creative description for the Shadowleaf slogan could have been drawn from which core characteristic of creative people? a. Childlike thinking b. Obsessive commitment c. Self-confidence d. Conventional attitude ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

89. (Scenario 9-1) Margolis has listened to all the explanations for the theme, and understands the nice ideas behind it, but he still isn’t sure this ad will sell shoes. Which department at Xcellent is most likely to be the source of its conflict with its client? a. Its media planning department b. Its accounts services department c. Its creative department d. Its production department ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 90. (Scenario 9-1) Which individual at the Xcellent agency will be responsible for maintaining a good relationship with Margolis and the Shadowleaf organization? a. The research manager b. The creative director c. The media planner d. The account executive ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 91. (Scenario 9-1) Looking back, who was responsible for creating the client brief, which should have informed Margolis and others of the creative endeavors behind the campaign? a. The owner of the Xcellent Agency b. The lead from Shadowleaf and the account executive of Xcellent c. The research manager and the creative director of Xcellent d. The marketing executive of Shadowleaf ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

Scenario 9-2 The Optima Bike Company manufactures broad-tire, three-wheeled, and two-wheeled bicycles mostly for the retirement market. Its primary market is seniors, usually those who live in retirement communities where there are clearly designated and safe bike paths. Seniors—and especially the younger baby boomers—like these recreational vehicles because they are easy and safe to ride. The company has had some early successes in Florida, Arizona, and California, where such communities began. Optima now wants to expand to other retirement enclaves. It has learned from two well-conducted consumer research studies that the main way that male retirees buy the Optima line is through the urging of wives who want to exercise in some way other than playing golf. Optima decides to engage an ad agency to capitalize on this consumer insight and promote its bikes to newer golf communities. It asks two agencies to pitch for its business and gives each a meeting in which it conveys the information above. Alpha Agency is based in Miami and insists that its creative team is best suited to promote Optima. Its managers tell the prospective client that this team is well versed in advanced animation techniques and can dramatize the features of Optima’s two- and three-wheeled bikes in a dynamic way. They’ll focus on how fast they can go and how they can “transform the ride” into an adventure—this has worked in other ads, and this will appeal to the male consumers who need to be lured away from the golf course. Following this initial display of product prowess, they suggest a campaign that demonstrates how the bikes can be customized to be more “comfortable and attractive for the ladies,” including pink seat options. They finish by asking whether the brand name can be changed to “something more exciting.” Beta Agency is based in Los Angeles and promises to serve as Optima’s branding partner. It asserts that its creative philosophy is centered on long-term brand building. Its managers propose that they will develop the right message by applying the research-based consumer insight that women want to use the bikes to entice their husbands to leave the golf course once in a while. They suggest that their successful work in building regional appreciation for brands, such as Sea-Doo water vehicles and Ski-Doo snowmobiles, indicates their prowess in branding similar but not directly competitive brands. They emphasize the difference that Optima offers in the recreational-ride category, and the consumer targets that differ from other brands. They close by complimenting this prospective client on how appropriate the brand name is, given its customer base and likely target consumer. 92. (Scenario 9-2) Optima chooses the Beta Agency to create its campaign. What is likely the primary reason for this choice? a. Alpha Agency focused more on men than on women. b. Alpha Agency was in Florida, which covers a smaller region than California. c. Beta Agency focused on making a brand connection to the consumer. d. Beta Agency was in Los Angeles, which is a more up-and-coming area regarding senior marketing trends. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

93. (Scenario 9-2) Which of the following is one critical item of information that Optima’s brand manager should expect to see on the final creative brief to diminish conflicts in the future? a. The creative team should avoid animation and cartoon graphics b. The ad should be likeable without pushing for a particular belief about the brand c. The music for the campaign should be oldies rock d. The goal should be reaching the wives of retirees who play golf ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 94. (Scenario 9-2) Once Optima managers have engaged Beta Agency to do their IBP work, how will they ensure that their hopes for a great campaign—and partnership—will become reality? a. By writing specific creative team members into the contract b. By asking that Beta check daily with the brand manager for Optima c. By beginning work with the account executive at Beta to write a creative brief d. By setting up a meeting for the CEO of Beta and the CEO of Optima ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

95. (Scenario 9-2) As often happens in new client-agency relationships, Beta Agency and Optima Bike Company conduct a joint brainstorming session prior to finalizing the IBP campaign strategy. Sam Spokes, head engineer and designer for Optima, interrupts the session frequently, refuting agency staffers’ spontaneous suggestions that women love bikes, a bike is like a golf club, and the bike will sell itself. He also labels them as uninformed about various technical aspects of the bicycle mechanisms. How has the behavior of Spokes influenced the brainstorming session? a. Positively, by winnowing out the bad campaign ideas from the good ones b. Negatively, by diminishing its purpose in inhibiting others from offering ideas freely c. Positively, by pointing out important aspects of product design and showing expertise d. Neutrally, by making irrelevant and immaterial comments ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

96. What are the core characteristics of great creative minds, as identified by Howard Gardner? Relate the characteristics with the positive and negative repercussions in the lives of people who demonstrate extreme levels of creativity. ANSWER:

Gardner suggested that great creative minds share particular qualities—unending selfconfidence, childlike simplicity, nonstop alertness, unconventionality, self-promotion, strong work ethic, and obsessive commitment to work. These traits, all of which he discovered when analyzing seven highly creative minds of the past century, can lead to a number of positive conditions. They foster fresh thinking, fascinating ideas, and innovative solutions to problems—not only invigorating and amazing the world, but also improving it.

Although these qualities—and their benefits to business and consumer lives—are very positive and desirable, there is a downside, largely based on the degree to which creatives show these traits. Self-confidence, when out of balance, can degrade into narcissism and egotism. Childlike thinking, while leading to refreshing and compelling insights, can also lead to childish behaviors. Obsessive commitment to work can lead to a distressing hardships for an individual’s family, friends, and associates, who may be ignored or treated poorly while also being expected to cheerlead from the sidelines and compensate for the creative's shortcomings. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 97. With the help of concrete examples, describe the tensions that are routinely found between creatives and managers within agencies. Discuss why these are so commonly found in the world of advertising. ANSWER:

Tensions begin with the uncertain nature of the creative product. Although everybody understands that ads need to be “creative,” there is no hard and fast rule that identifies “creativity” when it appears. Moreover, some clients and agency managers have the perception that creatives spend a lot of time telling jokes, having fun, and “screwing around” as they let the creative wheels turn. But the other side may not be recognized—that creatives are continually pressed to come up with yet another totally “unique” and “original” concept, design, or slogan, often with little time and few resources. It is hard work to not only get the right creative idea but to convey it and produce it in a tangible form. The time and effort needed to do that is often dismissed or unseen by managers and clients. These types of misunderstandings aggravate client uncertainty, which in turn frustrates account executives and agency directors. By nature, many creatives are provocateurs—they take risks, push envelopes, and sometimes step over the lines of ethics and good taste. Managers, to a degree, dislike too much edginess in a creative execution and often seek to minimize it, but in doing so, they may end up micro-managing the team rather than letting the final product speak for itself. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

98. Explain the importance of collaboration—creating teams and encouraging teamwork—in the creative advertising environment. Give three or four reasons why teams foster creativity in the real-life workplace of contemporary advertising. Consider ideas from The Wisdom of Teams by Katzenbach and Smith. ANSWER:

Today, interpersonal skills are highly valued—and expected—in the workplace. And advertising has become a team sport. Coordination and collaboration are required in all phases of promotion and marketing nowadays. Teams have become the primary means— sometimes the only valid option—for getting things done. Teams bring many positive elements to the table. They can generate a synergy that makes the whole bigger than its parts. They allow people to focus on many individual tasks and then combine their talents in a unique way. They make the group rather than the individual accountable for performance, and they are expected to show results. Teams can create and build campaigns more easily than individuals. They can simply handle the demands, time constraints, and quality requirements that are often beyond the scope of one person’s abilities. But effective teams also appreciate and utilize individual excellence. They allow people to bring unique talents and contributions to the job. Likewise, the people involved learn about their own cognitive styles, observe the work of others, and become better collaborators overall.

DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 99. What is meant by the term cognitive style? How has it been stereotyped into two polar opposites in creative environments like ad agencies? Explain how cognitive styles affect creative teams. ANSWER:

Cognitive style refers to the unique preference of every individual for perceiving, thinking, and solving problems. Some lean toward logical or analytical thinking, others prefer intuitive or visual thinking. Many versions have been suggested, beginning with the work of psychologist Carl Jung, who proposed three categories of opposing cognitive styles—sensing versus intuiting, thinking versus feeling, and extraversion versus introversion. The stereotypes often depicted in creative businesses like advertising and promotion have produced some familiar cultural stereotypes. It is easy to label the “business types” as leftbrained thinkers—interested in numbers, tests, data, and reports. And to label the “creative types” as right-brained thinkers—focused on ideas, images, visuals, and abstractions. While these stereotypes are narrowly defined and force people into cookie-cutter “types,” they do point to the idea that people think about things, tackle projects, and carry out tasks in very different and individual ways. Overall, teams doing creative advertising work tend to benefit from a good mix of different cognitive styles. Different kinds of thinking lead to creative solutions.

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

100. Define the terms interpersonal abrasion and creative abrasion. Discuss the differences between the two, as well as the similarities. Give an example of each that might be found in the advertising workplace environment. ANSWER:

The two concepts are similar in that they both refer to a level of tension, conflict, frustration, irritation, or disagreement that almost naturally occurs when highly motivated people work together to solve a problem or create a new idea. But there are great differences between the two. Interpersonal abrasion refers to the clash and friction between people, often in a very personal way. Communication breaks down, new ideas die, creativity shuts off. This type of conflict can be a destructive force in a workplace. Creative abrasion refers to the clash and friction between ideas, usually in a professional way. Opinions are expressed, arguments take place, voices are raised— but in the middle of all this, ideas pop, thoughts clarify, and breakthrough solutions evolve. So this type of conflict can be very productive in the workplace. In fact, some form of friction or tension needs to be present to stir things up and get the sparks flying. Examples from the advertising workplace will vary among students, but will probably include in some form the common state of conflict between clients and agencies, or between account executives and creative directors. Either way, the creatives are usually at the center of the conflict. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 101. Psychologist Robert Sternberg has devoted his entire career to the study of creativity and intelligence. What advice does he give to those who want to boost their creativity? List Sternberg's ten suggestions for becoming more creative. Give a realistic example of how any three of them might apply to the world of promotion. ANSWER:

Sternberg said that to become more creative, you need to make certain decisions and follow through on them. The decisions listed in the book include the following (examples will vary among students): 1. Redefine problems to see them differently from other people. 2. Be the first to analyze and critique your own ideas, since we all have good ones and bad ones. 3. Be prepared for opposition whenever you have a really creative idea. 4. Recognize that it is impossible to be creative without adequate knowledge. 5. Recognize that too much knowledge can stifle creativity. 6. Find the standard or safe solution and then decide when you want to take a risk by defying it. 7. Keep growing and experiencing, challenging your own comfort zone. 8. Believe in yourself, especially when surrounded by doubters. 9. Learn to cherish ambiguity, because from it comes new ideas. 10. Remember that research has shown that people are most likely to be creative when doing something they love.

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.9-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

Ch_10__Creative_Message_Strategy 1. The concept of message strategy refers to both objectives and methods—what you want to do, and how you want to plan it. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 2. Advertisers promote brand recall through repetition and memory aids. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 3. Promoting brand recall is the simplest type of advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 4. In the case of low-involvement goods and services, the very first brand remembered is most likely to be the one purchased. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

5. A slogan used for advertising provides rehearsal—it encourages repetition because it is catchy. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 6. Advertisements that use the USP concept link the brand name with the removal of fear or anxiety. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 7. When an advocacy position is taken by a spokesperson in an advertisement, it is known as a demonstration. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 8. Compared to achieving a brand recall objective, achieving a persuasion objective typically requires less cognitive processing on the part of the consumer. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

9. One drawback of reason-why ads is that they have a potential for counter-arguments, which may ultimately convince the customer why not to buy the advertised brand. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 10. Comparison ads are rarely seen outside the United States due to cultural customs or legal restrictions of other nations. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Comprehension

11. Commercials that show ordinary people being stopped on the street to comment on a product are employing a type of average-user testimonial. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 12. An infomercial has the advantage of looking like an entertainment show, when it’s really an ad. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

13. An advertorial is an ad that is designed to look just like a newspaper article. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 14. Advertisers use feel-good advertising when all they want is for consumers to laugh. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15. Feel-good ads sometimes focus on certain aspects of a product in order to get consumers not to think about some negative things related to it. a. True b. False ANSWER:

True DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Comprehension

17. Humorous versions of advertisements usually prove to be more persuasive than non-humorous versions of the same ad. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 18. For humor ads to be successful, they must focus on getting the audience to laugh rather than emphasizing the product or brand. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

19. Sex-appeal ads can be used to get attention, but not to create a brand image. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 20. A big advantage of sex-appeal ads is that they get high levels of attention. a. True b. False ANSWER:

Bloom's: Comprehension

21. Fear-appeal ads can be successfully used in almost all product categories. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 22. Unlike anxiety ads, ads that focus on social anxiety do not elicit any ethical concerns. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

23. Social anxiety advertising utilizes the fact that people want to change their behavior after having worried about something. a. True b. False ANSWER:

Bloom's: Knowledge

25. Social roles—mothers, fathers, romantic partners—and the consumer’s inadequacies and worries about fulfilling them, are used in selling products. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26. A criticism of social anxiety ads is that historically they have ignored an entire population—namely, women. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 27. Image advertising prefers the use of text over visual elements. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 28. Image ads tend to generate fewer consumer counterarguments when compared to other types of ads. a. True b. False ANSWER:

29. A brand messaging professional should ensure that the brand is placed in the right social setting in order for it to have a social meaning tied to it. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 30. A slice-of-life advertisement attempts to identify a cultural or social setting and have it rub off on a brand. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 31. Transformational ads focus on the risk of physical harm or negative social consequences if the consumer neglects to use a certain brand. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Knowledge 32. The theory behind transformational advertising is that it can actually improve the consumption experience. a. True b. False ANSWER:

True DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

33. Effective transformational ads connect the experience of the advertisement so closely with the brand experience that consumers cannot help but think of material from the ads when they think of the brand. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 35. The component of advertising that defines the goals of an advertiser and how those goals will be achieved is known as: a. unique selling proposition. b. transformational advertising. c. social branding. d. message strategy. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

36. The first brand name that consumers remember when a particular category of products is mentioned is said to have _____ awareness. a. evoked set b. point-of-purchase c. top of mind d. direct response ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 37. The small list of brand names, typically five or fewer names, that comes to mind when a product or service category is mentioned is known as the . a. intersection set b. product line extension c. evoked set d. brand extension ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 38. Repetition is a tried-and-true way of: a. posing one or more logical arguments to an engaged consumer. b. gaining easier retrieval of brand names from consumer’s memory. c. demonstrating a brand’s ability to satisfy consumers by comparing its features to those of competitive brands. d. leveraging the propensity for humans to distort information in the favor of liked brands without knowing they are doing so. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

39. An advertising strategy that centers on that an online user will see it many times. a. transformation b. image c. demonstration

involves merely placing a familiar brand name in so many locations

d. repetition ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 40. A slogan is a(n) a. visual image b. linguistic device

linked to a brand in a memorable way.

c. emotional meaning d. tactile sensation ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Knowledge

41. Jingles and slogans are linked to a concept called or prone to being repeated. a. rehearsal b. periodicity c. looping

, that is, they encourage repetition because they are catchy

d. isochronism ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

42. For advertising to work as planned, the consumer should be convinced through arguments that the advertised brand is the right choice. a. repetitive b. point-of-purchase c. persuasive d. feel-good ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 43. A hard-sell ad is most likely to create a(n) a. emotional connection b. sense of urgency

in potential consumers.

c. feeling of social anxiety d. sense of superiority ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 44. The main objective of hard-sell messages is to: a. create a sense of urgency so that consumers will act quickly. b. highlight a consumers inadequacy within the context of a social role. c. create in the consumer a pleasant and memorable association with the brand. d. highlight the risk of harm or negative consequences of not using the advertised brand. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

45. Which of the following ads uses indirect comparison? a. EZTalk offers you four times the performance of other leading brands. b. Refresh toothpaste gives you all-day protection against germs. c. The Palazzo offers better mileage for half the price of a Gordano. d. Buying Verity results in immense savings over the long term. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 46. Comparison ads try to demonstrate a brand’s ability to satisfy consumers by: a. showing the brand name more often to the consumers. b. weighing its features against those of competitive brands. c. linking the brand name to something memorable for the consumers. d. making the consumers associate positive feelings with the advertised brand. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 47. Which of the following telecom companies would be likely to benefit from a direct comparison ad? a. GBL Inc, a company known for its pioneering designs b. Unix Inc., the company with the largest market share c. Myrna Technologies, an established leader in the market d. Newtel, a small company that has just entered the market ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

48. A real-life nurse discussing the benefits of a home blood-pressure kit and a real-life librarian promoting the advantages of a children’s reading program are both: a. acting as expert spokespeople. b. lending celebrity credibility. c. providing real-life demonstrations. d. delivering average-user testimonials. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: 49.

Bloom's: Application

theory suggests that consumers rely on opinions or testimonials from people they consider similar to themselves, rather than on objective product information. a. Equity b. Reference group c. Maslow's d. Brand loyalty ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Comprehension

50. An advertiser for bubble gum attempts to generate brand preference by getting consumers to simply like the product and associate it with fun and happiness. Which type of message is the advertiser sending? a. A feel-good message b. A testimonial c. A demonstration d. A hard-sell message ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

51. In the relationship between thought and feelings, feelings are: a. less powerful than thoughts. b. expressed in a more primitive way than thoughts. c. generated from the same system as thoughts. d. slower than thoughts. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 52. Which of the following is a characteristic of feel-good ads? a. They work through affective association or predecision distortion. b. They have the advantage of looking like an entertainment show. c. They create and then offer solutions for feelings of anxiety. d. They have significant legal/regulatory exposure. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension 53. When an advocacy position is taken by a spokesperson in an advertisement, it is known as a(n) a. transformational b. testimonial c. feel-good d. image ANSWER:

ad.

54. A group of friends sitting in a bar talk and joke about various beer commercials. One of them describes an ad and they all laugh, and then someone says, “That is one great ad. Who was that for, anyway?” From this scenario, it is clear that the ad about which the friends were talking: a. is not a persuasive ad. b. has used a feel-good approach. c. generates affective brand-consumer association. d. is not really a funny ad. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Application

55. An expert testimonial ad for a brand of mouthwash would be most likely to use the ad. a. a child b. a dentist

as the main spokesperson in

c. a popular cartoon character d. a famous sportsperson ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Knowledge

56. There is one big difference between a successful and an unsuccessful humor ad—the joke or payoff in the successful one: a. is funnier. b. can be run more often. c. is linked to the product. d. puts down the competition. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

57. Research on the topic of using sex in the ad business generally confirms that sex-appeal ads can be effective when: a. more focus groups and communication tests are ordered. b. the ad produces enough "heat." c. they emphasize how one looks, feels, and smells. d. the context is appropriate. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 58. Several ads for lingerie, jeans, and perfume in a sophisticated fashion magazine provide instances in which a sexappeal message is successfully used. The ads are successful because the: a. right model is chosen. b. product is appropriate. c. image approach is used. d. brand is bought for emotional reasons. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 59. The Grana Weightloss System advertises its exercise machines on late-night TV. Their advertisements are typically half and hour long, and feature spokespeople as well as consumers and celebrities talking about their experiences with thebrand. In this scenario, the company is using . a. advertorials b. infomercials c. point-of-purchase advertising d. transformational advertising ANSWER:

60. Which of the following is true about fear when it is used in an advertisement? a. Fear will get a consumer to pay attention but will rarely get a consumer to take action. b. Fear is best used at very low or almost unrecognizable levels. c. Fear works best when the consumer doesn’t think about the ad too much. d. Fear can work when it’s believable and the ad shows a clear way out. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

61. A leading car company pays to have its cars prominently featured in an upcoming movie. The advertising method used here is . a. product placement b. an infomercial c. an advertorial d. social disruption ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 62. Slice-of-life ads are typically produced when an advertiser wants to: a. promote brand recall. b. change behavior by inducing anxiety. c. give the brand social meaning. d. gain recognition through brand name repetition. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS: Bloom's: Comprehension

63. A television commercial opens with young kids riding bikes in the summer heat, across empty baseball fields, on hot sidewalks, down dirt hills. They then run into the cool kitchen where the mother is waiting. The grubby kids wipe their sweaty brows, and the youngest one says, “It’s hot out.” The mother whisks out a box from the freezer and hands out popsicles. The kids smile, and the mother tousles their hair. This is an example of a(n) . a. transformational ad that attempts to change the consumption experience b. image ad that attempts to define a brand image c. slice-of-life ad that attempts to situate a brand socially d. demonstration ad that attempts to persuade the consumer ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 64. In the context of advertising, which of the following is true of leveraging social disruption and cultural contradictions? a. It associates the brand with pleasant events. b. It is a rare advertisement strategy. c. Only conservative brands risk using this strategy. d. All brands that use this strategy get assured success. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 65. Which term refers to the mix of advertising and entertainment, the umbrella covering the increasingly broad spectrum of integrated ads and nontraditional IBP? a. Procter & Gamble approach b. Populist consumption c. Consumer integration d. Madison & Vine approach ANSWER:

66. An advertiser of an established line of luxury resorts wants to make sure that the visitors have a long-term commitment with the resorts. He decides to use powerful imagery depicting happy moments that people can enjoy on visits to these resorts. He ensures that the visuals shown in these ads will be closely tied to a stay in the resorts. Through such ads, he hopes to: a. establish the resorts in a social or cultural setting. b. transform the experience of actually visiting the resorts. c. make customers recall the name of the resorts. d. create a brand image for the resorts. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 67. Which type of advertising is the most sophisticated, and though difficult to pull off, can powerfully weave ad images with real-life experiences? a. Social/cultural movement b. Image c. Transformational d. Product placement ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

Scenario 10-1 During tough economic times, many companies rely on the memories of "the good old days" to help advertise their products. Looking for a bit of a jump-start itself, PepsiCo turned to nostalgia-heavy advertisements late in 2009, which were then carried into 2010. The company introduced "throwback" versions of a number of its soft drinks, and created an ad campaign that included new logos and a series of commercials intended to generate feelings of happiness from prior decades. The company had hoped that any warm, fuzzy feelings about the past would make people feel better about the company’s present and future. 68. (Scenario 10-1) Emotional appeals in advertising are most effective when time is an insignificant element in achieving an objective. As opposed to this, which method is most appropriate when the goal involves creating a sense of urgency to purchase? a. Slice-of-life b. Fear appeal c. Hard-sell d. Anxiety ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

69. (Scenario 10-1) Which type of ads do PepsiCo's throwback commercials represent? a. Demonstration ads b. Reason-why ads c. Comparison ads d. Feel-good ads ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

70. (Scenario 10-1) Nearly everyone in advertising understands the powerful role emotions can play in advertising, but in addition, emotions can: a. be the only tool available when the objective is to persuade the consumer. b. become a product attribute linked to the brand c. be an excellent tool for use in repetition, slogans and jingles. d. never become part of the product. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

71. (Scenario 10-1) For companies using feel-good ads, one of the difficulties is creating an ad that truly elicits fond memories. Another difficulty associated with feel-good ads is that they can: a. cause consumers to generate competing thoughts and connections. b. cause consumers to recall bad memories from their childhood. c. cause consumers to favor another brand over the one advertised. d. cause consumers to think before they start feeling. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 72. (Scenario 10-1) If PepsiCo wanted to depict an ideal usage situation for its brand, what would be the best choice of advertising for the company to use? a. Reason-why ads b. Slice-of-life ads c. Testimonials d. Social anxiety ads ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

Scenario 10-2 National clothing retailer, Old Navy has been known for its creative ad campaigns for a number of years. In 2010, the company decided to tap into some Hollywood talent to help promote its brand. Actors Jaime Pressly, Bailey Chase, and Judy Greer were signed to support the company's Scream for Savings initiative, a campaign designed to reach consumers with comedic messages. Old Navy spent over $100 million in measured media through the first two-thirds of 2010, and annual ad spending has topped $175 million in recent years. (“Old Navy Taps Hollywood Talent for Halloween Spot” Brandweek Magazine, October 29, 2010) 73. (Scenario 10-2) It is believed in advertising that repeated exposure to a particular stimulus will increase the chances of the stimulus being remembered in the future. This describes the term: a. brand recall. b. advertisement remembrance. c. strong memory. d. display memory. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 74. (Scenario 10-2) Old Navy intends to air its comedic advertisements of popular products primarily on its website and various social media outlets. The company believes that because consumers spend so many hours using these forms of media, their ads will be seen frequently by the consumers. Through this strategy, Old Navy is using: a. product placement. b. repetition. c. infomercials. d. testimonials. ANSWER:

75. (Scenario 10-2) When entering an Old Navy store, customers immediately see a display that was designed to spark memories of the company's new advertisements. The display features life-sized cutouts of the actors starring in the commercials as well as a sign that contains a popular line from the ad. The display is an example of: a. transformational advertising. b. top-of-mind advertising. c. a unique selling proposition. d. point-of-purchase branding. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion KEYWORDS:

Bloom's: Application

76. (Scenario 10-2) Old Navy's newest advertisements, which feature comedic messages, are examples of: a. light-fantasy ads. b. slice-of-life ads. c. transformational ads. d. humor ads. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 10-3 Advertisers have a wide choice of objectives and methods when creating an ad for a product, no matter what the product category is. For example, both Taylor and Yamaha sell guitars. Both have created ads that have been recognized by the advertising industry as outstanding creative efforts. However, they have chosen different ways to use magazine advertising to sell guitars. A representative advertisement for Taylor features a photograph of a beautiful, lush, fog-shrouded green forest. The headline reads, "If a tree falls in the forest and you're not there to hear it, does it make a sound? Yes, it just might take 7 or 8 years." The copy is three sentences long and talks about the time and attention that Taylor takes in making quality guitars. Only the top couple inches of a guitar featuring the Taylor logo is shown. While the ad could be classified as exemplifying a number of approaches to meeting message objectives, it most closely fits the description of the USP method by linking a key attribute (quality) to the brand name (Taylor). The main visual in an ad for the Yamaha Pacifica is a bold shot of the guitar. The headline reads, "To survive, you need four things: Food. Sex. Shelter. Guitars. Make that two things." This ad also features characteristics of several approaches to meeting message objectives. However, the headline seems to define it as using the humor method to persuade consumers to prefer the brand. 77. (Scenario 10-3) Which of the following is an accurate description of the objective that the Taylor ad was trying to achieve? a. As a feel-good ad, it was trying to increase brand recall. b. As a USP ad, it was trying to connect a specific characteristic with the brand. c. As a feel-good ad, it was trying to transform a consumption experience. d. As a USP ad, it was trying to increase brand recall. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 78. (Scenario 10-3) Ads such as Taylor's try to: a. link special attributes to a brand, either explicitly or implicitly. b. place brands in socially desirable environments. c. use comparisons to other brands to create an image. d. engage the consumer on a high cognitive level. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

79. (Scenario 10-3) The Taylor ad focuses on the time it takes to produce a quality guitar. Based on the functions and strengths of USP, the ad would not have been as effective if the: a. visual was less eye-appealing. b. copy attempted to address four or five desirable attributes. c. visual was a drawing rather than a photograph. d. copy focused on a different attribute, such as sound. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 80. (Scenario 10-3) Which of the following is an accurate description of the objective that the Yamaha ad was trying to achieve? a. As a humor ad, the Yamaha ad was trying to invoke a direct response. b. As a feel-good ad, the Yamaha ad was trying to create social meaning. c. As a feel-good ad, the Yamaha ad was trying to transform a consumption experience. d. As a humor ad, the Yamaha ad was trying to create a pleasant association with the brand. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 81. (Scenario 10-3) Yamaha has created a witty ad. This method is effective only when the: a. ad is judged as funny by consumers. b. ad is understood by both children and adults. c. humor is directed at an unsuspecting consumer. d. humor is linked directly to the brand. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

Scenario 10-4 In the "Chicago Shopping" section of the Chicago Tribune website, the following ads were listed:

1. An ad for the last day to save 10 percent on all purchases at Target.com. Readers are urged to act quickly because the deadline for the deal, which is boldly listed in red ink, is today. The ad also features a picture of a 40" LCD television showing the company's name and "bullseye" logo on the screen.

2. An ad for a pair of basketball shoes accompanied by a positive endorsement from a satisfied customer. The customer stated, "I have never had a shoe like this one. I jump higher and run faster, and I am able to play longer than I ever have in the past." The ad offers a $15 coupon for use at participating FootLocker stores. 3. An ad encouraging consumers to shop at Adidas because of its low sale prices. The ad reads, "Adidas brand apparel will increase your athletic performance. Give yourself the competitive advantage you've always wanted and shop our selection of running, soccer, basketball and golf apparel." 4. An ad listing a limited time offer for a pair of expensive jeans. The ad shows a fictional character being laughed at by an attractive female because of his old, raggedy jeans. The man being laughed at appears incredibly embarrassed. Marketers want consumers to feel more accepted in society when they wear this particular pair of jeans. (ChicagoTribune.com, October 26, 2010) 82. (Scenario 10-4) In ad #1, the company's name and logo are at the center of the advertisement. Apparently, marketers are trying to hammer the images into consumers' heads. Target likely created the ad based on which of the following accepted concepts concerning repetition? a. Repetition is a complex form of advertising. b. Repetition is best used during direct comparison with other brands. c. Repetition is a good way of gaining easier retrieval of brand names from consumers’ memory. d. Repetition advertising works well when considering the purchase of parity products. ANSWER:

83. (Scenario 10-4) In ad #3, marketers list a number of product benefits intended to persuade consumers to buy Adidas products. This is an example of: a. reason-why advertising. b. social anxiety advertising. c. transformational advertising. d. top-of-mind advertising. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 84. (Scenario 10-4) Ad #2 features a statement from a satisfied consumer. The company hopes this customer's opinion of the product will persuade others to buy its shoes. The customer has given a(n): a. affective association. b. testimonial. c. product demonstration. d. infomercial. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 85. (Scenario 10-4) In ad #4, which type of ads are the marketers using to appeal to consumers? a. Social anxiety ads b. Humor ads c. Fear-appeal ads d. Sex-appeal ads ANSWER:

Scenario 10-5 In 2007, the Michigan-based Ford Motor Company fell from second to third in the U.S. annual vehicle sales for the first time in 56 years. Facing stiff competition from foreign auto-makers and brand indifference amongst U.S. consumers, Ford appeared to be headed towards turbulent times. However, when marketing and advertising guru Jim Farley joined Ford in November 2007, he brought with him a number of fresh ideas that helped turn the company toward the right direction. Farley quickly found that Americans had become indifferent to the Ford brand, which in his opinion, was worse than disliking the brand. So, Farley, along with the rest of the marketing team at Ford, created a campaign that used catchy songs and cheerful images to accompany its line of automobiles. The marketing team at Ford is now heavily utilizing the Internet to promote the new Ford Fiesta, which is the focus of a campaign that has greatly increased the awareness of the Ford brand. The company has also been stressing the value of buying environment-friendly cars, a move it hopes will improve the brand's image throughout the world. So far, these moves appear to be working—in late 2010, Ford was once again named the second leading automotive company in the United States, as well as the fourth largest in the world. (“Ford Can Fiesta Again.” The Economist, October 28, 2010) 86. (Scenario 10-5) Ford is using a number of catchy songs in its advertisements. One advantage of using jingles in advertising is: a. it gives consumers something fun to listen to. b. it promotes brand recall. c. it makes consumers think before purchasing a particular product. d. consumers respond better to sounds than they do to images. ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

87. (Scenario 10-5) In addition to promoting environment-friendly cars, Ford is now trying to market its cars as universal ones that can be used in markets throughout the world. The company is utilizing the phrase, "One Ford" in conjunction with the campaign and is hoping that consumers will begin to recognize Ford as the number one global auto-maker. Assuming this is an attempt at a unique selling proposition, which of the following is an implication of this method? a. It is a short-term commitment. b. It is very efficient once a clear link has been established. c. It is not resistant to competitive challenge. d. It allows you to switch strategies, and the strategies will continue to be effective. ANSWER:

88. (Scenario 10-5) If the objective of Ford is to persuade consumers to buy its cars during a special limited-time offer, which of the following advertising methods should Ford use? a. Hard-sell ads b. Fear-appeal ads c. Social anxiety ads d. Repetition ads ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 89. (Scenario 10-5) If the objective of Ford is to demonstrate that its newest line of cars is superior to that of a strong competitor, which of the following methods should Ford use? a. Demonstration ads b. Comparison ads c. Reason-why ads d. Point-of-purchase ads ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 90. (Scenario 10-5) Assuming that Ford's intent behind promoting the use of environment-friendly vehicles is to appeal to broad disagreements and disruptions in the society, which of the following methods should the company consider? a. Feel-good ads b. Slice-of-life ads c. Social/cultural movement ads d. Society-friendly ads ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

Scenario 10-6 Facing stiff competition from Walmart and K-mart, executives for Target stores have decided to focus on reaching more affluent shoppers and luring them away from traditional department stores. They have already expanded the products and brands they offer to include reasonably priced items by modern design masters. Target hopes to draw more affluent shoppers into its stores through a series of advertising campaigns that are presently in the planning stages. Most of the advertising budget will be directed to ads in regional luxury magazines, which, research shows, are frequently read by affluent individuals. 91. (Scenario 10-6) Which of the following should Target do in order to place its brand name more permanently in the affluent customers' memories? a. Target should make sure that the magazine ads have a positive feeling about them. b. Target should place an urgent call-to-action on each of its ads in the magazine. c. Target should place its ads in a number of pages of each issue of the magazine. d. Target should make sure that the ads are funny and a great entertainment to the customers. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 92. (Scenario 10-6) Which of the following methods would help Target's customers to recall the store's name first when they decide to go shopping? a. Testimonial ads b. Slice-of-life ads c. Humor ads d. Slogans and jingles ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

93. (Scenario 10-6) Target managers feel that their potential customers, who are now shopping in department stores, must be persuaded to visit Target stores by recognizing the unique image, positive significance, and social meaning for their brand. Several methods might be used, but which of the following would be least effective in accomplishing this objective? a. Slice-of-life b. Hard-sell c. Fear-appeal d. Image ads ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 94. (Scenario 10-6) Target managers decide to run magazine ads with very few words, focusing on visuals of the Target logo (the recognizable red ball) and high-end goods sold in their stores. Target is attempting to use an efficient communication that sends a message at a glance, in the form of: a. image ads. b. demonstration ads. c. point-of-purchase ads. d. comparison ads. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 95. (Scenario 10-6) Another magazine ad designed for Target's new campaign shows a well-dressed shopper pushing her loaded Target cart to her Jaguar, showing satisfaction in the parking lot as she spots another consumer loading Target shopping bags into her Jaguar. Which objective is this ad hoping to achieve? a. To instill brand preference b. To change the actual experience through ad visuals c. To situate the brand socially d. To change behavior by inducing anxiety ANSWER:

96. What is message strategy? How is it used in advertising and promotion? ANSWER:

Message strategy involves the tactics used to determine the goals of the advertiser and to actually create the communications intended to reach and persuade the consumer. Message strategy consists of objectives (what you want to do) and methods (how you plan to do it). It identifies the goals of the advertiser, and then determines how those goals will be achieved. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 97. There are ten major objectives of advertising message strategy. Name and briefly define them as well as the methods used to reach them. Give a real-life example demonstrating two of these objectives. ANSWER:

The ten objectives of advertising message strategy are as follows: To promote brand recall. This is the simplest type of advertising in existence, with very clear goals—to get consumers to remember a brand name, and to remember it as one of their main alternatives. Its methods are repetition, slogans and jingles, and point-of-purchase branding. To link attributes to the brand name. This is the advertising process that simply brings together in the consumer’s mind certain desirable attributes and the brand name. The method involves the unique selling proposition (USP), that is, the idea that the brand emphasizes a unique quality or qualities. To persuade the consumer. This is high-engagement advertising, coming right out and proposing an argument, being direct with information and attributes, and attempting to logically convince the consumer of the superiority of a brand. Methods include reason-why ads, hard-sell ads, comparison ads, testimonials, demonstrations, and infomercials. To create affective association. This refers to the advertising that makes consumers feel good about an ad, a brand, and themselves. Methods include feel-good ads, humor ads, and sex-appeal ads. To scare the consumer into action. This approach uses a consumers personal fears to convince them that a product or service will alleviate these fears. The method used in this approach is fear-appeal ads. To change behavior by inducing anxiety. This approach include techniques that play on low-level anxieties to create a stronger level of anxiety and then introduce the answer to that problem with a product or service. Methods include anxiety ads and social anxiety ads. To define the brand image. These ads express the identity, emotional connection, or inner meaning of the brand in visual terms that can be quickly grasped. Image ads are the method used in this approach. To give the brand the desired social meaning. These ads attempt to promote the overwhelming idea that objects have social meaning and are not just things, and that

certain objects carry with them a high degree of social status and meaning. Methods include slice-of life ads, branded entertainment, and product placement. To leverage social disruption and cultural contradictions. These are very sophisticated messages that manage to carry with them the idea that certain brands recognize where the social fabric is frayed, acknowledge this disconnect, and successfully work to bridge that gap. The method used in this approach involves tying brands to social/cultural movements. To transform consumption experiences. This is the ultimate goal and the highest level of sophistication in advertising, involving ads that have that perfect mix of magic, timing, and social awareness to create an entirely new experience for the consumer. The method involves transformational ads. Student examples may vary. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.10-1 AIBP.OGUI.15.10-2 AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

98. Name and describe in detail the three primary methods of promoting brand recall. Give an example of each from familiar ads or commercials. Explain why brand recall is particularly relevant to the advertising of "lowinvolvement" goods and services. ANSWER:

There are three methods used to promote easy brand recall—repetition of the brand name, use of slogans and jingles, and point-of-purchase methods. Repetition ads play off the notion that things said more often will be remembered more easily than things said less frequently, and so the brand name is mentioned over and over again. Slogans and jingles rely on linguistic devices to enhance brand name retrieval, such as metaphors, similes, rhyme, meter, and (in the case of jingles) music. Point-of-purchase methods involve in-store displays that act as instant reminders for brands. These include eye-catching visual displays at the store entrances and within store aisles, or within the packaging itself. Student examples may vary.

DIFFICULTY:

Low-involvement goods are often parity goods—such items as soap, laundry detergent, cereal, canned soup. Low-involvement services might include such ordinary transactions as film developing and dry cleaning. In the case of low-involvement goods, the first brand remembered is often the most likely brand to be purchased— just the recall of a name can drive the purchase decision. Consumers choose from among parity brands, not because of extensive deliberation, but because of name recall and habit. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.10-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 99. How does the hard-sell approach aim to create immediate sales? How does it work? What objective is this method trying to achieve? ANSWER:

DIFFICULTY:

The idea behind hard-sell ads is to create a sense of urgency so customers will act impulsively and immediately. Phrases like "act now" and "one-time-only" characterize this type of advertising. In most instances, however, consumers have learned to decode and discount these types of messages, which decreases their effectiveness. Despite their drawbacks, they are commonly used in newspaper advertising. The objective of hard-sell ads is to persuade. They want the customer to buy the brand— now. Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: DISC: PromotionMarketing P - DISC: Promotion Bloom's: Comprehension

100. In the past, research has suggested that advertisers should exert caution when attempting to use certain methods of advertising. List at least two of these methods and, for each method, describe two of the lessons that advertisers can learn from the research. ANSWER:

DIFFICULTY:

Humor ads: Research suggests that advertisers should use humor with caution. The goal of humor is to create a pleasant and memorable association with the product for the consumer. However, research shows that humorous messages may adversely affect comprehension and can actually interfere with memory processes: the consumer doesn’t remember what brand the ad was for. In addition, humor can attract attention without increasing the effectiveness or persuasive impact of the advertisement. Fear-appeal ads: Some research also indicates that intense fear appeals actually short-circuit persuasion and result in a negative attitude toward the advertised product. The research on this, however, is far from conclusive. The text suggests the use of a moderate level of fear is most successful. Whether or not a fear appeal is successful may also come down to how believable the fear is, and how clearly the escape from this fear is identified and explained. Comparison ads: Extensive research has been done on making comparisons. Among the findings are that (1) direct comparison by a low-share brand to a high-share brand increases the attention on the part of receivers and increases the purchase intention of the low-share brand; (2) direct comparison by a high-share brand to a low-share brand does not attract additional attention and increases awareness of the low-share brand; and (3) direct comparison is more effective if members of the target audience have not demonstrated clear brand preference in their product choices. For these reasons, established market leaders almost never use comparison ads. These ads are almost always used by the underdog brand, the brand that wishes to be seen in the company of the market leader. Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Analysis

101. How and why does anxiety work to sell things? List at least five goods that are likely to be promoted using ads that attempt to change behavior by inducing anxiety, including both generalized anxiety as well as social anxiety. Also, list at least five services that might be promoted using anxiety tactics. ANSWER:

Anxiety is uncomfortable and long-lasting. People routinely try to alleviate it or eliminate it with thoughts and behaviors. Advertisers make suggestions about something that should worry the consumer, then offer an immediate solution to the problem with their product. So people do end up buying any number of products and services due to conscious or unconscious levels of anxiety. Goods promoted through anxiety ads might include deodorant, mouthwash, antibacterial soap, acne medications, whitening toothpaste, condoms, dandruff shampoo, hair coloring, vitamins, prescription medications, or just about any other personal care product. Another category might include cleaning products or germ-fighting remedies —sprays, scrubs, and soaps, involving products like glass cleaner, furniture polish, toilet bowl tablets, and the newer antibacterial hand sanitizers available today. Other household products such as insect spray and air freshener are promoted this way. Even clothing, accessories, and footwear may be promoted this way, if the tactic involves implanting a personal worry or social concern.

Services advertised through anxiety ads might include home security systems, car and home insurance, life insurance, weight loss programs, fitness center memberships, magazine or newspaper subscriptions, wardrobe consultants, cosmetic makeovers, hair care salons, and just about any personal service that may be seen as alleviating worry or avoiding social embarrassment. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.10-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Synthesis

Ch_11__Executing_the_Creative 1. Though at one time the creative team consisted of an art director and a single copywriter, today it is composed of art directors, copywriters, media planners, and account planners. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 2. The four main components of print copy are text, slogan, headline, and tagline. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 3. An ad for a microwave popcorn features the headline, "If you want a snack, have a wholesome snack." The purpose of this straightforward headline is to select the audience. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 4. In very large print, centered at the top of the magazine page, is just the word “COAST.” A short block of copy and photo complete the ad for Coast bar soap. This one-word headline is designed simply to identify the brand and reinforce brand-name recognition. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

5. In a print ad, the subhead serves basically the same purpose as the headline. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 6. A subhead is normally in print smaller than the headline but larger than the body copy. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 7. The straight-line approach for preparing body copy uses dialogue as if the spokesperson is having a one-sided conversation with the reader through the body copy. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 8. In radio spots, the copy must dominate any musical pieces or jingles, otherwise the music can easily overwhelm the persuasive elements of these ads. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

9. A radio commercial depicts two men jogging together. They joke about their aches and pains, and then agree on their need for Advil. This radio spot uses a testimonial format for its copy. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 10. Dialogue copy on radio may end up sounding dull and dry—just the background drone of normal conversation. To alleviate this, many advertisers use humor as an attention-getting device. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 11. A man turns on a spigot, splashes hot water into a sink, squirts Joy liquid into a dishpan full of glassware, swirls a cloth around, and brings out sparkling glasses. He then begins talking with someone off-camera about how good the glasses will look for tonight’s party and how great Joy works. The strong visual effect demonstrates that, on television, words do not stand alone. a. True b. False ANSWER:

True DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application

12. One reason why television is such an effective medium for ads is because there is an opportunity to present one message via video, and an entirely different message via audio. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 13. The idea of audience is very different in digital and interactive media because people often seek out these ads rather than the other way around; and are more active, engaged, and direct in their response. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

14. A slogan is a short identifying phrase written for multiple forms of media. It is repeated in print and broadcast ads, through salespeople and promotional events, and on company websites. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Knowledge

15. The copy approval process usually begins with the advertiser’s senior executives. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

16. The three primary visual elements of a print advertisement are illustration, design, and layout. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 17. A print ad for a new wooden floor cleaner shows before-and-after shots of a long hallway that has been cleaned and polished. This is an example of communicating product features or benefits through illustration. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 18. The overall visual impact through illustration relies on three broad factors: size, color, and medium. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 19. A Volkswagen print ad shows the headline “Think Small,” and a grayscale photo of the round little car in one corner of the ad, surrounded by lots of white space. The overall look and placement of the photo depicting the brand demonstrates the concept of illustration format. a. True b. False ANSWER:

True DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

20. Formal balance creates a mood of seriousness or directness. Informal balance actually creates an imbalance; a sense of unease and discomfort, or the feeling that something has gone wrong. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 21. Balance, proportion, order, unity, and emphasis are the basic principles of design. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 22. Layout is the term used for the drawing or digital rendering of a proposed print ad that shows where all the elements will be positioned. It allows for various alternatives and options. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 23. An agency is creating a new print ad for a whitening toothpaste. While thinking about the new layout, the art director begins by asking his staff for several comps just to see the placement of various elements, and to get an idea of the general presentation. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

24. An experienced artist is aware of the different functions of typefaces on a page. Therefore, she saves serif type for the headlines alone, and uses sans serif type for body copy as it is less tiring on the eyes. a. True b. False ANSWER:

False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 25. Just like early TV commercials, early cyber ads merely imitated traditional formats and did not seem to understand the new medium, or the ways that the audience would approach this new technology. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 26. Consumer generated content (CGC) is produced when the creative team is given lists of suggestions and ideas for promoting the product that have been submitted by the public through emails, letters, or focus group transcripts. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 27. As a way to energize the creative process, firms are starting to use a technique called crowdsourcing by specifically encouraging customers to offer suggestions. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

28. In television advertising, the visual is important only if it is the main feature, and not if it plays a supportive role. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 29. An advertiser and advertising agency are in the phase of approving the script and story board of the advertisement they plan on producing. In this instance, they are more likely to be in the copy approval stage. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 30. After coming to an agreement on the scope and intent of the production, a producer is working with the the creative team and the advertiser to estimate an approximate total cost of production. In this stage, the budgeting need not be very detailed. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

31. A storyboard is a shot-by-shot sketch depicting, in sequence, the visual scenes and copy that will be used in an advertisement. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Knowledge

32. A script is a written version of the television commercial. It controls the flow, coordinates all audio and visual elements, and helps make decisions about location, cast, and schedule. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 33. The last step in the preproduction stage of television advertising is the selection of location, sets, and cast. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 34. Before the day of the shoot; prelight, blocking, and other production factors are checked and adjusted to avoid additional expense during actual filming with on-camera talent. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 35. Each shoot has its own tempo and direction. Advertisers have to accept the pace and decisions made based on lighting, weather, and other factors that make TV production unlike an assembly line production process. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

36. An account planner: a. is more likely to suggest the idea for the visuals. b. comes up with the headline or tag line. c. keeps the profile of the target consumer in the team’s mind. d. is responsible for the actual production and is usually in charge on the set. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 37. An account planner is added to many creative teams to: a. handle media placement in an increasingly sophisticated market. b. gather research that gives the consumer a voice. c. watch the bottom line and monitor spending of advertising dollars. d. assist the account executive in connecting creative's to clients. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 38. Shortly after an agency agrees to create a new campaign for a well-known instant coffee, a creative brief needs to be put together. A creative brief is important because it: a. pulls together initial ideas for copy, visuals, media, and overall concept from various team members. b. acts as the checkbook and the balance sheet to keep expenses on track. c. gets the creative team started with a list of suggested ideas from the client. d. is produced based on brainstorming by all agency and client staff involved in the campaign. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

39. Which of the following is the main challenges of the copywriter early in the campaign process? a. Combining texts and visuals to create a unified whole b. Writing lively and colorful words about products that are often dull and lifeless c. Extracting meaning from massive amounts of analytical data, and market research d. Creating the mood, tone, or humorous angle that gives the product real value ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 40. A copywriter is just starting on a print ad for a new brand of dishwasher detergent. Which of the following is the first step in developing copy for print? a. Sketching an overall view of the finished ad b. Meeting with the creative director to brainstorm a list of exciting words to be included c. Deciding how to use, or not use, the three main components of print copy d. Writing a few rough headlines and possibly subheads ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 41. Although, it may possess other positive aspects, a headline does no good unless it: a. makes a strong emotional appeal. b. conveys information not included in the body copy. c. restates the ideas found in the visuals. d. motivates readers to move on to the rest of the ad. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

42. An advertisement for a Michigan resort features the headline, "Endless Coast. Endless Sand. Endless Sunset. Endless Time. Lighthouse Harbor Lodge.” The primary purpose of this headline is to: a. identify the brand. b. establish a tone or emotion. c. select the audience. d. give advice to the reader. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 43. A subhead for a Michigan resort ad reads, “Michigan’s Oldest Resort. In the Woods. On the Cliffs. At the Beach. Location, Location, Location. Best Location on the Lake for the Past 130 Years.” This copy fulfills the basic job of the subhead, which is to: a. speak directly to readers with sound advice about the brand. b. target a specific demographic group to consider the brand. c. add key selling points about the brand. d. promote a good feeling about the brand. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application 44. The whole purpose of good body copy is to: a. be clever, entertaining, or funny. b. pull together the headline, subhead, and visuals. c. give all the possible reasons to buy the brand. d. tell a more complete story of the brand. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge

45. Body copy based on the approach delivers a series of statements about a brand, though this technique is rarely lively and can often result in a dull ad. a. straight-line b. direct response c. narrative d. dialogue ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 46. Which of the following are the five standard techniques used in preparing body copy? a. Celebrity, narrative, slogan, straight-line, and teaser b. Social, multicultural, response, evaluative, and dialogue c. Straight-line, dialogue, testimonial, narrative, and direct response d. Testimonial, narrative, evaluative, developmental, and thumbnail ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 47. A copywriter is deciding on the best approach for a magazine ad featuring a protein energy bar, and has narrowed down her options to two types—testimonial or dialogue. Which of the following is a major difference between a testimonial and a dialogue? a. A testimonial approach is written by the spokesperson, while a dialogue approach is written by the copywriter. b. A testimonial approach is one-sided, while a dialogue approach has two people conversing. c. A testimonial approach uses the hard-sell method to push the product, while a dialogue approach uses the image method to create a social setting. d. A testimonial approach emphasizes product benefits, while a dialogue approach emphasizes image. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Comprehension

48. Which of the following is true of a body copy? a. It consists of fewer words than the subhead. b. It is the visual component of an advertisement. c. It tells a complete story of a brand and reinforces the headline. d. It is more likely to be read by people than the headline and subhead. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

49. Which of the following is a negative effect of broadcast media on the copywriting process? a. It actually has little difference in its effect. b. It offers more opportunities for creative copy. c. It provides unlimited options for visual elements but few for verbal elements. d. It has inherent limitations on time and space. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

DISC: Comprehension

50. The creative potential of rests in its ability to stimulate a “theater of the mind,” which allows a copywriter to create images and moods for audiences that transcend those created in any other medium. a. Internet b. television c. radio d. print ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

51. A young woman has just launched her own company to promote several unique but inexpensive kitchen gadgets. She wants to get her message out to TV audiences, but she does not have a large budget. Taking this into consideration, an agency will probably propose a television commercial that: a. uses a testimonial approach. b. has a series of vignettes. c. features animation. d. focuses on functional features. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 52. Which of the following refers to the term audio wallpaper? a. The incorrect choice of broadcast media for the message to be delivered b. The spoken or musical formats commonly used in broadcast ads c. The use of radio as unobtrusive background or filler d. The creative plan for TV or radio that lacks any real creative thought ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 53. Which of the following is a disadvantage of broadcast television advertising? a. It involves longer writing to better communicate complex brand features. b. It represents a timing challenge as the copy should be precisely coordinated with the visuals. c. It allows a reader to dwell on the copy and process the information at a personalized rate. d. It provides a copywriter time and space to to communicate details, complete with illustrations. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

54. A breakfast cereal advertiser decides to create a print media advertisement instead of advertising on broadcast television. This is probably because the advertiser: a. is not aiming to communicate detailed features of a product that is complex. b. is keen on creating a mood and demonstrating brand values. c. does not require time and space to advertise the product. d. wants to allow readers to process the information at a personalized rate. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 55. Which of the following is necessary due to the fleeting impression that radio makes, particularly if the location of a business is included? a. Music b. Repetition c. Imagination d. Brevity ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 56. A radio spot for a local shoe chain begins with the lines, “You walk the dog. You jog the trail. You chase the bus. You go, go, go. You need new shoes.” Which of the following guidelines for successful radio copywriting is used in this ad? a. Keep sentences short. Use common language. b. Use attention-getting sounds. Stimulate the imagination. c. Stimulate the imagination. Repeat the brand name. d. Select the audience. Give news about the brand. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

57. A copywriter not only has to fulfill all the responsibilities of proper information inclusion based on creative platform and strategy decisions, but also has to: a. carefully fit all the information within, between, and around the display. b. sell the product and entertain the audience. c. tell the same story with the audio and the video. d. ensure that the consumer has a voice in the creative planning. ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 58. Recent history and research suggest that copywriting for promotions in the evolving media of cyberspace: a. involves styles, feelings, and demands similar to that of other media. b. is often abstract and distant rather than user-directed and engaging. c. has been influenced by its background in techno-speak. d. tends to be static and unchanging. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 59. Which of the following is a difference between interactive and noninteractive media? a. Interactive media are less user-directed, while noninteractive media are more user directed. b. In interactive media, audience has less incentive to read a copy; while in noninteractive media they have more incentive. c. Most of interactive media copy is indirect response, while all noninteractive media is direct response. d. In interactive media, audience is more likely to seek out the ads; while in noninteractive media, they are not. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS:

Bloom's: Comprehension

60. In , the audience expresses its approval or disapproval of the copy used in an ad. Therefore, copywriters are not fond of these report cards. a. evaluative copy research b. social media copy c. postproduction review d. developmental copy research ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 61. Probably the most straightforward illustration is one that: a. attracts the target audience. b. stimulates copy readership. c. creates a mood. d. communicates features or benefits. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Knowledge 62. An ad for concentrated frozen orange juice highlights the product using a combination of backlighting and low-angle shots to show the golden liquid being poured into the sparkling tumbler. Which of the following is depicted in this illustration? a. The product set in a test situation b. The brand seen in a social context c. The brand portrayed as a hero d. The product used by a typical consumer ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Application

63. Color is often effectively used in advertising illustrations to: a. construct an axis. b. create a mood. c. prevent scrutiny of a product’s functions. d. get a universally recognized reaction. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 64. Which of the following elements of advertising involves the structure itself and the plan behind the structure? a. Layout b. Design c. Copy d. Illustration ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 65. The principles of design suggest that: a. there should be a unifying force within the ad. b. the components within an advertisement should be ambiguous. c. all elements of the ad should be equally emphasized. d. it should be formally imbalanced. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

66. A person picks up a magazine and flips through the pages, stopping at a full-page ad. Which of the following is a tendency of eye movement that occurs when a person views a print advertisement? a. From light to dark b. From right to left c. From white to color d. From small to large ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

67. Which of the following is considered the most crucial design element that brings harmony to all components on the page? a. Order b. Unity c. Balance d. Color ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 68. Which of the following terms identifies the visual line, real or imagined, that runs through an ad and organizes all elements? a. Serif b. Axis c. Thumbnail d. Gaze motion ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

69. In which of the following orders does an ad layout typically progress through standard stages during its development? a. Rough draft, comp, thumbnail, final mechanical b. Thumbnail, rough layout, comp, final digital c. Mechanical, rough draft, thumbnail, final comp d. Thumbnail, illustration layout, rough layout, final mechanical ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 70. A print ad being developed for a women’s clothing line shows the headline font, the images, and the actual body copy to allow the client to imagine the ad and give approval. This is known as a . a. thumbnail b. comp c. sans serif layout d. rough layout ANSWER:

basic typeface groups, all with different personalities.

72. When analyzing the various elements of type, the a. typeface b. font c. point d. serif

refers to the size of the type in height.

ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 73. Art production for advertising to appear in cyberspace—particularly those composed of headline, body copy, and illustration—most closely resembles production of advertising for . a. radio b. television c. packaging d. print ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Comprehension

74. Unlike print ads, websites: a. have a very limited reach. b. use just written words. c. change almost instantly. d. appeal to the older generation. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

75. The most important function in the first few seconds of a television commercial is to: a. stress the audio—then the viewer will follow up with the visual. b. get the name out—so the viewer can establish recall at the outset. c. establish the benefit—otherwise the viewer will quickly lose interest. d. get attention—grab the viewer immediately or the spot will probably fail. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 76. The best guideline for working with both audio and visual elements during the production of a television spot is to: a. emphasize the visual but reinforce it with the audio. b. avoid use of the audio when showing a key visual. c. let the audio tell the full brand story. d. allow the visual to establish the tone and the audio to sell the benefits. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 77. A television commercial for a high-speed mountain bike is in the middle of production. Who among the following would be responsible for handling the script, interpreting the storyboard, managing the talent; and dealing with the cameras, lighting, and set? a. The director b. The producer c. The media planner d. The account executive ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

78. The director may want to work with the on camera talent along with the camera operators to practice the positioning and movement planned for the ad. This work is known as . a. shooting b. packing-up c. blocking d. placing ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 79. Which of the following is true of the production stage of television advertising process? a. It can include some final preparations such as lighting checks and rehearsals. b. It involves creating the shot-by-shot sketch depicting the visual scenes that will be used in an advertisement. c. It is that stage at which the advertiser estimates the cost of the shoot and required paraphernalia. d. It mostly involves the assessment of directors and music suppliers to be chosen for the shooting. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 80.

can save a lot of time on a shoot day when many more costly personnel are on the set. a. Prelighting b. Budgeting c. Blocking d. Scripting ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge

Scenario 11-1 After a series of public relations setbacks, Japanese automaker Toyota unveiled a new company slogan in 2010. The slogan read, "Drive a Toyota. You'll never stop." The company hopes the new slogan can once again instill confidence into a number of consumers who grew weary of the brand after a number of massive recalls in recent years. The company chose to go with the slogan after turning down a number of others, including, "Toyota Puts the Pedal to the Metal. And keeps it there," and "Toyota. The Last Car You'll Ever Drive." The new slogan will be featured in all of the company's future advertisements. (Andy Borowitz, “Toyota Unveils New Slogan: ‘Drive a Toyota. You’ll Never Stop’.” The Huffington Post, February 6, 2010.) 81. (Scenario 11-1) To create ads featuring the new company slogan, Toyota assembles a creative team of individuals who will focus solely on designing the new advertisements. Toyota realizes that it will need to have a strong Internet and social media presence. In order to effectively utilize these outlets, Toyota should consider hiring a(n): a. production coordinator. b. media planner. c. advertising guru. d. copywriter. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 82. (Scenario 11-1) Toyota is designing its print media advertisements. It decides to use the least complex copy technique to highlight the urgency of acting immediately. Which of the following copy techniques is it more likely to have chosen? a. Direct response copy b. Narrative c. Dialogue d. Straight-line copy ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

83. (Scenario 11-1) To create successful advertisements for interactive media, Toyota must understand the difference between interactive media and traditional one-way media. Which of the following implications is true of interactive media? a. The audience of interactive media often seek ads and IBP material online, rather than through traditional media. b. Forms of interactive media have lower rates of recall than forms of traditional media. c. Copy writing of interactive media is of higher quality than that of traditional media. d. There is often less incentive to read interactive forms of media than traditional print media. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 84. (Scenario 11-1) A slogan can be an integral part of a brand’s image and personality, but it can serve other purposes as well. One of these purposes could be to: a. develop the idea presented in the headline. b. entice the audience to look at the visual. c. provide continuity to an entire campaign. d. close the sale. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 85. (Scenario 11-1) The account executive for a campaign such as this is adamant that the copy be tested before he even submits it to the client. He is looking for audience reaction and interpretation of the proposed copy known as _____ copy research. a. illustrative b. developmental c. continual d. evaluative ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

Scenario 11-2 You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several thirty-second radio spots for the City of Milwaukee Tourism Bureau. The Bureau wants to feature its own information center and tours, city museums, art galleries, concerts, festivals, and special events. When they are ready, the best ideas will be taken to the marketing director, of the City of Milwaukee, for review and approval. 86. (Scenario 11-2) Before the copywriters present, you want to familiarize yourself with the details of the campaign once again. You review a copy of the creative brief because you know it: a. contains the best ideas used by competitors of the client. b. is the channel that will carry the ad campaign’s message to the public. c. represents the unique thought behind the ad campaign. d. lists the rules, restrictions, and limitations for the ad campaign as dictated by the client. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 87. (Scenario 11-2) Last week, you met with your copywriters and reminded them of the various options they had in writing for radio. What are the four basic formats available to them in creating a radio ad? a. Announcement, testimonial, reason-why, and hard-sell formats b. Sound effect, jingle, slogan, and disc jockey formats c. Music, dialogue, announcement, and celebrity formats d. Information, entertainment, persuasion, and testimonial formats ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 88. (Scenario 11-2) One copywriter shows you an idea that involves an announcer reading a top-ten list of cool reasons to visit Milwaukee. Which of the following basic guidelines of radio copy writing does this technique address? a. Repeating the brand name b. Stressing the main selling points c. Stimulating the imagination d. Tailoring copy to a time, place, and audience ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

89. (Scenario 11-2) One copywriter presents a spot that is funny, delivers the key selling points, and uses opening music as well as sound effects representing various elements of the city. You need to get it recorded before sending it to the client. You send it with the young copywriter to a trusted recording studio with the caution that says, "use sounds effects with care." This means that: a. any added music should be kept to a minimum to avoid irritating the audience. b. the sound effects should not overwhelm the copy. c. one cannot expect to build a musical picture in the listener's mind. d. one should not mix sound effects and music. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application Scenario 11-3 A 30-second TV spot begins with a strip of yellow litmus paper being lowered into a bottle of household cleaner. Music plays in the background. The words "You Probably Know This. Litmus Paper Measures Alkalinity" are superimposed on the bottom of the screen. The litmus paper is removed, and it has turned a dark blue-green color. "You Probably Know This. The Darker, The Harsher" is then superimposed. A series of cuts reveals litmus paper being lowered onto different bars of wet soap. In each case, the strip turns a dark color. The brand name of each bar of soap is superimposed underneath. Finally, litmus paper is lowered onto a bar of Ivory soap. The paper remains yellow. Three super impositions appear in succession: "Ivory," "Ivory is the mildest," and "Bar none." 90. (Scenario 11-3) A copywriter came up with the idea to superimpose the words, "You Probably Know This. Litmus Paper Measures Alkalinity" and "You Probably Know This. The Darker, The Harsher." Considering the nature of this ad, which general guideline for television copywriting does this follow? a. Using active words b. Providing support for the unbelievable c. Emotionally involving the reader d. Using unfamiliar words ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

91. (Scenario 11-3) Which of the following guidelines for copywriting is most strongly demonstrated by this spot overall, one that is also important in radio copy and digital/interactive copy? a. Emphasizing the brand name b. Making the slogan a major component of the ad c. Constructing an axis d. Keeping the wording short and to the point ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 92. (Scenario 11-3) To make sure that all the words and visuals of this TV spot work together, the creative team would have begun this campaign by preparing a . a. working script b. storyboard c. fact sheet d. thumbnail ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Knowledge 93. (Scenario 11-3) The superimposed words that end the spot, "Ivory is Mildest. Bar none," could be considered Ivory's slogan. Which of the following is an important function of a slogan such as this? a. Providing unity and order to the ad b. Motivating the viewer to buy the product c. Increasing memorability of the key benefit of the brand d. Entertaining or amusing the viewer ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

Scenario 11-4 You are a production assistant working on a thirty-second television spot for Happy Heart Hound, an all-natural gourmet dog food for puppies. The client wants to emphasize the healthful ingredients as well as the "happy and fun-loving" nature of the product. 94. (Scenario 11-4) This television shoot involves a lot of people and is a complex, collaborative effort. Who among the following is more likely to be in charge of the set? a. The film director b. The account executive c. The chief creative d. The agency producer ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 95. (Scenario 11-4) One of the ideas in an early brainstorming session was to start the Happy Heart Hound commercial with a quick series of adorable, playful puppies wearing heart-shaped sunglasses. Which of the following guidelines for effective television advertising does this hope to demonstrate? a. Showing the brand b. Coordinating the audio and the visual c. Using an attention-getting opening d. Emphasizing the audio ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 96. (Scenario 11-4) The first cut of the ad is attractive, touching, cute, and just humorous enough. When an audience tests it, most viewers really like the dogs, the visuals, and the music; but they don’t remember the product. Which of the following creative guidelines for television was forgotten? a. Persuading as well as entertaining b. Avoiding humor whenever possible c. Maintaining a feeling of continuity d. Showing the brand ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

97. (Scenario 11-4) In which of the following roles has the producer been involved with during the preproduction process for this commercial? a. Approving the storyboard and script, and soliciting bids from production houses b. Coordinating the camera operators, and handling the cast during shooting c. Conducting research, and informing all concerned about consumer preferences d. Acting as liaison between client and agency, and buying television airtime ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - ohio - DISC: Creativity Bloom's: Application

98. (Scenario 11-4) The production team is ready to show the client shots from the unfinished project to give an idea of what the commercial will look like. These shots do not include transitions, special effects, or audio; but are merely selections from the first step in postproduction. These excerpts are from the: a. director’s rough cut. b. digital editing. c. audio edit. d. master copy. ANSWER:

Scenario 11-5 A hospital is attempting to change its image. In the past, the hospital has been perceived as having a high degree of expertise across all medical services, but also as having a cold and unfeeling atmosphere. This has resulted in the hospital losing business in situations where patients feel that a procedure is simple enough that any hospital can perform it equally well. The decision is made to hire a local advertising agency. The agency’s creative director meets with the hospital marketing director to develop a creative brief. It focuses on print ads for local newspapers and regional magazines, and states that the advertising for the hospital must create feelings of caring and warmth, without explicitly stating that the hospital “cares”—a tactic that has been used again and again by other medical institutions. 99. (Scenario 11-5) The art director for this campaign needs to convey a particular mood, a feeling of warmth and serenity, in this ad illustration. While all of the elements below may have some impact on the illustration, she should pay particular attention to the: a. size of the illustration within the layout. b. lighting, color, tone, and texture of the illustration. c. space taken by the body copy. d. magazine and newspaper vehicles in which the ad will run. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 100. (Scenario 11-5) The art director thinks about the layout and reminds herself of a widely held belief in the world of art production—that a larger size in an ad illustration typically means: a. greater reader attention. b. higher brand sales. c. lesser brand importance. d. weaker copy. ANSWER:

101. (Scenario 11-5) One thing that the art director has learned is that ads should lead the reader’s gaze in a logical path that includes the brand name. Which of the following elements of design does this involve? a. Order b. Proportion c. Balance d. Unity ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 102. (Scenario 11-5) Once she has a rough draft, the art director has to admit it's a really great-looking ad. All the elements hang together and work with each other, and the overall feel is harmonious and peaceful. She clearly understands the principle of . a. balance b. unity c. order d. proportion ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 103. (Scenario 11-5) One last thing that she recommends to the client involves her choice of a particular element from among hundreds of options. She admits she has agonized over her selection on this because it affects not only readability, but also sets the mood and tone of the overall visual impression. She is most likely talking about the _____. a. illustration format b. layout c. typeface d. color ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

104. List the main members of an advertising agency's creative team? Consider how they are assigned tasks in producing written, audio, and visual elements of ads; and briefly describe these roles and responsibilities. ANSWER:

DIFFICULTY:

Copywriting and Art Production: Creative director (CD). The creative director manages the creative process for the client. The main role of the CD is to oversee the creative product of an agency across all clients. Art director (AD). The art director and the copywriter work together to develop the concept for a broadcast or digital/interactive ad. Art directors, with their specialized skills and training, coordinate the design and illustration components of the ad. The AD either oversees the production of the television storyboards or actually constructs the storyboards. In addition, the AD works with the film director who shoots the commercial to develop the overall look of the spot. Copywriter. The copywriter is responsible for the words and phrases used in an ad, whether it is print, broadcast, or digital/interactive in format. In print, these words appear on the page as headline, subhead, body copy, and slogan/tagline. In television and radio advertising, these words and phrases appear as a script from which the film director, creative director, and art director work during the production process. Media planner. The media planner keeps up with the latest technological advances in digital and interactive media, as well as all other forms. The media planner makes sure what is done for television is consistent with that done for other media within the campaign. This person often focuses on pinpointing and understanding the latest media formats available, such as social networks, mobile markets, brandscapes, etc. Account planner. The account planner is often a research expert who knows how to seek out information, obtain data, do surveys, and use secondary sources to understand target markets. This person makes sure the consumer’s values and interests are represented, and brings the consumer voice to the table. Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.11-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

105. What are the differences between writing advertising copy for print media and for broadcast media? What unique challenges does writing for broadcast hold, and how does writing for interactive or digital media fit into this? ANSWER:

Writing for print is quite straightforward. The copywriter must review components of the creative plan so as to take advantage of and follow through on the marketing and advertising strategies specified and integral to the brand's market potential. In preparing copy for a print ad, the copywriter must decide how to use the three separate components of print copy: the headline, the subhead, and the body copy. Writing copy for broadcast media should begin in the same way that writing copy for print media begins. However, writing for broadcast ads does have its differences. The audio and audiovisual capabilities of radio and television provide different opportunities for the copywriter. On radio, the use of sound effects, musical pieces, and voices offer many creative possibilities. On television, the ability to combine copy with color and motion provides vast and exciting creative options. In either medium, the copywriter must be cautious not to use these effects in a way that could distract the listener or viewer from the copy of the advertisement. Also, broadcast media, as opposed to print media, does not provide the opportunity to communicate long, complex messages about brand features. Unlike print materials that can be read at leisure and viewed again and again. Broadcast media, particularly radio, work in short exposure time frames. Writing for digital or interactive ads is somewhat similar to writing for print. However, there are differences. Audiences approach these ads in a much different way—they seek out the ads, at least to a point, rather than having ads presented to them. There is no time restriction for viewing the ads, similar to print, and very much unlike broadcast. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

106. Explain the advantages of copywriting in print media, and list the disadvantages of copywriting for television advertising. ANSWER:

The audio and visual capabilities of television and video offer different opportunities for a copywriter. Compared to print media, however, video media have inherent limitations for a copywriter. In print media, a copywriter can write longer and more involved copy to better communicate complex brand features. Print media provides a copywriter the time and space to communicate details, complete with illustrations. In addition, the printed page allows a reader to dwell on the copy and process the information at a personalized, comfortable rate. Television’s inherent capabilities do much to bring a copywriter’s words to life. But the action qualities can create problems. Firstly, the copywriter must remember that words do not stand alone. Visuals, special effects, and sound techniques may ultimately convey a message far better than the cleverest turn of phrase. Second, television commercials represent a difficult timing challenge for the copywriter. It is necessary for the copy to be precisely coordinated with the visuals. If the visual portion was one continuous illustration, the task would be difficult enough. Contemporary television ads, however, tend to be heavily edited and the copywriting task can be a nightmare. The copywriter not only has to fulfill all the responsibilities of proper information inclusion but also has to carefully fit all the information within, between, and around the display. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.11-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 107. Define and explain the three main visual elements of print and often digital/interactive advertisements. What is the primary purpose of each? ANSWER:

DIFFICULTY:

The three primary visual elements used in ads are illustration, design, and layout. Illustration involves drawings, paintings, photos, or computer-generated art. It has six purposes—to attract the attention of the target audience, make the brand heroic, highlight features or benefits, encourage a mood or image, stimulate reading of the body copy, or create a social context for the brand. Design is "the structure itself and the plan behind that structure" for the aesthetic and stylistic aspects of a print advertisement. The goal of design is to arrange all the components of an advertisement—the illustration, headline, body copy, slogan, and any other features—so that the ad is easy to read and visually pleasing. Layout is the mechanical aspect of design. It is a drawing of a proposed advertisement showing where all the elements will be positioned. A layout can be thought of as the tool the designer uses to achieve a good design. As the production process progresses, layouts move from thumbnails to rough layouts to comps and then to finalized digital ads ready for the printer or Internet site. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension

108. What are the five principles of design? Choose two of the principles and discuss the considerations involved in each. Then give an example of each. ANSWER:

The five principles of design as discussed in the text are balance, proportion, order, unity, and emphasis. Student examples will vary. Balance evokes orderliness and compatibility within an ad. It can be formal or informal. Formal balance emphasizes symmetrical presentation and creates a mood of seriousness and directness. It is orderly and easy to follow. Informal balance emphasizes asymmetry—the optical weighing of different sizes and shapes. Components of different size, shape, and color are precisely arranged in a more complex relationship. Proportion has to do with the size and tonal relationships between different elements in an advertisement. Proportional considerations include: the width of an ad in relation to its depth; the width of each element in the ad in relation to the depth of each element; the size of one element relative to the size of every other element; the space between two elements and the relationship of that space and a third element; and the amount of light area as opposed to the amount of dark area. Ideally, factors of proportion vary so as to avoid monotony in an ad. Order in an advertisement is also referred to as sequence or, in terms of its effects on the reader, “gaze motion.” In focusing on order, the designer's goal is to establish a relationship among elements that leads the reader through the ad in some controlled fashion. The essential contribution of this component is to establish a visual format that results in a focus or several focuses. Unity attempts to ensure that the elements of an advertisement are tied together and appear to be related. Unity results in harmony among the diverse components of print advertising—headline, subhead, body copy, illustration, and any other elements. Several design techniques contribute to unity, including the use of a border and white space. The axis or axes of the ad also contribute to unity. Other considerations of unity are whether the design uses a three-point structure or a parallel layout structure. Emphasis is the result of a decision as to which major component of an advertisement will be stressed. The key to good design relative to emphasis is that one item is the primary focus, but not the only focus, in an ad. Usually, if one element is emphasized to the total exclusion of the others, then a poor design has been achieved, and ultimately a poor communication will result. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

109. Explain why producing a television commercial is an extremely expensive undertaking. Describe a television commercial that you have seen recently. Analyze it in terms of how it meets or fails to meet two of the five primary creative guidelines for television ad production as noted in the text. ANSWER:

The number of people involved in the making of a television commercial is very large, and many of them are highly skilled. A production crew may charge anywhere from $5,000 to $10,000 per day. Equipment fees also figure into the often staggering cost of producing a spot. Travel, lodging, casting, and overtime costs, often within short timetables, increase the price of production. Specific examples of commercials will vary, of course, depending on the television spot described. However, the student’s answer should touch on some of the issues noted above regarding expenses, and should outline the extent to which the commercial meets at least two of the following guidelines: First, does it use an attention-getting and relevant opening? Second, does it emphasize the visual? Third, does it coordinate the audio with the visual? Fourth, does it persuade as well as entertain? Fifth, does it do a good job of showing the product? DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.11-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application

Ch_12__Media_Planning_Essentials 1. Events are an example of measured media. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. With the merger of movies, music, gaming, and other entertainment, media planning no longer involves numbers, schedules, and deadlines. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Comprehension

3. A media vehicle refers to a broader category of media than a media class. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 4. Market and advertising research determines that certain media options hold the highest potential for shaping the consumer behavior of the target audience. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 KEYWORDS: Bloom's: Knowledge

NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research

KEYWORDS:

Bloom's: Knowledge

5. In a real world scenario, the overall development of the advertising plan takes place right after the media planning process. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 6. Geo-targeting is defined as the expansion of media placement beyond certain regions or national borders and into diverse cultures and global markets. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 7. The number of people or households that will be exposed to a media vehicle at least one time during a particular period is referred to as frequency. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 8. Media vehicles with broad reach are ideal for consumer convenience goods, such as toothpaste and cold remedies. a. True b. False ANSWER:

9. Broadcast television, cable television, and national magazines have the largest and broadest reach of any of the media. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. In the context of audience exposure to a media vehicle, increasing the frequency of exposures results in an increased reach of the target audience. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 11. Message impressions refer to exposures to the ads themselves. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. The message weight objective provides a very specific, detailed perspective for a media planner. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS:

United States - Ohio - DISC: Promotion

KEYWORDS:

Bloom's: Knowledge

13. A retailer selling books runs its print ads in a newspaper during the first week of October, the first week of November, and Thanksgiving week. The retailer is using a between-vehicle media strategy. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 14. The financial advantages of flighting are that discounts might be gained by concentrating media buys in larger blocks. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 15. The forgetting function is based on latest psychological research and explains the random and unique nature of each individual’s memory. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 16. CPM (cost per million) is a measure of the dollar cost of reaching a million audience members with a particular medium. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

17. In push media, the consumer goes looking for the advertiser or advertising. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 18. A 30-second television ad is an example of pull media. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

19. In social media, the brand–consumer relationship is characterized by two nodes—marketer to consumer. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 20. Product placement is the most expensive and compelling approach for clients seeking branded entertainment opportunities. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

21. Electronic data services provide standardized data, reports, and analyses that are comparable across media categories. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-7 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 22. Individual syndicated services typically analyze media categories that they do not measure. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-7 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 23. Creating a visual representation of the media schedule gives an advertiser tangible documentation of the overall media plan. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-7 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 24. Media buying involves securing electronic media time as well as print media space, as depicted in a schedule. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

25. Media buyers evaluate the audience reach, CPM, and timing of each buy. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 26. In advertising, which of the following acts as a primary barrier for small companies? a. They do not have access to digital and social media to create buzz marketing. b. They use below-the-line promotions instead of above-the-line promotions. c. They do not have enough money for advertising at national or international levels. d. The goods and services they offer do not require marketing. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 27. Below-the-line promotion is also referred to as a. big data b. calculated media c. unmeasured media d. above-the-line promotion

ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

28. Which of the following is most likely to be used for above-the-line promotion? a. Coupons b. Blogs c. Magazines d. Social networking sites ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 29. Which of the following is an example of unmeasured media? a. Paid Internet search b. Network TV c. Spot radio d. Local newspapers ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. A Los Angeles based ad agency is an expert in placing advertisement messages in different media, like television, radio, magazines, and newspapers. It effectively mixes and matches all of these media to make sure that an advertiser's message makes a positive impact on the target audience. It is also an expert in creating the schedule in which these messages will appear. This ad agency is working effectively as a: a. media bidder. b. media planner. c. media vehicle. d. media class. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

31. A specifies which media will be utilized for advertising messages so that the desired target audience can be reached. a. media class b. media plan c. media vehicle d. media mix ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 32. A retailer decides to use newspaper ads to promote its line of men’s and women’s swimwear. In the media planning process, the retailer has chosen a(n): a. interactive media. b. media class. c. media vehicle. d. media mix. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 33. Before he can make final decisions on where to place ads and how to display promotions for a new brand of bottled water, a media planner has to decide which broad categories to use—television, radio, magazines, newspapers, Internet sites, etc. When he zeroes in on using both television and the Internet, he has chosen his: a. unmeasured media. b. media classes. c. big data. d. media vehicles. ANSWER:

34. A media planner is working with a yogurt manufacturer for the placement of print ads highlighting new flavors and healthy benefits of the product. Within the media of magazines, she decides on the media of Rolling Stone, Yoga Journal, and In Touch. a. plan; frequencies b. class; vehicles c. mix; plans d. vehicle; outlines ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 35. The blend of different media that will be used to effectively reach the target audience is called the: a. media mix. b. media objective. c. big data. d. media vehicle. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

36. You are working on a new media plan. You remind yourself that the true power of a media plan rests on the , that is, knowing what you are trying to do with your media, and matching those objectives with your media choices. a. share of volume b. media class c. media continuity d. media strategy ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Application

37. A fast food company wants to launch a new advertising campaign to boost its sales. In order to target the right customer base, the company refers to their pages on social media sites. Through these sites, it collects details of people who could become prospective customers of the company. Which of the following is the company using to find prospective customers? a. Gross impressions b. Geo-targeting c. Big Data d. Message weight ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 38. Which of the following best defines micro-targeting in the context of media strategies? a. Micro-targeting indicates the focus of brands on specific media classes. b. Micro-targeting refers to creating customized advertising messages and offers. c. Micro-targeting focuses on covering the same geographic area as the advertiser’s distribution system. d. Micro-targeting is the placement of ads in a way that exposes them to a large number of people. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 39. The only thing limiting the new media right now is that they: a. cannot be interactive and drive audiences to engage with brands. b. cannot track customer data. c. still have not developed the actual ads, promotional contacts, and IBC to leverage all these data. d. are not reliable enough to use search engines in order to understand customers' search behavior. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension

40. Which of the following is true of single-source tracking services? a. They offer information solely on demographics. b. They refer to collecting information primarily from social networking sites and search engines. c. One of its drawbacks is that they ignore data related to purchase size and purchase frequency. d. They offer information on brands, purchase size, prices paid, and media exposure. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 41. Media planners need to identify media that cover the same region or location as the advertiser’s distribution system. This is an example of , a critical element in setting advertising objectives. a. frequency b. geographic scope c. micro-targeting d. purchase size ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 42. A media planner is making placement decisions for a new line of cosmetics. She focuses on ten different cities in the country where the purchase size of the products is high. This is an example of: a. geo-targeting. b. media mix. c. below-the-line promotions. d. above-the-line promotions. ANSWER:

43. If an advertisement placed on the hit network television program American Idol is watched at least once by 10 percent of the advertiser’s target audience, then the is said to be 10 percent. a. reach b. frequency c. scope d. class ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 44. An owner of a city-wide grocery chain is given the figure of 10 percent and is told that this represents the people or households in its target audience that will be exposed to the chosen media vehicle—in this case, the city newspaper —at least one time during the campaign period. The client has just been given a measure based on: a. reach. b. frequency. c. class. d. scope. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: 45.

Bloom's: Application

of an ad is the average number of times an individual or household within a target audience is exposed to a media vehicle in a given period of time. a. Continuity b. Scope c. Reach d. Frequency ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

46.

is the gross number of advertising exposure opportunities delivered by the media vehicles in a schedule. a. Big data b. Effective reach c. Message weight d. Effective frequency ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 47. Which of the following refers to the sum of the exposures to the entire media placement in a media plan? a. Gross impressions b. Single-source c. Big data d. Micro-target ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 48. A media buyer places an ad for a new range of wines in four different magazines. The first magazine provides roughly 3,600,000 exposures, the second magazine provides about 950,000 exposures, and the third and fourth expected for the provide 100,000 exposures each. The buyer now can inform the client at the winery of the ad, that is, 4,750,000 exposures. a. continuous schedules b. geo-targets c. share of voice d. gross impressions ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

49. You are looking at figures and trying to understand the overall message weight for your client’s shaving cream ads. You remind yourself that some people who watched the ad on a TV program may have also seen it in a magazine. This is called: a. between-vehicle duplication. b. micro-target. c. within-vehicle duplication. d. below-the-line promotion. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 50. Which of the following measures media weight based on both reach and frequency? a. Media mix b. Gross rating points c. Share of voice d. Cost per thousand ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 51. A media planner needs to evaluate the relative intensity of three different media plans for an orange juice advertiser. The planner decides to multiply the reach of each promotion plan with the frequency, in order to compare: a. SOVs. b. IBPs. c. CPMs. d. GRPs. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

52. A manufacturer of oakwood furniture decides to place half-page print ads in a newspaper every Sunday for a period of two months. This is called . a. continuous scheduling b. flighting c. pulsing d. media mixing ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 53. A client agrees to launch a new line of flavored mouthwashes by running heavy advertising for two weeks, followed by no advertising at all for a while, and then again having a two-week period of heavy advertising. What kind of a media schedule is this? a. Seasonal b. Flighting c. Continuous d. Pulsing ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 54. A children’s apparel manufacturer promotes its clothes on a regular basis, but needs a stronger message in August, for back-to-school shopping; in December, for holiday shopping; and in May, for summer shopping. What type of scheduling strategy will run the clothing ads continuously, but will also have three periods of much heavier scheduling? a. Pulsing b. Continuous c. Flighting d. Measured ANSWER:

55. The forgetting function is based on a well-known concept and compelling research showing that things that are remembered, including ad messages,: a. can be remembered almost indefinitely. b. are removed from short-term memory almost immediately. c. fade from people’s memories at mathematically calculated intervals. d. are retained only if the individual wants to remember them. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 56. Share of voice is a calculation of any one advertiser’s brand expenditures relative to the: a. overall spending in a category. b. total revenue generated by the advertiser. c. reach of several media vehicles. d. frequency of its ads. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 57. Which of the following is true of the square root law which states that the recognition of print ads increases with the square of the illustration? a. It should be used as a general guideline. b. It should be considered purely as a law. c. It is very precise. d. It offers customized feedback on different advertising efforts. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

58. In the world of advertising and promotion, CPM is a common measure of media efficiency. What does the “M” in CPM stand for? a. Media plan b. Media class c. The share of voice d. The Roman numeral for 1,000 ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 59. A manufacturer of a brand of high-end hiking boots and specialized athletic shoes has hired your agency to run a print campaign. You tell the client that a full-page, black-and-white ad in Hiking and Biking magazine will cost them $1,650 to run once. You also remind the client that the circulation of the magazine is 42,000. To give the client the cost per thousand for this media buy, which formula would you use? a. Take 42,000 divided by 1,650 multiplied by 1,000. b. Take 1,650 multiplied by 1,000 divided by 42,000. c. Add 1,650 and 42,000 divided by 1,000. d. Take 42,000 divided by 1,000 plus 1,650. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 60. Net promoter scores measure: a. the number of times a customer clicks on a pop up link. b. the good mentions and bad mentions of a brand in the social media. c. how many Internet users visit a social networking site or a blog. d. whether consumers search for online offers or not. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

61. An established electronics business has reinvented itself and come up with some novel new products. The owners want to go beyond the same old ads and commercials to promote these products. As a well-informed media planner, you suggest a merger of advertising and entertainment, including promotions in video games, cell phones, in malls and retail stores, and at movie theaters. This mix is known in the industry as: a. Madison & Vine. b. above-the-line promotions. c. media buying services. d. a Unique Selling Proposition. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Application 62. Overall, computer modeling: a. helps replace planning and sound judgment made by media specialists. b. provide standardized reports that are comparable across media categories. c. lean toward high-end media options that result in costly media buys. d. assess a wide range of possibilities and save advertisers a lot of money. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-7 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 63. Murray & Murray is the agency of record for all brewing products of a Wisconsin beer manufacturer. This means that Murray & Murray has been chosen by the client to: a. assess the impact of the different ads of the company. b. handle all creative services and production issues. c. negotiate contracts for time and space. d. collect detailed consumer information. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

64. Which of the following is true of upfronts? a. It is increasing in popularity and will gain twice as much popularity within the next decade. b. It is a television programming ritual conducted in the fall each year. c. It is a period where the television networks reveal their fall line-ups and presell advertising on them. d. About 25 percent of prime-time television advertising is bought in upfronts. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension Scenario 12-1 Appleberry Farms Organic Jam has been the number one jam in the jam and jelly category for several years. Although still a number two in this category, Blackberry Valley Organic Jam is gaining a strong foothold. Appleberry had $39,466,000 in sales last year, while Blackberry had only $16,301,000, but that was 11 percent higher than its 2008 sales. Organic jams and jellies are important to marketers because they appeal to health-conscious consumers and have a fresh taste that many consider superior to traditional fruit spreads. Appleberry Farm has been put on notice. Blackberry Valley Jam's move up came despite lower ad spending than Appleberry Farm Jam. The Blackberry brand spent about $972,000 in measured media during 2010, compared to $1,553,000 spent by Appleberry. Blackberry also underwent an aggressive re-launch last year with reformulated flavors, revamped packaging, new ads, and additional media. Money spent on advertising jam and jelly products in 2010, by brand: Appleberry Farm Jam $ 1,553,000 Blackberry Valley Jam $ 972,000 total for product category $ 3,714,000 Approximate 2010 Jam and Jelly category sales, by brand: Appleberry Farm Jam $ 39,466,000 Blackberry Valley Jam $ 16,301,000 total for product category $ 81,732,000 65. (Scenario 12-1) If Blackberry Valley uses below-the-line promotions to boost its sales, which of the following is it most likely using? a. Preprinted inserts b. Television commercials c. Ads in magazines d. Retail shelving ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

66. (Scenario 12-1) A new line of Blackberry Valley jams is being launched. Its agency’s media planner calls two consumer research companies—Mediamark Consumer Research and BehaviorScan and asks for data before placing ads for the new products. Mediamark Research and Information Resources will be furnishing information on: a. the environmental laws that the company needs to follow in order to produce the jam in a sustainable way. b. the brand preferences, purchasing habits, and purchase size of customers. c. the additional features that the company's products have in comparison with products of their competitors. d. the different ways in which production processes can be made more efficient. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 67. (Scenario 12-1) Blackberry Valley's ad agency has come up with a series of ideas through which they are planning to target people who are health-conscious and are looking for organic options. The agency has decided to use the social media to find out detailed behavioral information about customers. The agency also plans to turn these individuals into advocates of their brand. Which of the following is the company using? a. Continuous scheduling b. Media mix c. Below-the-line promotions d. Big Data ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application 68. (Scenario 12-1) Blackberry Valley is currently assessing its brand expenditures relative to the overall spending of its product category of jams. Which of the following is the company calculating? a. Share of customers b. Share of volume c. Share of voice d. Share of mind ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

69. (Scenario 12-1) Share of voice of a company can be calculated to: a. the essential good mentions–bad mentions about a particular brand or product. b. understand the strengths and weaknesses of competitor's products. c. determine a brand’s share of product category spending on a particular advertising medium. d. assess the threats in a particular market. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 12-2 When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiplepage discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts. The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300. The basic rate to reach the same number of 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300. 70. (Scenario 12-2) A media planner working for a high-end clothing retailer looks at its sales figures and discovers that a vast majority of its sales generated are from large cities. She decides to buy space in American Life editions that reach the top 10 metropolitan markets. This media strategy is referred to as: a. geo-targeting. b. flighting. c. pulsing. d. share of voice. ANSWER:

71. (Scenario 12-2) The owners of an oak furniture company want to know the approximate number of people who will be exposed to the ad if they decide to place an ad in the magazine. Which of the following are they referring to? a. Reach b. Scope c. Dimension d. Frequency ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

72. (Scenario 12-2) The owners of the oak furniture company are now considering buying an ad in American Life. However, before they go ahead with their decision, they want to know the approximate number of times an individual within a target audience will be exposed to an ad in American Life in a given period of time. Which of the following are they referring to? a. Placement b. Frequency c. Reach d. Continuity ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 73. (Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs. In other words, an advertiser might select American Life because it delivers messages to the largest target audiences at the lowest cost. Which of the following helps measure this? a. Net volume b. Price/cost transparency c. Cost per thousand d. Net promoter score ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

74. (Scenario 12-2) Based on the figures provided, what is the CPM of a single-page, full-color advertisement in American Life's national edition? a. $ 10.99 b. $ 45.19 c. $ 32.06 d. $ 90.98 ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 12-3 Champion Chocolate sells handmade specialty chocolate candies in a Midwest city with an adult population of 850,000. The entire adult population of the city is considered Champion Chocolate's target market. Media planners look at sales and decide to pursue a media strategy that runs throughout the year but uses heavier scheduling in the two weeks preceding Valentine’s Day, Easter Sunday, Mother’s Day, Thanksgiving Day, and Christmas Day. They decide to use local television, magazine, and newspapers to advertise the products. Champion Chocolate selects three specific vehicles to carry its message: Six spots will run on a local TV news show. The show has a rating of 30. Eight ads will run in the regional edition of a magazine. The magazine has reach of 10. Twelve ads will run in the local newspaper. The paper has a reach of 40. 75. (Scenario 12-3) Champion Chocolate used newspapers, local television, and magazines to promote their products. Which of the following did they use? a. Media classes b. Media vehicles c. Big Data d. Media scope ANSWER:

76. (Scenario 12-3) As part of its media planning process, Champion Chocolate is searching information about its target market that cover details such as their purchase frequency, brand loyalty, and media exposure. This type of detailed information on consumer behavior can only be obtained from a(n): a. single-source tracking service. b. media-buying service. c. agency of record. d. media class. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 77. (Scenario 12-3) Champion Chocolate is assessing the effective frequency for its line of chocolates. This refers to the number of times: a. consumers purchase the company's products. b. consumers act as brand ambassadors and discuss about the brand or its products with prospective customers. c. the city media vehicle must carry the ad message to break through the advertising clutter. d. the target audience must be exposed to the ad message before the objectives of the advertiser are met. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 78. (Scenario 12-3) To calculate the reach of their product, the company's media planners begin calculating gross impressions. To do so, they would calculate: a. the sum of exposures to the entire media placement in the media plan. b. add the figures of between-vehicle duplication and within-vehicle duplication. c. the gross number of media vehicles used in a schedule. d. the total number of times an individual in a target audience is exposed to a message. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

79. (Scenario 12-3) Champion Chocolate wants to advertise throughout the year but promote its products more rigorously during the holidays. Thus, its advertising schedule is reflective of a strategy. a. net promoting b. continuity c. pulsing d. flighting ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

Scenario 12-4 You scan job advertisements available in Dallas on craigslist.com and find what may be your dream job. The posting reads, "Entry-level position in media." You click on it, and the ad says, "Motivated individual sought to aid in media planning and buying at an established advertising agency. Must have general knowledge of the media and be aware of the current challenges media buyers are likely to face. Salary negotiable." You email your resume and cover letter to the contact person in the ad, and you receive a response setting you up for an interview next week. 80. (Scenario 12-4) The interviewer welcomes you, allows for initial introductions, and then starts the interview. "We have a client that manufactures ebony furniture. Recently, it has launched a new line of furniture and we plan to promote its new line through a media vehicle. According to you, which should we use to promote the line?" a. Network TV b. Newspapers c. Newsweek d. Syndicated TV ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

81. (Scenario 12-4) The interviewer says that the position will involve working with both measured and unmeasured media. Then she asks what you know about these two types of media. You should answer by saying: a. "In the early days of advertising, all media were unmeasured. Currently, however, only advertising on the Internet is considered unmeasured." b. "Measured media include the Internet, television, radio, magazine, newspaper, and outdoor media. Unmeasured media include everything else, such as events, product placements, and coupons." c. "Measured media includes paid Internet search and retail shelving. Unmeasured media consists of syndicated and local TV." d. "Measured media is directed at households and individuals. Unmeasured media is directed at businesses and members of trade channels." ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 82. (Scenario 12-4) The interviewer says that one one of your responsibilities at the job will be to gather details of audience members of every local TV vehicle, so clients can be informed about the key characteristics of their target markets. Which of the following would you need to do in order to perform this task? a. Organize above-the-line promotions for your clients. b. Use continuous scheduling for your media schedules. c. Calculate the share of voice of your clients. d. Contact a single-source tracking service like BehaviorScan. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application

83. (Scenario 12-4) The interviewer says that it's very important to calculate the effective reach of each ad in order to make it effective and then asks you, "Can you tell me how the effective reach of an ad can be calculated?" Which of the following should be your response? a. “By finding the number of consumers in a target audience that are exposed to an ad some minimum number of times” b. “By measuring the dollar cost of reaching 1,000 members of an audience using a particular medium” c. “By calculating the total number of essential good mentions against the total number of bad mentions about a brand” d. “By measuring an ad’s brand expenditures relative to the overall spending in a product category” ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 84. (Scenario 12-4) The interviewer says, "Around here, for most media classes, we generally use cost per thousand to determine which media delivers the largest audience at the lowest cost. And of course with the Internet, we use another measure to calculate how people mention the brands." If you’re smart, you will respond by saying, a. "Oh really? Might that be the really simple syndication?" b. "Oh really? Might that be the gross rating points?" c. "Oh really? Might that be the net promoter scores?" d. "Oh really? Might that be the cost per rating point?" ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application

Scenario 12-5 MidSouth Media Company (MMC) is a media placement firm serving small- and mid-sized firms in several Midwest and Southern states. It specializes in working with new businesses, many of which have owners and managers with little advertising experience. MMC asks all new clients to complete a brief survey to better determine their exposure needs and their level of knowledge about media decisions. Some questions from the latest MMC survey are included below. Please complete the missing part of each item, based on your study of the chapter. 85. (Scenario 12-5) “Which media , such as television, radio, newspaper, magazine, or Internet, do you think would best communicate with your potential customers?” a. plan b. class c. vehicle d. program ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 86. (Scenario 12-5) “Is there a national media , such as USA Today, Time, or the Wall Street Journal, that you would like to consider using to communicate with your customers?” a. vehicle b. class c. reach d. mix ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

87. (Scenario 12-5) “Did you have a rough figure in mind concerning your , that is, the number of people or households that you’d like to see exposed to the chosen media at least once during the campaign?” a. geographic scope b. cost per thousand c. reach d. continuity ANSWER:

c DIFFICULTY:

Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

88. (Scenario 12-5) “Are smaller print ads okay? Or are you a firm believer of the increased recognition?” a. square root law

, that is, increased size means

b. net promoter score c. forgetting function d. message weight ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

89. (Scenario 12-5) “Do you want to restrict your television buying to , meaning you’ll pay premium pricing charged in advance of the fall season? Or are you willing to wait and see what is still available later in the season?” a. gross impressions b. unmeasured media c. upfronts d. context effects ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 12-6 Taylor, Frenz, and Hynes have recently published a short booklet entitled Media Choices: Efficiency and Competitive Assessment. This is a tool that advertising agencies and media planners can offer to clients so that they can understand how to better determine their media mix. Included below are several short excerpts from the booklet. Please complete the missing part of each excerpt, based on your study of the chapter. 90. (Scenario 12-6) “When a firm compares its brand advertising expenditures in a medium to the total product category advertising expenditures in a medium, it is able to determine the: a. cost per thousand.” b. share of voice.” c. cost per rating point.” d. reach and frequency.” ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.12-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

91. (Scenario 12-6) “Which media delivers the largest audiences at the lowest cost? This is determined by calculating the ratio of the cost of the media buy to the total audience and then multiplying it by 1,000. This is known as: a. share of voice per thousand.” b. net promoter score.” c. net volume.” d. cost per thousand.” ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS:

Bloom's: Knowledge

92. (Scenario 12-6) "The metric known as a given period." a. cost per thousand b. share of voice c. net volume

measures how much conversation about a brand occurs on the Web in

d. gross impressions ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 93. (Scenario 12-6) “Among advertising agencies, the client’s agency of record is the one chosen by the client specifically to: a. gather all data necessary to measure media exposure.” b. coordinate creative efforts for the firm.” c. purchase all time and space.” d. keep records of all ongoing research efforts.” ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

94. What is a media strategy and why is it needed to prepare a media plan? Why is media planning essential before media buying? What are the different components of a media plan? ANSWER:

A media strategy determines what you want to do with your media—buy simple awareness, counter a competitor’s claims, reposition your brand, react to good or bad media publicity, or establish an image and good feel surrounding your brand. It helps you match message objectives with media choices. Thus, the true power of a media plan rests in the media strategy. Media planning determines where and when the advertiser’s money is spent, and thus, is vital. It requires creativity and strategic thinking, because to do it, an advertiser needs to understand what he is trying to do with media, why he is doing it, and the key aspects of the various tools at his disposal. A media plan specifies the media in which advertising messages will be placed to reach the desired target audience.

A media plan includes a strategy, objectives, media choices, and a media schedule for placing a message. An advertiser should always know and pay close attention to the fundamental qualities of each medium and specific vehicle in terms of what a brand is trying to do. To be effective, the advertiser needs to be able to see the media buys in the strategic context of brand communication and consumer behavior goals. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Analysis 95. How is the concept of message wight associated with gross impressions? Why are media planners interested in the message weight of a media plan? ANSWER:

Message weight is a media measure and refers to the total mass of advertising delivered. Message weight, at least in traditional media, is typically expressed in terms of gross impressions. Gross impressions represent the sum of exposures to the entire media placement in a media plan.

Media planners are interested in the message weight of a media plan because it provides a simple indication of the size of the advertising effort being placed against a specific market. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

96. Axel Corporation has been manufacturing chocolate chips for over 60 years. This year, the sales for 12-oz. packages of both milk chocolate chips and dark chocolate chips are strong in the U.S., but they peak from Thanksgiving through New Year's Eve, with November and December often producing sales that add up to four times that of the “average” month. Describe the three different media scheduling options that the company can consider when deciding on media scheduling. Recommend the scheduling option that would be most appropriate for the company to adopt. ANSWER:

The three choices of media scheduling for Axel Corporation would be continuous scheduling, flighting, and pulsing. Continuous scheduling is a pattern of placing ads at a steady rate over a period of time. Flighting is achieved by scheduling heavy advertising for a period of time, usually two weeks, then stopping advertising altogether for a period, only to come back with another heavy schedule. Pulsing combines elements from continuous and flighting techniques. Advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling.

The best choice for Axel Corporation would be a pulsing schedule. This is because pulsing is most appropriate for products that are sold fairly regularly all year long but have certain seasonal requirements. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97. Explain how the World Wide Web has changed the traditional brand–consumer relationship. ANSWER:

Facebook, Twitter, and others have revolutionized the way we think about mediated communication. From the earliest work on brand communities, Muniz and O’ Guinn noted that this new paradigm is represented by three nodes rather than the traditional two: marketer–consumer–consumer. Consumers talk to other consumers and like to talk to other consumers about consumer stuff. Now, through the Internet, they can, for almost no cost, instantaneously, and with the power of huge numbers. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Comprehension

98. What is meant by the term Madison & Vine? Describe the source of this term and the nature of this phenomenon in the world of advertising. ANSWER:

Madison & Vine is a term coined by Scott Donaton at Advertising Age. It is a recognized, full-fledged attempt to merge media in the form of branded entertainment on television, in games, in retail settings called brandscapes, on mobile phones—all across the board. The concept is also referred to as branded entertainment and emerged long ago, with simple product placements in movies, radio, and then television shows.

The basis for the idea was that traditional advertising was no longer cost effective and that the cost of making and promoting films and music was also out of control. For clients seeking branded entertainment opportunities, there typically are three primary approaches. The most straightforward and least expensive is product placement. A more sophisticated approach involves storyline integration, such as putting a UPS delivery truck in an EA Sports NASCAR game. Original content, as when BMW produced short online film clips featuring their vehicles, is the most expensive, but potentially most compelling, form of branded entertainment. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.12-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 99. How is an agency of record and a media-buying service similar to one another? Identify the differences between them. ANSWER:

Both an agency of record and a media-buying service help an organization purchase media time and space. An agency of record is an advertising agency chosen by the advertiser to purchase time and space. The agency of record coordinates media discounts and negotiates all contracts for time and space. Any other agencies involved in the advertising effort submit insertion orders for time and space within those contracts. In contrast, a media-buying service is an independent organization that specializes in buying large blocks of media time and space and reselling it to advertisers. Some agencies and companies have developed their own media-buying units.

DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.12-8 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Analysis

Ch_13__Media_Planning__Newspapers__ 1. As opposed to using digital media, using traditional media makes it easier to make an advertising campaign global. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 2. Digital media must synergize with traditional media in order to work most effectively. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 3. If the consumer doesn’t see the message, no matter how creative or brilliant, it is not an effective message. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 4. Even with the rapid growth of new media, the majority of all advertising dollars in the U.S still go to traditional print, radio, and television media. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

5. Their expansion into digital media has led to a broader and more global audience for newspapers, but this still hasn’t offset the overall decline of newspaper readership. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 6. Today’s newspapers have lost their ability to offer the unique advantages to advertisers that they once did—such as geographic selectivity and timeliness. a. True b. False ANSWER:

False DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 7. Newspapers offer advertisers more creative options than those available in the broadcast media. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 8. As the newspaper page offers a small and relatively expensive format, advertisers cannot provide a lot of information to the target audience at relatively low cost. a. True b. False ANSWER:

9. For an advertiser who wants to target specific audiences in terms of economic, social, and demographic segments, newspapers would be a suitable advertising medium. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 10. Free-standing inserts would be the best option for an individual who wants to sell his old car. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 11. Pay-for-inquiry advertising is a payment scheme in which the medium gets paid by advertisers based on the number of inquiries received in response to an ad. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. An advantage of magazines is that they are synergistic with digital media. a. True b. False ANSWER:

13. The main advantage of magazines as a media choice is their audience selectivity, which can be based on demographics, lifestyle, or special interests. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 14. An advertiser who seeks high reception and voluntary audience exposure for his advertisements, should choose magazines as his advertising medium. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

15. As the paper quality of most magazines is poor, color reproduction can be a problem and may cause creative limitations for advertisers. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 16. As a media class, one disadvantage of magazines is that they are read quickly and discarded—this increases the possibility of the ad being easily forgotten. a. True b. False ANSWER:

17. Pass-along readership occurs when other people visit a magazine subscriber’s home or professional office and look at magazines. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 18. A factor affecting the future of magazines is that publishers are exploring other ways to take advantage of the interactive digital environment beyond digital version publications. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 19. Off-network syndication refers to television shows that have been developed specifically for sale to individual stations. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 20. Barter syndication offers both off-network and first-run syndication shows at a higher rate than local TV stations. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

21. The most widely accessed satellite programming is available from DirecTV and DISH Network. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 22. Television offers advertisers two opportunities— low absolute cost and long-lasting messages. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 23. The frequent intrusion of commercials has made television advertising the most distrusted form of advertising among consumers. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 24. Digital video recorders (DVRs) are used by consumers to watch programming on other channels while an advertisement is being broadcast. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

25. TV households is an estimate of the number of households that are in a market and own a TV. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 26. To calculate the rating for a new television show, the number of TV households watching the show must be divided by the number of total TV households in the market. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 27. Program rating is the best-known measure of TV audience, and it is the basis for the rates TV stations charge for advertising on different programs. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Comprehension 28. A ratings point indicates that 100 television households in a given area were tuned to the program being measured. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Research Bloom's: Knowledge

29. Radio networks are different from TV networks in the sense that TV networks can deliver programming via satellite, whereas radio networks cannot. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 30. The newest options in radio is AM radio which is transmitted from satellites circling the earth. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 31. In local spot radio advertising, an advertiser places advertisements with a network or syndicate rather than directly with individual stations. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 32. On the basis of both per-contact cost as well as absolute cost, radio is less cost-effective for advertisers than most other forms of media. a. True b. False ANSWER:

33. Though it is limited to a one-dimensional presentation, radio is a medium with a setting for true creativity, often described as the theater of the mind. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 34. A nationally distributed line of frozen dinners is to be promoted on radio. The client finds out, however, that the stations have no standard fees for various spot lengths. This results in fragmented audiences. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 35. Which of the following is true of the media environment today? a. It is settled into a predictable structure. b. Traditional media no longer commands the majority of ad dollars. c. Digital media must synergize with traditional media to work effectively. d. Traditional media companies must avoid getting into new media. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

36. Media decisions are critically important for two reasons. One of these reasons is that: a. advertisers need to develop creative messages for their target audiences. b. advertisers need media to reach audiences that are likely in need of the information. c. ad messages should sound credible to the audience. d. they directly empower consumers. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 37. For advertising to achieve communications and sales objectives, the media placement should a. use primarily print media b. focus on mass advertising c. focus on digital communications d. not miss the target audience ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 38. In the U.S., the majority of the creative effort and money is spent on a. digital and broadcast b. print and digital c. print and broadcast d. online and radio ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

ad campaigns.

39. To remain competitive in today's marketplace, newspapers must: a. have high program ratings. b. target small, selective audiences. c. reinvent themselves and become digital. d. spend more money on advertising time slots. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Comprehension

40. Newspapers are an excellent medium for: a. retailers who require a wide range of creative options same as those available in broadcast media. b. retailers targeting local geographic markets. c. advertisers looking for an uncluttered environment to publish ads. d. companies targeting highly selective audiences, with specific economic and social backgrounds. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 41. Zoned editions demonstrate one of newspapers' biggest advantages for advertisers. Which of the following advantages does this imply? a. Long life-span b. High Credibility c. Timeliness d. High geographic selectivity ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

42. For which of these potential advertisers are newspapers most likely to be a suitable choice? a. A requires excellent reproduction quality for its illustrations. b. B seeks to create images and moods in the minds of its audience. c. C wants to reach a local audience at a low cost for space. d. D intends to print ads in a multidimensional medium. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 43. What are two of the main disadvantages of newspapers as an advertising medium? a. Creative constraints and cluttered environment b. Time lag and geographic restrictions c. Lack of credibility and minimal reach d. Lack of timeliness and high production costs ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 44. What are the three broad categories of newspaper advertising? a. Display, inserts, and classified b. Co-op, classified, and controlled c. Page, column, and insert d. Preprinted insert, free-standing, and special-interest ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

45. A shoe manufacturer pays part of the media bill when a local shoe store features the manufacturer's brand in its advertising. What type of advertising is this? a. Segmented b. Syndicated c. Co-op d. Preferred ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

46. A grocery chain delivers leaflets that contain an ad about the chain. The leaflets are ready to be tucked into the Sunday newspaper before delivery. The grocery chain is using: a. display advertising. b. a preprinted insert. c. co-op advertising. d. a classified ad. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 47. The owners of Kelly & Kallihan Funeral Home want their ads to appear alongside other funeral related ads. What kind of advertising should they use? a. Display advertising b. Classified advertising c. Co-op advertising d. Free-standing inserts ANSWER:

48. To survive as a viable advertising medium, newspapers will have to: a. replace headlines with photos and announcements. b. meet the demands of both audiences and advertisers. c. make sure that manufacturers and local merchants share the media bill. d. become broader in geographic reach. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: 49.

Bloom's: Comprehension

means that people will get their local and national news from the Web, but turn to local newspapers for information about sales at local retail stores. a. Preferred position b. Narrowcasting c. Pass-along readership d. Hyper-localism ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

50. One of the primary advantages that magazines have over every other medium is their: a. short lead times. b. wide reach. c. frequency. d. audience selectivity. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

51. AARP is a magazine that targets retiring-aged Americans. This indicates that the magazine uses audience selectivity based on . a. demographics b. lifestyle c. special interests d. cultures ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

52. Magazines attract consumers because of their: a. wide reach. b. content. c. short life. d. low price. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 53. Which of the following is an advantage of magazines as a medium of advertisement? a. They offer a wide range of creative opportunities. b. They have a very wide reach. c. They have a higher frequency than newspapers. d. They have short lead times. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

54. Flyfisher magazine is published by the Federation of Fly Fishers. The magazine reaches a highly selective audience by offering content on fishing as a leisure activity. Which of the following is Flyfisher magazine's audience selectivity based on? a. Demographics b. Special Interests c. Age d. Ethnicity ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 55. An advertiser wants to focus on teenage girls as a target audience and decides to publish its ads in a fashion magazine for teenage girls. Which of the following is most likely to be a flaw in this plan? a. Readers of this magazine will easily forget about the ad due to short lives of magazines. b. The advertiser will not have the scope to be creative with their advertisement if they use a fashion magazine. c. Through this magazine, only fashion-conscious teenage girls can be targeted, not all of them. d. Magazines do not have audience selectivity. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 56. What is one of the main disadvantages of magazines as a media choice for advertisers? a. Low reproduction quality b. Long lead times c. Short life d. Lack of audience selectivity ANSWER:

57. Magazines have long lead times. This means that: a. they can be reexamined over a week or a month and have a high pass-along readership. b. the cost-per-contact is very high. c. advertisers are required to submit their ads much in advance of the date of publication. d. they have a highly interested readership. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

58. Hybrid models are very effective for current. a. tourism b. fitness c. leisure

magazines because these models boost a magazine's ability to remain

d. news ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 59. A reputed lifestyle magazine finds out that the number of its subscribers is declining, and the reason for this is that the magazine is published monthly. By the time its readers receive an edition, some of the trends suggested by it are already known to them. What should the magazine do to have more control over the recency of the trends it publishes and retain its readers? a. It should launch a mobile/tablet app. b. It should remove ad clutter from its editions. c. It should decrease the frequency of its editions. d. It should publish more creative content than it currently does. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

60. With its multisensory stimulation, a. television b. direct mail c. radio d. magazine ANSWER:

is the medium that defines what advertising is.

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 61. There are four categories of basic TV. They are: a. network, satellite, cable, and commercial. b. national, regional, city, and satellite. c. local, cable, syndicated, and network. d. commercial, public, cable, and syndicated. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 62. What type of television transmission broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement? a. Satellite b. Interactive c. Network d. Cable ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

63. A company sells exotic herbs and spices for cooking and wants to use television to reach a narrowly defined market of people interested in the culinary arts. The company would be best advised to use: a. cable television. b. local television. c. off-network syndicated television. d. first-run syndicated television. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

64. Which of the following is true of syndicated television? a. It consists of two types: interactive and smartphone TV. b. It provides advertisers with proven programming. c. It is also known as local TV. d. It refers to programming other than the network broadcast. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 65. One of the versions of satellite transmission is direct transmission which is also known as a. barter syndication b. smartphone TV c. local TV d. closed circuit ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

66. The greatest advantage of television as an advertising medium is its ability to: a. make an advertising message have a long-lasting effect. b. be inexpensive in terms of absolute cost. c. send a message through sight and sound. d. select small, selective audiences by geographic location. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 67. A media planner is comparing the relative advantages and disadvantages of television and magazines as advertising vehicles for her client. She needs to keep in mind that when comparing the two, television: a. gives an advertiser the advantage of lowest absolute cost. b. has a higher degree of audience selectivity. c. allows an advertiser to repeat a message more frequently. d. has a higher degree of audience attentiveness. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 68. When a Bahamas resort runs its commercials on TV, it gets an advantage that cannot be matched by radio or print media. Which of the following advantages does it have? a. Less fleeting message than that used in print media b. Low absolute cost c. Highly selective geographic targeting d. Low cost-per-contact ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

69.

is the development and delivery of specialized television programming for a particular audience. a. Display advertising b. Narrowcasting c. Spot advertising d. Channel grazing ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

70. As a media class, television has many advantages. Narrowcasting is an example of which of the following advantages of television? a. Audience selectivity b. Cost-per-contact c. Repetition of ads d. Long-lasting message ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

71. Which of the following is a disadvantage of using television as a medium of advertising? a. Lack of audience selectivity b. Poor audience attitude c. High cost-per-contact d. Minimal creative opportunities ANSWER:

72. Martha likes to view the programs that other channels are airing while an advertisement is being broadcast during her favorite sitcom. Which of the following is Martha demonstrating? a. Narrowcasting b. Attention sharing c. Program rating d. Channel grazing ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 73. Research has found that 65 percent of a surveyed group of consumers felt that they were “constantly bombarded with too much advertising." This example demonstrates the disadvantage of that televisions have. a. poor coverage b. low share of audience c. clutter d. poor reach ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 74. A new animated comedy show, American Family, is being broadcast in Houston. A potential advertiser wants to know how popular the show is in Houston, as well as across the U.S. Research indicates that the show is being watched by 16,400,000 people nationwide. It also indicates that the show is being watched by 759,000 households each week in Houston’s big-city market, which has 3,300,000 households with televisions. What is the program rating for American Family within the Houston market? a. 4.3 b. 20 c. 23 d. 46 ANSWER:

75. Share of audience is based on: a. the percentage of an audience who participate regularly in TV shows. b. the audience for local shows. c. the percentage of households that can afford to buy television sets. d. the proportion of households that are using TV during a specific time period. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 76. Media research shows that there are 48,500,000 households watching TV during the time that the quasi-news show, Celebrity Newsertainment, is broadcast. The program attracts a total of 8,730,000 viewers. This means that the share of audience measure for the program is a(n) share. a. 62 b. 5.5 c. 18 d. 39.9 ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 77. The categories of radio that an advertiser can choose from are . a. off-network syndication, first-run syndication, and barter syndication b. network, syndicated, cable, and satellite c. networks, syndication, AM versus FM, satellite, and Internet/mobile d. satellite, Web, and interactive ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

78. The business head of a nationwide amusement park chain has asked the marketing director of the company to finalize this season’s radio advertising plan and report back to him. The marketing director still needs to decide whether he should use local spot radio advertising or network radio advertising. How will his decision impact the company? a. Clients will either make decisions on running ads or agencies will make decisions on running ads. b. Programs will be based either on news and sports or business reports and short features. c. Scripts for broadcast will need to be developed or announcers will need to be hired to ad-lib from a list of points during broadcast. d. Well-defined geographic audiences will be targeted or nationwide audiences will be targeted. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 79. Radio offers potential advertisers the a. simplest buying procedures b. most well-defined audience segments c. widest exposure

among all media.

d. highest degree of audience attentiveness ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 80. When comparing the cost of radio and television advertising, which of the following is true? a. Radio has a greater risk of unexpected production costs. b. Television provides a much lower cost-per-contact than radio. c. Radio offers a low absolute cost that television can't match. d. Both have very high cost-per-contact compared to other media. ANSWER:

81. Which of the following is an advantage of radio as a media class? a. Organized buying procedures b. Consolidated Audiences c. Powerful creative impact d. High audience attentiveness ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - ohio - DISC: Creativity KEYWORDS: Bloom's: Comprehension 82. A manufacturer of high-priced gourmet cookware is discussing media alternatives with his agency, and is strongly considering radio as a medium. The media planner at the agency reminds his client that one of the major limitations of radio may work against the company. Which of the following drawbacks of radio is the agency most likely to be discussing? a. Low flexibility for advertisers b. Relatively high cost c. Fragmented audiences d. Lack of timeliness ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 83. The key issue concerning new forms of radio technology, such as satellite radio, is whether listeners will: a. be willing to pay for an entertainment medium that has always been free. b. be affected by ongoing moves toward corporate conglomeration. c. decrease their overall radio listening time due to increased ads. d. notice the improved audio quality. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 13-1 Crystal, a media buyer, is glancing through the latest edition of the industry trade publication, Advertising Age, and notices an ad targeted at media buyers. The ad encourages the purchase of space in a fast-growing magazine that reaches 12 to 18-year-old girls. It invites media buyers to contact the sales department of the magazine for more information. She considers the ad as she has a cosmetics manufacturer as a client who may benefit from this type of ad placement. 84. (Scenario 13-1) Crystal is trying to decide whether to run ads in the teen magazine or in special sections of newspapers attempting to target young people. What disadvantage of newspapers would prompt her to consider the teen magazine? a. Their lack of timeliness and credibility b. Their high absolute cost c. Their high pass-along readership d. Their limited ability to segment target audiences ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 85. (Scenario 13-1) The media planner understands that a teen-oriented magazine will have one big advantage that magazines have over other print and broadcast media. Which of the following advantages is the media planner most likely referring to? a. An opportunity for high frequency b. A high degree of audience selectivity c. The lowest cost per contact among all major media d. High credibility ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

86. (Scenario 13-1) The agency has designed an ad for a teenage girls' magazine and is fairly sure that the ad will be very effective. Which of the following is most likely a reason for this? a. The ad will reach a large number of readers because magazines have a wider reach than other media vehicles. b. The readers will be exposed to the ad many times because magazines have a higher frequency than most newspapers. c. The ads will get the readers' undivided attention because magazines are free from ad clutter. d. The readers of this magazine are highly interested in the magazine, so the ad will get voluntary exposure. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

87. (Scenario 13-1) The client is interested in placing an ad in the teen magazine and cites several reasons why placing an ad in the magazine would be a good idea. Which of the following is an incorrect statement and would not be a good reason for this placement? a. Magazines have the additional advantage of voluntary exposure to advertising. b. Magazines are reexamined over a week or a month and have a long life. c. Magazines are free of ad clutter that other forms of media are subjected to. d. Magazines offer high-quality color reproduction for illustrations. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 88. (Scenario 13-1) The client is concerned about paying a lot of money for an ad in a fairly new magazine that hasn’t yet established itself. Which of the following is most likely to be a reason behind the client's concern? a. The cost-per-contact in magazines is higher than that in direct mail. b. New magazines have short lead times. c. The cost-per-contact of magazines is as high as that of broadcast media. d. Ad space in magazines is more expensive than most newspaper space. ANSWER:

DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

Scenario 13-2 A national radio broadcaster's association hosts an annual convention that attracts station owners and program managers, as well as ad agencies and media planners. As a media planner, you take part in forums on the current status of traditional radio, the competition between AM and FM formats, the growth of satellite and Internet radio, and the rise of new technologies. During one forum, a professor of broadcasting initiates a discussion and poses a number of questions based on real-life situations that he has encountered over the years. 89. (Scenario 13-2) An owner of a large restaurant/lounge wants to run an ad on a radio station that covers the Dallas —Fort Worth metropolitan area and plays country-western music. He should choose FM stations rather than AM stations because AM stations are more likely to: a. have a news or talk radio focus. b. have a wide range of music formats. c. send signals that do not use amplitude modulation. d. transmit using frequency modulation. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 90. (Scenario 13-2) The long-time owner of an FM radio station in a mid-size West Coast city is closely monitoring the ups and downs of satellite radio companies. Traditional radio station owners like him, as well as their advertisers, are concerned about the rise of satellite radio mainly because it: a. offers superior sound reproduction at no extra cost. b. is more local than local radio. c. has no advertising. d. does not charge customers for in-home installation. ANSWER:

91. (Scenario 13-2) A Midwest sports equipment retailer has its agency set up 60-second commercials on stations in Chicago, Indianapolis, St. Louis, and Milwaukee that regularly cover sports events. In this way, the retailer is buying: a. network radio advertising. b. national syndicated radio advertising. c. local spot radio advertising. d. national spot radio advertising. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 92. (Scenario 13-2) George, a participant at a convention, has recently taken over his grandfather’s bakery in a Midwest city. He wants to place a radio spot in one of the local stations. How can George best take advantage of his spot? a. By frequently repeating his advertising messages b. By advertising on AM radio because of its high sound quality c. By creating ads that depend on demonstration or visual impact d. By developing creative ads to be aired on satellite radio ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 93. (Scenario 13-2) A nationwide fast-food chain is developing next year’s media plan and is reviewing the pros and cons of various media options. Radio advertising has its disadvantages, and many are being addressed at this convention. Which of the following is one of those disadvantages? a. Short closing periods for ad placement b. High per-contact cost c. Limited reach d. Poor audience attentiveness ANSWER:

DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

Scenario 13-3 You are a media planner at a large advertising agency in Chicago. You are currently assigned five accounts—a used car dealer in the northern suburbs of the city, a guitar/drum retailer on the south side of the city, a nationally distributed orange juice retailer, a quick grits hot breakfast cereal sold nationwide but with the strongest sales in large Southern cities, and a ski equipment manufacturer. Each account has requested some type of information from you regarding next year’s media buy. 94. (Scenario 13-3) To keep costs down, the used car dealer decides to make sure that the ads appear every week beside other car sales ads. For this, you need to use advertising. a. preprinted insert b. classified c. co-op d. display ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 95. (Scenario 13-3) You recommend that the manufacturer of ski equipment place ads in several magazines devoted entirely to skiing. Your main reason for this is because magazines have the advantage of: a. targeting highly selective audiences. b. having more reach than any other media class. c. higher frequency. d. short lead times. ANSWER:

96. (Scenario 13-3) The orange juice retailer believes that the appeal of its product cuts across just about every demographic, geographic, and psychographic segment. Thus, one objective for your media plan would be to achieve the widest reach possible. This would suggest the use of: a. television. b. magazines. c. periodicals. d. newsbooks. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 97. (Scenario 13-3) The marketing director for the instant grits cereal wants to supplement the company’s national ad campaigns with local campaigns. He plans to target some southern cities, but wants to use a media class with low absolute cost as well as low cost-per-contact. In such a scenario, he should use: a. newspapers. b. local magazines. c. local radio. d. local television. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 98. (Scenario 13-3) The guitar retailer has never advertised much. The owner now wants a highly creative, cuttingedge campaign that shows the excitement of playing the guitar and gets the attention of both younger and older musicians. He asks for a quick overview of the creative opportunities offered by various major media. You tell him that, in general,: a. newspapers offer the best visual reproductive qualities. b. magazines have short lead times that can enhance creative ideas. c. television has strong visual and audio components but has a high cost-per-contact. d. radio offers creative avenues and is especially geared toward musical spots. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 13-4 Considering the slow economy and the new focus on simple home decor, a greenhouse named Gretta's Garden, located in a central business district, decides to sign up "garden club" members to get discounts on flowers, shrubs, vegetable plants, houseplants, and all related accessories. Members may also attend free lectures and hands-on workshops run by local horticulturists, or relax with a glass of tea or wine in the lush, landscaped courtyard. Gretta's Garden has conducted market research and found that most customers live no more than three miles away, are in blue-collar as well as white-collar jobs, and represent a diverse range of ethnic and lifestyle segments. Its customer base is not strongly female, as one might expect, but is about 40 percent male. 99. (Scenario 13-4) The research conducted by Gretta's Garden suggests that besides being able to afford plants for their homes and gardens, the only thing most customers have in common is that they live within the immediate geographic area. They are also interested in the information about the plants and staying up-to-date on what Gretta's Garden has to offer. In this case, which of the following would be the best media choice for advertising? a. Radio b. Network TV c. Newspapers d. Web TV ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 100. (Scenario 13-4) Gretta's Garden plans to use a particular type of advertising to announce a new addition—the full line from Holland Hothouse, a grower of award-winning tulip bulbs and rose bushes. Gretta's Garden plans to advertise about the new addition in the local newspaper and Holland will be paying 20 percent of the media bill. What type of advertising is Gretta's Garden considering? a. Crowdsourcing b. Social network ads c. Infomercials d. Co-op ads ANSWER:

101. (Scenario 13-4) After placing the first few simple ads in the local paper, Gretta's Garden realizes that it need to offer customers special offers to help them earn better loyalty. It decides to offer some discount coupons in the Sunday newspaper. What kind of advertising is this? a. A co-op advertisement b. A classified advertisement c. A display advertisement d. A free-standing insert advertisement ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 102. (Scenario 13-4) Gretta's Garden also consults with a media outlet about advertising its products. The salesperson with this firm explains that considering the growing/planting season, they will need to decide soon, because ads must be submitted at least 60 days before they run, and the ad material cannot be changed after the submission. Which media type is the salesperson most likely talking about? a. Television b. Radio c. Newspaper d. Magazine ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 103. (Scenario 13-4) Gretta's Garden decides to run a more sophisticated ad in an issue of a regional publication, City Garden magazine. The company wants to print a photo of a garden along with the plants and flowers they offer, and are happy with the color reproduction that the magazine offers. Which advantage of magazines does this represent? a. Pass-along readership b. Long life c. Audience interest d. Creative opportunities ANSWER:

104. As a newly hired media planner with a list of clients who benefit from timely local advertising, you need to be familiar with the advertising options that your metropolitan and suburban newspapers offer. Briefly define the three broad types of newspaper ads, and their sub-types. ANSWER:

Advertisers have several options when it comes to the types of ads that can be placed in a newspaper: display advertising, inserts, and classified advertising. 1) Display advertising in newspapers includes the standard components of a print ad —headline, body copy, and often an illustration—to set it off from the news content of the paper. An important form of display advertising is co-op advertising sponsored by manufacturers. In co-op advertising, a manufacturer pays part of the media bill when a local merchant features the manufacturer’s brand in advertising. 2) Inserts do not appear on the printed newspaper page but rather are folded into the newspaper before distribution. There are two types of insert advertisements. The first is a preprinted insert, which is an advertisement delivered to the newspaper fully printed and ready for insertion into the newspaper. The second type of insert ad is a free-standing insert (FSI), which contains cents-off coupons for a variety of products and is typically delivered with Sunday newspapers.

3) Classified advertising is newspaper advertising that appears as all-copy messages under categories such as sporting goods, employment, and automobiles. Many classified ads are taken out by individuals, but real estate firms, automobile dealers, and construction firms also buy classified advertising. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

105. Describe four main advantages of newspapers as a media class. ANSWER:

Newspapers offer many advantages to advertisers: 1) Timeliness - The newspaper is timely even in its printed form. Because of the short time needed for producing a typical newspaper ad and the regularity of daily publication, the newspaper allows advertisers to reach audiences in a timely way. 2) Creative Opportunities - As the newspaper page offers a large and relatively inexpensive format, advertisers can provide a lot of information to the target audience at a relatively low cost. This is important for products or services with extensive or complex features that may need lengthy and detailed copy. 3) Credibility - Newspapers still benefit from the perception that “if it’s in the paper, it must be the truth.”

4) Audience Interest - Regular newspaper readers are truly interested in the information they are reading and staying current with local and or world happenings. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 106. As a media class, one of the drawbacks of newspapers is ad clutter. Explain. As a media class, do magazines face the same disadvantage? ANSWER:

DIFFICULTY:

The average printed newspaper is filled with headlines, subheads, photos, and announcements—not to mention the news stories. This presents a terribly cluttered environment for an advertisement. To make things worse, most advertisers in a product category try to use the same sections to target audiences. For example, home equity loan and financial services ads are in the business section, and women’s clothing ads are in the metro or local sections. Magazines are not quite as cluttered as newspapers, but they still represent a fairly difficult context for message delivery. The average magazine is about half editorial and entertainment content and half advertising material, but some highly specialized magazines can have as much as 80 percent of their pages devoted to advertising. And given the narrowly defined audiences, this advertising tends to be for brands in direct competition with each other. In addition to this clutter, there is another sort of clutter that has recently begun to plague magazines. As soon as a new market segment is recognized, there is a flood of “me too” magazines. Such a problem may devalue individual ads, and the magazines in which they appear may reach fewer consumers than the advertiser expected. Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.13-2 AIBP.OGUI.15.13-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

107. Aside from the fact that cable TV offers more channels and more programming, what are the two other aspects that distinguish cable from network TV? ANSWER:

Aside from more channels and hence more programming, two other aspects distinguish cable from network TV. First is the willingness of cable networks to invest in original programming. Cable networks are investing record dollar amounts in new, highly specific programming to continue to attract well-defined audiences. Programs like TNT’s The Closer and Nickelodeon’s SpongeBob SquarePants attract specific and very large target audiences. Second, there is huge potential revenue from video on demand (VOD). DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

108. An ad agency has just won a new account that wants to begin by focusing on television commercials, and then later, possibly branch into print and Internet ads. The agency’s account executive, media planner, and account planner meet with the advertiser's team to review advertising options offered by various television formats. What are the four categories of basic television (excluding new and emerging formats such as Web TV and interactive TV) that they would consider? ANSWER:

The four categories of basic television are network, cable, syndicated, and local formats. Network television broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement. Programming from these networks can be delivered on-air, over cable, through satellite transmission, or by mobile apps to smartphones and tablets. The method of delivery does not change the fact that advertisers can buy time within these “broadcast” programs to reach audiences in hundreds of markets. Estimates are that network TV reaches more than 90 percent of U.S. households. Cable television transmits a wide range of programming to subscribers through wires rather than over airwaves. In the United States, about 60 million basic-cable subscribers are wired for cable reception and receive dozens of channels of sports, entertainment, news, music video, and homeshopping programming. Cable’s power as an ad option has grown enormously during the past decade as cable’s share of the prime-time viewing audience has grown. Syndicated television is either original programming or programming that first appeared on network TV. It is then rebroadcast on either network or cable stations with pending distribution on the Internet. Syndicated programs provide advertisers with proven programming that typically attracts a well-defined, if not enormous, audience. It includes several sub-types: off-network syndication, first-run syndication, and barter syndication.

Local television Local TV is the programming other than the network broadcast that independent stations and network affiliates offer local audiences. Completely independent stations air old movies, sitcoms, or children’s programming. Network affiliates get about 90 hours of programming a week from the major networks, but they are free to air other programming beyond that provided by the network. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

109. You are selling advertising space for a local radio station. However, many of your potential advertisers use television extensively because of its creative opportunities. What advantages would your radio station offer potential advertisers that television advertising cannot match? ANSWER:

The radio provides several advantages that the television does not. First, radio advertising offers a low absolute cost in reaching potential customers. Second, it offers better geographic selectivity than television can. The narrow transmission of local radio stations gives advertisers the best opportunity to reach well-defined geographic audiences. Third, it reaches customers at home, at work, in the car, in the backyard, in retail outlets and malls, and in other public places. The wireless and portable features of radio provide an opportunity to reach consumers that exceeds all other media. Fourth, it is a more flexible medium than television because it has short closing periods for submitting an ad. This means an advertiser can wait until close to an air date before submitting. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.13-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Ch_14__Media_Planning__Advertising_and_ 1. Online advertisers want to know where and why consumers go online, and how that relates to where they go offline. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 2. Digital marketers can create events with sponsors to help instill brand loyalty with offline, experiential marketing. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 3. It is difficult to leverage the online branding tools like blogs and social media sites to increase the consumer experience and hence the value of corporate websites. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 4. The first-generation Internet involves interactive online communication, participation, and engagement. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

5. User-generated content is the same as consumer-generated media. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 6. Web 2.0 depends on mass collaboration as individuals simultaneously create value for themselves and others. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Knowledge 7. There are three media types in social media: earned, owned, and paid. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

8. In the context of social media advertising, earned media are brand assets or objects created within social networks by organizations. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

9. In the context of social media advertising, paid media are advertisements that can be purchased on a social network or other digital platforms. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. Social networking sites are not only used for personal networking with friends and relatives, but also for business and professional networking. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Knowledge 11. Bloggers post content that include text and graphics, but not videos or links to other Web pages. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 12. Similar to social networking websites, blogs also permit readers to leave comments. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

13. In video sharing websites, unregistered users can watch videos already posted to the site, while registered users are permitted to upload videos and comment on other users’ videos. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 14. Social news websites are sites that allow people to discover and share content from anywhere on the Internet by submitting links and stories to a central service. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 15. Virtual identity is how the consumer or brand uses images and text online to construct or showcase its identity. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

16. Avatars are a part of consumer virtual identity, and may or may not accurately coincide with the consumers' "real identity." a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

17. Understanding the concept that virtual identities are indeed real to consumers can help consumer-minded businesses and organizations cater better to customer wants. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 18. Web 2.0 leaves no trail of digital footprints, and hides one's online activities from future employers, spouses, and parents. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 19. Pay-per-click is an advertising revenue model where the advertiser is charged by the number of people who click on, or tap, the ad to pull it up for more information or to see the ad in entirety. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Knowledge 20. Web ads in digital and social media are intended to drive traffic off of the site where the digital ad is run. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

21. A rectangular ad for microwave popcorn appears at the top of the home page of your favorite e-magazine. This is an example of a banner ad. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 22. Pop-up ads are not the best choice for advertising a product because most people find them annoying. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 23. Interstitial ads appear on a site after a page has been requested but before it has loaded, and stays onscreen long enough for the message to be registered. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 24. A customer searches for air conditioners online, and finds other advertisements from well-known air conditioning brands quoting the prices of their products. This is an example of search engine optimization. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

25. Search engine optimization is the process by which advertisers pay websites and portals to place ads in or near relevant search results based on key words. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 26. If you choose to block the websites that track your online activity, you will actually reduce the number of relevant advertisements targeted toward you. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 27. A click-through is the number of page elements, or hyperlinks, that have actually been requested as the user moves from a display/banner ad to the related link at the corporate/brand home page. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 28. Digital and mobile advertising is most easily integrated and coordinated with other forms of promotion. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

29. On a cost-per-thousand (CPM) basis, the cost of Web ads for the most part compares favorably with ads placed in traditional media. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. The Internet may provide segmented audiences to a point, but it is not really a suitable format for niche marketing. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 31. Digital footprint is defined as your profile of personal information, accessible online to a spectrum of people. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Knowledge 32. Online resistance is an attitude or behavior of consumers against the digital marketing movement. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

33. A privacy seal enables a private purchase to become more socially embedded. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Knowledge 34. Common use of social networking brings disclosure issues to different audiences, and consumers should be aware of some vulnerabilities like loss of information control and digital vigilance. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 35. Advertising and brand placement within video games is called advergaming. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 36. Email is one of the least expensive marketing tools and provides the highest return on investment relative to other forms of online marketing. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

37. A disadvantage of using email marketing is the lack of measurability of the effectiveness of the campaign. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 38. A person fills out an online form and gives his permission to a bookstore retailer to send messages about new books, sales, and special incentives to his email address. This is referred to as viral marketing. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 39. A venue for viral campaigns is online videos of either television ads or follow-ons to television ads. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 40. IBP communications through mobile devices achieve surprisingly high recall and effectiveness if the consumer prefers to enable location. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

41. Which of the following is true of Web 2.0? a. It depends on mass collaboration as individuals simultaneously create value for themselves and others. b. It involves one-way messaging and online information retrieval. c. It cannot be used for addressing consumers during crisis management. d. It ignores consumer privacy and people feel unsafe in sharing information on the Internet. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: 42.

Bloom's: Comprehension

media is the incremental exposure that a brand earns through viral engagement and interactions with the brand. a. Paid b. Owned c. Hyper d. Earned ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

43. Which of the following is true of paid media? a. It leverages a call to action to like brands on social media sites. b. They are advertisements that can be purchased on a social network or other digital platforms. c. It is the incremental exposure that a brand earns through viral engagement and interactions with the brand. d. They are brand assets or objects created within social networks by an organization. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

44. Which of the following best defines social media? a. It involves writing articles related to business and publishing them online on syndicated article sites. b. It consists of developing a website or placing banner advertisements on other web sites. c. It is a group of Internet-based applications that allows for the creation and exchange of user-generated content. d. It is a system of Internet servers that support specially formatted documents. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 45. The core of social media is: a. consumer privacy and confidentiality. b. the convenience it provides to direct marketing. c. the security of individual and brand identity. d. individual empowerment and democratization of knowledge. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Knowledge

46. A recent graduate decides to pursue his passion in writing. His strengths are that he is very good with digital and interactive media, prefers writing in a journal format, and has a unique and informal style of writing. Which of the following avenues would best suit his abilities? a. Writing a newspaper column b. Creating a website c. Writing a blog d. Developing a corporate home page ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Application

47. Which of the following is true of a blog? a. It contains text, but not graphics and videos. b. It allows users to tag other users in their networks. c. It focuses on helping users find and add friends and contacts. d. It is a site written and maintained by individuals. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: 48.

Bloom's: Comprehension

enable users to post and read short messages, and the posters are restricted by the number of characters in the message. a. Micro-blogs b. Add-ons c. Metafiles d. Widgets ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Knowledge

49. In the context of photo-sharing websites, which of the following is more likely to attract the attention of a viewer? a. A photo that looks natural and authentic b. A photo that has been digitally enhanced c. A photo that was captured using professional equipment d. A photo that was captured by a professional photographer ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

50.

allow people to discover and share content from anywhere on the Internet by submitting links and stories to a central service. a. Article marketing websites b. Archive sites c. Social news websites d. Government sites ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Knowledge

51. One of the advantages of using social news sites is that: a. they provide advertising opportunities to World Wide Web advertisers. b. they are wonderful for raising reach and spreading the word quickly. c. they cannot be used by competitors to create negative publicity about an organization. d. they are not vulnerable to hackers. ANSWER:

is how a consumer or brand uses images and text online to construct or showcase its identity. a. Virtual identity b. Social couponing c. Personal identity d. Blogging ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

53.

are consumer-generated images that an online user portrays, which may or may not accurately coincide with the consumers' "real identity." a. Click-throughs b. Avatars c. Big data d. Interstitial's ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 54. To be most effective, brands should leverage social media as a digital advertising opportunity that can target by _____. a. demographics b. consumer lifestyle c. geographic locations d. consumer age ANSWER: DIFFICULTY:

b Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 55. Which of the following is a predominant concern relating to social media? a. Management of various portals b. Consumer privacy c. Cost-effectiveness d. Restrictions to freedom of speech ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

56. As a brand manager, one must track what is being said by consumers, interpret consumer-generated information, and respond to social media posts and comments. This entails: a. spending time on social networking sites. b. hosting regular feedback sessions. c. developing brand image. d. expertise in branding and excellent socialization skills. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 57. Which of the following is an example of site stickiness? a. The official Facebook page of Peyton Inc. is under maintenance. b. A consumer visits his Facebook profile every evening after reading his emails. c. Fifty percent of the visitors to Peyton Inc's website move onto another site within 10 minutes of visiting the site. d. A consumer visits the Peyton Inc. website several times a day, and spends hours checking the new collection. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: 58.

Bloom's: Application

is a metric that measures the percentage of people who come from or go to another site after clicking on one site. a. Visibility b. A social media engagement c. Site stickiness d. A Bounce rate ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge

59. Which of the following is true of traditional media and digital media? a. Digital media can never have the reach or impact that traditional media has. b. Traditional media is a dying medium and social media will soon replace it. c. Both need to create their own niche and function independently of one-another. d. Both should be seamlessly integrated for maximum impact. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-2 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: 60.

Bloom's: Comprehension

is an advertising revenue model where the advertiser is charged by the number of people who click on the ad to pull it up for more information. a. Bounce rate b. Click-through c. Pay-per-click d. Paid search ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Knowledge

61. Which of the following is an advantage of the pay-per-click model? a. It is less vulnerable to click fraud. b. Advertisers have to pay only for a pulled exposure. c. People who click on the ad usually buy the product which is more profitable. d. It is the least expensive Internet advertising model. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Comprehension

62. An organization needs to reach out to a specific target audience, and has decided that it wants to use social media advertising to do so. It wants to buy specific keywords to accurately target the audience who would want to see these ads. The aim is to get a high effective exposure rate and engagement rate without invading consumer privacy. Which of the following advertising revenue models would best suit the organizations's needs? a. Bidding for ad words b. Pay-per-click c. I-Traffic Index d. Pop-under ads ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 63. Which of the following is fundamental to achieve a high exposure rate, and to drive interaction and engagement for advertisements through social media? a. Having a large network and a scalable fan base for the brand page b. Placing ads on websites that attract visitors from different market segments c. Promoting sponsored stories on social networking sites d. Setting up pay-per-click ads on social networking websites ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 64. Tina is playing Candy Crush on Facebook. All of a sudden, she gets a message saying that if she watches an ad, she can earn an extra life. This is an example of a(n) . a. pop-up ad b. sponsored story c. app ad d. post ad ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

65. A soft drink advertiser decides to run banner ads to attract teenagers to its interactive home page. Its agency places these ads on websites related to teen magazines, action gaming, and extreme sports to: a. link the banner with the home page. b. target specific market niches. c. offer high-volume traffic rather than low-volume traffic for the same price. d. boost web visits and gain more likes. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS: 66. A(n) a. post

United States - Ohio - DISC: Promotion Bloom's: Application

ad is an ad that opens in a separate window while a page is loading.

b. interstitial c. pop-up d. app ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 67. An Internet user wants to move from one website to a related one. She requests for the new page by clicking on a link, but an ad message flashes in front of her while she waits for the website to load. This is known as a(n) . a. interstitial ad b. display/banner ad c. post ad d. widget ANSWER:

68. How can an advertiser best leverage the power of E-search in advertising? a. By making an ad that motivates consumers to use the Internet to obtain more information on a brand. b. By completely moving from traditional to digital advertising. c. By making social media app ads that tend to generate consumer loyalty toward a brand. d. By calculating the I-Traffic Index that computes a site’s advertising value. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 69. An advertiser for a weight-loss product decides to use paid search. This entails: a. paying websites and portals to place ads in or near relevant search results based on keywords. b. offering the same content material that a consumer would normally pay for using traditional media. c. paying consumers a small amount to have them click on the particular websites. d. promoting the product at the portal or other entry places to the Web. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 70. An Internet user goes to a large portal, and types in a few key words. He receives a list of websites that might be of interest. Most often, the higher a site appears on the list, the more likely the user will visit that website. Therefore, advertisers want their websites to appear first. Which of the following concepts is described in this scenario? a. Click fraud b. Ultrabroadband c. Viral marketing d. Search engine optimization ANSWER:

d DIFFICULTY: Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application

71. Cranola Inc. has newly set up a website where customers can obtain information as well as buy its products. It notices that people who visit its website are instantly interested in the products, and 85% of the visitors end up making purchases. However, it also notices that the number of visitors are very low as they don't find it on their searches very often. Which of the following should Crayola include in its IBP campaign to increase its website's visibility and traffic? a. Pop-under ads b. Interstitial ads c. Buzz marketing d. Search engine optimization ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: 72.

Bloom's: Application

refers to a huge volume of structured and unstructured data that is much too large to analyze or process using traditional ways. a. RDBMS b. Ordinal data c. Big data d. Metadata ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 73. In which of the following ways can consumers block websites that track them? a. By changing their social network login passwords regularly b. By making use of cookies when they visit websites c. By using software sites that utilize big data d. By having just one social networking account per person ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

74. The goal of tracking online consumer behavior is essentially to: a. catch people’s attention and entice them to visit the marketer’s home page. b. compute a site’s advertising value based on traffic, ad rates, and evaluations of the site’s quality. c. help bring more relevant and useful ads that are specific to consumers' wants and needs. d. fine-tune a Web user’s search to more relevant and specific websites. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 75.

is the trail of social media and online information on a person, organization, or brand. a. Virtual identity b. I-Traffic Index c. Digital footprint d. Web 2.0 ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 76. The integration of Web activities with other components of the marketing mix is one of the easiest integration tasks in the IBP process. This is due to the: a. new and important opportunities for Web advertisers with respect to interactivity. b. frequency with which consumers check social media. c. sheer volume and popularity of going online in general. d. flexibility and deliverability of Web advertising. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

77. On a cost-per-thousand (CPM) basis, the process of running Web ads: a. is virtually nonexistent because there is no charge for most ads. b. is much less expensive than ads placed in traditional media. c. compares favorably with ads placed in traditional media. d. becomes a great deal more expensive than ads placed in traditional media. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 78. One big advantage for advertisers using the Internet as their medium is that: a. it is much more secure than traditional forms of media. b. consumers consider commercial messages via Internet to be more reliable. c. the format is unique and uncluttered because few commercial organizations use it. d. it is a precise way to target particular markets and narrow segments. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 79. In the context of social media advertising, which of the following is a reason for online resistance? a. The absolute cost for ads placed in traditional media tends to be lower than those placed on the Web. b. Social media provide a seamless interface with television. c. Consumers have a perception that marketers and advertisers are stomping on their sacred territory. d. Consumers are cautious because the Internet leaves a trail of digital footprint. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

80. A is a logo that shows that a site has been endorsed or is a member of a third-party privacy endorser. a. digital footprint b. post ad c. cookie d. privacy seal ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 81. It is important to know if a company respects consumer privacy before opting to receive communication from it because: a. an individual can be identified through a minimal compilation of anonymous information. b. a consumer must be aware of a company's ethical standards to provide appropriate feedback. c. the company may circulate an individual's email address and invade his or her privacy. d. if a company lacks ethical standards, its products are more likely to be of substandard quality. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 82. In the context of video games, which of the following is true of advergames? a. There are two levels of brand promotion within an advergame. b. The advergame content centers around a brand. c. It is the concept of showing ads at the end of a video game. d. Repeated display of advergames has a positive effect on players' attitudes toward a brand. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

83. The lowest level at which advergaming brand integration can occur is known as a(n) a. collaborative b. associative c. illustrative d. demonstrative ANSWER:

level.

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 84. A(n) advergame brand integration, integrates a brand spokesperson or personality as a main character within the game. a. associative b. collaborative c. demonstrative d. illustrative ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 85. The Lego Star Wars is a video game that features Lego toys based on the Star Wars theme. Players need to play as one of the toy characters to defeat enemies, and complete the game chapter by chapter. This game is a(n) advergame based on Lego's toys. a. illustrative b. demonstrative c. associative d. collaborative ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

86. Which of the following is considered ethically negative in the context of advergames? a. Targeting children with advertising content b. Targeting adolescents who are academically poor c. Prompting a change in consumer behavior d. Creating awareness about social issues ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 87. Which of the following is an advantage of using online sales promotions? a. They promote banner ads and pop-ups along with the product. b. They provide clear directions to customers on how to buy a product from the nearest store. c. They create bonds that build social pressure to buy the brand. d. They give consumers an opportunity to check out new products without the pressure of a salesperson. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 88. The managers of a fast-food chain want to publicize their restaurants. They would like to invest in a sales promotion strategy that would promote positive word of mouth, mass exposure, increased brand awareness, and getting new customers. Their aim is a high frequency promotion that leads to speedy sales. As an Internet advertising specialist, which of the following sales promotion strategies would you recommend? a. Social couponing sites b. Ads on the radio c. Pop-up ads d. Display/banner ads ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

89. A surfboard manufacturer decides to promote the sales of his product by offering discounts on the Internet via an email campaign. Consumers simply have to click on a link in the email, and they will be able to avail the offer. The advantage of using this technique is that it not only increases brand awareness for the company, but also: a. measures the number of users who display interest in the site. b. provides information on the bounce rate. c. increases consumer loyalty toward the brand. d. acquires the consumers’ email information and opt-in contact. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 90. Which of the following is a disadvantage of using online press releases for PR? a. They cannot disseminate information accurately. b. They are ineffective in targeting specific audiences. c. They are too expensive for most firms to consider. d. They cannot be picked up by major news services or online newspapers. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: 91.

Bloom's: Comprehension

is the process of consumers marketing to consumers over the Internet, through electronic, or in-person word of mouth transmitted through emails and electronic mailing lists. a. Mobile marketing b. Viral marketing c. Social couponing d. Social gaming ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

92. James is the marketing manager of a small corporate airline that handles business flights for executives and celebrities. It also provides group charters for major sporting events, concerts, and festivals. To reach it's audience, airlines will have to avoid the usual fare, as the target audience for this product usually ignores common advertising. However, they occasionally watch worthwhile videos on social media sites. In which of the following advertising avenues is James most likely to invest in? a. Viral marketing b. Micro-blogging c. Advergaming d. Social couponing ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 93. Which of the following is true of mobile marketing? a. The recall rate for mobile marketing is low. b. Consumers can not access videos on their mobile devices. c. Consumers will always receive promotions that are relevant to them. d. Promotions will always reach mobile users directly on their devices. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

Scenario 14-1 When the social networking/gaming website, Foursquare, was launched in 2009, it was only accessible to residents in 100 U.S. cities. One year later, an updated version of the service allowed check-ins from locations all over the world, and has over 500,000 users internationally. The site which allows registered users to connect with friends and update their location receives over one million check-ins per week. When users visit a particular store their profile is automatically updated, and they can share their feelings about their experiences. The site now holds partnerships with over 800 establishments worldwide, and high-profile partnerships with the Bravo Network and The New York Times have greatly increased the site’s popularity. 94. (Scenario 14-1) A search on Bing using the phrase “foursquare social media” results in thousands of matches, but these matches appear in order of relevance. Bing is able to achieve this because it: a. accepts multiple registrations from a single website. b. uses the search engine optimization technology to direct users to sites that may interest them. c. demands payment from company's in exchange for repeated mention on search results. d. reflects the number of people actually searching on a particular phrase at any particular time. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension 95. (Scenario 14-1) One way to find a site and related businesses is to go to Bing and look at the list under social networking sites. Technically, Bing is a(n): a. analytical software system that allows e-commerce. b. mash-up that features multiple widgets. c. portal with search engine technology. d. website that acts as a corporate/brand home page. ANSWER:

c DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application

96. (Scenario 14-1) One of Foursquare’s strengths is that it offers a very interactive experience to its users. Tracking brand interactivity over the Internet can be done in ways that are not possible using traditional advertising. This is because the Internet: a. allows advertisers to track users and their behaviors through their digital footprints. b. allows users to inform companies about the sites they have visited recently. c. is cheaper for companies to operate, and they can spend more money on tracking software. d. helps consumers provide an instant feedback when they visit the website. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application 97. (Scenario 14-1) Foursquare respects its users' privacy, and lets them decide if they want to share their location with others or not. It always provides privacy options to users wherever it is required. By doing this, Foursquare is able to address consumer concerns about: a. what could be preventing users from completing online transactions. b. creating online resistance in Foursquare's user groups. c. preventing users from creating synergies with online advertisers. d. sharing casual information. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 98. (Scenario 14-1) As the number of Foursquare users increases, so will the marketing efforts to appeal to the visitors of the site. Many of the site’s users access the site via their cell phone, and companies are forced to create advertisements to fit these media channels. These advertisements are examples of: a. intrusive marketing. b. mobile marketing. c. viral marketing. d. splash marketing. ANSWER:

Scenario 14-2 You open up your laptop to begin writing a term paper for your English literature class. You do a quick Google search on a few key phrases involving Shakespeare, Dickens, and Hemingway. But before you go further, you play a few video games, check your email, visit a couple of music websites, take a cyber tour of a new sports stadium, go to a coupon site, solve a murder mystery, go back to Google to check out a big name in the news, submit a slogan for a new local restaurant, and read a couple editorials on a magazine site. Then, you figure it’s time to get down to work. 99. (Scenario 14-2) In running keyword searches using Google, you took part in a common practice. Advertisers could make use of this by paying Google and making them: a. display ads on a site after a page has been requested but before it has loaded. b. place ads in or near relevant search results based on key words. c. track the users who use specific keywords over and over again. d. measure the click-through rates of the ads that are placed. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 100. (Scenario 14-2) When you clicked off the coupon site, an ad remained on the screen with bright colors, large letters, and a $2 coupon for a frozen pizza. This is known as a . a. direct email b. pop-under ad c. pop-up ad d. splash screen ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

101. (Scenario 14-2) While reading the editorials on the magazine site, a reader was so glad that he was no longer interrupted by annoying ads. Due to widespread annoyance with these online distractions, many service providers offered blockers that greatly reduced an advertiser’s ability to get onto a user’s screen. a. paid search advertising b. pop-up ads c. rich media d. opt-in messages ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 102. (Scenario 14-2) When you visited the restaurant site, the marketers were able to collect some information about you and your buying habits. Marketers are able to do this by: a. counting the number of hits made on the site. b. using software that monitors one's digital footprint. c. tracking the email registration on the site. d. counting keystrokes used to move through the site. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Application 103. (Scenario 14-2) The site where you solved a murder mystery is sponsored by a company that specializes in publishing mystery novels. Part of the site is devoted to a full catalog that lists the company's titles currently in print, and other parts offer interactive activities, musings of well-known writers, and games involving mysteries to solve. This site is using to promote its novels. a. app ads b. big data c. search engine optimization d. advergaming ANSWER:

Scenario 14-3 With social media websites such as Facebook and Twitter garnering so much attention from consumers and businesses alike, it is hard to believe that only 20 percent of small businesses are utilizing the sites to help promote their products and services. But this figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. When the survey results were released in 2010, experts were not surprised to see the percentage of social media users increase to nearly 50 percent. According to Darren Waddell, vice president of marketing at MerchantCircle, companies are turning to social media for advertising because it is relevant and an inexpensive way to reach target consumers. Rather than pouring large sums of money into traditional marketing, business owners are finding more creative ways to promote their brand. One of the more common practices for small business owners utilizing social media is including URLs on business cards—of all sites, Facebook (no surprise) was the most common site to make it onto business cards.

(Jon Swartz, “More Small Businesses Use Facebook, Twitter to Promote.” USA Today, July 21, 2010.) 104. (Scenario 14-3) One small business owner found that when he started using Facebook, he began establishing stronger relationships with some of his less consistent customers. This was because he started a business page on Facebook and all his customers liked this page. They held discussions on it, and invited other potential customers to join in. Even the less consistent customers became regular visitors of this page. In advertising terms, this Facebook page would be called media. a. owned b. earned c. paid d. derived ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Knowledge 105. (Scenario 14-3) The owner of a new athletic-training facility decided to pay to have its ads appear on athletics and training-related search results on Google. This kind of advertising is known as . a. sponsorship b. paid search c. search engine optimization d. corporate home page ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

106. (Scenario 14-3) A new business owner is looking into various forms of advertising. Of all the different forms, he seems to be most interested in advertising through interactive media. This may be because: a. consumers no longer pay attention to advertising on television. b. interactive media is more beneficial to small business owners. c. traditional forms of advertising provide inaccurate information to consumers. d. two-way communication has an important effect on click-through and sales potential. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 107. (Scenario 14-3) An entrepreneur decided to get endorsed by a third-party facilitator to show his consumers that he believes in keeping their information confidential. He got a logo from the third-party facilitator showing that he had been endorsed. This logo is called a . a. click-through b. privacy seal c. digital footprint d. digital signature ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 108. (Scenario 14-3) Two young women decided to open a comedy club, and they chose YouTube as their main outlet for advertising. They put together a five minute clip of an improvisation routine and posted it on the site. Soon they noticed that the total number of views for the video had skyrocketed to 25,000. They found that the video was being sent all over the country via email and Facebook messages. This short video is now a form of . a. mobile marketing b. online retailing c. interactive advertising d. viral marketing ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 14-4 Optima Artistic Tools has been manufacturing art supplies, in Boston, for almost 100 years. It is a successful business that works with art stores around the nation. Optima produces materials for different varieties of media such as paints, pencils, charcoals, clays, brushes, papers, canvases; and also equipment such as palettes, easels, drawing tables, etc. Optima is ready to market these products online and has just hired an Internet advertising consultant, Visualizers Inc. It has aimed for a 9 percent profit from Internet sales by the end of next year. 109. (Scenario 14-4) Visualizers tells Optima managers that the best way to go about setting up banner ads is to pay the website owners only when users click on the ads. Optima will then have to pay only if a user visits the link. In this case, Visualizers is referring to the model of advertising payment. a. pay-per-click b. click-through c. keyword bidding d. paid search ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 110. (Scenario 14-4) Managers at Optima want to better understand the cost implications of advertising on the Internet. Visualizers' media researchers prepare a presentation using four traditional media placements to compare. The banner ad CPM falls somewhere below the cost of the top 10 market newspapers and magazines; however, it is higher than television. Visualizers points out that the advantage offered by the banner ad is its: a. capacity for blanketing the world of online consumers with the Optima brand. b. ability to deliver to a highly desirable, segmented, and motivated audience. c. quick-change option that allows marketers to make changes to the creativity of the ad. d. ability to insert itself into interactive situations where consumers don’t expect to see it. ANSWER:

111. (Scenario 14-4) The marketers at Visualizers talk to Optima about banner ads that have created problems in the online market. Which of the following is likely to be a common problem when banner ads are placed on the websites of other firms? a. They are easily imitated by competitors. b. They add to high advertisement clutter. c. They decrease Web page load times. d. Their effectiveness cannot be measured or tracked. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 112. (Scenario 14-4) Visualizers informs Optima that one way in which the pricing for the banner ads can be evaluated is by calculating the value created by the advertisement in terms of traffic, placement and size of ads, ad rates, and evaluations of the site’s quality. This can be done by computing the for the ads. a. big data b. bounce rate c. site stickiness d. I-Traffic Index ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Pricing KEYWORDS: Bloom's: Application 113. (Scenario 14-4) The researchers at Visualizers determine that many art supply stores and galleries have websites for local customers to learn more about creating art through various media. They suggest that Optima should provide free tips and demonstrations related to producing art that would encourage potential buyers and current customers to try new techniques, and add their own suggestions. Generating this type of social interaction around Optima products will involve creating: a. an Internet presence. b. integration with television marketing campaigns. c. a mobile marketing plan. d. consumer engagement through interactivity. ANSWER:

114. Explain why it is crucial for advertisers to understand how consumers think, feel, and act regarding social media, online advertising, and e-commerce. Can social media be leveraged profitably? Explain. ANSWER:

DIFFICULTY:

The role of digital and social media in advertising is a big one, and it will stay and grow with new technology such as mobile marketing. New media brings new vernacular to consumers. These online terms and brands have changed the way of online consumer behavior, advertising, and branding. Online advertisers should know where and why consumers go online, how that relates to where they go offline, as well as what makes them tick. This will help them understand consumer lifestyles, attitude, affect, emotion, and online consumer behavior so that they can maximize online and offline customer experiences. This will, in turn, help instill brand loyalty with offline, experiential marketing. Online advertisers should not just incorporate but also embrace social media to enhance their online presence. One way to leverage social media could be to align corporate websites and social media objectives to enhance return on investment for digital advertising. Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.14-1 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 115. Which digital advertising tools can an advertiser use to make his home page as popular as possible? ANSWER:

An advertiser can run display/banner ads at high-traffic sites. This will offer a relatively high level of exposure to an advertising message that can then send the surfer to the required site. One can place display/banner ads on sites that attract specific market niches relevant to the brand to encourage travel to the site. The advertiser can register his site with an online search engine selecting keywords so that the website address and a click-through connection will appear when users type in any of these keywords during a search. The advertiser can opt for a paid search with this engine to have ads for the site placed next to search results. One can offer widgets that allow users to customize the information they’d like to regularly receive from the advertiser. Finally, the advertiser can use traditional media as an effective way to increase interest about the site. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

116. Explain the terms paid search and search engine optimization? What are the similarities and differences between the two? Use an example to explain each of the concepts. ANSWER:

Both the terms refer to ways in which advertisers get their company's name on or near a list of results when a user searches on the Web. A paid search refers to the actions of advertisers on the Web, whereas search engine optimization refers to the behavior of consumers on the Web. Paid search is a process by which advertisers pay a fee to a portal or search engine site to place ads in or near relevant search results based on key words. For example, if you Google “baby toys” you will find ads for Internet toy retailers within or next to the list of search results. Paid search can also fine-tune a Web user’s search to focus on relevant and specific sites. For example, when an astronomy buff who has made several searches on astronomy-related terminology enters the word “Saturn,” the search will show results about the planet and not the car. Search engine optimization (SEO) refers to the process by which the volume and quality of traffic from search engines is improved based on the surfers’ profiles. This affects the location of the site on a search results list. The higher that a site is shown on a list, the more likely that a user will visit the site, although the cost may be higher. For example, when a user types a key word on Google search, some of the most popular sites currently being accessed will come up first. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension

117. Explain the role of online privacy in social media advertising. What are cyber-identity theft and online resistance? How can they affect social media advertising? List out the ways in which individuals can protect themselves. What is the consequence of blocking websites that track your digital footprint? ANSWER:

It is key to explore consumer perception of both privacy and security because security refers to how safe the site or app is and privacy is more about how the host maintains consumer data and online consumer behavior. Establishing the highest standards for privacy and security are important for online brand managers. Doing so can help etailers make sure that they are accurately addressing concerns that their customers have that could prevent them from completing online transactions. Cyber-identity theft is having one’s identity stolen by online or digital means. It can inhibit some consumers from shopping and banking online. Online resistance is an attitude or behavior against the digital movement, at times. It can occur if consumers perceive that marketers and advertisers are trying to stomp on their sacred territory in the social media. Both of these can reduce online sales and transactions and thus the effectiveness of online advertising. To protect their privacy, individuals can clear out needless cookies, read privacy policies, and pay attention to logos that show that a site has been endorsed or is a member of a third-party privacy endorser, known as a privacy seal. Though difficult to do, they can also keep a track of their digital footprint and choose to make their social media data private through the privacy settings of the websites. People can choose to block websites that keep track of their online browsing data. This way their privacy will be more secure from unwanted intrusions. However, blocking these websites also means that fewer number of relevant or useful online ads will reach these people. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.14-4 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

118. The unique characteristics of the Web has given advertisers who use it a definite edge over their competitors. What are the advantages of the new digital/interactive media being used in advertising today? Discuss a product or service that has successfully demonstrated one or more of these elements in its digital/mobile advertising. ANSWER:

There are four major advantages of digital/interactive media: Interactivity is one of those lofty goals of advertisers that could never have been truly accomplished with traditional media, but is sometimes achieved through digital/interactive media. Ads in traditional media may have allowed consumers to clip coupons, enter contests, or write testimonial letters. But the new media are designed for all forms of interactivity—chats, blogs, comments, forums, activities, games, etc. A click-through allows the user to click on an ad and get a virtual tour, visit a home page, read product specifications, enter a discussion about a brand, or most importantly, purchase the product online immediately. If advertisers can attract surfers to the brand website, there is the opportunity to convert that surfer to a buyer if the site is set up for e-commerce. Design components of various digital or mobile or tablet ad formats can have an important effect on click-through and sales potential. Integration refers to the ability of advertisers to include their home page URL as well as the online address of special promotions, contests, or related sites on virtually all of their other forms of advertising and promotion. Digital and mobile advertising is most easily integrated and coordinated with other forms of promotion. The integration of Web activities with other components of the marketing mix is one of the easiest integration tasks in the IBP process. This is due to the flexibility and deliverability of Web advertising. Social media also provides a seamless interface with the most traditional of IBP tools, television. Television ratings for live events, such as the Grammys and the Oscars, have spiked in recent years as viewers tweet and post on Facebook to alert friends to the awards and to their reactions to the proceedings. On a cost-per-thousand (CPM) basis, the cost of Web ads for the most part compares favorably with ads placed in traditional media. The real attraction of digital is not found in raw numbers and CPMs, but rather in terms of highly segmentable and highly motivated audiences. The Internet is ideally suited for niche marketing. Engagement via a Digital Footprint. Companies, nonprofits, and human brands alike can engage others via their online presence. The integration of print campaigns with Facebook and a QR code that brings the consumer to the product’s website is a way to engage via hybrid channels. Based on privacy settings, online history of what one posts becomes a digital paper trail, available for anyone to reflect back on. The information that one shares creates a digital footprint, defined as your profile of personal information, accessible online to a spectrum of people.

Student examples may vary. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.14-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Comprehension

Ch_15__Sales_Promotion__Point-of-Purchase 1. Sales promotion is the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. Sales promotion can provide an affiliation value for a brand; meaning that the consumer wants to, or is able to, identify with the brand. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 3. One drawback of sales promotions is that the results are difficult to document. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 4. One advantage of sales promotion is that it breaks through the media clutter. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

5. Historically, more money has been budgeted for mass media advertising than for sales promotion. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 6. Sales promotion can attract attention and motivate trial purchase so it is often used to introduce new brands to the public. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 7. Today’s marketers use a number of sales promotion techniques aimed at consumers including coupons, price-off deals, premiums, contests and sweepstakes, samples and trial offers, phone and gift cards, rebates, and frequency programs. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 8. Coupons are one of the newer forms of sales promotion, introduced in the 1950s by cake mix manufacturers. a. True b. False ANSWER: DIFFICULTY:

False Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

9. Friendly Car Wash offers a deal in which customers who have bought nine car washes over the last year get the tenth one free. This is an example of a sampling program to stimulate repeat purchases. a. True b. False ANSWER:

False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 10. One advantage of using sweepstakes and contests is that they can quickly and easily communicate the brand message through the game. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 11. A manufacturer of dental care products sets up a new promotion by attaching one of its toothbrushes to its boxes of toothpaste. This is an example of a mobile sampling technique. a. True b. False ANSWER:

False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

12. Retailers often run trade promotions simultaneously along with consumer promotions. a. True b. False ANSWER: DIFFICULTY:

True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

13. One objective for promotions in the trade channel is to increase store traffic, which benefits both manufacturers and retailers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 14. The fight for space on grocers' shelves has become very competitive, so manufacturers will do anything to get stores to stock their items—except paying a fee, which is now illegal. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15. A manufacturer helps a retailer by sharing the cost of local advertising. This allows the manufacturer to have some control over the process, and the retailer to advertise for a lower cost. They are taking part in a form of businessmarket sales promotion. a. True b. False ANSWER:

False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 16. It is estimated that almost one-fourth of corporate America gives rebates as a type of business-market promotional technique. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

17. The advantage that sales promotions have over advertising is that they offer great rewards with little or no risk. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 18. Sales promotion is generally used as a long-term tactic and widespread strategy to promote an image for the brand and create emotional connections with the consumer. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 19. The great thing about sales promotions is that it is inexpensive, simple, and, well-timed. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 20. The only medium that places the advertising, the product, and the consumer together in the same place at the same time is Point-of-Purchase advertising. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

21. Materials that are used in the retail settings to attract shoppers’ attention to a product convey primary product benefits or highlight pricing information. They are referred to as Point-of-Purchase advertising. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 22. A display rack that stocks cigarettes is placed above the cash register so the cashier can reach the product for the consumer. The rack has signage on the front advertising the cigarette brand. This is called an overhead merchandiser. a. True b. False ANSWER:

True DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 23. P-O-P promotion can aid manufacturers not only by attracting consumers, but also by securing relationships within trade and business markets. For instance, it can encourage buyers to support their brand over another with more exposure and shelf space. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

24. Support media are used to introduce a new message beyond the one being delivered by other advertising vehicles, marketing plans, and promotional techniques. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 25. Billboards have evolved from outdoor signs and posters which represent one of the oldest forms of marketing dating back to the early promotional tools of the 1800s. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 26. Out-of-home media describes various advertising venues that reach local audiences while they are out in public. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 27. Today’s forms of out-of-home media can target specific demographic segments by neighborhood using customized messages via wireless Internet. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

28. Transit advertising works well in small towns, rural areas, and farm communities due to their lack of ad clutter. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 29. A phone directory like the Yellow Book provides a strong link to consumer buying allowing people to follow through on their decisions to buy in a practical way. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 30. Which of the following are the three basic forms of sales promotion? a. At-home, in-store, and out-of-home b. Short-term, long-term, and Point-of-Purchase c. Indoor, outdoor, and mobile d. Consumer-market, trade-market, and business-market ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion OTHER: Knowledge

31. Compared to advertising, sales promotion is: a. a long-term affair. b. encourages an immediate response. c. a more sophisticated process. d. harder to document. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 32. The primary role for consumer sales promotion is to: a. encourage long-term purchasing of a brand. b. enhance the image of a brand. c. elicit a purchase from a customer. d. boost name recognition for a brand. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 33. In recent years, the time spent on sales promotion has shifted. Today, about time is spent designing, implementing, and overseeing sales promotions. a. 65 b. 45 c. 30 d. 15 ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

percent of brand management

34. Several factors have affected sales promotion in organizations, in recent years. Pressure from stockholders to produce high quarterly revenue, marketing plans based on quick results, and a bottom-line mentality have all contributed to a: a. focus on brand image. b. short-term orientation. c. sense of creative innovation. d. strong consumer bond. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion NOTES: Bloom's: Knowledge 35. A retailer is trying to target the “precision shopper,” who expects extra value in every single purchase. Which of the following promotional techniques would best increase the value of a brand in a customer's mind? a. Bill-back allowances b. Push money c. Off-invoice allowance d. Coupons ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 36. Sales promotion techniques act as an incentive to purchase the brand featuring a promotion, even if another brand: a. has more market share. b. offers more variety. c. offers more benefits. d. has a lower basic price. ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

37. In the world of promotion today, payments in the form of slotting fees, cash allowances, and incentives are becoming more popular due to the growing power of . a. retailers b. manufacturers c. consumers d. shareholders ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 38. An objective of consumer-market sales promotion is to: a. stimulate the inelasticity of demand of a product. b. lower the economies of scale. c. encourage smaller purchases. d. stimulate trial purchases. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 39. A(n) entitles a buyer to a designated reduction in price for a product or service. a. coupon b. off-invoice allowance c. bill-back allowance d. slotting fee ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

40. The marketers at Kraft are currently focusing on building brand loyalty and considering a number of consumermarket sales promotion techniques. Which of the following would work best at encouraging brand loyalty toward Kraft Macaroni and Cheese? a. Offering a 50-cent rebate on the purchase of a box of Kraft Macaroni and Cheese b. Offering an additional case of Kraft Macaroni and Cheese half-price c. Saving George Clooney eat Kraft Macaroni and Cheese in his next movie d. Placing a $1 off coupon for Kraft Macaroni and Cheese in the Redbook magazine for a month. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 41. A mother purchases a Happy Meal box and her son immediately picks up the little toy that accompanies it. The little boy’s new toy is an example of a: a. self-liquidating premium. b. push strategy. c. free premium. d. price-off deal. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 42. Which of the following is true of a self-liquidating premium? a. It is a trade-market sales promotion technique. b. It is a consumer-market sales promotion technique. c. It is a business-market sales promotion technique d. It is a Point-of-Purchase sales promotion technique ANSWER:

43. A distinguishing feature of a self-liquidating premium is that it requires the consumer to: a. mail in the premium to get reimbursed. b. pay most of the cost of the item received. c. buy two other items at regular price. d. guarantee a repeat purchase. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 44. The biggest difference between contests and sweepstakes is that: a. contests can require an entry fee, and sweepstakes cannot. b. contests generate long-term interest in a brand, and sweepstakes generate immediate interest. c. contests require skill, and sweepstakes require luck. d. contests focus on the game, and sweepstakes focus on the brand. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 45. Which of the following is true of sampling? a. It is available to distributors alone. b. The customer receives their money back. c. The product is offered at a discounted price. d. It involves little or no risk. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

46. A national merchandising company is a major distributor of grocery and beauty products, and uses many tactics to get samples into the hands of consumers. The most popular type of sampling for food and cosmetics products is sampling. a. on-package b. door-to-door c. mail d. in-store ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 47. Trial offers have the same goal as samples, except that trial offers: a. are less expensive to utilize. b. are handed out in malls, retail stores, and other public places. c. involve more expensive items. d. arrive through mail or newspaper delivery. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 48. A consumer buys a printer for her computer, and receives a money-back offer. To get the premium, she has to mail in a form requesting the money back from the manufacturer rather than the retailer. Which of the following consumer-market sales promotion techniques is exemplified here? a. A rebate b. A self-liquidating premium c. Couponing d. A free premium ANSWER:

49. Businesses like to promote their products with rebates because they: a. are purely based on luck. b. often do not get cashed in. c. are more popular with consumers than coupons. d. do not require maintenance. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 50. A regional office supply store wants to understand and serve its customers better and compete with nationwide giants. It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers. Which of the following forms of sales promotion would work best? a. Mail sampling b. Self-liquidating premium c. Rebate d. Frequency programs ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 51. The sales-promotion techniques used within the trade market are: a. couponing, cash allowances, incentives, and slotting fees. b. incentives, allowances, training programs, and cooperative advertising. c. case allowances, sweepstakes, couponing, and training programs. d. slotting fees, Point-of-Purchase displays, consumer rebates, and merchandise allowances. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

52. Mark works for a well-known company that manufactures mattresses. To move the company's product during the President's Day sales events held nationwide, he offered $200 to any retail salesperson who can sell ten mattresses throughout the second weekend of February. He also offers a case of sports drinks for each mattress sold. These are examples of trade-market sales promotion techniques in the form of: a. free premiums. b. incentives. c. merchandise allowances. d. dividends. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 53. A kitchen appliance manufacturer devises a program to encourage members of the trade to purchase its brand. It offers salespeople an extra $75 for selling one of its refrigerators, $50 for selling one of its ovens, and $40 for selling one of its dishwashers. Which of the following promotional concepts for the trade channel does this involve? a. Push money b. Merchandise allowance c. Slotting fee d. Rebates ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 54. Which of the following is a form of allowance allowed to retailers and wholesalers? a. Free premiums b. Rebates c. Slotting fees d. Push money ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

55. A discount retailer has been doing very well over the years, and can now expect to get cash payments from manufacturers and suppliers if they want their products on the retailer’s shelves. Therefore, it regularly receives these payments known as: a. bill-back allowances. b. slotting fees. c. merchandise allowances. d. off-invoice fees. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 56. The CEO of a software manufacturing firm that supplies to large insurance firms wants to look at all possible forms of business-market promotions to gain and maintain lucrative customers. He meets with his marketing director, and they review the five main areas of promotion techniques aimed at business buyers. They are: a. trade shows, business gifts, premiums and advertising specialties, trial offers, and frequency programs. b. incentives, allowances, training programs, cooperative advertising, and sampling. c. merchandise allowances, cash allowances, trade shows, training programs, and incentives. d. premiums and advertising specialties, frequency programs, incentives, allowances, and cooperative advertising. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 57. Which of the following is a difference between advertising specialties and business gifts? a. Specialties have the sponsor’s logo on them, while business gifts do not. b. Specialties promote brand awareness, while business gifts promote close working relationships. c. Specialties are quite expensive, while business gifts are inexpensive. d. Specialties are given on a selective basis, while business gifts are distributed to all. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

58. For an item to be defined as an advertising specialty, it must: a. be a reward for meeting a goal or sales quota. b. contain no promotional message. c. be construed as a way of buying business. d. contain the sponsor's brand name or slogan. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 59. Which of the following sales promotion tactics runs a risk of eroding a brand image or value? a. A frequency program b. A price incentive c. A sweepstake d. A contest ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 60. Some airlines ran into big trouble when they tried to increase the mileage levels needed to earn awards in their frequent-flyer programs. Which of the follwoing risks associated with promotions have their actions demonstrated? a. The risk of having a product or service perceived as cheap b. The risk of alienating customers c. The risk of putting in too much time d. The risk of an increase in expenses over incomes ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

61. Advertisers are warned that they may face legal problems if they are not careful while conducting promotional activities. This is especially true of: a. in-store sampling and door-to-door sampling. b. price-off deals and rebates. c. mail sampling and newspaper sampling. d. sweepstakes and contests. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 62. Which of the following is true of Point-of-Purchase displays? a. They are noticed only by a few consumers. b. Many retailers ignore them or throw them out. c. They rarely get shipped to stores. d. They are poorly constructed and often unusable. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 63. Which of the following are the two broad categories of Point-of-Purchase materials? a. In-house displays and out-of-the-house displays b. In-store merchandising formats and out-of-store promotional formats c. Push messages and pull messages d. Short-term promotional displays and long-term permanent displays ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

64. A printed card or sign designed to mount on or under a shelf is known as a a. Shelf talker b. Floor stand

c. Cash register d. Door signage ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 65. P-O-P displays have historically served several purposes for store owners. What do today’s retailers increasingly expect P-O-P displays to do for them? a. To provide ambience and differentiate their store from others b. To minimize the costs of creating displays for the store c. To improve the orderliness and structure of the store environment d. To reduce the number of sales personnel required ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 66. The name support media denotes that they: a. are supported and financed solely by business-market expenditures. b. reinforce or support a message delivered by other media. c. must be supported or upheld by physical structures. d. support and enhance P-O-P within the retail environment. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

67. The oldest form of advertising is the a. coupon b. dailie

c. directory d. billboard ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion TOPICS: Bloom's: Knowledge 68. Billboards offer several strong advantages, but they are most effective as a promotional medium when they are in a location that: a. sends a message to the national and international market. b. incorporates specialized lighting. c. relates to an immediate need or desire. d. offers round-the-clock exposure. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 69. Experts suggest that the number of words on a billboard copy should not exceed a. fifteen b. ten c. six d. three ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

70. The combination of transit, aerial, and cinema advertising is known as a. Point-of-Purchase b. out-of-home c. trade-channel d. business-market ANSWER:

media advertising.

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 71.

advertising is a close cousin to billboard advertising, and in many instances it is used in tandem with billboards. a. Directory b. Transit c. Aerial d. Cinema ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 72. Though, there appears to be some strong resistance, market research has indicated that 63 percent of consumers don’t mind advertising. a. transit b. aerial c. billboard d. cinema ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

73. Of all types of support media, directory advertising offers a unique advantage by: a. offering technologically advanced and innovative options. b. enhancing brand awareness and recall. c. stressing on the brand name and keeping the message within six words. d. helping consumers follow through on purchases. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 74. From the consumer’s viewpoint, directories like the Yellow Book have some disadvantages as promotional tools. One particular problem is that it: a. has a massive volume of media clutter. b. requires long lead times that result in outdated information. c. annoys rather than providing information to potential buyers. d. is unable to offer detailed information. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

75. According to a classic quote, which of the following has been described as “the last five seconds of marketing?” a. Trade show b. Sampling c. Packaging d. Directory advertising ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 15-1 One of the nation’s most popular times for sales promotions was a great deal longer than usual in 2010. Black Friday, which typically takes place the Friday following Thanksgiving, started in October for a number of retailers and was also scheduled to occur throughout the month of November. Sears and Walmart, who had been experiencing a continuous decline in sales recently, were the biggest names behind the move. Executives from a number of companies began to realize that consumers respond to the word “sale,” regardless of the time of year, so they decided to simply stretch the period of time in which their biggest sales ran. Companies designed new sale flyers and circulars, and began to promote the various sales on their websites. Other companies such as Target were also implementing a similar strategy—by emphasizing savings earlier in the season and for a longer period of time, company executives hoped their brand would be the first, second, and last choice for consumers during the holiday season. (Stephanie Clifford, “Stores Push Black Friday Into October.” The New York Times, October 28, 2010.) 76. (Scenario 15-1) On one of the company’s websites, a sweepstakes was designed to award one lucky customer after he or she provided feedback on a number of planned sales promotions for the holidays. One characteristic of a sweepstakes is: a. winners can only be awarded with monetary prizes. b. winners are determined purely by chance. c. there can only be one winner per sweepstakes. d. there is a complex system for determining a winner. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 77. (Scenario 15-1) Implementing contests and sweepstakes can be a challenging task. One of the difficulties in implementing an effective sweepstakes is: a. generating interest in the brand, not just in the sweepstakes. b. choosing a winner in a manner which keeps everyone happy. c. The entire implementation could falter and leave consumers disappointed. d. notifying the winner when the sweepstakes is over. ANSWER:

78. (Scenario 15-1) Because companies realize consumers will be visiting stores more frequently during the holiday season, several toy manufacturers are paying direct cash to retailers in exchange for placing their brand in the most visible locations. These cash payments are known as . a. rebates b. push money c. off-invoice allowances d. slotting fees ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 79. (Scenario 15-1) During the holiday season, Snuggles, a winter clothing retail store, offers its employees $10 for every additional sweater that they sell. This is an example of: a. a free premium. b. a merchandise allowance. c. push money. d. a slotting fee. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 15-2 The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon. Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash. The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands. 80. (Scenario 15-2) Sounds Good has placed a small catalog inside each compact disc. The catalog features a variety of Planet Moon items that can be ordered—the band’s music video as well as T-shirts, ball caps, and travel mugs. These items are considered self-liquidating premiums because the consumer: a. does not receive the actual product sample but only the advertisement for free. b. is unknowingly helping to liquidate unwanted product inventory. c. has the chance to buy them only by purchasing the CD. d. pays most of the cost for them. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion OTHER: Application 81. (Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains. However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon. However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain. This is known in the trade channel as a: a. cooperative advertising fee. b. merchandise allowance. c. slotting fee. d. rebate. ANSWER:

82. (Scenario 15-2) The displays commissioned by Sounds Good need to be set up and maintained. Any record store that agrees to do this gets several copies of Planet Moon CDs and past releases from Sounds Good for free. This is known as a(n) . a. incentive b. merchandise allowance c. maintenance exchange d. off-invoice allowance ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 83. (Scenario 15-2) MusicMixers, a manufacturer of recording equipment, speakers, and microphones based in Baltimore, is a supplier for Sounds Good. The owners of Sounds Good have purchased most of their studio equipment from MusicMixers. Now, MusicMixers is running a promotion of its own. When the sales representative visits, he drops off two expensive leather jackets with a small MusicMixers logo on one sleeve. The jackets are considered as , and are part of a business-market sales promotion. a. advertising specialties b. business gifts c. premiums d. merchandise allowances ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 84. (Scenario 15-2) Sounds Good commissions the design of fifty cardboard displays for record stores as part of a short-term promotional display. This means that the display will be used for a maximum of months. a. three b. six c. twelve d. sixteen ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 15-3 Stacey is making her weekly trip to the grocery store. She takes with her a National brand coffee coupon worth 50 cents. While shopping she was asked if she would like to try a slice of pizza from a sales person. After tasting it, the sales personal directs her to where the brand is available. When Stacey arrives at her favorite brand of toothpaste, she is delighted to find that she would receive a toothbrush along with the toothpaste attached to the box for no charge. She then runs into a carboard cutout of an actor from a medical drama that she watches on tv, with a box full of pain relievers built into it. At her last stop, the cereal aisle, she notices that a brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character. 85. (Scenario 15-3) Which of the objectives of promotion did all these activities have in common? a. Highlighting a particular product attribute b. Building an image for a product c. Eliciting immediate purchase of a product d. Creating loyalty toward a product ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 86. (Scenario 15-3) Which of the following promotional concepts was demonstrated by the company that hired a woman to hand out slices of pizza? a. Sale offer b. In-store sampling c. Premium d. Advertising specialty ANSWER:

87. (Scenario 15-3) Stacey is surprised to see that there was a toothbrush attached to the box of her favorite toothpaste. This is an example of a(n): a. on-package sampling. b. self-liquidating premium. c. mobile sampling. d. price-off deal. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 88. (Scenario 15-3) The store gives Stacey a loyalty card for the toothpaste which she must produce the next time she visits the store to purchase the product. This is an example of a . a. push strategy b. rebate c. gift card d. frequency program ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 89. (Scenario 15-3) Among all the products with sales promotions in the store, which of the following involved Point-of Purchase advertising that might have cost the manufacturer a few pennies? a. The pain medicine b. The frozen pizza c. The coffee d. The cereal ANSWER:

a DIFFICULTY: Challenging

LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 15-4 General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 90. (Scenario 15-4) General Mills inserts a sheet of coupons in the Sunday newspapers in major markets. This is a form of sales promotion. a. consumer-market b. business-market c. trade-market d. bill-back ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

91. (Scenario 15-4) The marketers at General Mills have learned that along with Kellogg's and Quaker Oats, they often target the same customers with their advertising. This problem of customers receiving too many messages from too many firms has been addressed with sales promotion tactics featured in advertising such as coupons included in driving growth in sales magazine ads, or rebate offers mentioned in TV commercials. This is an example of promotion. a. short-term orientation b. media clutter c. elasticity of demand d. power of retailers ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

92. (Scenario 15-4) On the back of its Cheerios boxes, General Mills has printed a form to fill out for a cookbook offer. The booklet is available to consumers for a nominal charge of $3.00, plus a $1.00 shipping and handling charge. This is an example of a(n): a. self-liquidating premium. b. on-package sample. c. advertising specialty. d. slotting fee. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 93. (Scenario 15-4) General Mills allowes its retailers to deduct 2$ from every box of cereal in the shipment it receives. This is an example of a(n) . a. slotting fee b. merchandise allowance c. bill-back allowance d. off-invoice allowance ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 94. (Scenario 15-4) General Mills’ salespeople handle and monitor a number of promotions for its cereals. Which of the following involves Point-of-Purchase advertising? a. A scratch-off card to win a mountain bike inserted in each box b. A free granola bar attached to each cereal box c. A small box of cereal delivered with the daily newspaper d. A large display of cereal boxes at the end of the grocery aisle ANSWER:

Scenario 15-5 Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook-sized monitors as they stroll through the aisles. The devices, or 3GTV’s as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter. The minitelevisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the Point-Of-Purchase. Advertisers who are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process. The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict. Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised. (Danielle Douglas, “Bloom to Try Out In-Store TV Advertising System.” Washington Post, November 1, 2010.) 95. (Scenario 15-5) ClipTrick feels it is better not to send in Point-of-Purchase displays to the retail store. Which of the following would most likely be the reason for its decision? a. Consumers never notice displays at stores. b. They are extremely expensive and difficult to execute. c. It portrays the product as cheap and desperate to sell. d. Most retailers ignore and don not use the displays they receive. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 96. (Scenario 15-5) Which of the following is one of the objectives of Point-of-Purchase advertising? a. Display product features that require long-term attention in order to understand. b. Stimulate trial use by current users of the brand. c. Draw consumers’ attention toward brands that the company used to sell. d. Maintain purchase loyalty among brand-loyal users. ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

97. (Scenario 15-5) If ClipTrick wanted to install a permanant-promotion display. The display would have to be used for more than: a. six months. b. eight months. c. one year. d. two year. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 98. (Scenario 15-5) Advertisements on the 3GTV’s will likely be rotating on a very frequent basis. In fact, no one ad will be shown for any longer than one or two months at a time. These ads are known as: a. short-term promotional displays. b. rotating displays. c. push strategies. d. attention-grabbing displays. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension Scenario 15-6 Ted's grocery store is extremely popular in a small neighborhood. Pretzels, a crisps company, has provided scratch cards inside each packet of crisps with the hope of a prize for the winner. Pretzels being a relatively new company had to pay Ted's grocery to sell its products. Quads, a blender manufacturer, has provided its customers with a chance to receive 10% of their money back by mailing them and filling in the required details. It also stated that employees who sell two blenders would receive a bonus. Quad had sent the owner of Ted's grocery an expensive hand crafted wooden sculptor. 99. (Scenario 15-6) Pretzels has provided a scratch card inside each packet of crisps. This is an example of a . a. sweepstake b. premium c. gift card d. rebate ANSWER:

100. (Scenario 15-6) Quads' customers need to mail them to receive 10% of their money back on purchases. This is an example of a . a. rebate b. slotting fee c. merchandise allowance d. coupon ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 101. (Scenario 15-6) Employees receive a bonus from Quad for selling two or more blenders. This is an example of: a. push money. b. a merchandise allowance. c. slotting fees. d. a rebate. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 102. (Scenario 15-6) Pretzels paid Ted's grocery a fee to sell its products. This is known as: a. a slotting fee. b. push money. c. a premium. d. a merchandise allowance. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

103. (Scenario 15-6) Quad sent the owner of Ted's grocery an expensive hand crafted sculpture. This is an example of a(n) _____. a. bribe b. advertising speciality c. premium d. business gift ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 104. Discuss the overall trend in spending on advertising and sales promotion over the past decade. Outline, at least, three reasons for this trend. ANSWER:

Over the past decade, many marketers have moved the emphasis of their spending away from traditional advertising and toward sales promotions—those involving consumer, trade, and business populations. There are several reasons why marketers have been shifting funds from mass media advertising to sales promotions: 1. Managers are demanding greater accountability for promotional spending. 2. Organizations and stockholders are setting a short-term orientation toward generating revenue. 3. Consumers are responding positively to sales promotions. 4. Marketers are causing a proliferation of brands in many product categories, while also needing to gain attention and differentiate their brand. 5. Retailers are becoming more powerful by demanding recompense from manufacturers in return for giving brands favorable placement or other special attention. 6. Advertising clutter is taking over mass media and requiring greater ingenuity to achieve breakthrough. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

105. Describe any five of the consumer-market sales promotion techniques. ANSWER:

A number of sales promotion techniques are commonly used to target consumer markets: Coupons - the oldest and most widely used form of promotion, entitle the buyer to a designated price reduction. They allow discounts to some while still selling the product at full-price to others, may induce brand switching, can stimulate repeat purchases, may lead to the purchase of more expensive brands within a line, and are controlled by the manufacturer. Price-off deals - offer discounts at the Point-of-Purchase through specially marked packages. The reduction is taken from the manufacturer's profits rather than the retailer’s, is controlled by the manufacturer, compares the product favorably to that of competitors, is appreciated by consumers who want a straightforward deal, and often leads to multiple purchases as buyers stock up while a brand is on sale. Premiums - are items that are offered free, or at a reduced price, along with the purchase of a product or service. Free premiums are sometimes attached to or included within the packaging, mailed to the consumer who sends a proof-ofpurchase, or simply given away. Self-liquidating premiums are items available to interested consumers at a reduced cost, usually by mailing in a form and proof-ofpurchase. They work well with loyal consumers. Advertising specialties - are small but useful items with the brand name or slogan prominently displayed. They always involve a message and are given away for free, with no obligation to make a purchase. Contests and sweepstakes - Contests allow consumers to compete for prizes based on skill or ability. Sweepstakes require no particular skills but only luck, as winners are drawn at random via entry forms or scratch-off cards. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

106. Describe the various sampling techniques used in consumer-market sales promotion. ANSWER:

Six techniques are used in sampling: • In-store sampling is popular for food products and cosmetics. This is a preferred technique for many marketers because the consumer is at the P-O-P and may be swayed by a direct encounter with the brand. Increasingly, in-store demonstrators are handing out coupons as well as samples. • Door-to-door sampling is extremely expensive because of labor costs, but it can be effective if the marketer has information that locates the target segment in a welldefined geographic area. Some firms enlist the services of newspaper delivery people, who package the sample with daily or Sunday newspapers as a way of reducing distribution costs. • Mail sampling allows samples to be delivered through the postal service. Again, the value here is that certain zip-code markets can be targeted. A drawback is that the sample must be small enough to be economically feasible to mail. Specialty sampling firms provide targeted geodemographic door-to-door distribution as an alternative to the postal service. • On-package sampling, a technique in which the sample item is attached to another product package, is useful for brands targeted to current customers. Attaching a small bottle of Ivory conditioner to a regular-sized container of Ivory shampoo is a logical sampling strategy. • Mobile sampling is carried out by logo emblazoned vehicles that dispense samples, coupons, and premiums to consumers at malls, shopping centers, fairgrounds, and recreational areas. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

107. List and describe the four main techniques commonly used in trade-market sales promotions. Choose one type and demonstrate how it would operate within a certain type of industry, profession, or business. ANSWER:

Incentives - to members of the trade include awards in the form of travel, gifts, or cash bonuses for reaching targeted sales levels. These can induce retailers and wholesalers to give a firm's brand added attention. Push money is a type of incentive involving monetary rewards to salespeople who feature and ultimately sell a particular brand. Allowances - are seen in several forms as used in a push strategy. Merchandise allowances, in the form of free products packed with regular shipments, act as payments to the trade for setting up and maintaining displays. Shelf space has become so highly demanded, especially in supermarkets, that manufacturers are making direct cash payments, known as slotting fees, to induce food chains to stock an item. Monetary discounts are also seen in the form of bill-back allowances and off-invoice allowances. Training programs - have become an increasingly popular trade promotion for retail store personnel. The increased complexity of many durable consumer goods has made it important for manufacturers to ensure that the proper pieces of information and the most persuasive themes are reaching consumers at the Point-of-Purchase. Cooperative advertising - occurs when the manufacturer shares the cost of media with the retailer. This extends the reach and frequency for both brands, at less cost than advertising alone. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 108. What are the two main categories of Point-of-Purchase promotions? List and describe any five P-O-P formats available to retailers. ANSWER:

The two main categories of point-of-purchase promotions are short-term promotional displays (in place for six months or less) and permanent long-term promotional displays (in place for more than six months). The various P-O-P formats used by retailers are: Window and door signage - which includes any sign that identifies or advertises a company or brand. Shelf talker - which is a printed card or sign mounted on or under a shelf. Interactive unit - which is a computer-based kiosk dispensing product information, recipes, or coupons. Aisle directory - which is the list or map that depicts contents of a store aisle and provides space for an ad message. Retail digital signage - which includes video displays mounted on ceilings or walls, set as end-of-aisle caps, or given strategic shelf placement.

DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

109. Assume that you are the marketing director for a business of your choice—it can be a real business or an imaginary one —and you need to reach a local audience. You are asked to compare billboard advertising and transit advertising, including their advantages and disadvantages, and prepare a short report detailing these issues. Briefly outline the report you would write, paying particular attention to the best way to promote the brand, the type of product or service you are selling, the geographic area you are in, the demographics of the local population, etc. ANSWER:

Student answers will vary depending on the type of business they choose, the nature of the brand, and the product or service they are promoting. Billboard advertising - is perhaps the oldest form of advertising in America, dating back to posters and notices tacked up for the public to read during the Revolutionary War. Today, they can provide wide exposure if they manage to grab attention with minimal text and striking imagery. They often include specialized lighting, moving parts, or rotating digitalized displays. Drawbacks include poor locations, time and effort in finding locations, long or confusing messages, environmental issues, and consumers who don’t notice them. Transit advertising - is similar to billboard advertising and is sometimes used simultaneously. It is popular around the world and is seen in many venues, including on the backs of buildings, in subway tunnels, in terminals, on station platforms, and on the vehicles. Many types of transit ads now use digital signage that creates customized messages for various neighborhoods or times of day. It does well in building or maintaining brand awareness, and particularly in targeting adults who work in major metropolitan areas, offering repetitive message exposure to commuters. The drawbacks are similar to those for billboards. Includes lengthy or complex messages, media clutter on busy streets and in public transit facilities, and busy or distracted commuters who tune out the ad message. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

Ch_16__Event_Sponsorship__Product_Placements_ 1. Events, product placements, and branded entertainment offer the advertiser some of the best opportunities for integrated brand promotion. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. Using events, product placement, and branded entertainment in an IBP makes the rules for its success easy to pin down. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 3. In today’s world of marketing, the fields of advertising, branding, and entertainment are converging. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 4. Because quirky and gimmicky new formats have been overused, contemporary marketers are returning to traditional media to build brands in the marketing environment and to create meaningful connections with consumers. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 KEYWORDS: Bloom's: Knowledge

NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer

LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

5. Using diverse means for brand building is no longer considered profitable, and the list of options that marketers have is constantly growing shorter. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 6. The term Madison & Vine refers to two renowned avenues representing the advertising and entertainment industries, respectively. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 7. The concept of Madison & Vine refers to the convergence of the advertising and entertainment industries toward the branding efforts of marketers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 8. The term event sponsorship refers to the innovative component of a media plan that involves a company setting up its own events, such as concerts or festivals, to promote its brand and sell its product. a. True b. False ANSWER:

False

DIFFICULTY:

Moderate

KEYWORDS:

Bloom's: Knowledge

9. The majority of the promotional funds spent on event sponsorships today go toward sporting events. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. An important guideline for effective event sponsorship is to look for a match or overlap between the lifestyles of the event attendees and the benefits your product can deliver. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 11. The only way to measure the benefits of sponsoring an event is to determine how often the sponsor’s name appears at the event and in media coverage of the event. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 12. In making direct comparisons to traditional media, it becomes apparent that the advantages of event sponsorship are fundamentally the same as those that traditional media can provide. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 LEARNING STANDARDS: OBJECTIVES: United AIBP.OGUI.15.16-1 NATIONAL States - BUSPROG: Analytic NATIONAL STANDARDS: STATE STANDARDS: STATE STANDARDS: KEYWORDS:

United States States -- Ohio BUSPROG: United - DISC:Analytic Promotion United States - Ohio - DISC: Promotion Bloom's: Knowledge

13. A sponsored event can still be considered a positive addition to the IBP mix for the advertiser even if predetermined exposure figures are not met. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 14. Product placement is the practice of placing any branded product into the content and execution of educational vehicles. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 15. In the current system of product placement, companies pay a fee to incorporate their branded products deliberately as part of the show. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 16. Product placement in video games has great potential, considering that about 60 million U.S. households have at least some gaming capability. a. True b. False ANSWER:

True

DIFFICULTY:

Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

17. Nielsen Media Research found that much like TV viewers who want to avoid commercials, the majority of video game players want to eliminate brand placements in games. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 18. Despite their widespread use and their repetitive exposures during games, brand placements in video games do not affect purchase intent as much as placement in traditional media does. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 19. In the world of promotion, authenticity refers to the quality of being perceived as genuine and natural, a definite plus in brand placement. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 20. If a doctor ordered a prescription drug as well as Tylenol for a patient, a sense of authenticity would be demonstrated regarding this product placement. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

21. Product placement involves advertisers finding shows where the product might fit. Branded entertainment involves advertisers creating shows so the product will star. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 22. Branded entertainment is losing popularity ever since advertisers have started in-show product placements. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 23. Branded entertainment entails the development and support of any entertainment property; where a primary objective is to feature a firm’s brands in an effort to impress, and connect with consumers in a unique and compelling way. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 24. Branded entertainment can exist without any support from marketers. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Knowledge

25. The new era of branded entertainment involves developing new, creative forms of entertainment as a means to feature brands and connect with customers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 26. One common problem seen in the new media mix involves matching the brand with the entertainment property. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 27. When using branded entertainment as an IBP tool, an advertiser needs to remain careful so that a brand or product does not become too closely connected to an offering of the entertainment media. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 28. Authenticity of a brand is strongest when the content of the show and the essence of the brand become completely intertwined and integrated. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

29. The success of any IBP campaign involves choosing the right set of options and coordinating the placement of messages. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. One reason why coordinating efforts in IBP can be difficult is that the complexities of all the elements demand that specialists be hired, but specialists often miss the big picture of the overall marketing effort. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 31. When an agency acts as a general contractor and hires external sources that act as subcontractors, it tends to simplify the coordination of marketing efforts. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 32. Ultimately, the objective underlying the coordination of supportive media is to achieve a synergistic effect. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

33. An important issue propelling the search for new ways to reach consumers is the: a. growing popularity of video games and consoles. b. difficulty in coordinating large IBP campaigns. c. erosion in effectiveness of traditional broadcast media. d. attractiveness of digital media campaigns. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 34. Which of the following is an example of Madison & Vine? a. A race car featuring advertisements for several brands. b. A children's movie featuring a new brand of candies. c. A t-shirt featuring a sports person. d. An actor endorsing an anti-aging lotion. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 35. Today’s dynamic marketing environment has led to a new order in which brand builders want to: a. primarily focus on selling to their customers without intruding in their lives. b. be part of the entertainment that their target consumers enjoy. c. use traditional advertising media in new ways. d. target narrowly defined groups of consumers based on demographics. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

36. Which of the following is a reason for the convergence of advertising and entertainment? a. The desire to recapture the fading glamour of the good old days of advertising. b. The recession-era's focus on more work and less leisure time. c. The availability of new kinds of media that people can use at their leisure. d. The natural and inevitable partnership between marketing and promotion. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 37. Which of the following is a reason for advertisers to divert their funds from traditional media? a. Consumers’ desire to control their information environment b. Increased funds available for investment in alternative media c. Increased costs for television spots d. Media watchdogs monitoring traditional media ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 38. Which of the following accelerates advertiser defections from traditional media? a. The lack of direction or cohesiveness in today’s marketing plans b. The reduced quality of the programs offered by networks c. The indifference of consumers toward their information environment d. The growing confusion among consumers due to too many brand messages ANSWER:

39. Which of the following best describes event sponsorship? a. Providing financial support for an event while displaying an ad message on-site b. Funding a charitable event in an anonymous way to promote the social good c. Buying signage in venues where special events are held d. Embedding the brand name within public events in a subtle way ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 40. Which of the following is accurate concerning event sponsorship today? a. Due to the economic recession, event spending worldwide has decreased. b. Sports sponsorship events no longer draws the biggest share of advertisement funds. c. An emerging trend in event sponsorship is to offer face-to-face encounters between consumers and the brand. d. North American companies have begun spending, in order to grow again, after a long period of inertia. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 41. Which of the following is a reason for brand builders to participate in various forms of event sponsorships? a. They want to experiment whether event sponsorship will help in brand building. b. They are looking for benefits through unique associations with something new and smart. c. They are trying to disengage advertising from entertainment in order to reinforce brand image. d. They found that quirky or edgy branded entertainment builds a negative attitude in customers. ANSWER:

42. Which of the following sports would best provide an advertiser with brand-building opportunities in terms of global exposure? a. Basket ball b. Cricket c. Soccer d. Hockey ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Marketing Plan KEYWORDS: Bloom's: Comprehension 43. Which of the following is most likely to offer event sponsorship on a global basis? a. The SuperBowl b. The NASCAR events c. The Olympics d. The Sweet Sixteen ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 44. The major sweet spot in event sponsorship comes when there is a significant overlap between the: a. event’s participants and the marketer’s target audience. b. primary sponsor and the secondary sponsor. c. brand preferences of attendees and the brand preferences of viewers. d. international sponsors and the local sponsors. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

45. A leading manufacturer of video adapters decides to sponsor an online tournament for the video game World of Warcraft. This manufacturer hopes to make the tournament a branded experience. How can this event help the video adapter brand? a. The tournament will help diversify the revenue stream for the video adapter manufacturer. b. The tournament will help identify the consumers for the video adapters. c. The tournament will connect the brand with its core customer in a fun and meaningful way. d. The tournament will help to identify the consumers who are de-motivated by such programs. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS:

Bloom's: Application

46. Why did critics traditionally hold the view that event sponsorships, especially sports events, can be ego-driven and wasteful? a. Critics thought that event sponsorships can be damaging to a product's image. b. Earlier, it wasn't clear what an organization was receiving in return for its sponsor’s fee. c. According to critics, event sponsorships are not effective in building a brand image. d. Event sponsorships are too costly, and can lead to huge retrenchment and bankruptcy. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 47. Which of the following is an important aspect of sponsorship assessment? a. Judging whether a brand is receiving loyalty dividend b. Measuring the overlap between an event’s participants and the marketer’s target audience c. Calculating the opportunities in associating brands with the distinctive images of various sports d. Remaining aggressive with event sponsorship campaigns ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

48. A peanut supplier is new to sponsorship, and wants to get an outside opinion on the advantages of signage in baseball stadiums. Which of the following company's should he approach? a. Forrester Research b. Starcom MediaVest Group c. Nielsen Media Research d. Commercial Alert ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 49. A soft drink brand sponsors a baseball match that is also broadcast to large audiences on the television and radio. The company measures a huge number of gross media impressions. However, this does not result in a huge rise in the sales of the soft drink. Which of the following is a reason for the lack of sales? a. The brand failed to connect to the emotional experience of the viewers. b. They did not correctly estimate the number of media impressions. c. They created too much direct contact with the customers leading to intrusion. d. The brand allowed for the delivery of the ad message in a traditional way. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 50. In order to make the most of event sponsorships, marketers should not only establish media impressions, but also: a. rally viewer support with promotions for it in traditional media. b. invite other companies to share the cost of sponsoring the event. c. find a way to get television and radio coverage that will help target global audiences. d. find a way to link the brand with a positive feeling that will go beyond the duration of the event. ANSWER:

51. One way that companies have attempted to assess the benefits of event sponsorship is by: a. convincing company leaders and stockholders that the event is socially uplifting. b. calculating the number of viewers exposed to a brand. c. having company executives meet consumers in person at the event. d. promoting political causes along with the activities of the event. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 52. A marketing director, for a bicycle helmet manufacturing firm, has run a number of ads in traditional forms of media. Now she wants to directly measure the effectiveness of the first national bike race that the company is about to sponsor. She should: a. compare the sales figures in the weeks before and after the race with the sales figures before and after traditional advertising placement. b. compare the brand-preference figures in the weeks before and after the race with the brand-preference figures before and after traditional advertising placement. c. compare the brand exposures at the race and from media coverage of the race with the brand exposures from the same amount spent on traditional advertising. d. compare the expenditures to sponsor the race with the expenditures needed to run traditional advertising over the same time period. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 53. The producer of a women’s sportswear line is delighted to find that her sponsorship of the Women’s Softball World Series came with some extra benefits. It provided opportunities to entertain clients, recruit new customers, motivate employees, meet real consumers, and distribute small premiums. All of these were a result of: a. connecting the sponsorship to other elements of the advertising plan. b. distributing product samples. c. leveraging the sponsorship. d. a successful product placement. ANSWER:

54. A manufacturer of protein powders and protein bars sponsors a grand slam tennis tournament for the first time. When it evaluates this move, it discovers that the cost per brand name exposure is much higher than it would have been by running its standard advertising. Why was the sponsorship still beneficial for the manufacturer? a. It was one of the multiple sponsorships it takes in order to yield results. b. Traditional advertising cannot get the amount of exposure that event sponsorship can. c. The methods used to calculate cost per brand name exposure are too subjective to be accurate. d. Sponsorships provide a unique opportunity to foster brand loyalty. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 55. A firm has decided to sponsor a PGA golf tournament. Its marketing director knows it is critical to find unique ways to leverage the sponsorship. One way to leverage the sponsorship beyond traditional methods would be to: a. estimate the number of viewers who will see the company name. b. allow the CEO to meet with top golfers on the course. c. calculate the brand exposure received by people attending the tournament. d. use the tournament to entertain important clients and recruit new ones. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 56. Which of the following is an example of product placement? a. The logo of UPS on a NASCAR race car b. The interactive children's magazine from Lego called Lego Club Magazine c. Electronic gadgets from Apple in Mission Impossible: Ghost Protocol d. The diet pill Trimpsa in the Million Dollar Makeover Challenge ANSWER:

57. Which of the following types of programs on television usually have product placements in them? a. Soap operas and reality shows b. Sitcoms and quiz shows c. Police, legal, and family dramas d. Animated shows and adventure shows ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 58. Which of the following components of American movies have been regularly used as a platform for launching new brands? a. The restaurant meal b. The romantic stroll through the city c. The car chase d. The drink at the local bar ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 59. Market research indicates that among people who watch movies, the people that are most likely to notice product placements, and most willing to try these products are: a. under 25 years old. b. over 45 years old. c. over 60 years old. d. between 60 and 70 years old. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

60. According to Nielsen Media Research, product placements in video games: a. are more annoying to gamers than commercials are to television viewers. b. were popular for a while but are now less frequent. c. are accepted by younger players but disliked by adult players. d. are seen by gamers as elements that add to the quality of play. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 61. Recent research indicates that a brand gets the most benefit when product placement of the item: a. is used repeatedly to create multiple exposures in a short period of time. b. gets people to talk about it in everyday conversation. c. appears on a network television show. d. is used in isolation without the distraction of other marketing elements. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Product KEYWORDS: Bloom's: Comprehension 62.

can be considered a natural extension and outgrowth of product placement. a. Branded entertainment b. Authenticity c. Market oversaturation d. Event sponsorship ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

63. An upcoming chain of “green” grocers has reasonable prices, friendly staff, local produce, and a focus on organic and natural products. The company wants to connect with consumers in a fresh way, and is considering creating a show on the Food Network. What type of promotion is this grocer considering? a. Brand loyalty b. Branded entertainment c. Affiliate marketing d. Event sponsorship ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 64. Which of the following is a reason for advertisers to pay extra to be featured on NASCAR? a. Featuring products on NASCAR builds authenticity like no other event b. Success with product placements is fostered through developing deep relationships with key players in advertising c. NASCAR has huge television audiences which will yield hundreds of media impressions d. Brands want to be fitted into the entertainment of the race, not detract from it ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 65. Which of the following is true of branded entertainment? a. It would not exist without the marketer’s support. b. The entertainment property in it should not be created by the marketers themselves. c. Its popularity as a brand-building tool is decreasing. d. It entails placing products unobtrusively into movies and TV shows. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

66. Which of the following can advertisers accomplish if they create their own story for a branded entertainment initiative? a. They can attract specific target audiences. b. They can find a special place for their brands in existing shows. c. They can make target audiences three times more likely to purchase their products. d. They can expect quantifiable return on investment. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 67. Branded entertainment is different from product placement in that it: a. would not exist without the marketer’s support. b. displays the brand in novel ways. c. involves lower levels of exposure for a brand. d. simply sells space for the brand’s presence. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 68. The director of a promotional agency has several clients who are skeptical about using branded entertainment. Which of the following should he tell his clients about branded entertainment in order to convince them to use it? a. "Branded entertainment began with the birth of television and the first variety show—it is very effective." b. "It does not matter if your target audience is using DVR—they would still receive your promotional message." c. "Branded entertainment lowers the stakes and raises the potential payout—it is the best option for your promotion." d. "If you use it, you will be able to measure the success of your advertising efforts much more easily." ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

69. Which of the following will result in ineffectiveness of branded entertainment? a. Exclusion of branded entertainment from programming featured in DVRs b. Consumers growing increasingly suspicious of the tool c. Predictability of traditional media leading to boredom of consumers d. Cluttered environment through overuse of the tool ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 70. A marketing director meets with her staff to review recent problems they have encountered in coordinating widespread and diverse aspects of their marketing plan. Which of the following reasons can explain why coordinating an IBP effort is easy? a. Specialists often have knowledge only in their specialty. b. Internal competition for budget allocation works against coordinated efforts. c. IBPs do not require explicit goals and objectives. d. There is a limited number of media options available. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

71. Nowadays, advertisers have a vast and ever-expanding array of options for delivering messages to their potential customers. The key to success for any campaign is: a. making sure each media has an equal level of reach and frequency and appointing separate managers to achieve this. b. minimizing the number of different media needed so that the consumer does not end up jaded, and the environment does not become cluttered. c. making sure that any marketing effort uses all media available, and relies on functional specialists to coordinate these media. d. choosing the right set of options to engage a target segment, and coordinating the placement of messages to ensure coherent and timely communication. ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

72. Due to the increasing complexities associated with the advertising industry, there is a tendency for organizations to become reliant on . However, this can create problems because these people have their own priorities, and often lose sight of the overall goals of an effort. a. specialists b. politicians c. CEOs d. bureaucrats ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 73. In trying to coordinate traditional and emerging advertising and support media, ad agencies: a. have had to deal with fewer functional specialists. b. see themselves in the lead role, but have not yet played this role to anyone’s satisfaction. c. have experienced less internal competition for promotional budget dollars. d. have found greater cooperation between functional area specialists. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

Scenario 16-1 MakeWaves is a promotional company with a website that offers the opportunity to sponsor a yacht in Grand Prix yacht racing. Commercial sponsors of the WaveRunner yacht can buy space for logos and graphics on the WaveRunner's sails, hulls, crew member's uniforms, and trailers. For enough sponsorship money, the WaveRunner will even change its name to better fit the sponsor. The WaveRunner is scheduled to compete in five Grand Prix yacht-racing events every year. MakeWaves claims on its website that sponsoring the WaveRunner in a race could result in millions of impressions in sailing magazines and newspapers as well as on broadcast media, and offers specific calculations to those who inquire. 74. (Scenario 16-1) Any company that hears about the WaveRunner and decides on sponsorship for the first time will be in good company. Specifically, it will be following in the footsteps of one of the world’s foremost old-school advertisers that despite bankruptcy and realignment remains aggressive in event sponsorship, often involving its vehicles. Which of the following company's is being spoken about? a. Volkswagen b. Hyundai c. General Motors d. Jeep ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 75. (Scenario 16-1) MakeWaves is pitching a very specific sponsorship offer with its own benefits. But overall, the category of event sponsorship has certain advantages. One of the main advantages is that it: a. replaces expensive advertising as the main brand-building tool. b. targets certain groups of consumers who already purchase the brand. c. offers personal contact with consumers and publicity during and after the event. d. embeds the brand in a very nondescript and subtle way. ANSWER:

76. (Scenario 16-1) How would an advertiser hope to benefit from sponsoring the WaveRunner? a. By avoiding the ego-driven decision making often associated with traditional advertising. b. By strategically placing its product at a sporting event to reach as wide an audience as possible. c. By taking part in the most cost-efficient form of promotion and advertising. d. By transferring consumers’ positive feelings about yacht racing to the product. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 77. (Scenario 16-1) The MakeWaves website offers no information about the conversion of fan loyalty toward a sport into actual purchases of the sponsor’s product. Marketers who have set fan loyalty as their main goal would do well to look into the branded entertainment opportunities of . a. NFL Football b. Major League Baseball c. NASCAR d. PGA Golf ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 78. (Scenario 16-1) A company that thinks about sponsoring the WaveRunner does so with the hopes that it will play a major role in its IBP effort. One potential risk of using nontraditional forms of promotion is that they: a. involve factors that contribute to the challenge of coordinating all IBP messages. b. cannot be quantitatively measured. c. rarely make a strong enough impact on the marketing plan. d. cannot offer the highly targeted audience necessary for this role. ANSWER:

Scenario 16-2 HollywoodBranding is a new promotions company formed by three former ad executives who had illustrious careers in large multi-service advertising agencies. Over their years, they developed close ties with a number of Hollywood movers and shakers. Consequently, they feel poised to respond to the business world’s growing desire for branded entertainment. But they are aware that they need to continually fight their old school thoughts about branding forged in years of working solely with traditional media. 79. (Scenario 16-2) HollywoodBranding promotes itself to prospective clients by saying that it is located at Madison & Vine, and offers innovative brandertainment. This means that it will: a. act as a full-service advertising agency. b. invent humorous or imaginative brand logos and slogans. c. place ads in appropriate media and track subsequent media impressions. d. connect companies with consumers through entertainment venues. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 80. (Scenario 16-2) A potential client has lunch with the owners of HollywoodBranding to discuss a new kind of promotion for his gourmet cookware. Beyond his magazine and newspaper advertising, he is looking for the perfect form of branded entertainment. The owners come prepared to pitch several ideas involving projects they’re aware of, and by the time coffee is served, they all agree to have the: a. cookware appear in the kitchen of a well-known sitcom family. b. company sponsor a cook in this year’s Pillsbury Bake-off. c. cookware mentioned in a new movie set in a New York restaurant. d. company fund a new PBS cooking show for amateur gourmets. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

81. (Scenario 16-2) A young media expert is hired by HollywoodBranding. He went to college with a bright girl who now does all the marketing for her family’s business, a well-established cookie manufacturer with strong national distribution. Her grandparents and parents have run the same facility in St. Louis, and have run the same types of ads over the decades. On impulse, he calls to pitch a branded entertainment idea to her family. He should be sure to inform them that branded entertainment: a. is not much different from placing ads with traditional media. b. has been proven to consistently deliver higher brand exposure than other forms of media. c. can take new and unpredictable paths. d. represents one of the most conservative and dependable options available today. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

82. (Scenario 16-2) The HollywoodBranding staff has an idea for a corporate giant in the household cleaning products industry; a reality show using all of its products in crazy stunts, timed contests, and obstacle races. But the client is worried about playing it straight with consumers, and openly disclosing its role as a paid advertiser for the show. This worry stems from the concern that: a. if advertisers pile on branded entertainment too quickly, a jaded consumer and a cluttered environment will be the result. b. branded entertainment will definitely have several failures because every time out, it is new and unpredictable. c. TV networks can be charged with deception of the public by failing to disclose the details of productplacement deals. d. there can be an incredible lack of alignment around who is responsible for ethics in branded entertainment. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 83. (Scenario 16-2) One drawback for advertisers when subcontracting out to creative teams or external sources like HollywoodBranding is that: a. their tactics may often be the same as those already found in traditional advertising agencies. b. they resist trying new ideas or taking risks. c. their efforts may easily clash with the overall company efforts. d. they do not possess the skills to understand and reach today’s consumers. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 16-3 In July 2010, a sports-focused social networking site named MyMVPs.com was launched. The site, which has been described by founder Mark Monaco as a hybrid of Facebook, ESPN and YouTube, will allow athletes, proud parents, and sports fans alike to view highlights of amateur athletes, check out the week’s funniest sports bloopers, and chat with various sports celebrities registered with the free online service. Erin Dwyer, co-founder and one of the four individuals responsible for the site’s success, believes the service will be incredibly beneficial not only for amateur athletes with college aspirations, but also for colleges with tight recruiting budgets. Dwyer stated, “It’s huge for little kids and it’s gigantic for high school athletes who want to get to college. For some schools with tight budgets for recruiting, coaches will be able to jump on a website that is clean and safe and gives them information on a player. That can give them an advantage.” Still in its early stages, the company is looking to get its name out there as much as possible—and with partnerships with sports legends such as Mike Ditka, the company appears to be headed in the right direction. (Jeff Vorva, “MyMVPs.com Hopes to Fly High With Amateur Athletes.” Chicago Trib Local, June 16, 2010.) 84. (Scenario 16-3) Still looking to get the company name out, the team at MyMVPs begins to think of ways to make people aware of the site’s benefits. Till date, they have relied on word-of-mouth advertisement, but they are interested in any possibility that may help build brand awareness. This means that they are basically looking for: a. event sponsorships. b. mere exposure. c. product placement. d. media impressions. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 85. (Scenario 16-3) The team at MyMVPs decides to look into sponsorship as a way of building the brand. At first, they wonder about the cost. Eventually, they come to the conclusion that they would ultimately gain the most—but would also have to spend the most—if the business decided to: a. be an exclusive sponsor of an event. b. calculate media impressions from an event. c. get involved in social networking for an event. d. be a co-sponsor of an event with another business. ANSWER:

a DIFFICULTY:

Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

86. (Scenario 16-3) By sponsoring local high schools and high school sporting events, MyMVPs will be able to promote its brand to a large amount of its target audience, which is made up of athletes, parents and fans. This overlap is referred to as: a. the sweet spot. b. the marketing overlap. c. event sponsorship. d. selective product placement. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 87. (Scenario 16-3) MyMVPs arranges to sponsor a few high schools, and begins to think of ways to leverage the sponsorship. In this context, leverage can be described as: a. the practice of judging sponsorship through media impressions. b. the practice of placing any branded product into the content and execution of an established entertainment vehicle. c. any collateral communication or activity reinforcing the link between a brand and an event. d. development and support of any entertainment property. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 88. (Scenario 16-3) The team at MyMVPs decides to make sponsorship one of their top priorities. Not only can they build community relationships, but they can get the MyMVP's name out with signs and banners. The team also prints hundreds of business cards and stationery to distribute, and sets up a number of tents that will feature the company logo. In a small-scale and local way, this is the same thing large corporations do when they make an effort to: a. leverage the event as much as they can. b. make good use of product placement. c. fight the chaos scenario. d. speak to consumers in a single voice. ANSWER: DIFFICULTY:

a Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking United States - Ohio - DISC: Promotion STATE STANDARDS: KEYWORDS:

Bloom's: Application

Scenario 16-4 You are a marketing associate at a promotional firm that specializes in innovative branding. You will be meeting with several clients next week and you need to review their files and get updated on their latest promotional efforts. 89. (Scenario 16-4) In your initial review, you realize that all four clients are currently paying a fee to have their brands exposed or displayed within some entertainment format. This means that they are all utilizing . a. event sponsorship b. product placement c. branded entertainment d. co-branding ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 90. (Scenario 16-4) Another client was considering videogame placement the last time you met, and will be making a decision next week. She wasn’t sure about placing her product in a game, since her company sells mostly to adults and has never specifically targeted kids. You will remind her of research that shows that: a. a good portion of hard-core players are between 18 to 34 years old. b. the vast majority of gamers are teenagers, not children. c. the fastest-growing population of gamers are between 55 to 75 years old. d. elders who do play video games are more likely to notice products. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 91. (Scenario 16-4) One client has made the move to have signs and billboards for his product show up in a video game that takes users through city streets, down country roads, and across bridges and overpasses. Which of the following is a reason why this strategy will have a positive/negative impact? a. Gamers are irritated by such distractions. b. Gamers consider this an added attraction when playing games. c. Gamers get accustomed to ad clutter and do not realize that they exist. d. Gamers are three times more likely than users of other media to buy the items that appear in product placement. ANSWER:

92. (Scenario 16-4) You recall that the owner of one firm had said in the past that you’d done a good job in convincing him that he needed to focus on creating synergy in all advertising efforts. At the time, he wanted you to clarify what you meant by synergy. You replied that synergy refers to: a. planning ahead for the use of new media as they emerge. b. making sure all media efforts reinforce each other for maximum effect. c. sharing communication goals among clients and suppliers. d. using all the interactive capabilities of any given media. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 93. (Scenario 16-4) One client was initially willing to pay a hefty fee for its fruit snack bar to appear in a summer action movie full of spies and car chases, but the fit just didn’t seem right. You convinced the client to go instead with a teen romance that also released in the summer. It appears to have done very well, building popularity with kids who bought it at the concessions stand, and went on to buy it at their local retailer. Which of the following concepts did you rely on? a. Exclusive sponsorship b. Advergaming c. Leveraging d. Authenticity ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

94. What is meant by the term Madison & Vine? Explain why this convergence has occurred in the world of promotion. ANSWER:

DIFFICULTY:

The term Madison & Vine refers to the combination of two previously separate entities; advertising (located on Madison Avenue in New York), and entertainment (located at the intersection of Hollywood and Vine in Los Angeles). This convergence occurred due to several conditions present in the marketing world, the corporate culture, and the larger society. Advertisers are always searching for new ways to reach consumers, and entertainment provided the perfect avenue. They found that they could sponsor events, connect their name to entertainment venues, and embed their products in TV and film productions. Meanwhile, consumers have been given an increasing number of options to be informed and entertained, always finding new ways to fill their leisure time. Where there was once only television, radio, newspapers, and magazines, there are now video games, mobile devices, cell phones, and almost unlimited possibilities on the Internet, including social networking sites. All of these now act as media vehicles for embedded branding and promotional messages, effectively combining advertising and entertainment in new ways. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 95. Describe the Chaos Scenario? How does it relate to today’s advertising efforts? ANSWER:

The concept of Chaos Scenario was proposed by Bob Garfield, of Advertising Age, in his prediction of a mass exodus by advertisers as they flee from traditional media. His idea is that advertisers will continually shift their advertising dollars away from traditional formats because of ongoing audience fragmentation as well as technology that allows for ad-avoidance. He predicts that those ad dollars instead will be spent on new media in a new advertising world that will not depend on 30-second television commercials or glossy magazine spreads. One repercussion will be seen in alreadystruggling networks that will get less funds to create quality programming, and will therefore lose even more audience members. The end result will be a rapid downward spiral of the old-fashioned media formats. It is impossible to say whether this mass exodus will actually happen, and traditional media will die; but there is already a shift in ad dollars from traditional media to new digital, mobile, and entertainment formats. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

96. Discuss the nature and use of product placement. Explain, with examples, which forms of media do today’s advertisers specifically use for product placement. ANSWER:

Product placement involves placing any branded product into the content and execution of an established entertainment vehicle, one that is already in development or is in ongoing broadcast mode. Advertisers pay for the ability to expose or promote their brand by showing it in some way in a television show, film, video game, or novel; or by having it physically present at a sporting event, movie theater, festival, concert, or other public entertainment venue. It is most effective when used with other promotions. Television shows are well-known formats for product placement, especially soap operas, reality shows, and sitcoms. Product placement is often seen in movies when automakers feature particular vehicles during car chases. Product placement is increasingly seen in video games in the form of cars, snacks, beverages, and any number of goods that appear on virtual billboards and signage. Product placement may or may not involve a celebrity connection, but either way, it can be difficult to measure. It works best when it is integrated well with the content, characters, and script so the presence of the product is believable and realistic, a concept referred to as having authenticity. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97. Explain how branded entertainment differs from product placement, and what its future is as a branding tool. Give two examples of branded entertainment to support your answer. ANSWER:

Branded entertainment entails the development and support of any entertainment property where the primary objective is to feature one’s brand or brands to impress and connect with consumers in a unique and compelling way. Branded entertainment and brand placement differ in one clear way. In branded entertainment, the property would not exist without the marketer’s support. In product placement, the property already exists or is already in development, and the branded product will be added to it. Examples will vary among students. One example of this distinction is seen in two BMW promotions. In 1995, product placement was used in the BMW placement of the Z3 in the James Bond thriller GoldenEye. In 2001, branded entertainment was seen with the BMW promotion of the Z4 in the firm’s own custom-made, Web-distributed short films that featured Marilyn Manson, Clive Owen, and other stars that launched a new era of branded entertainment. The obvious obstacle that may limit the future of branded entertainment is oversaturation. Like any other faddishly popular promotional tactic, if advertisers pile it on too quickly, a jaded consumer and cluttered environment will result. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

98. Procter & Gamble is a prime example of a giant advertiser that has successfully used branded entertainment over many decades. How has P&G incorporated branded entertainment into its marketing mix over the years? ANSWER:

P&G launched into branded entertainment as early as 1923 with its radio program, Crisco Cooking Talks, a 15-minute program featuring recipes and advice that prominently featured its shortening product called Crisco. By 1937, P&G marketers realized listeners wanted more than recipes, so it created a new format for radio known as the soap opera, featuring dramatic story lines that would lure listeners to tune in every day. It began with Guiding Light, which moved to television by 1952 and is considered the longest-running show in the history of electronic media even though it was canceled in 2009. Today P&G works with other media partners to create shows in which the brands are embedded and the entertainment is branded. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 99. Lack of coordination of an IBP effort often leads to disagreement and conflict within the business environment. What kind of factors commonly work against coordination? Explain those specific to an organization that handles the entire effort internally, and those specific to an organization that uses some external sources. ANSWER:

Coordinating a complex IBP effort is a challenge for any organization. The chief problem in achieving coordination is that there can be an incredible lack of alignment around who is responsible for achieving the integration. The question involves whether the client or the agency should accept this responsibility. Ad agencies often see themselves in this lead role of architect and general contractor, but not many have demonstrated great success in this area. As advertising has become more complex, organizations have often become reliant on functional specialists. Specialists, by definition, focus on their specialty and can lose sight of the big picture and the efforts of others in the organization. Specialists also want their own budgets. Internal competition for budget dollars often yields rivalries and animosities that work against coordination. Few ad agencies have all the internal skills necessary to fulfill clients' demands for integrated marketing communications today. For example, interactive media often require special skills that are not held by most traditional ad agencies. Therefore, external sources must be used. External contractors often do not understand the overall strategy of the IBP effort. And the greater the number of external organizations delivering messages to potential customers, the greater the coordination challenge. Most importantly, the main objective underlying the need for coordination is to achieve a synergistic effect for a consistent brand meaning. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.16-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

Ch_17__Integrating_Direct_Marketing_and_ 1. Direct marketing is an interactive system of marketing, which uses one or more advertising media to affect a measurable response and/or transaction at any location. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. In the context of direct marketing, focusing on a single medium is likely to be more effective than the use of multiple media. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 3. Though emerging technologies have created exciting new options for direct marketers, businesses have had direct contact with consumers since the early days of mail-order companies and catalog merchandisers. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion a. True b. False ANSWER: DIFFICULTY:

True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

KEYWORDS:

Bloom's: Comprehension

4. Direct marketing is interactive because the advertiser is attempting to develop an ongoing dialogue with customers.

a. True b. False ANSWER: DIFFICULTY:

True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

5. The most common use of direct marketing is as a tool to close the sale with a customer. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 6. The one word that could be used to summarize the popularity of direct marketing among today’s consumers is convenience. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 7. Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 8. The appeal of direct marketing is the ease with which marketers can measure results—by calculating cost per inquiry (CPI) or cost per order (CPO). a. True b. False ANSWER: DIFFICULTY:

True Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Knowledge

9. One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 10. Direct marketers employ mailing lists because they are easy to use and inexpensive. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 11. Internal mailing lists are created by accessing the organization’s own records of its customers, donors, subscribers, or inquirers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 12. External lists are the starting point for developing better relations with current customers. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

13. A marketing database represents an organization’s collective memory, which allows the organization to make a personalized offer to the customer. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 14. The difference between a marketing database and a mailing list is that the mailing list also includes information collected directly from a marketer’s own customers. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 15. Streamlined catalogs are a great way to make timely offerings to targeted households in a cost-effective manner. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 16. A marketing database allows a firm to measure how much business it is actually doing with its best customers through an analysis of recency, frequency, and monetary factors. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

17. A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior. A CPO analysis is an excellent tool to help accomplish this. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 18. Keeping a date of birth in a customer database allows companies to do something a little special and contact customers on their birthdays. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge 19. Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 20. One disadvantage of direct marketing is that consumers may become uneasy about the ways in which their personal information is being gathered and used. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

21. To get more personal data of consumers, companies can use advanced technology to merge offline data, like credit ratings and home value, with online data, like ordinary search activities and Internet navigation. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 22. All conventional media such as television, radio, newspapers, and magazines can be used to deliver direct response advertising. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 23. Direct mail is probably the direct marketer's most invasive tool, and as such must be used with discretion so as not to alienate customers. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

24. If a company is looking for the lowest cost-per-contact, it should choose telemarketing. a. True b. False ANSWER:

25. Perhaps the least controversial tool deployed recently by direct marketers has been the unsolicited email message, also called bulk email. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Online/Computer KEYWORDS: Bloom's: Knowledge 26. Infomercials that use celebrity testimonials have a definite advantage over those featuring ordinary people, though this adds significantly to overall cost. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 27. The development of a marketing database commonly leads to interdepartmental rivalries and can create major conflicts between a company and its advertising agency. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 28. The job of a marcom manager is to provide technical assistance by ensuring that the IT department is functioning efficiently. a. True b. False ANSWER:

False

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

29. Products that are higher priced, complicated to use, or require demonstration are heavily dependent on personal selling in order to close the deal. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 30. Failure to get the consumer dialogue right in the personal selling part of the direct marketing process can be easily rectified by accelerating and stressing on the other direct marketing efforts of a business. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 31. There two types of personal selling are order taking and creative selling. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 32. Order taking involves accepting orders for merchandise or scheduling services. It also requires answering basic questions, and communicating effectively so that a quality relationship with the customer is established and maintained. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

33. Creative selling involves answering questions and providing basic benefits of the goods being offered, but it rarely requires communicating large amounts of information or advice. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 34. The most complex and demanding type of creative selling is seen in telemarketing efforts directed toward consumers at home. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 35. The missionary salesperson is required to handle the hardest part of selling which is closing the sale. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 36. Customer relationship management, or CRM, involves cultivating long-term relationships with customers. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

37. Direct marketing is defined as an interactive system that uses one or more advertising media to: a. develop a one-time communication with customers. b. push a product through the distribution channel. c. sustain a brand image. d. get a measurable response or transaction at any location. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 38. The concept of marketing is interactive because the marketer attempts to develop an ongoing dialogue with the customer based on the idea that one contact will lead to another, and the message is continually refined. a. mass b. direct c. social media d. partnership ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 39. Which of the following is the primary reason for direct marketing to grow in popularity? a. It uses only one type of media to get a response. b. It has a long-term sales promotion goal. c. It has an immediate measurement of response d. It relies on technology rather than human behavior ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

40. Which of the following is true of building customer relationship through direct marketing? a. Word-of-mouth advertising is the best way to build a marketing base. b. Long-term customer relationships must be based on trust. c. Closing the sale comes first, followed by commitment to customer satisfaction. d. Customers are willing to pay for catalogs if given the proper incentive. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 41. Which of the following should be a key goal of direct marketing in for-profit businesses and not-for-profit organizations? a. To build a widespread mail-order operation b. To create an image for the brand c. To integrate the program with all other advertising efforts d. To reach customers across the board rather than consumers in specific markets ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 42. A marketing manager for a company that packages vacations to exotic locations uses a variety of media to promote these trips; including upscale magazines, infomercials, and direct mail. One of the primary objectives is integration. This is because if these programs are integrated, the manager can: a. cut the cost of communicating with audiences. b. easily measure for their results. c. make the program more effective than the sum of their parts. d. eliminate the need to tailor specific messages to specific audiences. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

43. Which of the following are the three main purposes of direct marketing programs? a. To close the sale, identify prospects, and engage consumers b. To identify target markets, tailor the message, and support brand identity c. To provide information, answer questions, and foster brand loyalty d. To reward customers, furnish information, and generate brand preference ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 44. Which of the following is the main factor that has contributed to the popularity of direct marketing with consumers? a. Convenience b. Privacy c. Technology d. Quality ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS:

Bloom's: Comprehension

45. The sudden, widespread availability of popularity of direct marketing today. a. technology b. intangible assets c. mail-order firms

is among the several societal factors that are driving the growing

d. door-to-door sales ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

46. An emphasis on producing measurable effects is one of the noted appeals of direct marketing. In evaluating direct marketing programs, which of the following are frequently used parameters? a. Cost per contact and cost per consumer b. Cost per rating point and cost per share c. Cost per thousand and cost per million d. Cost per inquiry and cost per order ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

47. One characteristic of direct marketing that distinguishes it from other tactics is that it: a. depends on consumer response for its success. b. emphasizes developing a customer database. c. has a lower cost per contact. d. relies on audience segmentation. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Knowledge

48. Before cultivating new business, marketers should begin with better relationships with current customers. a. internal

mailing lists as the starting point for developing

b. demographic c. external d. psychographic ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

49. A direct marketer promoting a service industry uses both internal and external lists. Which of the following is a difference between internal and external lists? a. Internal lists contain all types of consumer information, whereas external lists consist of names and addresses. b. Internal lists help to develop relationships with current customers, whereas external lists help to attract new customers. c. Internal lists are drawn from the general population, whereas external lists are drawn from competitors' customer lists. d. Internal lists cannot be enhanced, whereas external lists can be enhanced. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 50. A real estate firm has a name-and-address file. It now chooses to incorporate into the file the demographic, geodemographic, psychographic and behavioral data of its customers. Through this type of list enhancement, the real estate firm will: a. get a larger number of customer names and addresses in its database. b. contribute to the ease of payment for its customers. c. have a more complete description of who its customers are. d. allow consumers convenient access to compare product features on its website. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Application

51. Marketing databases can be expanded by adding in which a person resides. a. demographic

data, which reveals the characteristics of the neighborhood

b. psychographic c. telegraphic d. geo-demographic ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

52. Xercise1, a nationwide fitness center chain, interviews its customers to determine their wants and needs regarding their local center’s services, classes, equipment, facilities, business hours, etc. The marketers at Xercise1 are in the process of developing: a. a marketing database. b. an external mailing list. c. a geo-demographic data source. d. a single-source tracking study. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 53. An RFM analysis is used to: a. determine which products or services are most popular. b. identify the most loyal customers. c. track the replies from direct mail pieces. d. compare the efficiencies of various direct marketing programs. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge 54. A shoe retailer uses its marketing database to run a recency, frequency, monetary analysis on its customers. In this context, frequency refers to the number of times a customer: a. was reached with any kind of advertising message. b. was reached through a direct marketing medium. c. bought a product from the company. d. bought a product from a certain product category. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Knowledge

55. Which of the following is one of the basic elements of any frequency-marketing program? a. An internal mailing list b. A benefit package c. An external mailing list d. A salesperson ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 56. Cross-selling involves marketing: a. additional products to current customers. b. the same product across different consumers. c. products to different members of the same household. d. only to one geo-demographic segment. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 57. A suburban country club contacts each member who holds a golf membership to enquire if they would also be interested to purchase a pool membership for the entire family. The country club personnel are using their marketing database for . a. personal selling b. creative selling c. marcom selling d. cross-selling ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

58. Which of the following is the largest concern for consumers regarding direct marketing? a. Telemarketing b. Invasion of privacy c. Increased junk mail d. Credit card debt ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension 59. A busy mother of four is concerned with issues of privacy, and doesn't want her family phone number on mailing lists. Which of the following should she consider? a. Be aware of legislation that limit businesses’ access to personal information b. Sign up for the Direct Marketing Association’s opt-out program c. Contact the FTC’s Do Not Call Registry d. Call the state Better Business Bureau ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 60. Companies can address customers’ privacy concerns if they remember two fundamental premises about database marketing. Which of the following is one of those premises? a. Customers should be provided with the option of replying to a lead card. b. Information gained for databases should only be used for mailing purposes. c. Information collected should not be sold to other companies. d. Customers should be offered something they value. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Comprehension

61. A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers. Managers of the company should realize that two disadvantages related to this tactic are: the high cost per contact, and the: a. limited ability to test executions. b. lack of creative options. c. inaccuracy of addresses on mailing lists. d. consumers' distrust in mailed advertising. ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

62. The two advantages of direct mail as a medium of communication is its: a. cost and response rate. b. selectivity and flexibility. c. mailing lists and consumer data. d. timing and delivery. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 63. Which of the following direct marketing mediums currently have the highest response rate? a. Telemarketing b. Infomercial c. Direct mail d. Advertorial ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

64. Sarah's phone rings one evening at dinnertime. A man says he’s calling from a nationwide magazine subscription service; and wants to know about Sarah's hobbies and interests, and her reading preferences. He proceeds to tell Sarah about a special deal if she orders three magazines. This type of telemarketing will most likely: a. provide no information about the company. b. annoy consumers and alienate them from the company. c. create a favorable image of the company. d. promote the company in an cost-effective manner. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 65. Which of the following forms of direct marketing is currently considered to be most controversial? a. Direct mail b. Telemarketing c. Bulk email d. Infomercial ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 66. A nationally distributed fashion magazine regularly acts as a vehicle for direct marketing. This occurs when companies use the magazine to promote their products or services by: a. having feature stories about products published in the magazine. b. sending press releases to the magazine. c. getting free publicity in advice columns of the magazine. d. paying for bind-in insert cards in the magazine. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

67. Infomercials were made possible by: a. the advent of video cameras in mobile marketing. b. increasingly gullible consumers. c. less expensive ad space on satellite and cable systems. d. relaxed network standards for television programs. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 68. Which of the following is a key to success for an infomercial? a. Keeping the broadcast under five minutes b. Avoiding the use of celebrities c. Promoting only nationally known brand names d. Including testimonials from satisfied users ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 69. A company wants to sell a window cleaning kit in a 30-minute infomercial. Which of the following would an experienced public relations specialist suggest to the company? a. Wait till the end of the informercial to provide contact information in order to make a climax. b. Repeat the phone number and website throughout the broadcast. c. Spend adequate money and hire a celebrity to attest the effectiveness of the kit. d. Avoid using consumer testimonials. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

70. Organizations are looking to achieve the synergy that can come when various advertising and IBP options reach the consumer with a common and compelling message. However, the difficulty that organizations face when deploying various media is that: a. salespersons have to be engaged in order taking, creative selling, as well as supportive communication. b. they have to decrease the budget of conventional advertising campaigns and other IBP techniques. c. they cannot communicate large amounts of information through their advertising messages. d. functional specialists inside and outside the organizations will find it difficult to coordinate with each other. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 71. In which of the following ways would the the establishment of a marketing database create problems between a company and its advertising agency? a. Implying that the ad agency is unable to gather and track reliable customer information b. Using funds for direct marketing that would have otherwise supported traditional ad agency campaigns c. Purchasing mailing lists from competing promotional agencies d. Forcing the ad agency to use the data that the company has on its own mailing lists ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 72. A fast-growing frozen yogurt chain discovers the need to create a proper advertising message that will result in increased sales. In order to do this, it needs to coordinate all of its communications programs with all of its specialists’ efforts. At this point in its growth, the company would be wise to hire a . a. missionary salesperson b. marcom manager c. list enhancer d. functional specialist ANSWER:

73. The role of a marcom manager is to: a. ensure efficient and timely delivery of products ordered. b. monitor contacts, sales, and return sales. c. schedule the media for marketing communications. d. plan overall communications and oversee the functional specialists. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 74. Personal selling is: a. the process of face-to-face communication and persuasion. b. virtually, the only way to close the deal. c. easier to conduct than any other marketing function. d. the most controversial form of direct marketing. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 75. Which of the following is the least complex form of personal selling? a. Creative selling b. System selling c. Missionary services d. Order taking ANSWER: DIFFICULTY:

d Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

76. Verdure Systems, an electronics company, sells a finance and payroll application to a corporate buyer. In addition to the software; Verdure offers to install the hardware required to run, install, and maintain the software. It will also train the employees on the usage of the software, and provide engineers to fix any problem that may arise in the software. In this way, Verdure manages to eliminate the buyer's worries related to the software package. In this scenario, Verdure is involved in . a. system selling b. frequency marketing c. cross selling d. CPO marketing ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

77. A marketer wonders why salespeople no longer simply approach their prospects with the direct intention of making a sale. Instead, they spend time analyzing all the possible needs and desires of the prospects. The marketer realizes that, today, salespeople are expected to: a. be problem solvers who work in partnership with customers. b. be technical experts with experience in database management and analysis. c. take orders only after confirming the appropriateness of each sale. d. understand the operations and output of several departments. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 17-1 If you walk into a Cracker Barrel Old Country Store, you’ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques. Since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising. This resulted in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands. (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.) (original press release by Jim Taylor, “Rare Coca-Cola® Holiday Artwork on Display at Cracker Barrel Old Country Store®,” http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.) 78. (Scenario 17-1) Cracker Barrel stores feature a big fishbowl inviting visitors to leave a business card and announcing a monthly drawing for free memorabilia from both brands. The prizes are delivered to the home addresses of those whose cards are drawn. What are Cracker Barrel and Coca Cola attempting to do with this fishbowl activity? a. Develop a mailing list b. Promote brand loyalty c. Cross-selling d. Conduct personal selling ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 79. (Scenario 17-1) The marketers of Coca Cola collectibles offer their most loyal customers a program in which they are allowed to preview and purchase limited-edition items one month before the general public is informed of the sale. This assures key customers that they won't miss out on a valued collectible due to unusually high demand. This is an example of: a. an effective use of external lists. b. a CPO program. c. a frequency-marketing program. d. marcom management. ANSWER:

80. (Scenario 17-1) When consumers drop their business cards into a fishbowl at a Cracker Barrel store, they are entering a contest. However, in essence, the marketers at Cracker Barrel may see this move as a(n): a. opt-in for bulk email and other promotions. b. form of direct response advertising. c. way to promote system solutions. d. way to foster creative selling. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

81. (Scenario 17-1) If Coca-Cola employed someone to call on frequent buyers of its memorabilia to guarantee their satisfaction and update their needs; but not necessarily to pitch new products or close another sale, this employee would be considered as a(n): a. order taker. b. missionary salesperson. c. system solutions person. d. creative salesperson. ANSWER:

Scenario 17-2 AmericanProfile is an e-technology company. It allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information regardless of where it resides—all from its Web browser. Thus, AmericanProfile can share content across connected servers with partners, suppliers, customers, and employees to form an e-business content network. And it all happens in real time. 82. (Scenario 17-2) AmericanProfile is considering imitating a direct marketing tactic employed by several consumer magazines. Visitors to the home pages of these magazines’ websites can link to tips on gardening, home decorating, cooking, clothes shopping, skin care, hair care, etc. They are then encouraged to rate these articles and columns, explain whether they were helpful, and add comments and suggestions based on their own lifestyles and hobbies. This allows marketers to enhance their customer information with: a. psychographic data. b. geo-demographic data. c. demographic data. d. behavioral data. ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Application 83. (Scenario 17-2) The whole idea behind promoting AmericanProfile is to show companies that gathering information about visitors’ households and lifestyles through its website is a crucial step in building a: a. selection of testimonials. b. creative selling strategy. c. marketing database. d. core team of functional specialists. ANSWER:

84. (Scenario 17-2) Like many firms, AmericanProfile uses an RFM analysis to identify certain groups of high-profile customers and analyze their habits across three criteria. RFM stands for: a. record, format, momentum. b. recency, frequency, monetary. c. reach, function, marketing. d. returns, files, mailings. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 85. (Scenario 17-2) One of the magazine publishers that AmericanProfile has studied about, collects data at its website about readers of its health and fitness columns. The publisher uses direct mail to try and get these readers to subscribe to another one of its publications. This one focuses on nutrition. This publisher is involved in . a. missionary selling b. creative selling c. system selling d. cross-selling ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 86. (Scenario 17-2) AmericanProfile has adopted marketing techniques at a well-known pet magazine that is aware that casual visitors are often reluctant to provide personal information. The pet magazine has a full page on its website dedicated to privacy concerns. The magazine pledges to deal with these issues by: a. abstaining from sharing their information with third parties without permission. b. making the site appear independent from commercial sponsors. c. having creative salespeople call visitors and ask about such concerns. d. enhancing the final mailing list with nothing more than demographic data. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Knowledge

Scenario 17-3 As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as “intrusive.” To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One such outlet that firms are beginning to experiment with is social media. Executives understand that many consumers view a company’s Facebook page more often than the company’s home page, so they’ve grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company’s direct marketing efforts. By utilizing social media more often in the future, a number of U.S. companies hope to build stronger and more useful marketing databases. 87. (Scenario 17-3) Building a marketing database can be helpful because it allows companies to gauge how receptive customers may be to new products or product features. One way of isolating a company’s best customers is by utilizing: a. a recency, frequency, and monetary analysis. b. a frequency marketing program. c. cross-selling techniques. d. direct response advertising. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 88. (Scenario 17-3) Which of the following is an essential application of the marketing database? a. Keeping close tabs on consumers to ensure their loyalty b. Reinforcing and recognizing the most frequent customers c. Degrading and ignoring customers that are not providing consistent business d. Notifying customers of minute changes to various products and services ANSWER:

89. (Scenario 17-3) What effect has the Internet had on the privacy concerns regarding direct marketing? a. It has caused consumers to feel safer because they know marketers are acting responsibly. b. It has amplified privacy concerns as it makes it easier for marketers to access personal information. c. It has had no effect on consumer’s feelings towards direct marketing. d. It has greatly reduced the direct marketing efforts of companies across the world. ANSWER:

to be the most economical form of direct response advertising.

c. telemarketing d. direct mail ANSWER: DIFFICULTY:

a Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 91. (Scenario 17-3) Which of the following is the most controversial of the various direct marketing methods? a. Social media interaction b. Direct mail c. Bulk email d. Repetitive telemarketing ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Scenario 17-4 Trapper's Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing, hunting, bicycling, and cross-country skiing trips from its remote location 250 miles away from a major airport. Guests must travel the last 40 miles on a rough dirt road during the summer months or ride a special snow car during the snow season. Trapper's Lake Lodge management has found that guests almost always have a wonderful experience during their stay and swear they will visit again. Nonetheless, the biggest problem is getting people to visit in the first place, probably due to the difficult travel involved. So the lodge management has decided to mount an aggressive direct marketing campaign to increase first-time guest visits as well as to nurture loyal frequent visitors. 92. (Scenario 17-4) A public relations consultant advises the lodge management that any direct marketing campaign should be coordinated with its other advertising and promotional strategies, as well as all the efforts that its employees are making in order to make the stay so wonderful. In effect, the consultant is recommending that the lodge make the final goal of their campaign, since it would make all the efforts even more effective. a. services management b. marcom management c. integration d. innovation ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 93. (Scenario 17-4) Guests at the lodge have always filled out a brief form with their name, address, phone number, and email address. They will now be asked to complete a questionnaire that collects more information such as their age, gender, education level, and occupation. Also; their outdoor interests, recreational preferences, other hobbies, and data will be used to help build comments about their stay at Trapper's Lake Lodge. This combination of new a marketing database for the lodge. a. demographic and psychographic b. personal and behavioral c. behavioral and academic d. demographic and geo-demographic ANSWER:

94. (Scenario 17-4) After asking for references from current guests, and for permission to use their names, the lodge has gathered a list of about 75 friends and family members who may be interested in a stay. The lodge managers plan on making an initial contact with each of them, hoping to experiment with a couple of different messages to see what works best. But they want to be careful not to turn off these potential customers. Which approach would work best for this first step? a. Mobile marketing through text messages b. Personalized letters through direct mail c. Phone calls through telemarketing d. Bulk promotional messages through email ANSWER:

b DIFFICULTY: Chalenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

95. (Scenario 17-4) After the initial contact, the managers have identified about two dozen potential new visitors who live in and around the closest big city, the one that is about 250 miles away. They decide to start with this group. They want to send a sales representative to host a casual buffet dinner for these potential guests along with the current customers who recommended them. The representative will promote the features of the recreational facility and drum up sales from both returning and new customers. Which of the following roles is this person playing in supporting the lodge’s direct marketing process? a. Personal salesperson b. Marcom manager c. Missionary salesperson d. Frequency marketer ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

96. What is meant by the term direct marketing? What elements have contributed to its growth and popularity in recent years? What are the three principal purposes that a direct marketing program could serve for a company? ANSWER:

According to the Direct Marketing Association, direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. It is interactive because it attempts to initiate and maintain a dialogue with customers, and it involves multiple forms of media to be most effective. Some elements that have contributed to its recent growth and popularity are convenience (including time-savings for the consumer); credit cards (including more liberal views about using credit and accumulating debt); toll-free numbers (which make it simpler and more appealing to respond to direct marketing efforts); and computers (allowing for quick response and comparison shopping on the part of consumers, and easy ways to tract and interact with customers on the part of businesses). The most common purpose that direct marketing serves is to close the sale with a customer. It can also identify prospects for future contacts. And it can be used to engage customers by seeking their advice, giving them information, addressing their concerns, rewarding their support, or fostering their loyalty. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 97. Define list enhancement, and discuss two simple ways to conduct it. What four categories of information can be included to help define various populations and target markets? ANSWER:

List enhancement refers to any additions or expansions that are made within a basic internal mailing list such as a basic name-and-address file. It involves merging existing records with new information. One way to do this is to simply purchase lists with more names and addresses from a research firm or noncompetitive business, and add these to the existing internal list. The second way is to incorporate information from external databases into the original list. The four categories of information that are often used to enhance lists are as follows: Demographic data, the basic descriptors of households and consumers supplied by the Census Bureau. Geo-demographic data, the information about the neighborhood in which a person lives. Psychographic data, the information involving a person’s lifestyle, interests, and opinions. Behavioral data, the information about other products and services the person has purchased. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

98. You are the marketing manager for the Internet’s largest online shoe retailer. The company ships shoes of all types, styles, and sizes to locations throughout the U.S. and around the world. Given a choice between access to a mailing list and access to a marketing database, which would you choose? Define each and state the advantages of your choice? ANSWER:

A mailing list is simply a file of the names and addresses that your business could use in contacting current or prior customers. An internal list (an organization’s records of its own customers, subscribers, donors, and inquirers) offers little perspective on the best marketing prospects for the future. But it can be enhanced with information from external lists by adding additional names, or by merging it with other lists to match up demographic, geo-demographic, behavioral, and psychographic data with these customers. A marketing database has all of the information that would be on this mailing list, plus one more element—it includes information about individuals' preferences and behavior patterns, collected directly from the customers. It allows marketers to give customers personalized attention because they understand their likes and dislikes, purchasing patterns, frequency and timing of purchases, nature of returns (a common issue with online shoe purchases), and other details related to shopping and consumption. In addition, it can form the basis for an RFM (reach, frequency, and monetary) analysis. This allows marketers to target their most profitable customers with special promotions and personal attention. Therefore, the marketing database would probably be more advantageous for the retail shoe business. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

99. Marketing databases are used by businesses for three concrete tasks or specific applications. Identify and define all three. Select one of them and demonstrate how it is used by a well-known corporation, manufacturer, retailer, or service provider. ANSWER:

Businesses use marketing databases in at least three specific applications—the RFM analysis, the frequency marketing program, and the cross-selling effort. An RFM analysis provides data on recency, frequency, and monetary elements. This means it reviews the database and tells the marketer how often a customer is buying from the company, how recently that customer has made a purchase, and how much that customer is spending. In this way it calculates the value of the customer based on past behavior and purchasing patterns. A frequency marketing program recognizes and reinforces buying behavior in preferred customers. It has three elements—a database to hold its collective memory; a benefit package to attract and retain customers; and a communication strategy to keep an ongoing dialogue going with the firm’s best customers. A cross-selling effort identifies customers who have already purchased one of the firm’s products and creates a marketing strategy to encourage them to purchase other products the firm offers. In an extension of cross-selling, a firm can turn this information around and do just the opposite. It can determine which types of customers have bought a certain product, and then pitch that product to others in the database who share some of the same characteristics or demographics. Student examples may vary. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.17-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 100. A national big-box retailer has created a new marketing database. But it has become the center of great conflict among the departments within the firm. It has also caused problems between the retailer and its advertising agency. Why is such a useful tool creating this discord? ANSWER:

DIFFICULTY:

A marketing database is a powerful source of information, and, within a giant retail company like this, those who don't have access to it can become envious of those who do. In addition, the effective use of the database can lead to increased funding for the department that is responsible for direct marketing efforts. Often, this additional money comes from other departments' budgets. That always creates conflict. The database can also reallocate promotional budgets. Therefore, the advertising agency for this retailer may work only with conventional media and therefore may lose income to other companies that offer direct marketing expertise. Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

101. Discuss why the role of personal selling is a critical one in the direct marketing tool kit, and briefly explain the three types of personal selling. ANSWER:

Personal selling is critically important for establishing face-to-face communication with consumers. Face-to-face interactions enhance persuasion and are often necessary in selling products involving high technology or a high price. Products that are complicated to use, require demonstration, or must be customized to individual consumer needs are also more successfully marketed when the IBP mix includes a personal selling approach. The following are the three types: Order taking: A familiar sales role, one that involves documenting new purchases from consumers or businesses who want to buy goods or schedule services. What is not generally understood is that order takers very often act as the first line for establishing a dialogue with the customer. Creative selling: It is needed when the consumer relies heavily on the sales person for technical information, advice, and service. System selling: It entails offering a set of interrelated components rather than a single item, and sometimes a full range of products and services needed by customers. This often involves industrial manufacturers, producers of heavy equipment, or government buyers who have complex purchasing processes; and prefer dealing with a single firm, or a small group of firms, rather than multiple suppliers. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.15-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

Ch_18__Public_Relations__Influencer_Marketing__ 1. Public relations can be used to activate social media, as well as engage mainstream media. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 2. At present, the field of public relations does much more than its traditional role of managing goodwill with a company’s stakeholders and customers. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 3. Public relations manages corporate communications and helps image management in times of noncrisis. a. True b. False ANSWER:

True

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 4. Public relations cannot work for dedicated brand-building in a digital and social media environment. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

5. Public relations is the only tool that can provide damage control in the face of negative publicity. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 6. The major difference between public relations and advertising is that public relations cannot be used as a part of IBP campaigns. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 7. Negative publicity stems from external forces outside a firm’s control and not from a company’s internal activities or decisions. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 8. Promoting a product or service using press releases or events is a public relations tactic to increase public awareness of a brand. a. True b. False ANSWER: DIFFICULTY:

True Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

9. Press releases are preferred over other tools of public relations because it prevents journalists from editing the news release. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 10. A feature story allows a firm to write an exclusive story about the company in a newspaper or any other medium. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 11. Newsletters can be distributed to important constituents in a community, such as government officials or the chamber of commerce. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 12. Press conferences can be strong public relations tools because they lend an air of credibility by using a news format to present information. a. True b. False ANSWER: DIFFICULTY:

True Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS:

Bloom's: Comprehension

13. Publicity, unlike other forms of public relations, can easily be strategically controlled. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 14. Publicity is essentially paid media exposure about a firm’s activities. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 15. A company allows its workers to take off on one afternoon, every month, to volunteer at a nonprofit organization of their choice. The company sends out a press release that explains this program to the media. This is an example of a reactive public relations strategy. a. True b. False ANSWER:

False DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 16. A public relations audit is conducted after a public relations plan is formulated. a. True b. False ANSWER:

17. The focal point of public relations objectives is sales and profits. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 18. The section of the public relations plan that specifies precisely what means will be used to implement the plan is the program rationale. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 19. A reactive public relations strategy is a tool designed for firms to take quick and thoughtful action at the first sign of negative publicity. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 20. The Baltonian beef industry is rocked by reports of its herds suffering from mad cow disease. To deal with this issue, the industry should adopt a proactive public relations strategy. a. True b. False ANSWER:

21. A car manufacturer offers free car rides for a week to popular bloggers, who then blog about their positive experiences about their car rides. This is an example of influencer marketing. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 22. Though professional influencer programs can provide valued assets for a brand builder, peer-to-peer influencer programs cannot. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

23. We can think of influencer marketing as a set of conversations involving an influencer, a consumer, and a brand. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 24. Buzz marketing involves creating an event or experience that leads to conversations about the brand. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Knowledge

25. Viral marketing involves professionals or experts promoting a brand to consumers in-person. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 26. Common people who have large social circles and can recommend brands to their friends and colleagues are useful in influencer marketing. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 27. The people enrolled by manufacturers to bring their brands into their conversations and share interesting or exciting information about them with their social networks are called controllers. a. True b. False ANSWER: False DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 28. The intent of corporate advertising is to establish a favorable attitude toward a company as a whole, instead of focusing on the features of its products. a. True b. False ANSWER: DIFFICULTY:

True Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

29. Corporate advertising is gaining favor worldwide as well-known firms and established companies invest in this form of promotion. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Comprehension 30. The objectives of corporate advertising include boosting employee morale and attracting new employees. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 31. Corporate advertising is not always targeted at the consumer. a. True b. False ANSWER: True DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 32. There are three broad types of corporate advertising—professional, peer-to-peer, and word-of-mouth. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

33. Advocacy advertising involves promoting the benefits of a specific brand. a. True b. False ANSWER:

False DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 34. A shoe manufacturing company advertises its products in a way that focuses on how the company uses sustainable, environment-friendly materials to manufacture footwear. Its ads emphasize the company's focus on green products. This is an example of advocacy advertising. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

35. A credit card company sponsors a campaign to restore the Statue of Liberty. It features the initial concept and the progress that it's making in television commercials. The company is running cause-related advertising. a. True b. False ANSWER:

True DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 36. The Internet has now made it possible for companies to be hypocritical about environmental issues and hide their true motives. a. True b. False ANSWER: DIFFICULTY:

False Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: Bloom's: Knowledge

37. The classic role of public relations is to: a. foster goodwill between a firm and its constituent groups. b. use the social media to damage the image of a rival company. c. use unpaid media to convey a message traditionally carried by paid media. d. increase the productivity of employees in a firm. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 38. Which of the following is true of public relations? a. It is a tool to produce more sustainable and environment-friendly products. b. It is a tool to manage goodwill, corporate communications, and damage caused by negative publicity. c. It is a process of changing the features of a product to suit customer needs. d. It is a process of transporting products to the location where consumers can buy them. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 39. Stockholders, suppliers, employees, government entities, citizen action groups, and the general public are all considered to be in the world of public relations. a. beneficiaries b. shareholders c. constituent groups d. partners ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: International Perspective Bloom's: Knowledge

40. Public relations is strategically used for a. internal communications b. damage control

when adversity strikes.

c. community service d. proactive efforts ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 41. Participating in community activities that reflect a firm favorably is an example of a. promoting a product b. preparing internal communications c. promoting goodwill d. giving advice and counsel to consumers

ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 42. Rumors are running rampant through a company that a competitor is going to buy out the firm and fire half of its workers. To reduce the anxiety of its workforce, which of the following objectives of public relations can the company adopt? a. Participate in industry events. b. Lobby with industry groups. c. Promote its products and services. d. Prepare internal communications. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

43. Which of the following objectives of public relations exclusively involves damage control? a. Lobbying b. Giving advice and counsel c. Counteracting negative publicity d. Promoting a product ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 44. Which of the following objectives of public relations focuses on dealing with government officials and pending legislation? a. Giving advice and counsel b. Lobbying c. Counteracting negative publicity d. Preparing internal communications ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 45. One important tactical tool is the press release. A firm can best take advantage of press coverage by: a. conducting industry events or community activities that reflect favorably on the firm. b. disseminating information and correcting misinformation within the firm. c. preparing employees for public appearances. d. having a file of information that makes for good news stories. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

46. Which of the following steps help in retaining the intended meaning and purpose of a press release? a. Distributing newsletters among employees b. Having working relationships with editors c. Conducting shareholder meetings regularly d. Encouraging employees to write feature stories about the firm ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 47. An electronics company is about to launch a new line of microwaves. Its public relations team focuses on a feature story rather than a press release because the company can: a. create the feature story internally. b. be more in control with a feature story. c. make it short and precise. d. distribute it to multiple media outlets. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 48. As opposed to a news release, a feature story: a. gives a single journalist exclusive rights to the information. b. is short and precise. c. gives the company no control over the content. d. can be written by an employee of the firm. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

49. Among all the public relations tools that a company might use, which of the following focuses specifically on employees? a. A press release b. A feature story c. A company newsletter d. A sponsored event ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 50. A metropolitan newspaper prints an investigative piece on unsafe baby cribs. Overnight, the manufacturer mentioned in the article finds itself in a crisis. Which of the major PR tools should the manufacturer use in this situation? a. Lobbying elected officials b. Calling a press conference c. Issuing a company newsletter d. Sponsoring an event ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

51. A leading sporting goods company calls a press conference to announce that the National Football League has signed a contract to endorse the company's products. By doing this, the sporting goods company ensures that: a. the national media is virtually forced to cover the story. b. its story has more credibility and an air of importance. c. journalists do an exclusive story on the firm. d. its goods become more financially beneficial to the consumer. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

52. Which of the following terms refers to the free media exposure that a firm receives about its activities or brands? a. Publicity b. Interviews c. Product launch d. Sponsored events ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 53. Public relations strategies can be broadly categorized as either: a. public or private. b. product-oriented or customer-oriented. c. proactive or reactive. d. internal or external. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge 54. Which of the following is true of a proactive public relations strategy? a. It focuses on problems to be solved. b. It emphasizes the defensive measures a company must consider. c. It focuses on identifying vulnerabilities. d. It is guided by marketing objectives. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Knowledge

55. A canned soup manufacturer has prepared questionnaires for its employees and customers. The questions are about how the people view its brands, the profits it is making, current market trends for canned soup, and the employee activities of the company. Through these questionnaires, it hopes to collect positive, newsworthy information that it can use later. The company is in the process of: a. conducting a public relations audit. b. identifying vehicles for a PR communication. c. creating a company newsletter. d. researching an influencer program. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Research KEYWORDS: Bloom's: Application 56. Which of the following components of public relations includes analyses, objectives, and rationales regarding a company’s programs, and the message content and vehicles that will assist in its communications? a. A public relations plan b. A public relations audit c. A publicity tool d. A press release ANSWER:

a DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 57. Compared to a proactive strategy, a reactive strategy is more difficult for public relations staff to organize and prepare because it: a. cannot implement input suggested by the staff. b. is triggered by events that are unpredictable. c. must identify the content, rationale, and vehicles related to the overall message. d. it does not involve a public relations audit. ANSWER:

58. Axel Corporation undergoes a public relations audit. Ideally, the ultimate result of this audit should be to: a. replace its reactive strategy with a proactive strategy. b. calculate the costs of its public relations efforts. c. tell the company whether it needs to hire a public relations agency from outside. d. prepare the company for both proactive and reactive strategies. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS: 59.

Bloom's: Application

is a component of a public relations plan that summarizes the information obtained from a public relations audit. a. Program objectives b. Communications vehicles c. Program rationale d. Situation analysis ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 60. A clothing company that targets preteens and young teens has to respond quickly when its celebrity spokesperson, a 19-year-old pop singer, is arrested for drunk driving and cocaine possession. A few months later, its new public relations specialist reviews this situation and how it was handled. To better handle such situations in the future, she decides to: a. take control over what the media chooses to say or report. b. prepare a public relations audit and identify the company's vulnerabilities. c. disseminate positive information through in-house publications. d. deploy lobbyists to monitor legislation that can negatively impact the company. ANSWER:

61. Which of the following is an important element of a reactive public relations strategy? a. Creation of situation analysis b. Identification of vulnerabilities c. Clarification of program rationale d. Development of marketing objectives ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 62. A pharmaceutical company manufactures several antidepressant and anti-anxiety medications that are widely prescribed by physicians. Its executives know that among the millions of consumers using their medication, one or two adverse reactions by the media can have a very damaging effect on its reputation. In public relations, this is called . a. a proactive situation b. the identification of vulnerabilities c. a synergistic opportunity d. influencer marketing ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 63. Influencer marketing involves individuals or groups who: a. represent the larger public in their opinions on products or brands. b. support social causes or issues promoted by an organization. c. spread positive word-of-mouth to a broad population. d. are unusually impacted by branded marketing programs. ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

64. Which of the following people in the community is most likely to be a professional influencer? a. A doctor who conducts medical checkups for underprivileged children free of cost b. A neighbor who likes to shop, talk about new products, and share recipes c. A hairdresser who talks about a new conditioner and offers a sample d. A teenager who tells his friends about the new bicycle he saw at the store ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 65. Compared to other influencers, professional influencers are usually: a. paid lesser by companies to push their products. b. in need of factual data or clinical results before supporting a brand. c. more interested in something fun or provocative to talk about. d. easier to recruit for marketing efforts. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 66. Peer-to-peer influencer programs have a different tone than those involving professionals in that they focus more on: a. superior product benefits and features. b. sharing advice or expertise with another consumer. c. evidence or data to back up product claims. d. something fun or provocative to talk about. ANSWER: d DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

67. How are buzz marketing and viral marketing similar to one another? a. Both refer to efforts to stimulate word of mouth. b. Both refer to traditional advertising and promotional tools. c. Both involve face-to-face communication. d. Both focus solely on broadcast and print mediums. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 68. Word-of-mouth marketing is very useful for attracting attention and has been used a long time for: a. identifying vulnerabilities in a public relations audit. b. buzz building. c. publishing company newsletters. d. creating a reactive strategy. ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 69. Many contemporary companies are seeking connectors to assist with their public relations efforts. Connectors are people who: a. are hired by companies to spread goodwill about their brand and their products. b. are paid to go door-to-door to offer samples and product information. c. like to share new information with their large social networks. d. act as intermediaries and sell products to consumers at competitive prices. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

70. Which of the following women would make the best connector for a company? a. A woman who is meticulous and likes to shop b. A woman who is outgoing and likes to make friends c. A woman who is imaginative and likes craft making d. A woman who works in a library, is intelligent, and introverted ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 71. The idea behind both buzz and viral marketing strategies is to: a. focus on low levels of contact between consumers. b. target a handful of carefully chosen connectors as influencers. c. use solely new digital media to create word-of-mouth buzz. d. replace peer-to-peer programs with professional influencer programs. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 72. Which of the following is an example of corporate advertising? a. An advertisement showing the logo of Adidas, an athlete tied to a tire, and the caption "Bring it on." b. An advertisement showing the logo of LG, the cell phone model "Chocolate Platinum," and the caption "Pure Decadence." c. An advertisement showing the brand name of Sony, a Playstation 3, and several game characters placed around the device. d. An advertisement showing the various lipsticks of a cosmetics company and the caption "Luscious Lips." ANSWER:

a DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

73. Television is a popular choice for corporate campaigns because: a. it is free from ad clutter. b. billions of dollars are invested annually in media for corporate campaigns. c. companies need not monitor the publicity gained through television commercials. d. the creative opportunities provided by television can deliver a powerful message. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge 74. A print ad shows an empty bottle of Coca Cola with the caption "No added preservatives. No artificial flavors. 'The Real thing' since 1886." This is an example of . a. viral marketing b. corporate image advertising c. cause-related advertising d. green marketing ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 75. The issue featured in is directly relevant to the business operations of the organization. a. cause-related advertising b. advocacy advertising c. philanthropy d. community marketing ANSWER: b DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Knowledge

76. A publisher of children’s books launches a campaign to promote literacy by donating books to 25 public libraries and 50 public schools in low-income areas across the country. The publisher is conducting: a. a sales promotion. b. advocacy advertising. c. green marketing. d. cause-related advertising. ANSWER:

d DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 77. When marketers are considering cause-related advertising, it should be stressed that this type of advertising works best when a company: a. needs to do damage control. b. intends to increase its sales figures radically. c. chooses an issue that connects with its business. d. wants to create a buzz about an exciting new product. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 78. Cause-related marketing is becoming increasingly common because: a. consumers prefer brands that support important social issues. b. it is the most cost-effective public relations tool. c. it is directly relevant to the business operations of organizations. d. it focuses on promoting the products of a brand. ANSWER: a DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

79. An auto marketer runs a commercial that focuses on the clean energy that its new hybrid uses. The commercial shows that the car is eco-friendly and does not pollute the environment. Which of the following is the auto marketer using? a. Cause-related advertising b. Community marketing c. Affinity marketing d. Green marketing ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 80. A coffee retailer runs ads and posts signs in his coffee shops to notify that the cups are made from recyclable material, and the coffee is organically grown by free-market producers. In this case, the retailer is using . a. green marketing b. influencer advertising c. viral marketing d. advocacy advertising ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 81. In the context of corporate advertising, the green movement looks sustainable for some time because: a. it helps companies focus on their bottom-line. b. companies no longer engage in greenwashing. c. environmental issues are of major concern to consumers. d. it allows companies to overpromise and underdeliver. ANSWER: DIFFICULTY:

c Easy

LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Customer KEYWORDS: Bloom's: Knowledge

82. In which of the following ways has the Internet helped to change the world of green marketing? a. It helps companies focus primarily on their bottom-line. b. It offers tips on creating “green sites.” c. It encourages companies to engage in greenwashing practices. d. It helps green sites identify companies that are taking action to protect the environment. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Technology STATE STANDARDS: United States - Ohio - DISC: International Perspective KEYWORDS:

Bloom's: Comprehension

Scenario 18-1 The brewing companies in the U.S. love to use public relations to keep their company names in the minds of Americans and to promote their many brands of beer and ale. Both traditional and innovative public relations activities—using both traditional and innovative media—help to promote a positive public image, create brand awareness, highlight the product line, and act as cost-effective ways to enhance the overall IBP campaign. And these brewers use a variety of objectives and tools that support the field of public relations. 83. (Scenario 18-1) A large brewing company has its public relations staff create an interactive website aimed at men and women in their 20s and early 30s. It offers interesting facts about the history of beer, the making of beer, the definition of various brewing terms, the difference between hops and malt, etc. It includes games like crossword puzzles, word jumbles, and trivia contests related to beer. The objective of such PR initiatives is to: a. counteract negative publicity about beer. b. disseminate internal information about the beer industry. c. lobby politicians for favorable outcomes for the beer industry. d. promote goodwill toward beer drinkers. ANSWER:

d DIFFICULTY: Moderate

LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

84. (Scenario 18-1) A public relations firm has designed a website for a large brewing company. It provides information on all its beverages, with a separate page for each, featuring how each was imagined, concocted, tested, and named. It offers a contest to name the new fall lager that will premiere later in the year. With this website, the company's primary objective is to: a. increase public awareness for its brands. b. increase the selling cost of its products. c. help the management anticipate public reactions. d. counteract negative publicity. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 85. (Scenario 18-1) A news article on projected plant closings in Milwaukee has been going around the city. The manager of one of the Milwaukee brewing plants is approached by some of his subordinates who are concerned about retaining their jobs. He sees the need for a public relations response since his plant is not one among those that are closing. Which of the following is his objective in doing this? a. Lobbying b. Holding a sponsored event c. Preparing internal communications d. Creating a press release ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 86. (Scenario 18-1) One beer producer has sent the press an expensive, attractive, eight-page press release that explains the organization’s new educational program on the dangers of teenage drinking. However, the beer producer has failed to anticipate that: a. the press release will be more expensive to run than a typical advertising spot. b. his planning is not adequate for a press release. c. the story may not be effective since it was not used as part of a proactive strategy. d. he has little control over how and when the final story will run. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

87. (Scenario 18-1) The brewing company with the interactive website full of facts and games is moving beyond the Web and into the community. It sends stories to media outlets announcing that all the fun on its website will continue at its beer gardens to be set up at summer and fall festivals around the country. It would feature more games, puzzles, and trivia contests. The two PR tools that the company is using is: a. press conference and lobbying. b. press release and sponsored event. c. buzz marketing and publicity. d. feature story and viral marketing. ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 18-2 A young man decides to become a mass producer of T-shirts. His small factory located in Oregon begins promoting itself by hiring excellent seamstresses, offering a pleasant working environment, decent salaries, and giving the public an opportunity to buy clothes that are truly “made in America.” The company eventually adds other clothing items, opens three brick-and-mortar retail stores in several large cities, and expands to online shopping. Over the years, the firm grows and prospers due to its reputation as an American manufacturer, a fair employer, and an opponent of the traditional view of “sweatshops.” However, along the way, it deals with a few public relations issues too. 88. (Scenario 18-2) Shortly after this young man launched his business, a local newspaper runs a series of investigative reports on crowded, dimly lit, and unventilated sweatshops along the West Coast that hire illegal immigrants. His business is mentioned, though only in a list of firms that employ seamstresses, not in the list of those accused of wrongdoing. Still, he feels the need to write a letter to the editor as well as put out press releases to clarify his position and describe his business ethics. In terms of public relations, which of the following is he doing? a. Promoting products b. Preparing internal communications c. Counteracting negative publicity d. Lobbying ANSWER:

89. (Scenario 18-2) He feels he did a good job in his press release by describing the positive aspects of his company. However, he is aware that his press release: a. can only promote positive news, but not combat negative information. b. cannot be integrated with other communication efforts. c. can do well in communicating information internally, but not externally. d. can be edited, misconstrued, or not run at all by media organizations. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

90. (Scenario 18-2) The conflict passes, things settle down, and he goes on to build his business—knowing that a rash of bad publicity could have done him wrong even before he got started. Now, he knows that he is part of an industry with many questionable players. He is also aware that the chance of being associated with sweatshops, in order to be in a illegal hiring, or other unsavory aspects of business is high. Therefore, he prepares a better position to issue public statements based on current and accurate data. a. reactive strategy b. press conference c. publicity stunt d. public relations audit ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS:

Bloom's: Application

91. (Scenario 18-2) Over the years, he has learned that positive word-of-mouth advertising helps. He now enlists the testimony of seamstresses who have been with him for years, customers who won’t buy any casual clothing but his, and even high-end designers who praise his business integrity and product quality. Which of the following is he currently involved in? a. Publicity marketing b. Influencer marketing c. Sponsorship marketing d. Internal marketing ANSWER:

b DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

92. (Scenario 18-2) After 35 years, he looks back to his beginnings. He had little money for a public relations agency early on so he had to create carefully worded messages, and strategically placed ads that the public would perceive in a very positive light. In essence, he was using a type of: a. influencer marketing. b. free publicity. c. corporate advertising. d. reactive strategy. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application Scenario 18-3 For some years now, enterprising individuals have gotten their own ideas, forums, and entertainment programs out in front of the public with no help from big tech firms, media conglomerates, or ad agencies. They simply posted their creations on the Internet. It began with blogs, moved to podcasts, expanded to social networks, moved on to YouTube videos, and transferred to Twitter. Audience members can download these technological tidbits—text, visual, and audio formats—to their laptops as well as to cell phones, Blackberries, iPods, iPads, and every other mobile gadget that hits the market. Eventually, public relations companies started getting into the act. 93. (Scenario 18-3) An athletic supply manufacturer is about to launch a new sports sock made of an innovative fabric that cushions the foot, reduces impact, absorbs moisture, and supports high-intensity sports. It creates short video spots and posts them on its home page, Facebook page, YouTube, and other sites for viewing and downloading. Since this video is generated by the company, intends to gain positive publicity, and hopes for free exposure of a new product, it works in much the same way that the more traditional does. a. company newsletter b. sponsored event c. press release d. feature story ANSWER:

c DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

94. (Scenario 18-3) A medium-sized, family-owned organic farm in California packages its fresh produce and distributes it to grocers around the country. It is now rumored to be part of an E. Coli outbreak that is destroying spinach in nearby farms. This is absolutely false, so the family acts fast by clarifying the situation through Twitter releases, blog responses, and announcements on its home page. This kind of activity focuses on problems to be solved rather than opportunities to be considered, and requires that a company take defensive measures. Which of the following measures would it take? a. Reactive public relations strategy b. Lobbying campaign c. Corporate image marketing d. Proactive public relations strategy ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application 95. (Scenario 18-3) A high-tech firm creates special effects and computer-generated content for Hollywood movies. Its PR people prepare intriguing 60-second videos about its role in three blockbuster action movies released this aimed at the movie trade as well as year and posts them on YouTube. The firm is using a type of consumers. a. advocacy marketing b. buzz marketing c. green marketing d. influencer marketing ANSWER:

96. (Scenario 18-3) The makers of a well-known Tennessee whiskey, release a very funny three-minute video on their website. It gradually gets noticed and distributed to friends and family by loyal consumers, and by people who just want to share a funny video. With very little effort, the word gets out and people start talking about this oldfashioned brand in a new way. The company is benefiting from the success of: a. corporate image marketing. b. lobbying. c. green marketing. d. viral marketing. ANSWER:

d DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 97. (Scenario 18-3) A garment manufacturer emphasizes on designing clothes using sustainable practices. Recently, it launched a Facebook page to gather signatures of people in favor of planting three trees when one is felled. This is a form of _____. a. corporate image advertising. b. advocacy advertising. c. buzz marketing. d. influencer marketing. ANSWER:

b DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

Scenario 18-4 In the summer of 2010, basketball star LeBron James found himself in the middle of a PR nightmare when he decided to turn his decision regarding his future team into an hour-long spot on ESPN, which was entitled, “The Decision.” Almost immediately, fans and critics alike began to express their distaste for the way the multimillionaire handled the situation. Many fans’ opinions of the star were greatly altered and James’ positive public image appeared to be shattered. Perhaps, even worse than the damage to his image, the Lebron James “brand” began to take a hit when his jerseys were pulled from many stores and websites, and thousands of fans vowed they would never buy James’ line of shoes ever again. Several months later, James began repairing his public image. James, who endorses Nike products, came out with a controversial commercial that was believed to evoke sympathy. However, many others felt the commercial mocked the negative reaction expressed over “The Decision,” and was intended to re-brand the star as a rebel. Either way, LeBron James has a long way to go before he can re-again his title as one of the most beloved players in the NBA. 98. (Scenario 18-4) This is an unfortunate case of negative public relations. Which of the following is the classic role of public relations? a. To foster goodwill between a firm and its many constituent groups b. To promote new forms of marketing such as green marketing c. To boost employee morale or attract new employees d. To better position the firm’s products against foreign competition ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Comprehension

99. (Scenario 18-4) There are six primary objectives of public relations. Which of the following objectives were ineffectively portrayed by LeBron James’ management team? a. Promoting goodwill b. Lobbying c. Preparing a program rationale d. Giving advice and counsel ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Promotion Bloom's: Application

100. (Scenario 18-4) Judging by his recent apology and television commercial, LeBron James is apparently trying to repair his image. This effort is known as: a. damage control. b. situation analysis. c. proactive strategy. d. public relations audit. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Strategy Bloom's: Application

101. (Scenario 18-4) One reason LeBron James and his team did not expect such negative backlash following “The Decision” was because he donated the $3 million generated by the television spot to a number of children’s charities. Although it may not have been effective in this instance, through this sponsorship; James and his team hoped to: a. completely erase any negative public image. b. increase the sales for his company. c. give positive visibility to his brand. d. leverage their investment and attract future sponsors. ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application 102. (Scenario 18-4) LeBron James was widely criticized for his decision because he refused to attend a traditional press conference. Press conferences are often a good way to announce important decisions, scientific breakthroughs, and new product details because they: a. offer a chance to see that an organization is dedicated to supporting its community. b. use a news format to present salient information. c. offer a single journalist exclusive rights to the information. d. ensure that a company gets the appropriate amount of publicity following their announcement. ANSWER:

Scenario 18-5 An old adage states that all publicity is good publicity. However, Professors Jonah Berger of the Wharton School, and Alan Sorensen and Scott Rasmussen of Stanford found that there is such a thing as bad publicity. The colleagues studied the relationship between bad publicity and its impact on music albums, books, and movies. In 2010, they published their findings in a journal called Marketing Science. After studying cases involving the late Michael Jackson, Russell Crowe, and various authors; the colleagues concluded that negative publicity can increase product sales. Michael Jackson sold more albums after receiving negative media attention, and films starring Russell Crowe received higher rankings following an incident in which he allegedly threw a cell phone at a hotel employee. These high-profile stars actually thrived after receiving substantial amounts of negative publicity. However, in many low profile cases, negative publicity hurt sales and product reception. The three colleagues conducted an analysis of The New York Times’ reviews and book sales, and found that negative reviews hurt sales of books by well-established authors, but helped sales of books by relatively unknown authors. After conducting the study, the authors found that conventional wisdom is wrong: not all publicity is good publicity. But they did show that negative publicity can sometimes be positive; it all depends on existing-product awareness. (Ned Smith, “Can Bad Buzz Be Good?” Business News Daily, November 1, 2010) 103. (Scenario 18-5) Which of the following factors contributes to the fact that we have entered a new era of public relations? a. Increased media coverage of company advertising b. Aggressive efforts to catch firms acting in an improper manner c. Sophisticated and connected consumers who talk more about brands d. Increased focus on public relations and its applications rather than other marketing processes ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: KEYWORDS:

United States - Ohio - DISC: Customer Bloom's: Comprehension

104. (Scenario 18-5) Publicity often increases the awareness of a particular brand. The concept of creating an event or experience that yields casual conversations which include the brand is referred to as marketing. a. viral b. publicity c. influencer d. buzz ANSWER:

105. (Scenario 18-5) When publicity is positive it tends to: a. carry heightened credibility. b. create more skepticism. c. create competition amongst brands. d. polarize individuals within a company. ANSWER:

DIFFICULTY: Easy LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 106. (Scenario 18-5) Although it is sometimes unavoidable, one way to prevent negative publicity is to develop a public relations strategy that focuses on opportunities to accomplish something positive. a. reactive b. damage-control c. proactive d. situational ANSWER:

c DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension 107. (Scenario 18-5) One way to help firms implement a reactive public relations strategy, and prepare for possible negative publicity is to: a. prepare a public relations audit. b. promote goodwill. c. prepare internal communications. d. increase corporate advertising efforts. ANSWER:

a DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

108. Public relations is the one tool that can accomplish a tough and often unpleasant task of damage control for a company. Explain and give at least two real-life examples of this process. ANSWER:

Damage control is the task that only public relations can handle. Even the most careful, ethical, and organized companies will probably have to face negative publicity at some point—a product defect, a recall, a hazard, an accident, a public health issue, an employee scandal, etc. Issues can arise from internal problems that have been neglected or left unsolved, or from external forces that have risen and are completely out of the company’s control. This is where damage control comes in. Public relations departments or directors can do several things to calm nerves and cool tempers. They need to focus on the company’s reputation and the preservation of the brand. But first, they need to give honest information, speak directly to the public, apologize, spell out the problem, their plan to solve it, and offer something to the public or the customers to make-up for the mistake. There are things that they should not do such as hide from the media, refuse to speak to the public, or insist they are right or innocent. One of the first things they normally do is to contact the media and hold a press conference so they can address the issue, answer questions, and show that they are handling the situation. Press releases often come shortly afterwards, and even new ad messages may be created. Most importantly, PR personnel should be prepared in advance with accurate data and clear information at hand, even before “bad news” hits. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Application

109. There are six main objectives of public relations efforts. List any three and give an example by identifying a company that sells a product or service that you purchase. ANSWER:

Companies may have the following objectives as their goals for public relations efforts: 1. Promoting goodwill. This is an image-building function of public relations. Industry events or community activities that reflect favorably on a firm are highlighted. 2. Promoting a product or service. Press releases or events that increase public awareness of a firm's brands can be pursued through public relations. 3. Preparing internal communications. Disseminating information and correcting misinformation within a firm can reduce the impact of rumors and increase employee morale. 4. Counteracting negative publicity. The attempt here is not to cover up negative events, but rather to prevent the negative publicity from damaging the image of a firm and its brands. 5. Lobbying. The public relations function can assist a firm in dealing with government officials and pending legislation. 6. Giving advice and counsel. The public relations effort can assist management in determining what position to take on public issues, prepare employees for public appearances, and help management anticipate public reactions.

Student examples will vary. DIFFICULTY: Challenging LEARNING OBJECTIVES: AIBP.OGUI.15.18-2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application

110. How do proactive and reactive public relations strategies differ? Describe the steps necessary to implement each strategy. ANSWER:

A proactive public relations strategy is guided by marketing objectives, seeks to publicize a company and its brands, and is offensive rather than defensive in spirit. It starts with a public relations audit, which identifies the characteristics and activities of a firm that are positive and newsworthy. The next step is to take information from the audit and turn it into a public relations plan. The plan identifies the objectives and activities related to the public relations communications issued by the firm. The components of a public relations plan include a current situation analysis, program objectives, program rationale, communications vehicles, and message content. A reactive public relations strategy is guided by events outside the control of a company, focuses on problems to be solved rather than on opportunities, and requires defensive rather than offensive measures. Since the events that trigger a reactive public relations strategy are unpredictable and uncontrollable, it is much more difficult to implement a reactive than a proactive strategy. Part of the preparation for a reactive strategy occurs during the public relations audit prepared for the proactive strategy. The information provided by the audit gives a firm what it needs in a time of crisis so it can issue public statements based on current and accurate data. A second step in preparing a reactive strategy is the identification of vulnerabilities, that is, the areas of potential weakness in products or operations that might create a negative situation. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Strategy KEYWORDS: Bloom's: Comprehension

111. Describe the objectives and features of influencer marketing. Define, at least, three types that are in use today. ANSWER:

Influencer marketing refers to a series of personalized techniques directed at individuals or groups who have the credibility and capability to drive positive word-ofmouth to a broader and salient segment of the population. In implementing an influencer marketing initiative, it is useful to think of it as systematic seeding of conversations involving a consumer, an influencer, and your brand. Professional influencer programs utilize professionals in the field as influencers. These programs offer great credibility but they also require careful enlistment in the effort because professionals take their responsibilities very seriously. Several points should be kept in mind. First, a professional’s time is money, so wasting their time is likely to be counterproductive. Second, messaging a professional with information that offers them intellectual currency as well as important benefits of the brand will enhance their likelihood of participating. Finally, a successful professional influencer program requires long-term commitment. Peer-to-peer influencer programs do similar work in spreading positive word-ofmouth, but rely on ordinary people to talk about products and brands in a positive way. They spread the word through their own social groups, either in person or online. Buzz and viral marketing are both subspecies of peer-to-peer influencer approaches. In buzz marketing, the idea is to create an event or experience that yields conversations about a brand. In viral marketing, the goal is to have consumers market to other consumers, usually via the Internet, email, blogs, and social network sites, or via texting and downloading to mobile devices. Personal contact also works. In both buzz and viral programs, the idea is to target a handful of carefully chosen extroverts or trend setters as influencers, and let them spread the word about your brand. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension

112. What common goal does corporate image advertising, advocacy advertising, and cause-related advertising share? Outline the unique features of each of these types of corporate advertising. ANSWER:

The goal of all corporate advertising is to establish a favorable attitude toward a company as a whole. Corporate image advertising focuses on enhancing the overall image of a firm among important constituents—usually customers, employees, and the general public. It can range from a general favorable image to a specific image. Advocacy advertising attempts to establish an organization's position on important social, political, or environmental issues. Of course, a firm has a purpose in running such advocacy ads. Typically, the issue chosen is directly relevant to the business operations of the organization. Cause-related advertising affiliates a firm with worthwhile social causes—reducing poverty, increasing literacy, curbing drug abuse, fighting disease. The idea behind cause-related marketing is that a firm launches an effort or funds a campaign that makes a positive difference in society. It may also donate money to a nonprofit organization in exchange for associating its company name with the work of that group. The purpose of cause-related marketing is to enhance the image of the firm in the minds of consumers by associating the firm with a worthy cause. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Comprehension 113. What has led to the growth and popularity of green marketing? What cautions should potential advertisers take before launching it since a number of corporations, manufacturers, and service industries have issued “green” messages? ANSWER:

Green marketing refers to any corporate effort that attempts to align itself with a cause or movement in support of the environment. Like any promotion, the resulting ad campaign can reflect a sincere effort to do some good or a cheap imitation of such sentiment. Green marketing has reflected a socioeconomic movement that has been on and off in past decades. In the early 1990s, the book Green Marketing by Jacquelyn Ottman predicted that going green would be a marketing revolution, but it didn’t come to pass, at least not in the United States. Today, it appears that the movement really will take hold and create meaningful actions and messages on the part of the nation’s giant corporations as well as smaller businesses. Advertisers and consumers should be aware that there are millions of “green claims” out there, but many are exaggerated, absurd, or false. It is easy for a company to incorporate the word “green” in its name, slogan, or packaging when it really doesn’t mean anything. Advertisers should also be aware that environmental issues are broad and complex. Even the best intentions of a socially conscious business may fall short. The text advises firms to follow one law when launching a green marketing campaign —underpromise and overdeliver. DIFFICULTY: Moderate LEARNING OBJECTIVES: AIBP.OGUI.15.18-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - Ohio - DISC: Promotion KEYWORDS: Bloom's: Application