TEST BANK for Advertising and Promotion An Integrated Marketing Communications Perspective, 11th Edi

Advertising and Promotion An Integrated Marketing Communications Perspective, 11e George Belch Michael Belch (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter

Chapter 01 Test Bank Student: ___________________________________________________________________________ 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. True False

2. Not all marketing transactions involve the exchange of money for a product or service. True False

3. The status gained from owning a particular brand is an example of a functional benefit. True False

4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. True False

5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. True False

6. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. True False

7. One reason marketers are adopting the IMC approach is they understand the value of strategically integrating the various communications functions. True False

8. There has been an evolution to micromarketing as the mass audience assembled by network television and augmented by other mass media is fragmenting at an accelerating rate. True False

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9. Traditional print advertising is expected to increase by 45 percent from 2016 to 2020. True False

10. Most consumers in the millennial generation age cohort are very receptive to traditional advertising. True False

11. Implicit communication has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. True False

12. The nonpersonal nature of advertising means that there is generally ample opportunity for immediate feedback from the message recipient. True False

13. Media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message. True False

14. Primary-demand advertising focuses on creating demand for a specific company's brands. True False

15. Business-to-business advertising is limited to industrial goods; services such as insurance and finance and banking are not included in this category. True False

16. Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company's product in their business operations is referred to as trade advertising. True False

17. Traditionally, direct selling via independent contractors has been the primary medium for direct-response advertising. True False

18. Omnichannel retailing involves using a combination of physical or offline channels as well as digital or online channels to influence a customer’s shopping experience, including research before a purchase and service after a sale. True False

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19. When Bumble Bee Tuna participates in a trade show to encourage retailers to stock and promote its products, it is engaged in a consumer-oriented sales promotion. True False

20. An advantage of publicity over other forms of promotion is its credibility. True False

21. Publicity is always under the control of an organization, so the organization can make sure it is positive. True False

22. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. True False

23. Earned media refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter, Instagram, and YouTube. True False

24. The first step in the IMC planning process is to review the marketing plan and objectives. True False

25. Companies or brands that are new to the market or those for whom perceptions are negative should focus on the benefits or attributes of the specific product or service, and not on their image. True False

26. Analysis of the communication process may involve preliminary discussions on media-mix options and their cost implications. True False

27. Which of the following is an example of a marketing exchange? A. The waitress gave Cyrus a menu and he placed his food order. B. Griffin helped Mandy replace the air filter in her lawn mower. C. Ken and Maggie gave their son an MP3 player for his birthday. D. Mrs. Maloney gave Larry a box of homemade fudge in return for painting her fence. E. Jenny asked Melisa if she could borrow her pen for a while since her pen had stopped working.

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28. According to the American Marketing Association's definition of marketing, which of the following statements is true? A. Most marketers are seeking a one-time exchange or transaction with their customers. B. The focus of production-driven companies is on developing and sustaining relationships with their customers. C. Successful companies recognize that creating and delivering value to their customers is extremely important. D. Though marketing plays an important role in developing relationships with customers, it does not help in maintaining them. E. By definition, a marketing transaction has to involve the exchange of money.

29. Which of the following statements best defines value? A. the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea B. the combination of factors like name, logo, design, and packaging that comes to mind when consumers think about a brand C. the desire and ability of two or more parties to exchange something of importance with one another D. the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it E. the amount of funds invested by the shareholders of a company in promoting its product portfolio

30. Product, price, promotion, and _____ are the four Ps of the marketing mix. A. people B. place C. package D. print E. privilege

31. Price, product, place, and promotion together form the A. points-of-parity. B. promotional mix. C. marketing mix. D. supply chain components. E. exchange mix.

32. Prior to the development of integrated marketing communications, the promotional function in most companies was dominated by A. mass-media advertising. B. sales promotion. C. public relations. D. publicity. E. direct marketing.

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33. CL Inc., a new firm, used mass media to gain traction among customers. The company used sales promotions and public relations to achieve the long-term targets and goals identified by the top management. It also opted for direct marketing on a project-to-project basis. The assimilation of these various promotional tools is commonly referred to as A. mobile marketing. B. sales promotion activities. C. integrated marketing communications. D. omnichannel retailing. E. search advertising

34. The process of assimilating mass-media advertisements with other promotional elements such as direct marketing, public relations, and sales promotion is known as A. media fragmentation. B. micromarketing. C. integrated marketing communications. D. social media. E. digital advertising

35. Which of the following best defines integrated marketing communications? A. It is a term used in cause marketing that speaks about the degree of control customers hold over the cause they choose to support. B. It involves coordinating the various promotional elements and other marketing activities that interact with a firm's customers. C. It is software that gathers and analyzes information about customer interactions with all the employees of a company. D. It is a collection of informational resources that describes a company's products and services and assists in marketing the same. E. It involves dividing the customers into similar subgroups based on media usage, demographics, psychographics, and product usage.

36. Which of the following is true of integrated marketing communication? A. It does not include sales promotion. B. It calls for a "big picture" approach to promotional activities. C. It segregates and highlights various independent promotional activities. D. It is also typically referred to as mobile marketing. E. It relies on mass-media advertising.

37. The central theme of the concept of _____ is that all of an organization's promotional elements and marketing activities reach out consistently and in a unified manner with its customers. A. the marketing mix B. exchange C. integrated marketing communications D. the promotional mix E. cumulative prospect theory

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38. According to the American Association of Advertising Agencies, _____ is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines and combines them to provide clarity, consistency, and maximum impact. A. brand equity B. local advertising C. selective demand marketing communications D. integrated marketing communications E. professional advertising

39. In the advertising industry, terms such as new advertising, orchestration, and seamless communication were used to describe the concept of A. positioning. B. integration. C. channel conflict. D. relationship marketing. E. diffusion.

40. In the 4As' definition of integrated marketing communications, the focus is on A. the organizations creating a sustainable supply chain for developing a socially responsible business. B. the fact that nonpersonal communications must be totally avoided for a better communications impact. C. the employees keeping track of future prospects by maintaining a customer interaction tracker. D. the development of bait-and-switch marketing activities in all organizations. E. the process of using all forms of promotion to achieve maximum communication impact.

41. The primary goal of an integrated marketing communications program is to A. have a company's entire marketing and promotional activities project a consistent, unified image to its customers. B. control all facets of a product's distribution. C. communicate with customers primarily through mass-media advertising. D. have complete control over all the channel partners in the distribution channel and to slow down the rate of diffusion of a new product among the customers. E. create a strong distribution network, via marketing, that is capable of destabilizing any competition.

42. According to the definition of integrated marketing communications (IMC) given by Don Schultz, which of the following is true of IMC? A. It is a tactical separation of various communication activities. B. It does not view the audience as an important part of the IMC process. C. It does not view the employees as an important part of the IMC process. D. It is viewed as an ongoing strategic business process. E. It simply involves bundling promotional mix elements together.

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43. Montblanc uses classic design, a distinctive brand name, a focused distribution strategy to exclusive retailers, and celebrities in its advertising to position its watches as high-quality, high-status products. This is an example of a(n) ______________________ approach. A. direct marketing B. mobile marketing C. integrated marketing communications D. old generation marketing E. mass media

44. _____ has been described as one of the "new-generation" marketing approaches being used by companies to better focus their efforts in acquiring, retaining, and developing relationships with customers and other stakeholders. A. Decentralized communication systems B. Bait-and-switch marketing approach C. Integrated marketing communications D. Mass-media advertising E. Customer newsletter service

45. To respond to media fragmentation, marketers are increasing their spending on A. mass-media communication. B. television advertising. C. micromarketing. D. mass production. E. product packaging.

46. Ultra-Long deodorant's tagline is "Timely strength for the match of life." Ads for the product feature a baseball star saying, "You need extra muscle when your day goes into extra time." These ads appear regularly on television and in print media. At the same time, Ultra-Long runs a sweepstakes contest for its customers. To enter the contest, customers have to fill out a $1-off coupon. Through the use of IMC, Ultra-Long is hoping to primarily create _____ for its new product, which is the combination of many factors, including the name, logo, symbols, design, packaging, and performance of the product. A. brand evangelism B. brand dilution C. brand language D. brand identity E. brand repositioning

47. _____ is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it. A. Brand evangelism B. Brand identity C. Brand extension D. Brand differentiation E. Brand engagement

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48. The chief marketing officer who noted that “the future of marketing isn’t about getting people to buy your brand, but to buy into your brand,” recognized that marketing is now in the _____________ era, and companies must connect with consumers based on trust, transparency, engagement, and authenticity. A. relationship B. cynicism C. promotion D. mobile E. sustainability

49. _____ has long been the cornerstone of brand-building efforts for many companies. A. Interactive media B. Mass-media advertising C. Online marketing D. Product placement E. Personal selling

50. _____ is the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services. A. Branding B. Product distribution C. Pricing D. Promotion E. Market segmentation

51. Traditionally, which of the following has been considered an element of the promotional mix? A. packaging B. advertising C. direct marketing D. interactive media E. branding

52. Which of the following elements of the promotional mix is defined as a paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor using predominantly mass media? A. advertising B. branding C. packaging D. publicity E. sales promotion

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53. Advertising is defined as any A. paid form of nonpersonal communication about a product, service, or company. B. form of media communication that provides an opportunity for immediate feedback. C. communication that moves a product from one level to another level of the distribution channel. D. personal communication from a company's representative to prospective buyers. E. nonpersonal communication about a product or service that is not paid for or run under identified sponsorship.

54. The basic elements that are used to accomplish an organization's marketing communication objectives are referred to as A. the marketing mix. B. marketing strategy tools. C. the growth-share matrix. D. the promotional mix. E. the hype cycle.

55. Which the following factors is generally neglected through the use of advertising? A. ability to reach mass markets B. low cost per contact C. ability to create brand images and symbolism D. immediate feedback E. control of message content and media placement

56. Which of the following is true of advertising as a form of promotion? A. low cost per contact B. nonpaid form of promotion C. sponsor or advertiser not identified D. immediate feedback and capability to close sales E. makes use of nontraditional media

57. Clave Inc., a large soap manufacturing firm, has introduced a new soap known as Honeydew. It wants to promote the soap to broad audiences across various countries in a persuasive and cost-effective manner. At the same time, it also wants to enhance the overall company image. It has a promotional budget of about $1,000,000. Which of the following forms of promotion should Clave make use of for the promotion of Honeydew? A. mass advertising B. direct marketing C. personal selling D. sales promotion E. publicity

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58. Which of the following features of direct-response advertising differentiates it from other forms of advertising? A. It provides for immediate feedback from the message recipient. B. It makes use of only magazines as a primary medium of advertising. C. It is a form of nonpersonal mass-media communication. D. It is most widely used because of its pervasiveness. E. It is a paid form of mass-media communication.

59. The best-known and most widely discussed form of promotion is A. personal selling. B. sales promotion. C. direct marketing. D. advertising. E. publicity/public relations.

60. Which promotional mix element would best suit a firm that wants to reach a large consumer audience while keeping the cost per contact low and creating a symbolic image or appeal for a new brand? A. advertising B. personal selling C. sampling D. couponing E. door-to-door selling

61. Which of the following is true of advertising? A. Advertising attempts to create a personal relationship with the consumers. B. The nature and purpose of advertising is usually the same across various industries. C. Advertising is a valuable tool for building brand and company equity. D. Advertising is used only for the promotion of mass consumer products. E. One disadvantage of advertising is that it is extremely personal to consumers.

62. With respect to consumer markets, advertising done by manufacturers of well-known brands on a countrywide basis or in most regions of the country is known as _____ advertising. A. professional B. trade C. business-to-business D. national E. direct-response

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63. Stylo, a perfume manufacturing company, spends about $1,000,000 annually on advertising. The company seeks to remind its customers in the United States about the brand and its features, benefits, and uses. It primarily strives to reinforce its image and initiate product purchase. In the context of the types of advertising to consumer markets, Stylo is using A. national advertising. B. primary demand advertising. C. trade advertising. D. business-to-business advertising. E. professional advertising

64. _____ advertising is done by local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. A. Trade B. Professional C. Direct-response D. Retail E. National

65. A to Z, a supermarket in New Jersey, placed a weekly advertisement in the local newspapers. The advertisement stated that A to Z would provide its customers all vegetables at a flat rate of $5 from Monday to Wednesday between 1 p.m. and 3 p.m. at select locations in the state. A to Z most likely used A. national advertising. B. trade advertising. C. retail advertising. D. primary-demand advertising. E. direct-response advertising.

66. Advertising done for the purpose of building store traffic and encouraging consumers to make a purchase takes the form of _____ advertising. A. trade B. facultative C. professional D. direct-action E. B2B

67. Which of the following is true of retail advertising? A. It is done by large companies on a nationwide basis or in most regions of the country. B. It takes the form of direct-response advertising. C. It is done to build store traffic and sales. D. It is designed to stimulate demand for the general product class or an entire industry. E. It is targeted at marketing channel members such as wholesalers, distributors, and suppliers.

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68. Retail or local advertising often takes the form of A. trade advertising. B. selective-demand advertising. C. bait-and-switch advertising. D. direct-action advertising. E. indirect-response advertising.

69. Primary-demand advertising is designed to A. influence the purchase of only industrial goods and services. B. stimulate demand for a general product class or entire industry. C. help launch a specific line extension. D. stimulate demand for existing products that are "dying." E. create a market share gain for the industry leader.

70. In the context of advertising for consumer markets, _____ advertising focuses on creating demand for a specific company's brand. A. primary-demand B. selective-demand C. trade D. professional E. industrial

71. Munroe Dairy, Inc., a manufacturer of dairy products, has come up with new global ads that promote the benefits of drinking milk as well as demonstrate the various uses of milk. This is an example of A. trade advertising. B. primary-demand advertising. C. secondary-demand advertising. D. retail advertising. E. professional advertising.

72. The National Egg Association has been promoting the benefits of eggs for many years. It aims to educate customers about the nutritional values of eggs through ads which are aired in several states. It is making use of A. direct-response advertising. B. professional advertising. C. primary-demand advertising. D. selective-demand advertising. E. trade advertising.

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73. Which of the following best describes selective-demand advertising? A. It focuses on creating demand for a specific company's brands. B. It is done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. C. It focuses on creating demand for an entire industry. D. It focuses on targeting individuals who buy or influence the purchase of industrial goods or services for their companies. E. It is one of the four Ps of the marketing mix.

74. Which of the following is an example of retail advertising? A. Advertisement of a health drink that compares its benefits to its competitor's B. Advertising done by the Beef Council to stimulate the demand for beef C. Advertisement for Fizzy Cola placed in a trade magazine to promote it to food store managers D. Advertisement for Pink Airlines that appears in newspapers all across the country E. Newspaper advertisement for a discount at a restaurant located on the outskirts of San Diego

75. _____ advertising is targeted at individuals who influence the purchase of goods and services used to make other products. A. Professional B. Primary-demand C. Retail D. Business-to-business E. Direct-response

76. Advertisements for CL brake products, True spark plugs, AM chassis parts, and Stone wheels featured in Tire Review, a journal for owners/operators of auto shops, are examples of _____ advertising. A. retail B. direct-response C. business-to-business D. direct-mail E. primary-demand

77. DocStock Inc., a company that manufactures stethoscopes, has placed an ad in MediMag, a magazine primarily read by doctors. The company is trying to improve sales by directly reaching out to its primary market segment. This is an example of A. business-to-business advertising. B. trade advertising. C. professional advertising. D. primary-demand advertising. E. direct-action advertising.

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78. _____ advertising is targeted at marketing channel members such as wholesalers, distributors, and retailers in order to encourage them to stock more of a particular brand. A. National B. Selective-demand C. Professional D. Trade E. Retail

79. Which of the following is an example of trade advertising? A. Mars Inc. is using print advertising to attract supply managers from other companies. B. Pluto Inc., a toothpaste manufacturer, places an ad in Tooth Daily, a magazine frequently circulated among dentists. C. CL Inc., a chocolate manufacturer, hopes to attract wholesalers and retailers by placing an ad in NextMag, a weekly hotel magazine. D. James, a doctor, places an ad in a local newspaper to advertise his new clinic. E. The State Egg Federation runs a series of television ads that educate people about the nutritional value of eggs.

80. Which of the following statements is true of direct marketing? A. Traditionally, it has not been considered an element of the promotional mix. B. It is synonymous with direct mail. C. The rapid growth of the Internet is discouraging the growth of direct marketing. D. It is seldom, if ever, used by companies that have an external sales force. E. It is less direct when compared to mail-order catalogs.

81. Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario? A. advertising B. sales promotion C. direct marketing D. publicity E. pricing

82. One of the major tools of straight-to-consumer marketing is _____ advertising, where a product is promoted through an ad that encourages the consumer to purchase straight from the manufacturer. A. direct-response B. primary-demand C. business-to-business D. trade E. selective-demand

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83. Which of the following is true of direct-response advertising? A. It encourages consumers to purchase straight from the manufacturer. B. It targets wholesalers, retailers, and other members of the supply chain. C. It is also known as primary-demand advertising. D. It primarily targets professionals such as doctors, lawyers, and engineers. E. It does not use the Internet as a means of advertising.

84. _____ is a tool of direct marketing that is used to call customers directly and attempts to sell them products and services or qualify them as sales leads. A. Bait advertising B. Buzz marketing C. Telemarketing D. Switch marketing E. B2B marketing

85. Which of the following is true of the Internet as a marketing medium? A. It is considered to be a traditional medium. B. It does not facilitate two-way communication. C. It enables marketers to gather valuable personal information from customers. D. It does not enable real time adjustment of offers. E. It cannot be integrated with other media programs such as direct mail and telemarketing.

86. _____ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums. A. Direct marketing B. Advertising C. Public relations D. Sales promotion E. Publicity

87. Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes, are part of A. consumer-oriented sales promotion. B. trade-oriented sales promotion. C. buzz promotion. D. bait-and-switch sales promotion. E. channel-initiated sales promotion.

88. Foodie Inc. includes monthly coupons in its magazine advertisements. This is an example of A. consumer-oriented sales promotion. B. industrial sales promotion. C. business-oriented sales promotion. D. trade-oriented sales promotion. E. service-oriented sales promotion.

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89. Which of the following is true of trade-oriented sales promotion? A. It is also known as buzz promotion. B. It targets members of the supply chain. C. It is targeted at the ultimate user of a product. D. It uses rebates and couponing. E. It includes sweepstakes and premiums.

90. Sales promotion programs targeted at marketing intermediaries such as wholesalers, distributors, and retailers are part of A. consumer-oriented sales promotion. B. trade-oriented sales promotion. C. user-oriented sales promotion. D. intrinsic sales promotion. E. bait-and-switch sales promotion.

91. _____ refers to nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. A. Advertising B. Sales promotion C. Publicity D. Public relations E. Telemarketing

92. Which of the following is a primary difference between publicity and advertising? A. Unlike advertising, publicity is done only by retailers. B. Unlike publicity, advertising does not utilize mass media. C. Unlike advertising, publicity is not paid for by the sponsoring organization. D. Unlike advertising, publicity is institutional in character. E. Unlike publicity, advertising leads to less skepticism among consumers.

93. Which of the following is a similarity between publicity and advertising? A. Both are nonpaid forms of communication. B. Both are run by an unidentified sponsor. C. Both involve nonpersonal communication to a mass audience. D. Both are not directly paid for by the company. E. Both frequently provide an opportunity for immediate feedback.

94. One of the primary advantages inherent in the use of publicity is its A. ability to be personalized. B. credibility. C. negligible variable costs. D. tangibility. E. ability to be closely controlled.

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95. Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible? A. advertising B. publicity C. packaging D. sales promotion E. direct marketing

96. Which of the following statements about publicity is true? A. Publicity is a form of communication that is directly run under an identified sponsorship. B. Publicity is the only tool used in a firm's public relations efforts. C. Publicity usually comes in the form of a news story or an editorial. D. Publicity has more of a long-term, ongoing purpose than public relations. E. Publicity refers to personal communications regarding an organization and its products.

97. A local newspaper published an article about Pluto Inc.'s latest line of shoes. The shoes were made with used clothing sourced from households across the country. The article also included select photographs and offered consumers a "sneak peek" into the manufacturing process. This form of nonpersonal marketing communication is known as A. sales promotion. B. digital marketing. C. personal selling. D. public relations. E. publicity.

98. A review of a movie in a local magazine or on a popular daily television show is an example of A. personal selling. B. publicity. C. direct marketing. D. public relations. E. sales promotion.

99. Which of the following statements describes a disadvantage of publicity? A. Publicity is expensive to implement as it is directly paid for and run under identified sponsorship. B. Publicity has relatively low credibility. C. Publicity is not always under the control of an organization and is sometimes unfavorable. D. Publicity is not useful with a market segmentation strategy. E. Publicity makes a market aggregation strategy ineffective.

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100. A lawsuit charged a mortgage lender with racism because it allegedly charged African-American borrowers higher rates than other borrowers. News of the lawsuit was reported by the wire service, and it appeared in several newspapers. This is an example of A. sales detraction. B. negative advertising. C. cause selling. D. negative publicity. E. bait-and-switch advertising.

101. DG Loans, a mortgage lender, was charged with a discrimination lawsuit. It alleged that the company was offering loans at higher rates of interest to African-American consumers. In response to these allegations, DG Loans sent out e-mail queries to its African-American customers to get feedback on their experiences with the firm's lending offices. This feedback was subsequently collected and released to the news media. This is an example of A. public relations. B. advertising. C. publicity. D. sales promotion. E. cause marketing.

102. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is engaging in a function known as A. buzz marketing. B. reactive disinformation. C. bait-and-switch marketing. D. public relations. E. sales promotion.

103. Which of the following is true of public relations? A. It is synonymous with sales promotions. B. It is narrower in perspective than publicity. C. It includes fund-raising, sponsorship of special events, and special publications. D. It avoids using advertising as a tool to enhance an organization's image. E. It refers to personal communications regarding an organization and its products.

104. _____ is a form of one-on-one communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea. A. Advertising B. Sales promotion C. Publicity D. Interactive marketing E. Personal selling

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105. _____ is a promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer. A. Advertising B. Sales promotion C. Public relations D. Publicity E. Personal selling

106. Which of the following statements accurately describes how personal selling differs from advertising? A. Unlike advertising, personal selling does not result in direct sales. B. Unlike advertising, personal selling can be tailored to meet customers' specific needs. C. Unlike advertising, personal selling can attract mass attention. D. Unlike advertising, personal selling tends to have a lower cost per individual. E. Unlike advertising, personal selling does not provide accurate feedback.

107. The promotional mix element that allows for the most immediate and precise feedback from the customer is A. advertising. B. sales promotion. C. public relations. D. publicity. E. personal selling.

108. Which of the following promotional tools best suits a business-to-business marketer who sells expensive, risky, and often complex products? A. print advertising B. sales promotion C. public relations D. personal selling E. publicity

109. What is the major advantage of personal selling over advertising as a communication method? A. Personal selling involves the usage of mass media, whereas advertising does not. B. Personal selling improves the image of the firm, whereas advertising does not. C. Personal selling activates the receiver's selective processes, whereas advertising does not. D. Personal selling results in sales responses that are difficult to measure, whereas advertising results in immediate feedback. E. Personal selling involves direct contact between the buyer and seller, whereas advertising deals with indirect contact.

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110. Greg called Marsha on the telephone to present information about a meal plan package his company was offering. Marsha responded unfavorably to his description of the offer, so Greg modified the message. Which characteristic of personal selling did Greg benefit from in this scenario? A. the ability to target specific markets B. the ability to target specific customer types C. autonomy from the advertising or marketing department D. the ability to respond to immediate feedback E. indirect contact between the buyer and the seller

111. A(n) _____ refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. A. service point B. inference point C. reference point D. touch point E. display point

112. According to Tom Duncan's basic categories of contact or touch points, which of the following best describes planned marketing communication messages created by an organization such as advertisements, websites and social media sites, news/press releases, packaging, brochures, and sale promotions? A. channel-created touch points B. unexpected touch points C. company-created touch points D. intrinsic touch points E. customer-initiated touch points

113. According to Tom Duncan's basic categories of contact or touch points, which of the following best describes interactions that occur with a company or brand during the process of buying or using the product or service? A. intrinsic touch points B. company-created touch points C. unexpected touch points D. customer-initiated touch points E. distributive touch points

114. Which of the following touch points relates to unanticipated references or information about a company or brand that a customer or prospect receives from sources that are beyond the control of the organization? A. company-created touch point B. intrinsic touch point C. user-created touch point D. unexpected touch point E. customer-initiated touch point

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115. Juan goes to a large electronics retailer to get information on an upcoming television purchase. He discusses his purchase with a retail salesperson who is not under the direct control of the television manufacturer. Which of the four basic categories of touch points does the retail salesperson represent? A. company-created touch point B. planned touch point C. intrinsic touch point D. unexpected touch point E. customer-initiated touch point

116. Joy calls a mobile phone store to inquire about a new phone available in the market. The customer service operator sends her an e-mail with the product details along with other specifications Joy requested. Which of the following types of touch points is illustrated in this scenario? A. company-created touch point B. intrinsic touch point C. extrinsic touch point D. unexpected touch point E. customer-initiated touch point

117. How does the integrated marketing communications (IMC) plan approach differ from traditional approaches to promotion? A. IMC puts more emphasis on advertising and less on sales promotion. B. IMC puts more emphasis on sales promotion and less on public relations and publicity. C. IMC recognizes that marketers must be able to use a wide range of marketing and promotional tools to present a consistent image to target audiences. D. IMC places barriers around the various marketing and promotional functions and requires that they be planned and managed separately. E. IMC predominately makes use of mass-media communications in order to attract and retain customers.

118. _____ involves the process for planning, executing, evaluating, and controlling the use of various promotional-mix elements to effectively reach target audiences. A. Marketing information system management B. Integrated marketing communications management C. Customer relationship management D. Differential communications management E. Communications process accounting

119. The first step in the IMC planning process is A. the analysis of the communication process. B. the determination of a budget. C. the review of the marketing plan. D. the development of an advertising message. E. the distribution of sales promotion materials.

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120. Typically, a marketing plan usually includes A. a corporate mission statement. B. individual job specifications. C. a media schedule. D. a detailed situation analysis. E. articles of incorporation.

121. The stage of the IMC planning process which comes immediately after the overall marketing plan is reviewed is the A. integration and implementation of marketing communications strategies. B. development of marketing job descriptions. C. promotional program situation analysis. D. budget determination. E. analysis of market forecasts.

122. According to an integrated marketing communications planning model, which of the following activities is best associated with the review of the marketing plan step? A. integrating promotional mix strategies B. analyzing source, message, and channel factors C. assessing environmental influences D. setting direct-marketing objectives E. purchasing media time and space

123. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "integrate and implement marketing communications strategies"? A. purchasing media time and space B. analyzing source, message, and channel factors C. allocating tentative budgets D. identifying niche market segments E. establishing communication goals and objectives

124. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "analysis of promotional program situation"? A. developing selling roles and responsibilities B. setting advertising objectives C. analyzing consumer behavior D. purchasing media time and space E. setting a tentative marketing communications budget

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125. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "analysis of communications process"? A. allocating tentative budgets B. analyzing source, message, and channel factors C. competitive analysis D. designing and implementing direct-marketing programs E. external analysis

126. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "developing integrated marketing communications program"? A. examining overall marketing plan and objectives B. internal analysis C. analyzing receiver's response processes D. determining advertising budget E. external analysis

127. Which of the following is an area of focus of internal analysis? A. product/service offering B. positioning strategies C. competitors D. market segments E. consumer buying patterns

128. Which of the following is a question that firms are likely to ask during an external analysis? A. What are the strengths and weaknesses of our product or service? B. Who influences the decision to buy our product? C. How does our product or service compare with competition? D. What are our product's key benefits? E. Does our product have unique selling points?

129. What is the next stage in the IMC planning process, once marketing and communication objectives have been set? A. budget determination B. developing the advertising message C. reviewing the marketing plan D. recruitment of marketing and promotion personnel E. development of the IMC program

130. The development of the advertising message that the marketer wants to convey to its target audience is called the A. creative strategy. B. media strategy. C. distribution strategy. D. channel strategy. E. user strategy.

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131. _____ involves determining which communication channels will be used to deliver the advertising message to the target audience. A. Media strategy B. Creative strategy C. Reactionary strategy D. Intrinsic strategy E. User strategy

132. Which of the following is the final stage in the integrated marketing communications (IMC) planning process? A. reviewing the marketing plan and situation analysis B. determining the promotional budget C. monitoring, evaluating, and controlling the promotional program D. developing the integrated marketing communications program E. determining the media strategy

133. Which of the following is true of the final stage of the integrated marketing communications (IMC) planning process? A. It involves deciding the role of each promotional-mix element. B. It involves determining the importance of each promotional-mix element. C. It involves finding out the coordination between all of the promotional-mix elements. D. It involves monitoring, evaluating, and controlling the promotional program. E. It involves performing activities to implement the promotional program.

134. Rebecca is engaged in a process where she is assessing the strengths and weaknesses of her brand from an image perspective. She is in which stage of the integrated marketing communication planning process? A. internal analysis B. external analysis C. communication process analysis D. communication objectives E. budget determination

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Chapter 01 Test Bank Key 1. Digital/online advertising account for the majority of companies' marketing communications expenditures. FALSE By 2016, $127 billion was being spent on traditional media advertising (television, radio, magazines, newspapers, outdoor, cinema), while only $68 billion was being spent on digital/online advertising. Total digital advertising is expected to reach $100 billion by 2020, at which point it will represent 45 percent of all media advertising spending. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Role of Advertising

2. Not all marketing transactions involve the exchange of money for a product or service. TRUE Not all marketing transactions involve the exchange of money for a product or service. Nonprofit organizations such as various causes, charities, religious groups, the arts, and colleges and universities receive millions of dollars in donations every year. Many nonprofit organizations use ads to solicit contributions from the public. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

3. The status gained from owning a particular brand is an example of a functional benefit. FALSE Value is the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits can be functional (the performance of the product), experiential (what it feels like to use the product), and/or psychological (feelings such as self-esteem or status that result from owning a particular brand). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

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4. As marketers embraced the concept of integrated marketing communications, they began to rely primarily on media advertising. FALSE As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. A number of companies also began to look beyond traditional advertising agencies and use other types of promotional specialists. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

5. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. TRUE The integrated marketing communications approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It recognizes that every customer interaction with a company or brand across a host of contact points represents an opportunity to deliver on the brand promise, strengthen customer relationships, and deepen loyalty. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

6. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. TRUE Integrated marketing communications is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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7. One reason marketers are adopting the IMC approach is they understand the value of strategically integrating the various communications functions. TRUE The IMC approach to marketing communications planning and strategy is being adopted by both large and small companies because they prefer to integrate communications functions instead of having them operate autonomously. By coordinating marketing communication efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communication programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

8. There has been an evolution to micromarketing as the mass audience assembled by network television and augmented by other mass media is fragmenting at an accelerating rate. TRUE Viewing audiences are moving from the traditional broadcast networks to more narrowly targeted programs on cable networks and to other forms of entertainment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

9. Traditional print advertising is expected to increase by 45 percent from 2016 to 2020. FALSE Traditional print advertising is expected to decline by 2 percent annually. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

10. Most consumers in the millennial generation age cohort are very receptive to traditional advertising. FALSE Many consumers in in the millennial generation age cohort are very skeptical of traditional advertising. Having grown up in an even more media-saturated and brand-conscious world than their parents did, they respond to advertising differently and prefer to encounter marketing messages in different places and from different sources. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

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11. Implicit communication has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. FALSE Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. Implicit communication occurs through the various elements of the marketing mix, but most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

12. The nonpersonal nature of advertising means that there is generally ample opportunity for immediate feedback from the message recipient. FALSE The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). Therefore, before the message is sent, the advertiser must consider how the audience will interpret and respond to it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

13. Media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message. TRUE Advertising remains an important part of many marketers’ IMC programs because it is an effective way to reach large numbers of consumers with an advertising message. Television, in particular, is an excellent way for marketers to reach mass markets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

14. Primary-demand advertising focuses on creating demand for a specific company's brands. FALSE Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Selective-demand advertising focuses on creating demand for a specific company's brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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15. Business-to-business advertising is limited to industrial goods; services such as insurance and finance and banking are not included in this category. FALSE Business-to-business advertising is targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. Business services such as insurance, finance and banking, and telecommunications are also included in this category because they are marketed to both business customers and consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

16. Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company's product in their business operations is referred to as trade advertising. FALSE Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company's product in their business operations is referred to as professional advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

17. Traditionally, direct selling via independent contractors has been the primary medium for direct-response advertising. FALSE Traditionally, direct mail has been the primary medium for direct-response advertising, although television and the Internet have become increasingly important media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

18. Omnichannel retailing involves using a combination of physical or offline channels as well as digital or online channels to influence a customer’s shopping experience, including research before a purchase and service after a sale. TRUE Companies that use an omnichannel retailing strategy sell their products through multiple distribution channels, including retail stores, online, catalogs, and mobile apps. These companies try to influence the customer’s shopping experience throughout the purchase process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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19. When Bumble Bee Tuna participates in a trade show to encourage retailers to stock and promote its products, it is engaged in a consumer-oriented sales promotion. FALSE Consumer-oriented sales promotions are targeted to the ultimate user of the product or service—in this case, Bumble Bee Tuna. On the other hand, trade-oriented sales promotions are targeted to the marketing intermediaries, like wholesalers, distributors, and retailers. Trade shows, promotional and merchandising allowances, price deals, and sales contests are all examples of trade-oriented sales promotions, which are designed to encourage trade partners to stock and promote a company’s products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

20. An advantage of publicity over other forms of promotion is its credibility. TRUE Consumers generally tend to be less skeptical toward favorable information about a product or service when it comes from a source they perceive as unbiased. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

21. Publicity is always under the control of an organization, so the organization can make sure it is positive. FALSE Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

22. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. TRUE Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. Probably the most influential type of unexpected contact is a word-of-mouth message, which refers to a personal communication that comes from friends, associates, neighbors, co-workers, or family members. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

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23. Earned media refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter, Instagram, and YouTube. FALSE Earned media is exposure for a company or brand that it did not have to pay for and is generated by outside entities such as the media or the general public. On the other hand, owned media refers to channels of marketing communication that the company controls, such as its websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter, Instagram, and YouTube. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

24. The first step in the IMC planning process is to review the marketing plan and objectives. TRUE The first step in the IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

25. Companies or brands that are new to the market or those for whom perceptions are negative should focus on the benefits or attributes of the specific product or service, and not on their image. FALSE Companies or brands that are new to the market or those for whom perceptions are negative may have to concentrate on their images, not just the benefits or attributes of the specific product or service. On the other hand, a firm with a strong reputation and/or image is already a step ahead when it comes to marketing its products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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26. Analysis of the communication process may involve preliminary discussions on media-mix options and their cost implications. TRUE When a firm is in the stage of analyzing the communication process of the promotional planning process, it examines how effectively it can communicate with consumers in its target markets. Preliminary discussion of media-mix options (print, TV, radio, digital, direct marketing) and their cost implications might also occur at this stage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

27. Which of the following is an example of a marketing exchange? A. The waitress gave Cyrus a menu and he placed his food order. B. Griffin helped Mandy replace the air filter in her lawn mower. C. Ken and Maggie gave their son an MP3 player for his birthday. D. Mrs. Maloney gave Larry a box of homemade fudge in return for painting her fence. E. Jenny asked Melisa if she could borrow her pen for a while since her pen had stopped working. Mrs. Maloney giving Larry a box of homemade fudge in return for painting her fence is an example of a marketing exchange. For exchange to occur there must be two or more parties with something of value to one another, a desire and ability to give up that something to the other party, and a way to communicate with each other. Not all marketing transactions involve the exchange of money for a product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

28. According to the American Marketing Association's definition of marketing, which of the following statements is true? A. Most marketers are seeking a one-time exchange or transaction with their customers. B. The focus of production-driven companies is on developing and sustaining relationships with their customers. C. Successful companies recognize that creating and delivering value to their customers is extremely important. D. Though marketing plays an important role in developing relationships with customers, it does not help in maintaining them. E. By definition, a marketing transaction has to involve the exchange of money. The revised definition of marketing given by the American Marketing Association (AMA) is viewed as being more reflective of the role of nonmarketers to the marketing process. It also recognizes the important role marketing plays in the process of creating, communicating, and delivering value to customers, as well as society at large. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

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29. Which of the following statements best defines value? A. the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea B. the combination of factors like name, logo, design, and packaging that comes to mind when consumers think about a brand C. the desire and ability of two or more parties to exchange something of importance with one another D. the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it E. the amount of funds invested by the shareholders of a company in promoting its product portfolio Value is the customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

30. Product, price, promotion, and _____ are the four Ps of the marketing mix. A. people B. place C. package D. print E. privilege The four Ps—product, price, place (distribution), and promotion—are elements of the marketing mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

31. Price, product, place, and promotion together form the A. points-of-parity. B. promotional mix. C. marketing mix. D. supply chain components. E. exchange mix. The four Ps—product, price, place (distribution), and promotion—are elements of the marketing mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing. Topic: Strategic Marketing Planning

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32. Prior to the development of integrated marketing communications, the promotional function in most companies was dominated by A. mass-media advertising. B. sales promotion. C. public relations. D. publicity. E. direct marketing. For many years, the promotional function in most companies was dominated by mass-media advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of marketing communication. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

33. CL Inc., a new firm, used mass media to gain traction among customers. The company used sales promotions and public relations to achieve the long-term targets and goals identified by the top management. It also opted for direct marketing on a project-to-project basis. The assimilation of these various promotional tools is commonly referred to as A. mobile marketing. B. sales promotion activities. C. integrated marketing communications. D. omnichannel retailing. E. search advertising In the above scenario, the assimilation of the various promotional tools is referred to as integrated marketing communications. During the 1980s, firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm's customers. As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

34. The process of assimilating mass-media advertisements with other promotional elements such as direct marketing, public relations, and sales promotion is known as A. media fragmentation. B. micromarketing. C. integrated marketing communications. D. social media. E. digital advertising During the 1980s, firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm's customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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35. Which of the following best defines integrated marketing communications? A. It is a term used in cause marketing that speaks about the degree of control customers hold over the cause they choose to support. B. It involves coordinating the various promotional elements and other marketing activities that interact with a firm's customers. C. It is software that gathers and analyzes information about customer interactions with all the employees of a company. D. It is a collection of informational resources that describes a company's products and services and assists in marketing the same. E. It involves dividing the customers into similar subgroups based on media usage, demographics, psychographics, and product usage. During the 1980s, firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm's customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

36. Which of the following is true of integrated marketing communication? A. It does not include sales promotion. B. It calls for a "big picture" approach to promotional activities. C. It segregates and highlights various independent promotional activities. D. It is also typically referred to as mobile marketing. E. It relies on mass-media advertising. Advocates of the integrated marketing communications (IMC) concept noted that the process of integrated marketing communications calls for a "big-picture" approach to planning marketing and promotion programs and coordinating the various communication functions. It requires that firms develop a total marketing communications strategy that recognizes how all of a firm's marketing activities, not just promotion, communicate with its customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

37. The central theme of the concept of _____ is that all of an organization's promotional elements and marketing activities reach out consistently and in a unified manner with its customers. A. the marketing mix B. exchange C. integrated marketing communications D. the promotional mix E. cumulative prospect theory The integrated marketing communications approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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38. According to the American Association of Advertising Agencies, _____ is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines and combines them to provide clarity, consistency, and maximum impact. A. brand equity B. local advertising C. selective demand marketing communications D. integrated marketing communications E. professional advertising A task force from the American Association of Advertising Agencies (the "4As") developed one of the first definitions of integrated marketing communications: a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines—for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

39. In the advertising industry, terms such as new advertising, orchestration, and seamless communication were used to describe the concept of A. positioning. B. integration. C. channel conflict. D. relationship marketing. E. diffusion. The advertising industry recognized that integrated marketing communications (IMC) was more than just a fad. Terms such as new advertising, orchestration, and seamless communication were used to describe the concept of integration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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40. In the 4As' definition of integrated marketing communications, the focus is on A. the organizations creating a sustainable supply chain for developing a socially responsible business. B. the fact that nonpersonal communications must be totally avoided for a better communications impact. C. the employees keeping track of future prospects by maintaining a customer interaction tracker. D. the development of bait-and-switch marketing activities in all organizations. E. the process of using all forms of promotion to achieve maximum communication impact. The 4As' definition, the focus is on the process of using all forms of promotion to achieve maximum communication impact. However, advocates of the integrated marketing communications (IMC) concept argued for an even broader perspective that considers all sources of brand or company contact that a customer or prospect has with a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

41. The primary goal of an integrated marketing communications program is to A. have a company's entire marketing and promotional activities project a consistent, unified image to its customers. B. control all facets of a product's distribution. C. communicate with customers primarily through mass-media advertising. D. have complete control over all the channel partners in the distribution channel and to slow down the rate of diffusion of a new product among the customers. E. create a strong distribution network, via marketing, that is capable of destabilizing any competition. The integrated marketing communications approach seeks to have a company's entire marketing and promotional activities project a consistent, unified image to the marketplace. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

42. According to the definition of integrated marketing communications (IMC) given by Don Schultz, which of the following is true of IMC? A. It is a tactical separation of various communication activities. B. It does not view the audience as an important part of the IMC process. C. It does not view the employees as an important part of the IMC process. D. It is viewed as an ongoing strategic business process. E. It simply involves bundling promotional mix elements together. IMC is viewed as an ongoing strategic business process rather than just tactical integration of various communication activities. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

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43. Montblanc uses classic design, a distinctive brand name, a focused distribution strategy to exclusive retailers, and celebrities in its advertising to position its watches as high-quality, high-status products. This is an example of a(n) ______________________ approach. A. direct marketing B. mobile marketing C. integrated marketing communications D. old generation marketing E. mass media Montblanc uses an integrated communications strategy with a variety of marketing-mix elements, including price, product design, brand name, and distribution strategy, to create a high-quality, upscale image for its watches. AACSB: Reflective Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

44. _____ has been described as one of the "new-generation" marketing approaches being used by companies to better focus their efforts in acquiring, retaining, and developing relationships with customers and other stakeholders. A. Decentralized communication systems B. Bait-and-switch marketing approach C. Integrated marketing communications D. Mass-media advertising E. Customer newsletter service Integrated marketing communications (IMC) has been described as one of the "new-generation" marketing approaches being used by companies to better focus their efforts in acquiring, retaining, and developing relationships with customers and other stakeholders. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept. Topic: IMC

45. To respond to media fragmentation, marketers are increasing their spending on A. mass-media communication. B. television advertising. C. micromarketing. D. mass production. E. product packaging. To respond to the media fragmentation, marketers are increasing their spending on media that are more targeted and can reach specific market segments. There appears to be no stopping the fragmentation of the consumer market as well as the proliferation of media. The success of marketing communication programs will depend on how well companies make the transition from the fading age of mass marketing to the new era of micromarketing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

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46. Ultra-Long deodorant's tagline is "Timely strength for the match of life." Ads for the product feature a baseball star saying, "You need extra muscle when your day goes into extra time." These ads appear regularly on television and in print media. At the same time, Ultra-Long runs a sweepstakes contest for its customers. To enter the contest, customers have to fill out a $1-off coupon. Through the use of IMC, Ultra-Long is hoping to primarily create _____ for its new product, which is the combination of many factors, including the name, logo, symbols, design, packaging, and performance of the product. A. brand evangelism B. brand dilution C. brand language D. brand identity E. brand repositioning In the above scenario, Ultra-Long is hoping to create brand identity for its new product. Brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

47. _____ is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it. A. Brand evangelism B. Brand identity C. Brand extension D. Brand differentiation E. Brand engagement Brand identity is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

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48. The chief marketing officer who noted that “the future of marketing isn’t about getting people to buy your brand, but to buy into your brand,” recognized that marketing is now in the _____________ era, and companies must connect with consumers based on trust, transparency, engagement, and authenticity. A. relationship B. cynicism C. promotion D. mobile E. sustainability Brands are becoming less about the actual product or service and more about how people relate to them. Consumers may view brands as a form of self-expression. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

49. _____ has long been the cornerstone of brand-building efforts for many companies. A. Interactive media B. Mass-media advertising C. Online marketing D. Product placement E. Personal selling For many companies, mass-media advertising has long been the cornerstone of their brand-building efforts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs. Topic: IMC

50. _____ is the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services. A. Branding B. Product distribution C. Pricing D. Promotion E. Market segmentation Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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51. Traditionally, which of the following has been considered an element of the promotional mix? A. packaging B. advertising C. direct marketing D. interactive media E. branding Traditionally the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

52. Which of the following elements of the promotional mix is defined as a paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor using predominantly mass media? A. advertising B. branding C. packaging D. publicity E. sales promotion Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

53. Advertising is defined as any A. paid form of nonpersonal communication about a product, service, or company. B. form of media communication that provides an opportunity for immediate feedback. C. communication that moves a product from one level to another level of the distribution channel. D. personal communication from a company's representative to prospective buyers. E. nonpersonal communication about a product or service that is not paid for or run under identified sponsorship. Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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54. The basic elements that are used to accomplish an organization's marketing communication objectives are referred to as A. the marketing mix. B. marketing strategy tools. C. the growth-share matrix. D. the promotional mix. E. the hype cycle. The basic tools used to accomplish an organization's communication objectives are often referred to as the promotional mix. Traditionally, the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

55. Which the following factors is generally neglected through the use of advertising? A. ability to reach mass markets B. low cost per contact C. ability to create brand images and symbolism D. immediate feedback E. control of message content and media placement The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

56. Which of the following is true of advertising as a form of promotion? A. low cost per contact B. nonpaid form of promotion C. sponsor or advertiser not identified D. immediate feedback and capability to close sales E. makes use of nontraditional media Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. There are several reasons why advertising is such an important part of many marketers' IMC programs. One of the reasons is that media advertising is still the most cost-effective way to reach large numbers of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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57. Clave Inc., a large soap manufacturing firm, has introduced a new soap known as Honeydew. It wants to promote the soap to broad audiences across various countries in a persuasive and cost-effective manner. At the same time, it also wants to enhance the overall company image. It has a promotional budget of about $1,000,000. Which of the following forms of promotion should Clave make use of for the promotion of Honeydew? A. mass advertising B. direct marketing C. personal selling D. sales promotion E. publicity In the above scenario, Clave Inc. should make use of mass advertising to promote Honeydew. Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. Advertising is an important part of a marketer's IMC as it is the most cost-effective way to reach large numbers of consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

58. Which of the following features of direct-response advertising differentiates it from other forms of advertising? A. It provides for immediate feedback from the message recipient. B. It makes use of only magazines as a primary medium of advertising. C. It is a form of nonpersonal mass-media communication. D. It is most widely used because of its pervasiveness. E. It is a paid form of mass-media communication. The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

59. The best-known and most widely discussed form of promotion is A. personal selling. B. sales promotion. C. direct marketing. D. advertising. E. publicity/public relations. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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60. Which promotional mix element would best suit a firm that wants to reach a large consumer audience while keeping the cost per contact low and creating a symbolic image or appeal for a new brand? A. advertising B. personal selling C. sampling D. couponing E. door-to-door selling Advertising is also a valuable tool for building company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perceptions. Advertising is an important part of a marketer's IMC as it is the most cost-effective way to reach large numbers of consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

61. Which of the following is true of advertising? A. Advertising attempts to create a personal relationship with the consumers. B. The nature and purpose of advertising is usually the same across various industries. C. Advertising is a valuable tool for building brand and company equity. D. Advertising is used only for the promotion of mass consumer products. E. One disadvantage of advertising is that it is extremely personal to consumers. Advertising is a valuable tool for building company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perceptions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

62. With respect to consumer markets, advertising done by manufacturers of well-known brands on a countrywide basis or in most regions of the country is known as _____ advertising. A. professional B. trade C. business-to-business D. national E. direct-response National advertising is advertising done by large companies on a nationwide basis or in most regions of the country. Most of the ads for well-known companies and brands that are seen on prime-time TV or in other major national or regional media are examples of national advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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63. Stylo, a perfume manufacturing company, spends about $1,000,000 annually on advertising. The company seeks to remind its customers in the United States about the brand and its features, benefits, and uses. It primarily strives to reinforce its image and initiate product purchase. In the context of the types of advertising to consumer markets, Stylo is using\ A. national advertising. B. primary demand advertising. C. trade advertising. D. business-to-business advertising. E. professional advertising In the above scenario, Stylo is making use of national advertising. National advertising is advertising done by large companies on a nationwide basis or in most regions of the country. The goals of national advertisers are to inform or remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be predisposed to purchase it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

64. _____ advertising is done by local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. A. Trade B. Professional C. Direct-response D. Retail E. National Retail, or local advertising, is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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65. A to Z, a supermarket in New Jersey, placed a weekly advertisement in the local newspapers. The advertisement stated that A to Z would provide its customers all vegetables at a flat rate of $5 from Monday to Wednesday between 1 p.m. and 3 p.m. at select locations in the state. A to Z most likely used A. national advertising. B. trade advertising. C. retail advertising. D. primary-demand advertising. E. direct-response advertising. In the above scenario, A to Z made use of retail advertising. Retail or local advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retail or local advertising tends to emphasize specific patronage motives such as price, hours of operation, service, atmosphere, image, or merchandise assortment. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

66. Advertising done for the purpose of building store traffic and encouraging consumers to make a purchase takes the form of _____ advertising. A. trade B. facultative C. professional D. direct-action E. B2B Retail or local advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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67. Which of the following is true of retail advertising? A. It is done by large companies on a nationwide basis or in most regions of the country. B. It takes the form of direct-response advertising. C. It is done to build store traffic and sales. D. It is designed to stimulate demand for the general product class or an entire industry. E. It is targeted at marketing channel members such as wholesalers, distributors, and suppliers. Retail advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

68. Retail or local advertising often takes the form of A. trade advertising. B. selective-demand advertising. C. bait-and-switch advertising. D. direct-action advertising. E. indirect-response advertising. Retailers are concerned with building store traffic, so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

69. Primary-demand advertising is designed to A. influence the purchase of only industrial goods and services. B. stimulate demand for a general product class or entire industry. C. help launch a specific line extension. D. stimulate demand for existing products that are "dying." E. create a market share gain for the industry leader. Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Primary-demand advertising is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept as much as to sell a particular brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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70. In the context of advertising for consumer markets, _____ advertising focuses on creating demand for a specific company's brand. A. primary-demand B. selective-demand C. trade D. professional E. industrial Selective-demand advertising focuses on creating demand for a specific company's brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

71. Munroe Dairy, Inc., a manufacturer of dairy products, has come up with new global ads that promote the benefits of drinking milk as well as demonstrate the various uses of milk. This is an example of A. trade advertising. B. primary-demand advertising. C. secondary-demand advertising. D. retail advertising. E. professional advertising. The above scenario is an example of primary-demand advertising. Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Primary-demand advertising is often used as part of a promotional strategy to help a new product gain market acceptance, since the challenge is to sell customers on the product concept as much as to sell a particular brand. An advertiser might concentrate on stimulating primary demand when its brand dominates a market and will benefit the most from overall market growth. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

72. The National Egg Association has been promoting the benefits of eggs for many years. It aims to educate customers about the nutritional values of eggs through ads which are aired in several states. It is making use of A. direct-response advertising. B. professional advertising. C. primary-demand advertising. D. selective-demand advertising. E. trade advertising. The National Egg Association is making use of primary-demand advertising. Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. An advertiser might concentrate on stimulating primary-demand when its brand dominates a market and will benefit the most from overall market growth. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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73. Which of the following best describes selective-demand advertising? A. It focuses on creating demand for a specific company's brands. B. It is done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. C. It focuses on creating demand for an entire industry. D. It focuses on targeting individuals who buy or influence the purchase of industrial goods or services for their companies. E. It is one of the four Ps of the marketing mix. Selective-demand advertising focuses on creating demand for a specific company's brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

74. Which of the following is an example of retail advertising? A. Advertisement of a health drink that compares its benefits to its competitor's B. Advertising done by the Beef Council to stimulate the demand for beef C. Advertisement for Fizzy Cola placed in a trade magazine to promote it to food store managers D. Advertisement for Pink Airlines that appears in newspapers all across the country E. Newspaper advertisement for a discount at a restaurant located on the outskirts of San Diego Retail advertising is advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment is called retail advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

75. _____ advertising is targeted at individuals who influence the purchase of goods and services used to make other products. A. Professional B. Primary-demand C. Retail D. Business-to-business E. Direct-response Business-to-business advertising is advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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76. Advertisements for CL brake products, True spark plugs, AM chassis parts, and Stone wheels featured in Tire Review, a journal for owners/operators of auto shops, are examples of _____ advertising. A. retail B. direct-response C. business-to-business D. direct-mail E. primary-demand The above scenario is an example of business-to-business advertising. Business-to-business advertising is advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

77. DocStock Inc., a company that manufactures stethoscopes, has placed an ad in MediMag, a magazine primarily read by doctors. The company is trying to improve sales by directly reaching out to its primary market segment. This is an example of\ A. business-to-business advertising. B. trade advertising. C. professional advertising. D. primary-demand advertising. E. direct-action advertising. The above scenario is an example of professional advertising—advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company's product in their business operations. It might also be used to encourage professionals to recommend or specify the use of a company's product by end-users. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

78. _____ advertising is targeted at marketing channel members such as wholesalers, distributors, and retailers in order to encourage them to stock more of a particular brand. A. National B. Selective-demand C. Professional D. Trade E. Retail Trade advertising is targeted to marketing channel members such as wholesalers, distributors, and retailers. The goal is to encourage channel members to stock, promote, and resell the manufacturer's branded products to their customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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79. Which of the following is an example of trade advertising? A. Mars Inc. is using print advertising to attract supply managers from other companies. B. Pluto Inc., a toothpaste manufacturer, places an ad in Tooth Daily, a magazine frequently circulated among dentists. C. CL Inc., a chocolate manufacturer, hopes to attract wholesalers and retailers by placing an ad in NextMag, a weekly hotel magazine. D. James, a doctor, places an ad in a local newspaper to advertise his new clinic. E. The State Egg Federation runs a series of television ads that educate people about the nutritional value of eggs. CL Inc., a chocolate manufacturer, hoping to attract wholesalers and retailers by placing an ad in NextMag, a weekly hotel magazine, is an example of trade advertising. Trade advertising is advertising targeted to marketing channel members such as wholesalers, distributors, and retailers. The goal is to encourage channel members to stock, promote, and resell the manufacturer's branded products to their customers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

80. Which of the following statements is true of direct marketing? A. Traditionally, it has not been considered an element of the promotional mix. B. It is synonymous with direct mail. C. The rapid growth of the Internet is discouraging the growth of direct marketing. D. It is seldom, if ever, used by companies that have an external sales force. E. It is less direct when compared to mail-order catalogs. Traditionally, direct marketing has not been considered an element of the promotional mix. However, because it has become such an integral part of the integrated marketing communications (IMC) program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a component of the promotional mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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81. Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario? A. advertising B. sales promotion C. direct marketing D. publicity E. pricing In the above scenario, Venus Corp. is making use of direct marketing. Direct marketing is much more than direct mail and mail-order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

82. One of the major tools of straight-to-consumer marketing is _____ advertising, where a product is promoted through an ad that encourages the consumer to purchase straight from the manufacturer. A. direct-response B. primary-demand C. business-to-business D. trade E. selective-demand One of the major tools of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

83. Which of the following is true of direct-response advertising? A. It encourages consumers to purchase straight from the manufacturer. B. It targets wholesalers, retailers, and other members of the supply chain. C. It is also known as primary-demand advertising. D. It primarily targets professionals such as doctors, lawyers, and engineers. E. It does not use the Internet as a means of advertising. One of the major tools of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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84. _____ is a tool of direct marketing that is used to call customers directly and attempts to sell them products and services or qualify them as sales leads. A. Bait advertising B. Buzz marketing C. Telemarketing D. Switch marketing E. B2B marketing Direct marketing plays a big role in the integrated marketing communications programs of consumer-product companies and business-to-business marketers. They use telemarketing to call customers directly and attempt to sell them products and services or qualify them as sales leads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

85. Which of the following is true of the Internet as a marketing medium? A. It is considered to be a traditional medium. B. It does not facilitate two-way communication. C. It enables marketers to gather valuable personal information from customers. D. It does not enable real time adjustment of offers. E. It cannot be integrated with other media programs such as direct mail and telemarketing. The interactive nature of the Internet is one of its major advantages. This capability enables marketers to gather valuable personal information from customers and prospects and to adjust their offers accordingly, in some cases in real time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

86. _____ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums. A. Direct marketing B. Advertising C. Public relations D. Sales promotion E. Publicity Sales promotion is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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87. Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes, are part of A. consumer-oriented sales promotion. B. trade-oriented sales promotion. C. buzz promotion. D. bait-and-switch sales promotion. E. channel-initiated sales promotion. Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

88. Foodie Inc. includes monthly coupons in its magazine advertisements. This is an example of A. consumer-oriented sales promotion. B. industrial sales promotion. C. business-oriented sales promotion. D. trade-oriented sales promotion. E. service-oriented sales promotion. The above scenario is an example of consumer-oriented sales promotion. Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

89. Which of the following is true of trade-oriented sales promotion? A. It is also known as buzz promotion. B. It targets members of the supply chain. C. It is targeted at the ultimate user of a product. D. It uses rebates and couponing. E. It includes sweepstakes and premiums. Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company's products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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90. Sales promotion programs targeted at marketing intermediaries such as wholesalers, distributors, and retailers are part of A. consumer-oriented sales promotion. B. trade-oriented sales promotion. C. user-oriented sales promotion. D. intrinsic sales promotion. E. bait-and-switch sales promotion. Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

91. _____ refers to nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. A. Advertising B. Sales promotion C. Publicity D. Public relations E. Telemarketing Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

92. Which of the following is a primary difference between publicity and advertising? A. Unlike advertising, publicity is done only by retailers. B. Unlike publicity, advertising does not utilize mass media. C. Unlike advertising, publicity is not paid for by the sponsoring organization. D. Unlike advertising, publicity is institutional in character. E. Unlike publicity, advertising leads to less skepticism among consumers. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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93. Which of the following is a similarity between publicity and advertising? A. Both are nonpaid forms of communication. B. Both are run by an unidentified sponsor. C. Both involve nonpersonal communication to a mass audience. D. Both are not directly paid for by the company. E. Both frequently provide an opportunity for immediate feedback. Like advertising, publicity involves nonpersonal communication to a mass audience, but unlike advertising, publicity is not directly paid for by the company. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

94. One of the primary advantages inherent in the use of publicity is its A. ability to be personalized. B. credibility. C. negligible variable costs. D. tangibility. E. ability to be closely controlled. An advantage of publicity over other forms of promotion is its credibility. Consumers generally tend to be less skeptical toward favorable information about a product or service when it comes from a source they perceive as unbiased. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

95. Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible? A. advertising B. publicity C. packaging D. sales promotion E. direct marketing An advantage of publicity over other forms of promotion is its credibility. Consumers generally tend to be less skeptical toward favorable information about a product or service when it comes from a source they perceive as unbiased. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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96. Which of the following statements about publicity is true? A. Publicity is a form of communication that is directly run under an identified sponsorship. B. Publicity is the only tool used in a firm's public relations efforts. C. Publicity usually comes in the form of a news story or an editorial. D. Publicity has more of a long-term, ongoing purpose than public relations. E. Publicity refers to personal communications regarding an organization and its products. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

97. A local newspaper published an article about Pluto Inc.'s latest line of shoes. The shoes were made with used clothing sourced from households across the country. The article also included select photographs and offered consumers a "sneak peek" into the manufacturing process. This form of nonpersonal marketing communication is known as A. sales promotion. B. digital marketing. C. personal selling. D. public relations. E. publicity. The above scenario is an example of publicity. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

98. A review of a movie in a local magazine or on a popular daily television show is an example of A. personal selling. B. publicity. C. direct marketing. D. public relations. E. sales promotion. The above scenario is an example of publicity. Publicity refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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99. Which of the following statements describes a disadvantage of publicity? A. Publicity is expensive to implement as it is directly paid for and run under identified sponsorship. B. Publicity has relatively low credibility. C. Publicity is not always under the control of an organization and is sometimes unfavorable. D. Publicity is not useful with a market segmentation strategy. E. Publicity makes a market aggregation strategy ineffective. Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

100. A lawsuit charged a mortgage lender with racism because it allegedly charged African-American borrowers higher rates than other borrowers. News of the lawsuit was reported by the wire service, and it appeared in several newspapers. This is an example of A. sales detraction. B. negative advertising. C. cause selling. D. negative publicity. E. bait-and-switch advertising. The above scenario is an example of negative publicity. Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about a company and/or its products can be very damaging. For example, recently the food and beverage industry has received a great deal of negative publicity regarding the nutritional value of their products as well as their marketing practices, particularly those targeting young people. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

101. DG Loans, a mortgage lender, was charged with a discrimination lawsuit. It alleged that the company was offering loans at higher rates of interest to African-American consumers. In response to these allegations, DG Loans sent out e-mail queries to its African-American customers to get feedback on their experiences with the firm's lending offices. This feedback was subsequently collected and released to the news media. This is an example of A. public relations. B. advertising. C. publicity. D. sales promotion. E. cause marketing. Public relations is defined as "a strategic communication process that builds mutually beneficial relationships between organizations and their publics." It involved managing relationships with a number of important audiences, including consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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102. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is engaging in a function known as A. buzz marketing. B. reactive disinformation. C. bait-and-switch marketing. D. public relations. E. sales promotion. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

103. Which of the following is true of public relations? A. It is synonymous with sales promotions. B. It is narrower in perspective than publicity. C. It includes fund-raising, sponsorship of special events, and special publications. D. It avoids using advertising as a tool to enhance an organization's image. E. It refers to personal communications regarding an organization and its products. Public relations uses publicity and a variety of other tools—including special publications, participation in community activities, fund-raising, sponsorship of special events, and various public affairs activities—to enhance an organization's image. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

104. _____ is a form of one-on-one communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea. A. Advertising B. Sales promotion C. Publicity D. Interactive marketing E. Personal selling The final element of an organization's promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company's product or service or to act on an idea. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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105. _____ is a promotional mix element that allows for direct contact between a buyer and seller and allows a message to be modified according to the needs or reactions of the customer. A. Advertising B. Sales promotion C. Public relations D. Publicity E. Personal selling Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. The personal, individualized communication in personal selling allows the seller to tailor the message to the customer's specific needs or situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

106. Which of the following statements accurately describes how personal selling differs from advertising? A. Unlike advertising, personal selling does not result in direct sales. B. Unlike advertising, personal selling can be tailored to meet customers' specific needs. C. Unlike advertising, personal selling can attract mass attention. D. Unlike advertising, personal selling tends to have a lower cost per individual. E. Unlike advertising, personal selling does not provide accurate feedback. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility; the seller can see or hear the potential buyer's reactions and modify the message accordingly. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

107. The promotional mix element that allows for the most immediate and precise feedback from the customer is A. advertising. B. sales promotion. C. public relations. D. publicity. E. personal selling. Personal selling also involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer's reactions. If the feedback is unfavorable, the salesperson can modify the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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108. Which of the following promotional tools best suits a business-to-business marketer who sells expensive, risky, and often complex products? A. print advertising B. sales promotion C. public relations D. personal selling E. publicity The personal, individualized communication in personal selling allows the seller to tailor the message to the customer's specific needs or situation. Personal-selling efforts can also be targeted to specific markets and customer types that are the best prospects for the company's product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

109. What is the major advantage of personal selling over advertising as a communication method? A. Personal selling involves the usage of mass media, whereas advertising does not. B. Personal selling improves the image of the firm, whereas advertising does not. C. Personal selling activates the receiver's selective processes, whereas advertising does not. D. Personal selling results in sales responses that are difficult to measure, whereas advertising results in immediate feedback. E. Personal selling involves direct contact between the buyer and seller, whereas advertising deals with indirect contact. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

110. Greg called Marsha on the telephone to present information about a meal plan package his company was offering. Marsha responded unfavorably to his description of the offer, so Greg modified the message. Which characteristic of personal selling did Greg benefit from in this scenario? A. the ability to target specific markets B. the ability to target specific customer types C. autonomy from the advertising or marketing department D. the ability to respond to immediate feedback E. indirect contact between the buyer and the seller The salesperson benefited from the ability to respond to immediate feedback, which is unique to personal selling. AACSB: Reflective Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-04 Identify the elements of the promotional mix. Topic: The Promotion Mix

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111. A(n) _____ refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. A. service point B. inference point C. reference point D. touch point E. display point A touch point, or audience contact, refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

112. According to Tom Duncan's basic categories of contact or touch points, which of the following best describes planned marketing communication messages created by an organization such as advertisements, websites and social media sites, news/press releases, packaging, brochures, and sale promotions? A. channel-created touch points B. unexpected touch points C. company-created touch points D. intrinsic touch points E. customer-initiated touch points Company-created touch points are planned marketing communication messages created by the company such as advertisements, websites and social media sites, news/press releases, packaging, brochures and collateral material, sale promotions, and point-of-purchase displays along with other types of in-store décor. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

113. According to Tom Duncan's basic categories of contact or touch points, which of the following best describes interactions that occur with a company or brand during the process of buying or using the product or service? A. intrinsic touch points B. company-created touch points C. unexpected touch points D. customer-initiated touch points E. distributive touch points Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

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114. Which of the following touch points relates to unanticipated references or information about a company or brand that a customer or prospect receives from sources that are beyond the control of the organization? A. company-created touch point B. intrinsic touch point C. user-created touch point D. unexpected touch point E. customer-initiated touch point Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that are beyond the control of the organization. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

115. Juan goes to a large electronics retailer to get information on an upcoming television purchase. He discusses his purchase with a retail salesperson who is not under the direct control of the television manufacturer. Which of the four basic categories of touch points does the retail salesperson represent? A. company-created touch point B. planned touch point C. intrinsic touch point D. unexpected touch point E. customer-initiated touch point Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-05 Identify the contact points between marketers and their target audiences.

116. Joy calls a mobile phone store to inquire about a new phone available in the market. The customer service operator sends her an e-mail with the product details along with other specifications Joy requested. Which of the following types of touch points is illustrated in this scenario? A. company-created touch point B. intrinsic touch point C. extrinsic touch point D. unexpected touch point E. customer-initiated touch point The above scenario exemplifies a customer-initiated touch point. Customer-initiated touch points are interactions that occur whenever a customer or prospect contacts a company. Most of these contacts involve inquiries or complaints consumers might have regarding the use of a product or service and occur through calls made directly to the company, via e-mails, or through specific sections of websites to which customers are directed. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-05 Identify the contact points between marketers and their target audiences. Topic: The Communication Process

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117. How does the integrated marketing communications (IMC) plan approach differ from traditional approaches to promotion? A. IMC puts more emphasis on advertising and less on sales promotion. B. IMC puts more emphasis on sales promotion and less on public relations and publicity. C. IMC recognizes that marketers must be able to use a wide range of marketing and promotional tools to present a consistent image to target audiences. D. IMC places barriers around the various marketing and promotional functions and requires that they be planned and managed separately. E. IMC predominately makes use of mass-media communications in order to attract and retain customers. Integrated marketing communications management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

118. _____ involves the process for planning, executing, evaluating, and controlling the use of various promotional-mix elements to effectively reach target audiences. A. Marketing information system management B. Integrated marketing communications management C. Customer relationship management D. Differential communications management E. Communications process accounting Integrated marketing communications management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

119. The first step in the IMC planning process is A. the analysis of the communication process. B. the determination of a budget. C. the review of the marketing plan. D. the development of an advertising message. E. the distribution of sales promotion materials. The first step in the integrated marketing communications planning m is to review the marketing plan. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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120. Typically, a marketing plan usually includes A. a corporate mission statement. B. individual job specifications. C. a media schedule. D. a detailed situation analysis. E. articles of incorporation. Marketing plans can take several forms but generally include five basic elements—a detailed situation analysis, specific marketing objectives, a marketing strategy, a program for implementing the marketing strategy, and a process for monitoring and evaluating performance and providing feedback. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

121. The stage of the IMC planning process which comes immediately after the overall marketing plan is reviewed is the A. integration and implementation of marketing communications strategies. B. development of marketing job descriptions. C. promotional program situation analysis. D. budget determination. E. analysis of market forecasts. In an IMC planning model, the review of the marketing plan is usually followed by the analysis of the promotional program situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: The Steps in an Advertising Campaign

122. According to an integrated marketing communications planning model, which of the following activities is best associated with the review of the marketing plan step? A. integrating promotional mix strategies B. analyzing source, message, and channel factors C. assessing environmental influences D. setting direct-marketing objectives E. purchasing media time and space Assessment of environmental influences is one of the activities included in the review of the marketing plan step. Reviewing the marketing plan and objectives is the first step in the IMC planning process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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123. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "integrate and implement marketing communications strategies"? A. purchasing media time and space B. analyzing source, message, and channel factors C. allocating tentative budgets D. identifying niche market segments E. establishing communication goals and objectives Purchase of media time and space is one of the activities included in the "integrate and implement marketing communication strategies" step. While the marketer's advertising agencies may be used to perform some of the other IMC functions, they may also hire other communication specialists such as direct-marketing and interactive and/or sales promotion agencies, as well as public relations firms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

124. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "analysis of promotional program situation"? A. developing selling roles and responsibilities B. setting advertising objectives C. analyzing consumer behavior D. purchasing media time and space E. setting a tentative marketing communications budget Analysis of consumer behavior is one of the activities included in the step "analysis of promotional program situation." After the overall marketing plan is reviewed, the next step in developing a promotional plan is to conduct the situation analysis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

125. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "analysis of communications process"? A. allocating tentative budgets B. analyzing source, message, and channel factors C. competitive analysis D. designing and implementing direct-marketing programs E. external analysis Analysis of the source, message, and channel factors is one of the activities included in the step "analysis of communication process." This stage of the promotional planning process examines how the company can effectively communicate with consumers in its target markets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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126. According to an integrated marketing communications planning model, which of the following activities is best associated with the step "developing integrated marketing communications program"? A. examining overall marketing plan and objectives B. internal analysis C. analyzing receiver's response processes D. determining advertising budget E. external analysis Determination of advertising budget is one of the activities included in the step "develop integrated marketing communications program." Developing the IMC program is generally the most involved and detailed step of the promotional planning process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

127. Which of the following is an area of focus of internal analysis? A. product/service offering B. positioning strategies C. competitors D. market segments E. consumer buying patterns The internal analysis assesses relevant areas involving the product/service offering and the firm itself. The capabilities of the firm and its ability to develop and implement a successful promotional program, the organization of the promotional department, and the successes and failures of past programs should be reviewed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

128. Which of the following is a question that firms are likely to ask during an external analysis? A. What are the strengths and weaknesses of our product or service? B. Who influences the decision to buy our product? C. How does our product or service compare with competition? D. What are our product's key benefits? E. Does our product have unique selling points? The external analysis focuses on factors such as characteristics of the firm's customers, market segments, positioning strategies, and competitors. During the external analysis, firms are likely to inquire about the external influences that drive people to buy their products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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129. What is the next stage in the IMC planning process, once marketing and communication objectives have been set? A. budget determination B. developing the advertising message C. reviewing the marketing plan D. recruitment of marketing and promotion personnel E. development of the IMC program After the communication objectives are determined, attention turns to the promotional budget. Two basic questions are asked at this point: What will the promotional program cost? How will the money be allocated? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

130. The development of the advertising message that the marketer wants to convey to its target audience is called the A. creative strategy. B. media strategy. C. distribution strategy. D. channel strategy. E. user strategy. Message development, often referred to as creative strategy, involves determining the basic appeal and message the advertiser wishes to convey to the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

131. _____ involves determining which communication channels will be used to deliver the advertising message to the target audience. A. Media strategy B. Creative strategy C. Reactionary strategy D. Intrinsic strategy E. User strategy Two important aspects of the advertising program are development of the message and the media strategy. Message development, often referred to as creative strategy, involves determining the basic appeal and message the advertiser wishes to convey to the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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132. Which of the following is the final stage in the integrated marketing communications (IMC) planning process? A. reviewing the marketing plan and situation analysis B. determining the promotional budget C. monitoring, evaluating, and controlling the promotional program D. developing the integrated marketing communications program E. determining the media strategy The final stage of the IMC planning process is monitoring, evaluating, and controlling the promotional program. It is important to determine how well the IMC program is meeting communication objectives and helping the firm accomplish its overall marketing goals and objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

133. Which of the following is true of the final stage of the integrated marketing communications (IMC) planning process? A. It involves deciding the role of each promotional-mix element. B. It involves determining the importance of each promotional-mix element. C. It involves finding out the coordination between all of the promotional-mix elements. D. It involves monitoring, evaluating, and controlling the promotional program. E. It involves performing activities to implement the promotional program. The final stage of the IMC planning process is monitoring, evaluating, and controlling the promotional program. It is important to determine how well the IMC program is meeting communications objectives and helping the firm accomplish its overall marketing goals and objectives. The IMC planner wants to know not only how well the promotional program is doing but also why. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

134. Rebecca is engaged in a process where she is assessing the strengths and weaknesses of her brand from an image perspective. She is in which stage of the integrated marketing communication planning process? A. internal analysis B. external analysis C. communication process analysis D. communication objectives E. budget determination Assessing the strengths and weaknesses of the firm or the brand from an image perspective is an aspect of internal analysis. The brand image of a firm can have a significant impact on the way the firm can advertise and promote itself as well as its various products and services. AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-06 Describe the steps in the IMC planning process. Topic: IMC

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Chapter 01 Test Bank 01/09/2017 22:03:04 Summary Category-# of Questions AACSB: Analytical Thinking-111 AACSB: Reflective Thinking-23 Accessibility: Keyboard Navigation-129 Blooms: Apply-26 Blooms: Remember-72 Blooms: Understand-36 Difficulty: 1 Easy-77 Difficulty: 2 Medium-37 Difficulty: 3 Hard-20 Learning Objective: 01-01 Describe the role of advertising and other promotional elements in marketing.-8 Learning Objective: 01-02 Discuss the evolution of the integrated marketing communications (IMC) concept.-16 Learning Objective: 01-03 Explain the increasing value of the IMC perspective in advertising and promotional programs.-9 Learning Objective: 01-04 Identify the elements of the promotional mix.-72 Learning Objective: 01-05 Identify the contact points between marketers and their target audiences.-8 Learning Objective: 01-06 Describe the steps in the IMC planning process.-21 Topic: IMC-45 Topic: Role of Advertising-1 Topic: Strategic Marketing Planning-7 Topic: The Communication Process-7 Topic: The Promotion Mix-72 Topic: The Steps in an Advertising Campaign-1

01-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 02 Test Bank Student: ___________________________________________________________________________ 1. Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied. True False

2. A market can rarely be viewed as one large, homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments. True False

3. Dominating channels of distribution is one way of creating a competitive advantage. True False

4. Marketers often go after the entire market with one product, brand, or service offering to create the maximum impact. True False

5. In a typical target marketing process, the stage of segmenting the market is immediately followed by positioning one's product or service through effective marketing strategies. True False

6. Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases the knowledge of their specific requirements. True False

7. The more marketers segment the market, the less precise is their understanding of it. True False

8. In the geographic segmentation approach, markets are divided into units based on consumers' occupations and lifestyles. True False

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9. When a market is segmented based on personality, lifecycles, and/or lifestyles, it is referred to as demographic segmentation. True False

10. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. True False

11. Segmenting the market based on consumers' product or brand usage and the degree of use is an example of behavioristic segmentation. True False

12. Industrial marketers refer to the 80–20 rule, meaning that 20 percent of their buyers account for 80 percent of their sales volume. True False

13. Differentiated marketing is used when the firm selects one segment and attempts to capture a large share of this market. True False

14. The positioning by competitor approach positions a product by associating it with a particular user or group of users. True False

15. Premium brands positioned at the high end of the market usually use the price/quality approach to positioning. True False

16. When positioning by product class, marketers only position against brands, and not against other product categories. True False

17. Repositioning of a product usually occurs because of declining or stagnant sales. True False

18. Strong symbolic features and social and psychological meaning may be more important than functional utility for many products. True False

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19. Brand equity refers to the tangible assets earned through a product's functional purpose. True False

20. A marketer with an integrated marketing communications (IMC) perspective is likely to link high relative ad expenditures with premium prices, and low relative ad expenditures with low prices. True False

21. Trade advertising focuses on sales promotion efforts directed toward the ultimate consumer. True False

22. Most consumer-product companies distribute through direct channels. True False

23. According to the marketing and promotions process model, the marketing process begins with the A. development of the brand equity. B. development of a marketing strategy. C. development of the promotional mix. D. determination of the promotional budget. E. establishment of a nano-campaign marketing strategy.

24. According to the marketing and promotions process model, in which of the following stages does the company decide the product or service areas and particular markets where it wants to compete? A. development of a marketing strategy and analysis B. development of the target marketing process C. allocation of advertising budget D. development of the marketing planning program E. creation of a positioning strategy

25. The Manischewitz company broadened its marketing efforts to capture more of the mainstream market following a(n) ____________________________, which identified favorable demand trends for ethnic foods. A. positioning strategy B. opportunity analysis C. budget analysis D. promotional push strategy E. promotional pull strategy

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26. _____ is a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. A. Matrix analysis B. Micro analysis C. Situation analysis D. Opportunity analysis E. Competitive analysis

27. When Coca-Cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a __________________, or a detailed assessment of the current marketing conditions facing the company, its product lines, and its individual brands. A. matrix analysis B. micro analysis C. situation analysis D. challenge analysis E. competitive analysis

28. Which of the following is best defined as areas where there are favorable demand trends, customer needs and wants are not being satisfied, and where a company thinks it can compete effectively? A. market segmentations B. marketing channels C. marketing stubs D. market economics E. market opportunities

29. A situational analysis A. does not include an assessment of a company's product lines. B. usually starts with a positioning strategy. C. does not include an assessment of the conditions facing the company. D. typically involves creating branding strategies. E. includes an assessment of a company's individual brands.

30. During a routine market study conducted by CL Foods, it was noted that Chinese and Indian food products were in high demand in American society. In order to take advantage of such a demand, CL Foods manufactured and sold these food items locally. In this scenario, the company is taking advantage of a A. market opportunity. B. market aggregation. C. market assimilation. D. marketing buzz. E. market threat.

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31. FunZone Inc. identified and developed a SmartCard that can be used at fair grounds to make the ticketing process easier. The company found that the existing system was complicated and highly time-consuming. The SmartCard was easy to operate and each swipe would deduct the cost of a ride automatically. According to the given scenario, FunZone has recognized a A. market opportunity. B. marketing buzz. C. marketing engagement. D. marketing channel. E. market threat.

32. There are several medicines that relieve allergy-related symptoms but only Sensitine comes in a quick dissolving form that can be easily swallowed without water. The manufacturer of Sensitine hopes the fact that it dissolves and enters the system more quickly than other brands will create a A. market aggregation. B. marketing assimilation. C. competitive advantage. D. cross-merchandising strategy. E. market disintermediation.

33. ___________________ can be achieved through advertising that creates and maintains product differentiation and brand equity, as with the long-running advertising campaign for Michelin tires, which stressed security and performance. A. Market aggregation B. Marketing assimilation C. Brand extensions D. Competitive advantage E. Market disintermediation

34. Offering quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution are ways of A. achieving a competitive advantage. B. practicing cross-merchandising strategy. C. creating market space. D. practicing bait-and-switch marketing. E. establishing a marketing stub.

35. _____ is defined as something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry. A. Competitor indexing B. Switch marketing C. Competitive advantage D. Marketing stub E. Bait-and-switch marketing

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36. The strong brand images of Apple, Samsung, Nike, BMW, and McDonald's give them a ___________________ in their respective markets. A. competitive advantage B. market opportunity C. micro advantage D. macro analysis E. marketing challenge

37. John & Bauer Inc., manufacturers of health drugs, are the manufacturers of a painkiller called JB Revive. The painkiller is unique as it contains calcium, and it is quite unlike any other painkiller in the market. The addition of calcium led to an increase in sales of the medicine as well. In this scenario, the addition of calcium gives the company a A. market engagement. B. cross-merchandising opportunity. C. competitive advantage. D. marketing assimilation. E. competitive index.

38. The first step in the target marketing process is to A. develop positioning strategies. B. request government approval. C. determine whether to use a market segmentation strategy or a mass marketing strategy. D. identify markets with unfulfilled needs. E. develop new products.

39. The market segmentation process A. divides a market into distinct groups that have heterogeneous needs. B. divides a market into distinct groups that will respond similarly to marketing actions. C. offers one version of the product to all markets. D. creates products for several markets that have independent needs. E. positions products in the minds of prospects and customers.

40. Directing a company's efforts toward one or more groups of customers who share common needs is known as A. cross-merchandising. B. competitor indexing. C. mass customization. D. target marketing. E. cross-branding.

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41. ________________ is dividing a market into distinct groups that (1) have common needs, and (2) will respond similarly to a marketing action. A. Market segmentation B. Competitor indexing C. Mass customization D. Cross merchandising E. Cross-branding

42. Dividing the market into units such as nations, states, counties, or even neighborhoods is known as A. demographic segmentation. B. psychographic segmentation. C. quantified aggregation. D. lifestyle aggregation. E. geographic segmentation.

43. Which of the following is a geographic variable for segmentation of the market? A. family size B. occasions C. counties D. age E. gender

44. Which of the following is a geographic segmentation variable? A. income B. neighborhood C. sex D. education E. involvement

45. Delish Inc., a food manufacturer, introduced an instant soup specially designed for and advertised in the colder regions of Asia and Europe. This is an example of A. demographic segmentation. B. psychographic segmentation. C. sociocultural segmentation. D. geographic segmentation. E. undifferentiated marketing.

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46. Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in Texas, where people prefer beef, or in Miami, where a mustard-based sauce is preferred. Which of the following segmentation approaches would be best for the company, based on its desire to target specific regions? A. demographic B. socioeconomic C. personality D. geographic E. behavioristic

47. Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast. This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies A. geographic segmentation. B. lifestyle segmentation. C. socioeconomic segmentation. D. demographic segmentation. E. usage segmentation.

48. Which of the following is a primary variable of demographic segmentation? A. lifestyle B. personality C. region D. marital status E. involvement

49. Division of the market based on age, gender, household size, and other measurable characteristics is known as A. demographic segmentation. B. psychographic segmentation. C. socioeconomic segmentation. D. geographic segmentation. E. undifferentiated segmentation.

50. Jim's Inc., a travel agency in Texas, offers trips that are designed specifically for couples. In this scenario, the company is using _____ segmentation. A. geographic B. demographic C. lifestyle D. behavior E. personality

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51. Venus Finance aired a series of ads that targeted people born between 1980 and 1994. In this scenario, the company is using a _____ segmentation strategy. A. geographic B. demographic C. socioeconomic D. behavioristic E. personality

52. When , targets the 34 percent of the population who are 50+, it is using a _____________________ segmentation strategy. A. demographic B. socioeconomic C. behavior D. personality E. geoographic

53. Which of the following is a variable of the demographic segmentation strategy? A. personality B. marital status C. values D. lifestyle E. region

54. Enliven, a sports drink manufacturer, has identified its preferred target market as men between the ages of 18 and 22 who are currently in high school or college and active in sports. Which of the following types of segmentation is Enliven using in this scenario? A. benefit and demographic B. psychographic and geographic C. geographic and psychographic D. socioeconomic and psychographic E. demographic and psychographic

55. Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as A. geographic segmentation. B. demographic segmentation. C. psychographic segmentation. D. socioeconomic segmentation. E. behavioral segmentation.

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56. _____ divides a market on the basis of lifestyles. A. Geographic segmentation B. Psychographic segmentation C. Benefit segmentation D. Demographic segmentation E. Socioeconomic segmentation

57. Merry Inc. is a nonprofit organization that employs a large number of underprivileged people. It sells art and handicrafts made by these individuals at reasonable prices. Merry's target market consists of people who believe in helping others. It uses _____ segmentation. A. geographic B. psychographic C. benefit D. socioeconomic E. demographic

58. With respect to psychographic segmentation of markets, AIO stands for A. activities, innovation, and opinions. B. activities, interests, and opportunities. C. activities, innovations, and opportunities. D. activities, interests, and opinions. E. actions, interests, and opinions.

59. Which of the following is a primary variable used in psychographic segmentation? A. income B. lifestyles C. education D. marital status E. age

60. Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life in the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using _____ segmentation. A. benefit B. psychographic C. socioeconomic D. undifferentiated E. demographic

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61. Which of the following is a primary variable defined in psychographic segmentation? A. personality B. income C. education D. family size E. gender

62. _____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A. Benefit B. Geographic C. Demographic D. Behavioristic E. Psychographic

63. A company that divides its target markets based on their perceived level of loyalty is using A. benefit segmentation. B. geographic segmentation. C. socioeconomic segmentation. D. behavioristic segmentation. E. outlet segmentation.

64. Which of the following types of segmentation is employed when consumers are grouped according to their usage and buying responses to a product or service? A. behavioristic B. demographic C. benefit D. socioeconomic E. psychographic

65. Degree of usage as a basis of segmentation is best reflected by A. the VALS principle. B. the iceberg principle. C. the mirror image rule. D. the rule of equity. E. the 80–20 rule.

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66. _____ segmentation is most closely related to the 80–20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers. A. Geographic B. Behavioristic C. Demographic D. Psychographic E. Benefit

67. The 80–20 rule states that A. around 80 percent of a company's sales comes from 20 percent of the customers. B. only 80 percent of a market can be segmented. C. market segmentation works well only 80 percent of the time, unlike market assimilation which works 20 percent of the time. D. only about 80 percent of the people remember the company's positioning of a product while the remaining 20 percent create their own positioning for a particular product. E. about 80 percent of corporations do not understand the actual meaning of the term "market segmentation."

68. Dental Care, a dental hygiene products manufacturer, has come up with three types of toothpastes for different segments—whitening toothpaste for individuals who buy for aesthetic reasons, strawberry-flavored toothpaste for those concerned with the taste, and germ-control toothpaste for those looking to protect their teeth all day long. On what basis has it segmented the market? A. demographic B. geographic C. socioeconomic D. benefit E. sociocultural

69. _____ segmentation is the grouping of customers on the basis of attributes sought in a product. A. Benefit B. Geographic C. Socioeconomic D. Demographic E. Lifestyle

70. Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states, "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using _____ segmentation as it targets its product to satisfy consumers who want to satisfy performance needs. A. benefit B. demographic C. geographic D. socioeconomic

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71. WristTactical, a watch manufacturer, specializes in manufacturing tactical watches for Navy divers. The company launched an ad campaign that stressed the water-resistant and endurance characteristics of its watches. In this scenario, WristTactical is making use of _____ segmentation. A. benefit B. demographic C. geographic D. behavioristic E. socioeconomic

72. The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation. A. socioeconomic B. benefit C. geographic D. psychographic E. demographic

73. Which of the following is a primary variable considered in benefit segmentation? A. attributes sought B. income C. lifestyle D. birth era E. marital status

74. According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market. A. bait-and-switch marketing B. concentrated marketing C. micromarketing D. neuromarketing E. undifferentiated marketing

75. Frosty Inc., a beverage manufacturer, only had one product in its line and was targeting all types of customers. With respect to the market coverage alternatives, which of the following best characterizes the approach used by the company? A. concentrated marketing B. undifferentiated marketing C. bait-and-switch marketing D. niche marketing E. psychographic marketing

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76. Which of the following is true of undifferentiated marketing? A. It involves selecting one segment and attempting to capture a large market share. B. It involves offering just one product or service to the entire market. C. It involves creating a niche for a special product line. D. It involves customizing products for various target segments. E. It involves developing and offering a product for a specific market segment.

77. With respect to the market coverage alternatives, _____ involves developing separate marketing strategies for a number of segments. A. differentiated marketing B. undifferentiated marketing C. concentrated marketing D. buzz marketing E. B2B marketing

78. Mars Inc., a car manufacturer, offers cheap coupes, medium-priced sedans, as well as expensive sports cars. The company identifies and develops various products for several segments. This scenario is an illustration of A. concentrated marketing. B. loyalty marketing. C. buzz marketing. D. bait-and-switch marketing. E. differentiated marketing.

79. Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry-flavored, vanilla-flavored, and caffeine-free versions in addition to its original product. With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to A. a concentrated market. B. a differentiated market. C. a buzz market. D. an undifferentiated market. E. a mass market.

80. _____ is used when the firm selects one segment and attempts to capture a large share of the market. A. Mass marketing B. Undifferentiated marketing C. Concentrated marketing D. Differentiated marketing E. Bait-and-switch marketing

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81. Concentrated marketing involves focusing marketing efforts on A. different countries. B. one particular segment. C. mass markets. D. various segments. E. different counties.

82. Star Furniture designs and sells bedroom furniture for people who are over six feet tall, in an attempt to capture a large share of this relatively small target market. Which of the following strategies is the company employing in this scenario? A. differentiated marketing B. bait-and-switch marketing C. undifferentiated marketing D. concentrated marketing E. mass marketing

83. Pluto Inc., a high-end car manufacturer, makes only 12 cars per year. The company caters to the "super-rich" and manufacturers only on order. In this scenario, Pluto is using a(n)_____ marketing strategy. A. differentiated B. undifferentiated C. concentrated D. mass E. loyalty

84. Which of the following is true of concentrated marketing strategies? A. They are used to promote multiple products in varied markets. B. They are used as a precursor to undifferentiated marketing. C. They usually involve only a single segment. D. They attempt to catch a minority share in the market. E. They are synonymous with undifferentiated marketing strategies.

85. Outlander Inc. is a manufacturer of laptop computers. It plans on manufacturing computers that are targeted to users interested in video games. The computers are optimized for high-definition gaming and, hence, are expensive. By attempting to achieve a large share of a single market segment, which of the following types of marketing strategies has Outlander adopted? A. bait-and-switch marketing B. undifferentiated marketing C. concentrated marketing D. buzz marketing E. differentiated marketing

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86. _____ has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." A. Branding B. Proximity mapping C. Drip marketing D. Segmentation E. Positioning

87. Which of the following is true of product positioning? A. It does not focus on a product's competitors. B. It is not possible to position a service. C. It focuses purely on customers. D. It involves creating a competitive advantage. E. It is usually synonymous with market integration.

88. A brand's market position refers to its A. relative market share. B. location on store shelves. C. image in the mind of the customers. D. distribution intensity. E. stage in the product lifecycle.

89. _____ relates to the image of a product and/or brand relative to competing products or brands. A. Segmentation B. Positioning C. Neuromarketing D. Branding E. Merchandising

90. Momentum, a car manufacturer, positions one of its convertibles as "the best natural tanning tool known to man." This scenario would reflect a positioning strategy based on A. product attributes and benefits. B. cultural symbols. C. product user. D. price/quality. E. product class.

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91. The tagline on an ad for Baker Grill, a manufacturer of gas grills, reads, "The Ultimate Durable Grill." Baker Grill is using a positioning strategy based on A. product class. B. product attributes and benefits. C. price/quality. D. competitor. E. cultural symbol.

92. MusC, a whey protein supplement, is positioned as a zero-carb muscle recovery drink. MusC is using a _____ positioning strategy. A. product class B. product attributes and benefits C. price/quality D. competitor E. cultural or national symbol

93. Flash Parcel Service (FPS) built its advertising campaign around the slogan, "Our business quality speaks the language of speed." The company positioned its services based on the speed with which it delivers the service. With respect to the positioning strategies, this positioning strategy of FPS is based on A. cultural symbols. B. demographics. C. product class. D. product attributes. E. socioeconomics.

94. Appeal Automobiles introduced a new car into the market. The company stressed that the new car had side door air bags in an attempt to attract new buyers. Its focus on safety illustrates a strategy of positioning by A. cultural or national symbols. B. demographics. C. price-value. D. product attributes and benefits. E. competitor.

95. Henry's Supermarkets has been very effective in positioning itself as stores that offer superior products at a discounted rate. With respect to the positioning strategies, its strategy reflects positioning based on A. benefit. B. applications. C. use. D. price/quality. E. product class.

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96. The Quarter Burger is a hamburger sold by the international fast-food chain Sammy's Burgers. It was given the name because it contains a patty that weighs a quarter of a pound. The burger is sold for $1 on weekdays. With reference to the various positioning strategies, Sammy's quarter-pound burger is positioned by A. competition. B. demographics. C. product user. D. price/quality. E. product class.

97. Treat Corp., a manufacturer of packaged soups, launched an ad campaign that provided quick and easy recipes using Treat's products on the back of the soup packets. This is an example of positioning by A. product class. B. product use. C. price/quality. D. competitor. E. cultural symbol.

98. Saturn Inc., a fruit juice manufacturer, came up with an advertising campaign based around the slogan, "It's a wholesome meal." The ad speaks about the nutritious content of the fruit juice and how it can assist in losing weight. With respect to the positioning strategies, this is an example of positioning by A. quality. B. use or application. C. product class. D. competition. E. cultural symbols.

99. Athletic shoes advertised specifically to be used on tennis courts, for running, or for walking are using positioning strategy based on A. price/quality. B. use or application. C. product class. D. demographics. E. cultural symbols.

100. To encourage more people to use mass transit, ads from providers of mass transportation compare the ease and comfort of riding mass transit with the difficulties of driving in congested traffic and parking headaches. With respect to the positioning strategies, these mass transportation providers are making use of positioning by A. product class. B. product user. C. price/quality. D. applications. E. cultural symbols.

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101. Pluto Inc., a fruit juice manufacturer, launches an ad that contains the slogan, "Try our fruit juices and get the freshness of real fruit," to position itself against the category. In this scenario, Pluto Inc. is positioning its juices based on A. product class. B. product use. C. product price. D. product competition. E. product applications.

102. When Bauer Smith opened a men's shoe store, he decided to carry a full line of shoes in the larger, hard-to-find sizes. Today, his shoe store caters to professional basketball, baseball, and football players who often order a dozen pairs in a single visit. With respect to the positioning strategies, the shoe store uses positioning by A. demographics. B. cultural symbols. C. product user. D. competition. E. product class.

103. Premium Sports Apparels came up with an ad for shorts that are specially designed for athletes. The ad, which was featured in a sports magazine, shows how these shorts do not shrink over time and are made of a light fabric that helps keep the wearer dry and cool. With respect to positioning strategies, the company is using positioning by A. product user. B. product demographics. C. cultural symbols. D. product class. E. distribution intensity.

104. Yummy Soups positioned itself as better tasting and more appropriate to the adult palate to gain an advantage over Magic Soups, another packaged soup manufacturer. In the given scenario, which of the following positioning strategies has Yummy Soups used? A. demographics B. cultural symbols C. competitor D. price E. product class

105. The use of comparative advertising has become increasingly more common. Which of the following positioning strategies does this reflect? A. positioning by product user B. positioning by product class C. positioning by competitor D. positioning by price/quality E. positioning by cultural symbol

02-19 . McGraw-Hill Education.

106. When travelers think of Gallivant Airlines, an Australian airline, the first thing that comes to their mind is the kangaroo. In the given scenario, the strong association between the kangaroo and Gallivant Airlines indicates that the airline is receiving the benefit of positioning by A. product class. B. use/application. C. cultural symbol. D. product attribute. E. competitor.

107. Motor Corp., an automobile manufacturer, launched an ad campaign that stated, "We are yet to reach the industry leader's position, so we try harder." In this scenario, the company is positioning itself based on A. price/quality. B. use or application. C. competition. D. product class. E. distribution intensity.

108. Jolly Green Giant, the Keebler elves, and Mr. Peanut are all examples of positioning by A. price/quality. B. use or application. C. product class. D. distribution intensity. E. cultural symbols.

109. Venus Corporation engaged in a multimillion-dollar campaign to alter its image among many of its customers. The company's customers had a perception that the company was simply a hardware manufacturer. Venus wants customers to see it as a services and technology provider. In this scenario, Venus is A. using a repositioning strategy. B. segmenting the market into niche sectors. C. adopting a concentrated strategy. D. adopting an undifferentiated strategy. E. employing product class segmentation.

110. Initially, Flash Parcel Service (FPS) built its advertising campaign around the slogan, "Our business quality speaks the language of speed." Back then, the company was trying to make the customers aware of the speed with which it delivers the service. Later, FPS modified its slogan and designed new ads to make customers aware of the different aspects of its delivery such as reliability, cost-efficiency, and punctuality. By moving away from promoting itself as simply a parcel delivery company, FPS has A. used a repositioning strategy. B. employed product class positioning. C. engaged in positioning with cultural symbols. D. adopted an undifferentiated strategy. E. employed geographic segmentation.

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111. Which of the following is true of repositioning? A. It occurs only in companies that enjoy a monopolistic market structure. B. It usually occurs due to a boom in the company's sales. C. It must be practiced only during an economic downturn situation. D. It involves avoiding any alterations with the brand's existing position. E. It is aimed to stem a decline in sales or counter stagnant sales.

112. Which of the following marketing-mix elements is best referred to as a bundle of benefits or values that satisfies the needs of consumers? A. price B. promotion C. people D. product E. process

113. Offerings, which may come in the form of a service, a cause, or even a person, represent which aspect of the marketing mix? A. price B. promotion C. people D. product E. process

114. The meaning a consumer attributes to a product or brand and what he or she experiences in purchasing it is known as A. functional utility. B. product quality. C. brand extension. D. product symbolism. E. product utility.

115. Which of the following best defines branding? A. It involves creating new product lines within a company in order to expand and develop the company's product portfolio. B. It includes making use of more than one marketing channel to reach a huge number of customers and to cover a large geographical area. C. It primarily involves marketing through a mobile device which assists the customers with personalized information. D. It features building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. E. It involves hiring commercial market research agents to conduct a thorough market research before entering a market with unique products.

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116. Brand identity is best defined as A. a method of defining the percentage of loyal, impulsive, and need-based customers for a particular product. B. the process of hiring commercial market research agents to conduct a thorough market research before entering a market with unique products. C. a combination of the name, logo, symbols, design, packaging, and image of associations held by consumers. D. the process of creating new product lines within a company to expand and develop the company's product portfolio. E. a combination of print, guerilla, broadcast, and outdoor advertising to promote a company's products.

117. Which of the following is true of brand equity? A. It is a tangible asset that adds value to a service. B. It allows the seller to use undifferentiated marketing. C. It enables the seller to hide product successes from its competition. D. It is goodwill that results from a favorable impression. E. It allows the seller to stop all promotional activities and redirect its funds to other areas of operation.

118. Which of the following best defines brand equity? A. It is a process of varying the width of the product range with the company to modify the return on investment of the company. B. It is a process which calculates the percentage of loyal, impulsive, need-based customers, and wandering customers for a particular product. C. It is an intangible asset of added value or goodwill that results from the favorable image and/or the strength of consumer attachment to a company name. D. It is the process of hiring commercial market research agents to conduct a thorough market research before entering a market with unique products. E. It is combination of using print, guerilla, broadcast, and outdoor advertising to promote a company's products.

119. The marketing mix variable that deals with what a consumer must give up in order to purchase a product or service is A. packaging. B. price. C. promotion. D. distribution. E. production.

120. Which of the following is true about packaging? A. The package cannot be used as a branding tool. B. The package lacks in offering benefits like economy and storage. C. The package is what the consumer must give up to purchase a product. D. The package is often the consumer's first exposure to the product. E. The package must not divulge information relating to its contents.

02-22 . McGraw-Hill Education.

121. Promotional expenditures on advertising, sales promotion, and personal selling A. are the three main components of marketing mix. B. are incomes that must be covered in a firm's pricing structure. C. contribute to a product's cost and price, which in turn will affect a company's return on investment. D. are expenses that must be covered as they help by creating demand for a product. E. are examples of fixed costs on an organization's income statement.

122. Which of the following statements about the interaction of pricing with advertising and promotion is true? A. The positive relationship between high relative advertising and price levels is weakest for products in the introductory stage of the product lifecycle. B. The positive relationship between high relative advertising and price levels is weakest for products that are market leaders. C. Companies with high-quality products suffer the least, in terms of return on investment, with inconsistent advertising and pricing strategies. D. Brands with low relative advertising budgets are able to charge premium prices. E. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices.

123. _____ are sets of interdependent organizations involved in the process of making a product or service available for consumption. A. Marketing channels B. Marketing segments C. Marketing facilitators D. Marketing sectors E. Marketing programs

124. Dezine Inc. is a company that sells women's fashionable clothing through ballroom costume parties. It targets women who are too busy to go to stores to shop. The company avoids using wholesalers and retailers in its selling process. Dezine is utilizing a(n) A. direct channel of distribution. B. indirect channel of distribution. C. bait-and-switch marketing channel. D. direct-response advertising medium. E. reseller channel.

125. Breeze Corp., a manufacturer of ceiling fans, sells its products to retailers who in turn sell them to the final consumers. In the given scenario, the manufacturer of Breeze ceiling fans is using a(n) A. geographic market segmentation. B. indirect channel of distribution. C. single channel medium. D. direct-response advertising medium. E. demographic market segmentation.

02-23 . McGraw-Hill Education.

126. _____ are programs designed to persuade the retailer to promote a manufacturer's products. A. Promotional pull strategies B. Bait marketing strategies C. Buzz marketing strategies D. Promotional push strategies E. Switch marketing strategies

127. Mars Inc., a manufacturer of cat food in Texas, places an ad in a publication aimed at veterinarians. The ad explains why they should recommend Mars's cat food to the owners of the cats they treat. This scenario is an illustration of A. demographic segmentation. B. a promotional pull strategy. C. a loyalty marketing strategy. D. a bait marketing strategy. E. a promotional push strategy.

128. An ad in Blossom, a publication for retail florists, promotes Burgundy Lace tulips as a product that will enhance any spring bouquet that florists sell to consumers. The ad for Burgundy Lace tulips is an example of A. trade advertising. B. a promotional pull strategy. C. digital advertising. D. national advertising. E. bait-and-switch advertising.

129. With _____, advertising expenditures and promotional efforts are directed toward the ultimate consumer. A. promotional pull strategies B. promotional push strategies C. trade advertising D. market harvesting strategies E. B2B advertising

130. Which of the following is true of a promotional pull strategy? A. It involves spending very little money on advertising. B. Its goal is to create demand among consumers. C. It is synonymous with trade advertising. D. Its promotional efforts are directed toward retailers. E. Its promotional efforts are directed toward wholesalers.

131. When Coca-Cola targeted end consumers across the global market with the ad campaign that they should "Taste the Feeling" to remind consumers that drinking a Coca-Cola makes everyday moments more special, it was using a A. promotional pull strategy. B. promotional push strategy. C. trade advertising. D. price/quality positioning. E. direct selling.

02-24 . McGraw-Hill Education.

Chapter 02 Test Bank Key 1. Market opportunities are areas where the company believes that customer needs and opportunities are being satisfied. FALSE Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

2. A market can rarely be viewed as one large, homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments. TRUE A market can rarely be viewed as one large homogeneous group of customers; rather, it consists of many heterogeneous groups, or segments. In recent years, many companies have recognized the importance of tailoring their marketing to meet the needs and demand trends of different market segments. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program.

Topic: Elements of a Marketing Strategy 3. Dominating channels of distribution is one way of creating a competitive advantage TRUE Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. Competitive advantage can also be achieved through advertising that creates and maintains product differentiation and brand equity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-25 . McGraw-Hill Education.

4. Marketers often go after the entire market with one product, brand, or service offering to create the maximum impact. FALSE Marketers rarely go after the entire market with one product, brand, or service offering. Rather, they pursue a number of different strategies, breaking the market into segments and targeting one or more of these segments for marketing and promotional efforts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

5. In a typical target marketing process, the stage of segmenting the market is immediately followed by positioning one's product or service through effective marketing strategies. FALSE A typical target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-02 Define target marketing. Topic: Target Markets

6. Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases the knowledge of their specific requirements. TRUE Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements. The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-02 Define target marketing. Topic: Target Markets

7. The more marketers segment the market, the less precise is their understanding of it. FALSE The more marketers segment the market, the more precise is their understanding of it. Market segmentation is dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-26 . McGraw-Hill Education.

8. In the geographic segmentation approach, markets are divided into units based on consumers' occupations and lifestyles. FALSE In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

9. When a market is segmented based on personality, lifecycles, and/or lifestyles, it is referred to as demographic segmentation. FALSE When marketers divide the market on the basis of personality, lifecycles, and/or lifestyles, it is referred to as psychographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

10. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. TRUE The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

11. Segmenting the market based on consumers' product or brand usage and the degree of use is an example of behavioristic segmentation. TRUE Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. For example, product or brand usage, degree of use (heavy vs. light), and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-27 . McGraw-Hill Education.

12. Industrial marketers refer to the 80–20 rule, meaning that 20 percent of their buyers account for 80 percent of their sales volume. TRUE A few consumers may buy a disproportionate amount of many products or brands. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

13. Differentiated marketing is used when the firm selects one segment and attempts to capture a large share of this market. FALSE Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. Concentrated marketing is used when the firm selects one segment and attempts to capture a large share of this market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

14. The positioning by competitor approach positions a product by associating it with a particular user or group of users. FALSE Positioning a product by associating it with a particular user or group of users is positioning by product user. The competition approach positions the product by comparing it and the benefit it offers versus the competition. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Target Markets

15. Premium brands positioned at the high end of the market usually use the price/quality approach to positioning. TRUE Marketers often use price/quality characteristics to position their brands. One way they do this is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-28 . McGraw-Hill Education.

16. When positioning by product class, marketers only position against brands, and not against other product categories. FALSE Often the competition for a product comes from outside the product class. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

17. Repositioning of a product usually occurs because of declining or stagnant sales. TRUE Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

18. Strong symbolic features and social and psychological meaning may be more important than functional utility for many products. TRUE For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. For example, designer clothing such as Versace, Gucci, and Prada is often purchased on the basis of its symbolic meaning and image, particularly by teenagers and young adults. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

19. Brand equity refers to the tangible assets earned through a product's functional purpose. FALSE Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

02-29 . McGraw-Hill Education.

20. A marketer with an integrated marketing communications (IMC) perspective is likely to link high relative ad expenditures with premium prices, and low relative ad expenditures with low prices. TRUE High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. These results obviously support the IMC perspective that one voice must be conveyed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

21. Trade advertising focuses on sales promotion efforts directed toward the ultimate consumer. FALSE Trade advertising focuses on wholesalers and retailers and motivates them to purchase products for resale to their customers. An alternative strategy is a promotional pull strategy, which spends money on advertising and sales promotion efforts directed toward the ultimate consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

22. Most consumer-product companies distribute through direct channels. TRUE Most consumer-product companies distribute through indirect channels, usually a network of wholesalers and/or retailers. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

02-30 . McGraw-Hill Education.

23. According to the marketing and promotions process model, the marketing process begins with the A. development of the brand equity. B. development of a marketing strategy. C. development of the promotional mix. D. determination of the promotional budget. E. establishment of a nano-campaign marketing strategy. As the marketing and promotions process model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

24. According to the marketing and promotions process model, in which of the following stages does the company decide the product or service areas and particular markets where it wants to compete? A. development of a marketing strategy and analysis B. development of the target marketing process C. allocation of advertising budget D. development of the marketing planning program E. creation of a positioning strategy As the marketing and promotions process model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

25. The Manischewitz company broadened its marketing efforts to capture more of the mainstream market following a(n) ____________________________, which identified favorable demand trends for ethnic foods. A. positioning strategy B. opportunity analysis C. budget analysis D. promotional push strategy E. promotional pull strategy Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-31 . McGraw-Hill Education.

26. _____ is a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. A. Matrix analysis B. Micro analysis C. Situation analysis D. Opportunity analysis E. Competitive analysis Marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

27. When Coca-Cola wanted to regain market share for its vitaminwater product lines, it based its marketing strategy on a __________________, or a detailed assessment of the current marketing conditions facing the company, its product lines, and its individual brands. A. matrix analysis B. micro analysis C. situation analysis D. challenge analysis E. competitive analysis Marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

28. Which of the following is best defined as areas where there are favorable demand trends, customer needs and wants are not being satisfied, and where a company thinks it can compete effectively? A. market segmentations B. marketing channels C. marketing stubs D. market economics E. market opportunities Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-32 . McGraw-Hill Education.

29. A situational analysis A. does not include an assessment of a company's product lines. B. usually starts with a positioning strategy. C. does not include an assessment of the conditions facing the company. D. typically involves creating branding strategies. E. includes an assessment of a company's individual brands. A marketing strategy is based on a situation analysis—a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

30. During a routine market study conducted by CL Foods, it was noted that Chinese and Indian food products were in high demand in American society. In order to take advantage of such a demand, CL Foods manufactured and sold these food items locally. In this scenario, the company is taking advantage of a A. market opportunity. B. market aggregation. C. market assimilation. D. marketing buzz. E. market threat. In the above scenario CL Foods is taking advantage of a marketing opportunity. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-33 . McGraw-Hill Education.

31. FunZone Inc. identified and developed a SmartCard that can be used at fair grounds to make the ticketing process easier. The company found that the existing system was complicated and highly time-consuming. The SmartCard was easy to operate and each swipe would deduct the cost of a ride automatically. According to the given scenario, FunZone has recognized a A. market opportunity. B. marketing buzz. C. marketing engagement. D. marketing channel. E. market threat. In the above scenario, FunZone has identified a market opportunity. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

32. There are several medicines that relieve allergy-related symptoms but only Sensitine comes in a quick dissolving form that can be easily swallowed without water. The manufacturer of Sensitine hopes the fact that it dissolves and enters the system more quickly than other brands will create a A. market aggregation. B. marketing assimilation. C. competitive advantage. D. cross-merchandising strategy. E. market disintermediation. An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-34 . McGraw-Hill Education.

33. ___________________ can be achieved through advertising that creates and maintains product differentiation and brand equity, as with the long-running advertising campaign for Michelin tires, which stressed security and performance. A. Market aggregation B. Marketing assimilation C. Brand extensions D. Competitive advantage E. Market disintermediation An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

34. Offering quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution are ways of A. achieving a competitive advantage. B. practicing cross-merchandising strategy. C. creating market space. D. practicing bait-and-switch marketing. E. establishing a marketing stub. Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

35. _____ is defined as something unique or special a firm possesses or does that gives it an edge over other firms in a similar industry. A. Competitor indexing B. Switch marketing C. Competitive advantage D. Marketing stub E. Bait-and-switch marketing An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-35 . McGraw-Hill Education.

36. The strong brand images of Apple, Samsung, Nike, BMW, and McDonald's give them a ___________________ in their respective markets. A. competitive advantage B. market opportunity C. micro advantage D. macro analysis E. marketing challenge An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

37. John & Bauer Inc., manufacturers of health drugs, are the manufacturers of a painkiller called JB Revive. The painkiller is unique as it contains calcium, and it is quite unlike any other painkiller in the market. The addition of calcium led to an increase in sales of the medicine as well. In this scenario, the addition of calcium gives the company a A. market engagement. B. cross-merchandising opportunity. C. competitive advantage. D. marketing assimilation. E. competitive index. In the above scenario, the addition of calcium gives the company a competitive advantage. An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program. Topic: Elements of a Marketing Strategy

02-36 . McGraw-Hill Education.

38. The first step in the target marketing process is to A. develop positioning strategies. B. request government approval. C. determine whether to use a market segmentation strategy or a mass marketing strategy. D. identify markets with unfulfilled needs. E. develop new products. The target marketing process involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one's product or service through marketing strategies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Define target marketing. Topic: Target Markets

39. The market segmentation process A. divides a market into distinct groups that have heterogeneous needs. B. divides a market into distinct groups that will respond similarly to marketing actions. C. offers one version of the product to all markets. D. creates products for several markets that have independent needs. E. positions products in the minds of prospects and customers. Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

40. Directing a company's efforts toward one or more groups of customers who share common needs is known as A. cross-merchandising. B. competitor indexing. C. mass customization. D. target marketing. E. cross-branding. Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-37 . McGraw-Hill Education.

41. ________________ is dividing a market into distinct groups that (1) have common needs, and (2) will respond similarly to a marketing action. A. Market segmentation B. Competitor indexing C. Mass customization D. Cross merchandising E. Cross-branding Market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

42. Dividing the market into units such as nations, states, counties, or even neighborhoods is known as A. demographic segmentation. B. psychographic segmentation. C. quantified aggregation. D. lifestyle aggregation. E. geographic segmentation. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

43. Which of the following is a geographic variable for segmentation of the market? A. family size B. occasions C. counties D. age E. gender In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-38 . McGraw-Hill Education.

44. Which of the following is a geographic segmentation variable? A. income B. neighborhood C. sex D. education E. involvement In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

45. Delish Inc., a food manufacturer, introduced an instant soup specially designed for and advertised in the colder regions of Asia and Europe. This is an example of A. demographic segmentation. B. psychographic segmentation. C. sociocultural segmentation. D. geographic segmentation. E. undifferentiated marketing. The above scenario is an illustration of geographic segmentation. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-39 . McGraw-Hill Education.

46. Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in Texas, where people prefer beef, or in Miami, where a mustard-based sauce is preferred. Which of the following segmentation approaches would be best for the company, based on its desire to target specific regions? A. demographic B. socioeconomic C. personality D. geographic E. behavioristic In the above scenario, Brown's should utilize a geographic segmentation strategy. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

47. Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast. This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies A. geographic segmentation. B. lifestyle segmentation. C. socioeconomic segmentation. D. demographic segmentation. E. usage segmentation. The above scenario is an illustration of geographic segmentation. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside. Regional differences may exist in regard to food, drinks, attitudes toward foreign products, and the like. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-40 . McGraw-Hill Education.

48. Which of the following is a primary variable of demographic segmentation? A. lifestyle B. personality C. region D. marital status E. involvement Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

49. Division of the market based on age, gender, household size, and other measurable characteristics is known as A. demographic segmentation. B. psychographic segmentation. C. socioeconomic segmentation. D. geographic segmentation. E. undifferentiated segmentation. Dividing a market on the basis of demographic variables such as age, gender, race, and life stage is called demographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

50. Jim's Inc., a travel agency in Texas, offers trips that are designed specifically for couples. In this scenario, the company is using _____ segmentation. A. geographic B. demographic C. lifestyle D. behavior E. personality In the above scenario, Jim's Inc. is using a demographic segmentation strategy. Dividing a market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-41 . McGraw-Hill Education.

51. Venus Finance aired a series of ads that targeted people born between 1980 and 1994. In this scenario, the company is using a _____ segmentation strategy. A. geographic B. demographic C. socioeconomic D. behavioristic E. personality In the above scenario, Venus Finance is using a demographic segmentation strategy. Dividing a market on the basis of demographic variables such as age, sex, family size, education, birth era, income, and social class is called demographic segmentation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

52. When , targets the 34 percent of the population who are 50+, it is using a _____________________ segmentation strategy. A. demographic B. socioeconomic C. behavior D. personality E. geographic Dividing a market on the basis of demographic variables such as age, sex, family size, education, birth era, income, and social class is called demographic segmentation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

53. Which of the following is a variable of the demographic segmentation strategy? A. personality B. marital status C. values D. lifestyle E. region Dividing a market on the basis of demographic variables such as age, sex, marital status, birth era, and family size is called demographic segmentation. The variables used for segmentation here could be gender and lifecycle stage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-42 . McGraw-Hill Education.

54. Enliven, a sports drink manufacturer, has identified its preferred target market as men between the ages of 18 and 22 who are currently in high school or college and active in sports. Which of the following types of segmentation is Enliven using in this scenario? A. benefit and demographic B. psychographic and geographic C. geographic and psychographic D. socioeconomic and psychographic E. demographic and psychographic In the above scenario, Enliven is using both demographic and psychographic segmentation strategy. Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. Psychographic segmentation includes dividing people on the basis of activities and interests, like sports activity. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

55. Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as A. geographic segmentation. B. demographic segmentation. C. psychographic segmentation. D. socioeconomic segmentation. E. behavioral segmentation. Dividing the market on the basis of personality, values, and/or lifestyles is referred to as psychographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

56. _____ divides a market on the basis of lifestyles. A. Geographic segmentation B. Psychographic segmentation C. Benefit segmentation D. Demographic segmentation E. Socioeconomic segmentation Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-43 . McGraw-Hill Education.

57. Merry Inc. is a nonprofit organization that employs a large number of underprivileged people. It sells art and handicrafts made by these individuals at reasonable prices. Merry's target market consists of people who believe in helping others. It uses _____ segmentation. A. geographic B. psychographic C. benefit D. socioeconomic E. demographic In the above scenario, Merry Inc. is using a psychographic strategy. Dividing the market on the basis of personality, values, and/or lifestyles is referred to as psychographic segmentation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

58. With respect to psychographic segmentation of markets, AIO stands for A. activities, innovation, and opinions. B. activities, interests, and opportunities. C. activities, innovations, and opportunities. D. activities, interests, and opinions. E. actions, interests, and opinions. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

59. Which of the following is a primary variable used in psychographic segmentation? A. income B. lifestyles C. education D. marital status E. age Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-44 . McGraw-Hill Education.

60. Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life in the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using _____ segmentation. A. benefit B. psychographic C. socioeconomic D. undifferentiated E. demographic The above scenario is an illustration of psychographic segmentation. Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

61. Which of the following is a primary variable defined in psychographic segmentation? A. personality B. income C. education D. family size E. gender Dividing the market on the basis of personality, lifecycles, and/or lifestyles is referred to as psychographic segmentation. The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AIOs) of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

62. _____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A. Benefit B. Geographic C. Demographic D. Behavioristic E. Psychographic Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-45 . McGraw-Hill Education.

63. A company that divides its target markets based on their perceived level of loyalty is using A. benefit segmentation. B. geographic segmentation. C. socioeconomic segmentation. D. behavioristic segmentation. E. outlet segmentation. Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

64. Which of the following types of segmentation is employed when consumers are grouped according to their usage and buying responses to a product or service? A. behavioristic B. demographic C. benefit D. socioeconomic E. psychographic Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

65. Degree of usage as a basis of segmentation is best reflected by A. the VALS principle. B. the iceberg principle. C. the mirror image rule. D. the rule of equity. E. the 80–20 rule. Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-46 . McGraw-Hill Education.

66. _____ segmentation is most closely related to the 80–20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers. A. Geographic B. Behavioristic C. Demographic D. Psychographic E. Benefit Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

67. The 80–20 rule states that A. around 80 percent of a company's sales comes from 20 percent of the customers. B. only 80 percent of a market can be segmented. C. market segmentation works well only 80 percent of the time, unlike market assimilation which works 20 percent of the time. D. only about 80 percent of the people remember the company's positioning of a product while the remaining 20 percent create their own positioning for a particular product. E. about 80 percent of corporations do not understand the actual meaning of the term "market segmentation." Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80–20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-47 . McGraw-Hill Education.

68. Dental Care, a dental hygiene products manufacturer, has come up with three types of toothpastes for different segments—whitening toothpaste for individuals who buy for aesthetic reasons, strawberry-flavored toothpaste for those concerned with the taste, and germ-control toothpaste for those looking to protect their teeth all day long. On what basis has it segmented the market? A. demographic B. geographic C. socioeconomic D. benefit E. sociocultural In the above scenario, Dental Care is using a benefit segmentation strategy. In purchasing products, consumers are generally trying to satisfy specific needs and/or wants. They are looking for products that provide specific benefits to satisfy these needs. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

69. _____ segmentation is the grouping of customers on the basis of attributes sought in a product. A. Benefit B. Geographic C. Socioeconomic D. Demographic E. Lifestyle The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

70. Momentum, a brand of sports cars, launched an advertising campaign with a tagline that states, "Our cars outperform most cars on the road even before you step on the accelerator." In this scenario, the company is using _____ segmentation as it targets its product to satisfy consumers who want to satisfy performance needs. A. benefit B. demographic C. geographic D. socioeconomic The above scenario is an illustration of benefit segmentation. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-48 . McGraw-Hill Education.

71. WristTactical, a watch manufacturer, specializes in manufacturing tactical watches for Navy divers. The company launched an ad campaign that stressed the water-resistant and endurance characteristics of its watches. In this scenario, WristTactical is making use of _____ segmentation. A. benefit B. demographic C. geographic D. behavioristic E. socioeconomic The above scenario is an illustration of benefit segmentation. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

72. The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation. A. socioeconomic B. benefit C. geographic D. psychographic E. demographic The above scenario is an illustration of benefit segmentation. The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

73. Which of the following is a primary variable considered in benefit segmentation? A. attributes sought B. income C. lifestyle D. birth era E. marital status The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation and is widely used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-49 . McGraw-Hill Education.

74. According to the market coverage alternatives, _____ involves ignoring segment differences and offering just one product or service for the entire market. A. bait-and-switch marketing B. concentrated marketing C. micromarketing D. neuromarketing E. undifferentiated marketing Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

75. Frosty Inc., a beverage manufacturer, only had one product in its line and was targeting all types of customers. With respect to the market coverage alternatives, which of the following best characterizes the approach used by the company? A. concentrated marketing B. undifferentiated marketing C. bait-and-switch marketing D. niche marketing E. psychographic marketing In the above scenario, Frosty Inc. is using an undifferentiated marketing strategy. Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

76. Which of the following is true of undifferentiated marketing? A. It involves selecting one segment and attempting to capture a large market share. B. It involves offering just one product or service to the entire market. C. It involves creating a niche for a special product line. D. It involves customizing products for various target segments. E. It involves developing and offering a product for a specific market segment. Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-50 . McGraw-Hill Education.

77. With respect to the market coverage alternatives, _____ involves developing separate marketing strategies for a number of segments. A. differentiated marketing B. undifferentiated marketing C. concentrated marketing D. buzz marketing E. B2B marketing Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

78. Mars Inc., a car manufacturer, offers cheap coupes, medium-priced sedans, as well as expensive sports cars. The company identifies and develops various products for several segments. This scenario is an illustration of A. concentrated marketing. B. loyalty marketing. C. buzz marketing. D. bait-and-switch marketing. E. differentiated marketing. The above scenario is an illustration of differentiated marketing. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

79. Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry-flavored, vanilla-flavored, and caffeine-free versions in addition to its original product. With respect to market coverage alternatives, the given scenario reflects the company's decision to cater to A. a concentrated market. B. a differentiated market. C. a buzz market. D. an undifferentiated market. E. a mass market. The above scenario reflects Chill's decision to cater to a differentiated market. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-51 . McGraw-Hill Education.

80. _____ is used when the firm selects one segment and attempts to capture a large share of the market. A. Mass marketing B. Undifferentiated marketing C. Concentrated marketing D. Differentiated marketing E. Bait-and-switch marketing Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

81. Concentrated marketing involves focusing marketing efforts on A. different countries. B. one particular segment. C. mass markets. D. various segments. E. different counties. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

82. Star Furniture designs and sells bedroom furniture for people who are over six feet tall, in an attempt to capture a large share of this relatively small target market. Which of the following strategies is the company employing in this scenario? A. differentiated marketing B. bait-and-switch marketing C. undifferentiated marketing D. concentrated marketing E. mass marketing The above scenario is an illustration of concentrated marketing. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-52 . McGraw-Hill Education.

83. Pluto Inc., a high-end car manufacturer, makes only 12 cars per year. The company caters to the "super-rich" and manufacturers only on order. In this scenario, Pluto is using a(n)_____ marketing strategy. A. differentiated B. undifferentiated C. concentrated D. mass E. loyalty The above scenario is an illustration of concentrated marketing. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

84. Which of the following is true of concentrated marketing strategies? A. They are used to promote multiple products in varied markets. B. They are used as a precursor to undifferentiated marketing. C. They usually involve only a single segment. D. They attempt to catch a minority share in the market. E. They are synonymous with undifferentiated marketing strategies. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

85. Outlander Inc. is a manufacturer of laptop computers. It plans on manufacturing computers that are targeted to users interested in video games. The computers are optimized for high-definition gaming and, hence, are expensive. By attempting to achieve a large share of a single market segment, which of the following types of marketing strategies has Outlander adopted? A. bait-and-switch marketing B. undifferentiated marketing C. concentrated marketing D. buzz marketing E. differentiated marketing In the above scenario, Outlander has adopted a concentrated marketing strategy. Concentrated marketing is used when a firm selects one segment and attempts to capture a large share of the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program. Topic: Target Markets

02-53 . McGraw-Hill Education.

86. _____ has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." A. Branding B. Proximity mapping C. Drip marketing D. Segmentation E. Positioning Positioning has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Target Markets

87. Which of the following is true of product positioning? A. It does not focus on a product's competitors. B. It is not possible to position a service. C. It focuses purely on customers. D. It involves creating a competitive advantage. E. It is usually synonymous with market integration. Positioning has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Target Markets

88. A brand's market position refers to its A. relative market share. B. location on store shelves. C. image in the mind of the customers. D. distribution intensity. E. stage in the product lifecycle. The position of the product, service, or even store is the image that comes to mind and the attributes consumers perceive as related to it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Target Markets

02-54 . McGraw-Hill Education.

89. _____ relates to the image of a product and/or brand relative to competing products or brands. A. Segmentation B. Positioning C. Neuromarketing D. Branding E. Merchandising Positioning relates to the image of a product and/or brand relative to competing products or brands. The position of the product or brand is the key factor in communicating the benefits it offers and differentiating it from the competition. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Target Markets

90. Momentum, a car manufacturer, positions one of its convertibles as "the best natural tanning tool known to man." This scenario would reflect a positioning strategy based on A. product attributes and benefits. B. cultural symbols. C. product user. D. price/quality. E. product class. In the above scenario, Momentum is using a positioning strategy based on product attributes. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

91. The tagline on an ad for Baker Grill, a manufacturer of gas grills, reads, "The Ultimate Durable Grill." Baker Grill is using a positioning strategy based on A. product class. B. product attributes and benefits. C. price/quality. D. competitor. E. cultural symbol. In the above scenario, Baker Grill is using a positioning strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-55 . McGraw-Hill Education.

92. MusC, a whey protein supplement, is positioned as a zero-carb muscle recovery drink. MusC is using a _____ positioning strategy. A. product class B. product attributes and benefits C. price/quality D. competitor E. cultural or national symbol In the above scenario, MusC is using a strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

93. Flash Parcel Service (FPS) built its advertising campaign around the slogan, "Our business quality speaks the language of speed." The company positioned its services based on the speed with which it delivers the service. With respect to the positioning strategies, this positioning strategy of FPS is based on A. cultural symbols. B. demographics. C. product class. D. product attributes. E. socioeconomics. In the above scenario, Flash Parcel Service is using a positioning strategy based on product attributes. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-56 . McGraw-Hill Education.

94. Appeal Automobiles introduced a new car into the market. The company stressed that the new car had side door air bags in an attempt to attract new buyers. Its focus on safety illustrates a strategy of positioning by A. cultural or national symbols. B. demographics. C. price-value. D. product attributes and benefits. E. competitor. The above scenario is an illustration of a positioning strategy based on product attributes and benefits. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

95. Henry's Supermarkets has been very effective in positioning itself as stores that offer superior products at a discounted rate. With respect to the positioning strategies, its strategy reflects positioning based on A. benefit. B. applications. C. use. D. price/quality. E. product class. In the above scenario, Henry's Supermarkets is using a positioning strategy based on price. Marketers often use price/quality characteristics to position their brands. One way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-57 . McGraw-Hill Education.

96. The Quarter Burger is a hamburger sold by the international fast-food chain Sammy's Burgers. It was given the name because it contains a patty that weighs a quarter of a pound. The burger is sold for $1 on weekdays. With reference to the various positioning strategies, Sammy's quarter-pound burger is positioned by A. competition. B. demographics. C. product user. D. price/quality. E. product class. The above scenario is an illustration of a positioning strategy based on price. Marketers often use price/quality characteristics to position their brands. One way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

97. Treat Corp., a manufacturer of packaged soups, launched an ad campaign that provided quick and easy recipes using Treat's products on the back of the soup packets. This is an example of positioning by A. product class. B. product use. C. price/quality. D. competitor. E. cultural symbol. The above scenario is an illustration of a positioning strategy based on product use. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-58 . McGraw-Hill Education.

98. Saturn Inc., a fruit juice manufacturer, came up with an advertising campaign based around the slogan, "It's a wholesome meal." The ad speaks about the nutritious content of the fruit juice and how it can assist in losing weight. With respect to the positioning strategies, this is an example of positioning by A. quality. B. use or application. C. product class. D. competition. E. cultural symbols. The above scenario is an illustration of a positioning strategy based on use or application. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

99. Athletic shoes advertised specifically to be used on tennis courts, for running, or for walking are using positioning strategy based on A. price/quality. B. use or application. C. product class. D. demographics. E. cultural symbols. The above scenario is an illustration of a positioning strategy based on use or application. One way to communicate a specific image or position for a brand is to associate it with a specific use or application. While this strategy is often used to enter a market on the basis of a particular use or application, it is also an effective way to expand the usage of a product. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-59 . McGraw-Hill Education.

100. To encourage more people to use mass transit, ads from providers of mass transportation compare the ease and comfort of riding mass transit with the difficulties of driving in congested traffic and parking headaches. With respect to the positioning strategies, these mass transportation providers are making use of positioning by A. product class. B. product user. C. price/quality. D. applications. E. cultural symbols. The above scenario is an illustration of a positioning strategy based on product class. Often the competition for a product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

101. Pluto Inc., a fruit juice manufacturer, launches an ad that contains the slogan, "Try our fruit juices and get the freshness of real fruit," to position itself against the category. In this scenario, Pluto Inc. is positioning its juices based on A. product class. B. product use. C. product price. D. product competition. E. product applications. The above scenario is an illustration of a positioning strategy based on product class. The competition for a product comes from outside the product class. For example, Dole fruit juices encourage consumers to "drink their fruits," claiming that 8 ounces of juice is the equivalent of two fruits and V8 promotes drinking one's vegetables. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-60 . McGraw-Hill Education.

102. When Bauer Smith opened a men's shoe store, he decided to carry a full line of shoes in the larger, hard-to-find sizes. Today, his shoe store caters to professional basketball, baseball, and football players who often order a dozen pairs in a single visit. With respect to the positioning strategies, the shoe store uses positioning by A. demographics. B. cultural symbols. C. product user. D. competition. E. product class. In the above scenario, Bauer Smith used a positioning strategy based on product user. Positioning a product by associating it with a particular user or group of users is an approach to positioning. An example would be the Globe Shoes ad that emphasizes identification or association with a specific group of skateboarders. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

103. Premium Sports Apparels came up with an ad for shorts that are specially designed for athletes. The ad, which was featured in a sports magazine, shows how these shorts do not shrink over time and are made of a light fabric that helps keep the wearer dry and cool. With respect to positioning strategies, the company is using positioning by A. product user. B. product demographics. C. cultural symbols. D. product class. E. distribution intensity. In the above scenario, Premium Sports Apparels used a positioning strategy based on product user. Positioning a product by associating it with a particular user or group of users is an approach to positioning. An example would be the Globe Shoes ad that emphasizes identification or association with a specific group of skateboarders. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-61 . McGraw-Hill Education.

104. Yummy Soups positioned itself as better tasting and more appropriate to the adult palate to gain an advantage over Magic Soups, another packaged soup manufacturer. In the given scenario, which of the following positioning strategies has Yummy Soups used? A. demographics B. cultural symbols C. competitor D. price E. product class In the above scenario, Yummy Soups used a positioning strategy based on competitors. Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

105. The use of comparative advertising has become increasingly more common. Which of the following positioning strategies does this reflect? A. positioning by product user B. positioning by product class C. positioning by competitor D. positioning by price/quality E. positioning by cultural symbol Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-62 . McGraw-Hill Education.

106. When travelers think of Gallivant Airlines, an Australian airline, the first thing that comes to their mind is the kangaroo. In the given scenario, the strong association between the kangaroo and Gallivant Airlines indicates that the airline is receiving the benefit of positioning by A. product class. B. use/application. C. cultural symbol. D. product attribute. E. competitor. The above scenario is an illustration of a positioning strategy based on cultural symbols. An additional positioning strategy uses cultural symbols to differentiate brands. By associating the brand with a meaningful symbol, the brand is easily identifiable and differentiated from others. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

107. Motor Corp., an automobile manufacturer, launched an ad campaign that stated, "We are yet to reach the industry leader's position, so we try harder." In this scenario, the company is positioning itself based on A. price/quality. B. use or application. C. competition. D. product class. E. distribution intensity. The above scenario is an illustration of a positioning strategy based on competitors. Competitors may be as important to positioning strategy as a firm's own product or services. Advertisers used to think it was a cardinal sin to mention a competitor in their advertising. However, in today's market, an effective positioning strategy for a product or brand may focus on specific competitors. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

108. Jolly Green Giant, the Keebler elves, and Mr. Peanut are all examples of positioning by A. price/quality. B. use or application. C. product class. D. distribution intensity. E. cultural symbols. Each of these symbols has successfully differentiated the product it represents from competitors' products. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-63 . McGraw-Hill Education.

109. Venus Corporation engaged in a multimillion-dollar campaign to alter its image among many of its customers. The company's customers had a perception that the company was simply a hardware manufacturer. Venus wants customers to see it as a services and technology provider. In this scenario, Venus is A. using a repositioning strategy. B. segmenting the market into niche sectors. C. adopting a concentrated strategy. D. adopting an undifferentiated strategy. E. employing product class segmentation. In the above scenario, Venus is using a repositioning strategy. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

110. Initially, Flash Parcel Service (FPS) built its advertising campaign around the slogan, "Our business quality speaks the language of speed." Back then, the company was trying to make the customers aware of the speed with which it delivers the service. Later, FPS modified its slogan and designed new ads to make customers aware of the different aspects of its delivery such as reliability, cost-efficiency, and punctuality. By moving away from promoting itself as simply a parcel delivery company, FPS has A. used a repositioning strategy. B. employed product class positioning. C. engaged in positioning with cultural symbols. D. adopted an undifferentiated strategy. E. employed geographic segmentation. In the above scenario, Flash Parcel Service used a repositioning strategy. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

02-64 . McGraw-Hill Education.

111. Which of the following is true of repositioning? A. It occurs only in companies that enjoy a monopolistic market structure. B. It usually occurs due to a boom in the company's sales. C. It must be practiced only during an economic downturn situation. D. It involves avoiding any alterations with the brand's existing position. E. It is aimed to stem a decline in sales or counter stagnant sales. Repositioning is a positioning strategy that involves altering or changing a product's or brand's position. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Describe positioning and repositioning strategies. Topic: Positioning

112. Which of the following marketing-mix elements is best referred to as a bundle of benefits or values that satisfies the needs of consumers? A. price B. promotion C. people D. product E. process A product is not just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

113. Offerings, which may come in the form of a service, a cause, or even a person, represent which aspect of the marketing mix? A. price B. promotion C. people D. product E. process A product is anything that can be marketed and that, when used or supported, gives satisfaction to the individual. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

02-65 . McGraw-Hill Education.

114. The meaning a consumer attributes to a product or brand and what he or she experiences in purchasing it is known as A. functional utility. B. product quality. C. brand extension. D. product symbolism. E. product utility. The term refers to what a product or brand means to consumers and what they experience in purchasing and using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

115. Which of the following best defines branding? A. It involves creating new product lines within a company in order to expand and develop the company's product portfolio. B. It includes making use of more than one marketing channel to reach a huge number of customers and to cover a large geographical area. C. It primarily involves marketing through a mobile device which assists the customers with personalized information. D. It features building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. E. It involves hiring commercial market research agents to conduct a thorough market research before entering a market with unique products. Branding is about building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

116. Brand identity is best defined as A. a method of defining the percentage of loyal, impulsive, and need-based customers for a particular product. B. the process of hiring commercial market research agents to conduct a thorough market research before entering a market with unique products. C. a combination of the name, logo, symbols, design, packaging, and image of associations held by consumers. D. the process of creating new product lines within a company to expand and develop the company's product portfolio. E. a combination of print, guerilla, broadcast, and outdoor advertising to promote a company's products. The brand identity consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy.

Topic: Positioning

02-66 . McGraw-Hill Education.

117. Which of the following is true of brand equity?\ A. It is a tangible asset that adds value to a service. B. It allows the seller to use undifferentiated marketing. C. It enables the seller to hide product successes from its competition. D. It is goodwill that results from a favorable impression. E. It allows the seller to stop all promotional activities and redirect its funds to other areas of operation. Brand equity can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. Brand equity allows a brand to earn greater sales volume and/or higher margins than it could without the name, providing the company with a competitive advantage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

118. Which of the following best defines brand equity? A. It is a process of varying the width of the product range with the company to modify the return on investment of the company. B. It is a process which calculates the percentage of loyal, impulsive, need-based customers, and wandering customers for a particular product. C. It is an intangible asset of added value or goodwill that results from the favorable image and/or the strength of consumer attachment to a company name. D. It is the process of hiring commercial market research agents to conduct a thorough market research before entering a market with unique products. E. It is combination of using print, guerilla, broadcast, and outdoor advertising to promote a company's products. One important role of advertising in respect to branding strategies is creating and maintaining brand equity, which can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

02-67 . McGraw-Hill Education.

119. The marketing mix variable that deals with what a consumer must give up in order to purchase a product or service is\ A. packaging. B. price. C. promotion. D. distribution. E. production. The price variable refers to what the consumer must give up to purchase a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

120. Which of the following is true about packaging? A. The package cannot be used as a branding tool. B. The package lacks in offering benefits like economy and storage. C. The package is what the consumer must give up to purchase a product. D. The package is often the consumer's first exposure to the product. E. The package must not divulge information relating to its contents. The package is often the consumer's first exposure to the product, so it must make a favorable first impression. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

121. Promotional expenditures on advertising, sales promotion, and personal selling A. are the three main components of marketing mix. B. are incomes that must be covered in a firm's pricing structure. C. contribute to a product's cost and price, which in turn will affect a company's return on investment. D. are expenses that must be covered as they help by creating demand for a product. E. are examples of fixed costs on an organization's income statement. Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Studies have shown that pricing and advertising strategies go together. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

02-68 . McGraw-Hill Education.

122. Which of the following statements about the interaction of pricing with advertising and promotion is true? A. The positive relationship between high relative advertising and price levels is weakest for products in the introductory stage of the product lifecycle. B. The positive relationship between high relative advertising and price levels is weakest for products that are market leaders. C. Companies with high-quality products suffer the least, in terms of return on investment, with inconsistent advertising and pricing strategies. D. Brands with low relative advertising budgets are able to charge premium prices. E. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Studies have shown that pricing and advertising strategies go together. High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

123. _____ are sets of interdependent organizations involved in the process of making a product or service available for consumption. A. Marketing channels B. Marketing segments C. Marketing facilitators D. Marketing sectors E. Marketing programs Marketing channels, the place element of the marketing mix, are "sets of interdependent organizations involved in the process of making a product or service available for use or consumption." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

02-69 . McGraw-Hill Education.

124. Dezine Inc. is a company that sells women's fashionable clothing through ballroom costume parties. It targets women who are too busy to go to stores to shop. The company avoids using wholesalers and retailers in its selling process. Dezine is utilizing a(n) A. direct channel of distribution. B. indirect channel of distribution. C. bait-and-switch marketing channel. D. direct-response advertising medium. E. reseller channel. In the above scenario, Dezine is using a direct channel of distribution. A company can choose not to use any channel intermediaries but, rather, to sell to its customers through direct channels. This type of channel arrangement is sometimes used in the consumer market by firms using direct-selling programs. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Positioning

125. Breeze Corp., a manufacturer of ceiling fans, sells its products to retailers who in turn sell them to the final consumers. In the given scenario, the manufacturer of Breeze ceiling fans is using a(n) A. geographic market segmentation. B. indirect channel of distribution. C. single channel medium. D. direct-response advertising medium. E. demographic market segmentation. In the above scenario, Breeze Corp. used an indirect channel of distribution. Most consumer-product companies distribute through indirect channels, usually using a network of wholesalers (institutions that sell to other resellers) and/or retailers (which sell primarily to the final consumer). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

02-70 . McGraw-Hill Education.

126. _____ are programs designed to persuade the retailer to promote a manufacturer's products. A. Promotional pull strategies B. Bait marketing strategies C. Buzz marketing strategies D. Promotional push strategies E. Switch marketing strategies Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products are part of a promotional push strategy. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: Elements of a Marketing Strategy

127. Mars Inc., a manufacturer of cat food in Texas, places an ad in a publication aimed at veterinarians. The ad explains why they should recommend Mars's cat food to the owners of the cats they treat. This scenario is an illustration of A. demographic segmentation. B. a promotional pull strategy. C. a loyalty marketing strategy. D. a bait marketing strategy. E. a promotional push strategy. In the above scenario, Mars Inc. used a promotional push strategy. Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products are part of a promotional push strategy. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

128. An ad in Blossom, a publication for retail florists, promotes Burgundy Lace tulips as a product that will enhance any spring bouquet that florists sell to consumers. The ad for Burgundy Lace tulips is an example of A. trade advertising. B. a promotional pull strategy. C. digital advertising. D. national advertising. E. bait-and-switch advertising. The above scenario is an illustration of trade advertising. A company may use trade advertising to interest wholesalers and retailers and motivate them to purchase its products for resale to their customers. Trade advertising usually appears in publications that serve the particular industry. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy.

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129. With _____, advertising expenditures and promotional efforts are directed toward the ultimate consumer. A. promotional pull strategies B. promotional push strategies C. trade advertising D. market harvesting strategies E. B2B advertising Promotional pull strategy involves spending money on advertising and sales promotion efforts directed toward the ultimate consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

130. Which of the following is true of a promotional pull strategy? A. It involves spending very little money on advertising. B. Its goal is to create demand among consumers. C. It is synonymous with trade advertising. D. Its promotional efforts are directed toward retailers. E. Its promotional efforts are directed toward wholesalers. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers (if they are used), which in turn will request it from the manufacturer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

131. When Coca-Cola targeted end consumers across the global market with the ad campaign that they should "Taste the Feeling" to remind consumers that drinking a Coca-Cola makes everyday moments more special, it was using a A. promotional pull strategy. B. promotional push strategy. C. trade advertising. D. price/quality positioning. E. direct selling. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers (if they are used), which in turn will request it from the manufacturer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy. Topic: The Role of Advertising

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Chapter 02 Test Bank 01/09/2017 22:02:54 Summary Category-# of Questions AACSB: Analytical Thinking-84 AACSB: Reflective Thinking-47 Accessibility: Keyboard Navigation-129 Blooms: Apply-52 Blooms: Remember-45 Blooms: Understand-34 Difficulty: 1 Easy-58 Difficulty: 2 Medium-28 Difficulty: 3 Hard-45 Learning Objective: 02-01 Describe the role of advertising and promotion in an organization's integrated marketing program.-19 Learning Objective: 02-02 Define target marketing.-3 Learning Objective: 02-03 Discuss the role of market segmentation in an IMC program.-54 Learning Objective: 02-04 Describe positioning and repositioning strategies.-30 Learning Objective: 02-05 Identify the marketing-mix decisions that influence advertising and promotional strategy.-25 Topic: Elements of a Marketing Strategy-26 Topic: Positioning-36 Topic: Target Markets-62 Topic: The Role of Advertising-6

02-1 . McGraw-Hill Education.

Chapter 03 Test Bank Student: ___________________________________________________________________________

1. The primary function of promotional planners is to provide information or entertainment to their subscribers, viewers, or readers. True False

2. Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services. True False

3. While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm. True False

4. In the most common example of a centralized system, the advertising or marcom manager controls the entire promotions operation. True False

5. An advantage of the centralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. True False

6. Retail giant Target has an internal creative department that handles the design of its weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing materials. This is an example of an in-house agency. True False

7. A decentralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. True False

03-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

8. A disadvantage of the decentralized system is that each brand does not receive concentrated managerial attention, resulting in slower response to both problems and opportunities. True False

9. In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management. True False

10. Nearly two-thirds of the domestic billings are handled by 900 of the smallest agencies in the United States. True False

11. Superagencies were formed when large advertising organizations disintegrated to form separate, more specialized individual agencies. True False

12. The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other. True False

13. Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists. True False

14. The creative services department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message. True False

15. The layout of a print ad is known as a storyboard. True False

16. Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. True False

03-2 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

17. Programmatic buying has declined in recent years. True False

18. Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge. True False

19. A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account. True False

20. The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low. True False

21. The qualitative audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. True False

22. Loyalty to a single agency is becoming more common as marketers seek new ways of connecting with consumers. True False

23. A typical direct-marketing agency does not include a creative department. True False

24. One of the more widely used collateral service organizations is the marketing research firm. True False

25. An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice. True False

26. According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work. True False

03-3 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

27. _____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions. A. Collateral service providers B. Clients C. Advertising agencies D. Media organizations E. Special service organizations

28. Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In the given scenario, Momentum Automobiles would be classified as a(n) A. client. B. illustrator. C. full-service agency. D. advertising agency. E. media organization.

29. In the ad agency industry, clients refer to A. an advertiser or organization that has the product, service, or cause that needs to be marketed. B. the media, which plays a crucial role in the process of marketing communication. C. a purchaser of the consumer product advertised. D. a market for business or consumer products. E. an advertising agency that specializes in the creation of the communications message.

30. A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other marketing and promotions-related services. A. media organization B. sales promotion firm C. research organization D. advertising agency E. creative boutique

31. From the perspective of a promotional planner, the primary purpose of media is to A. represent the company's senior management in negotiations with an ad agency. B. provide the company with strategic recommendations and analysis. C. provide an environment for the firm's marketing communications message. D. help conduct a SWOT analysis. E. provide appropriate funding for all marketing activities.

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32. The primary function of most media is to A. assist the market research organization by conducting market surveys. B. coordinate their activities with direct-marketing agencies. C. provide information and entertainment to their audience. D. prepare the budget for the advertising and promotion process. E. compensate ad agencies through a commission system.

33. Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space and time with them by providing the same at discounted rates. Creative Networks helps these companies reach their target market effectively by communicating their message. In this scenario, Creative Networks is a(n) A. advertiser. B. collateral service provider. C. media organization. D. creative boutique. E. sales promotion agency.

34. With respect to the major participants in the advertising and promotions process, which of the following participants include sales promotion agencies, digital/interactive agencies, and public relations firms? A. advertising agencies B. media organizations C. collateral service agencies D. specialized marketing communications services agencies E. bait-and-switch marketing service agencies

35. Basic functions of the manager and staff in advertising and marketing communications include all of the following A. administration and execution. B. coordination with other departments. C. preparing materials for the sales force. D. managing the sales force. E. coordination with outside agencies and services.

36. In companies that follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"? A. art director B. brand manager C. advertising manager D. product manager E. copywriter

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37. Which of the following statements is true about the role of top management in the advertising and promotion decision-making process? A. The top management's day-to-day responsibilities usually include decision making and operations of advertising and promotion. B. The top management does not provide input in the advertising and promotion process. C. The top management is usually interested in how the advertising program represents the organization. D. The top management is only interested in the amount of money that must be allocated to advertising and promotion. E. The top management is more interested in tactical planning than strategic planning.

38. Under a centralized organizational system, the responsibility for planning and controlling the advertising and promotional functions lies with the A. brand manager. B. marketing communications manager. C. product manager. D. art director. E. account planning supervisor.

39. Which of the following is true of the role of an advertising manager, under a centralized management system? A. It includes budgeting and planning media schedule. B. It primarily involves checking the accuracy of financial reports and records. C. It includes employee compensation management. D. It involves administering the firm's sales and sales promotion programs. E. It ensures that day-to-day sales targets are met.

40. Which of the following is true about the functions of the advertising manager in a centralized system? A. The advertising manager is responsible for all sales and sales management activities. B. The advertising manager has the final say in determining the sales forecasts. C. The role of an advertising manager is similar to the role of an art director in a decentralized organization. D. The advertising manager controls the entire promotions operation. E. The advertising manager does not deal with planning and budgeting.

41. In a centralized organizational structure, the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. A. production B. finance C. auditing D. advertising E. product planning

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42. A company often uses a centralized organizational system when A. it has many different divisions within the company. B. it does not want to involve the top management in the decision-making process. C. it does not have many product lines or brands to advertise. D. it wants to involve a large number of people in making program decisions. E. it wants to have a category management system in place.

43. Which of the following differentiates a centralized organization from a decentralized organization? A. In a centralized organization, the advertising manager is responsible for all promotions activities including sales, whereas in a decentralized organization, the advertising manager is responsible for all promotions activities except sales. B. A centralized organizational system is used in large companies with more than 1,000 employees, whereas a decentralized organizational system is used only in smaller companies with no more than 500 employees. C. In a centralized organization, an advertising manager controls the entire promotions operation for all the products of a company, whereas in a decentralized organization, each product is assigned to a different brand manager. D. A centralized organizational structure includes a category management system, whereas a decentralized organizational structure does not include one. E. In a centralized organization, the efforts of all the brand managers are coordinated by the category managers, whereas in a decentralized organization, the efforts of all the brand managers are coordinated by the advertising managers.

44. Which of the following is true of the problems associated with the centralized organizational structure? A. It does not enable a transfer of functions and responsibilities associated with advertising and promotions to the brand manager. B. It does not facilitate coordination with external advertising agencies. C. It makes it difficult for the advertising department to understand the overall marketing strategy of the brand. D. It makes it difficult for the brand manager to coordinate with the various departments within the organization. E. It facilitates disassociation of advertising managers from the category management system.

45. In a decentralized system, a(n) _____ is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. A. brand manager B. media manager C. collateral services provider D. account executive E. sales manager

46. Under a decentralized system, the advertising department is generally a part of A. finance. B. sales. C. product development. D. marketing services. E. research and development.

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47. Jim, an employee of CL Inc., is responsible for planning, marketing, budgeting, sales, and profit performance of a specific brand. He has two assistants who help in planning, implementing, and controlling the marketing program. In this scenario, Jim is an example of a(n) A. product manager. B. art director. C. account executive. D. copywriter. E. account director.

48. When Procter & Gamble, Unilever, PepsiCo, Google, and Nestle assign each product/service or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance, these companies are using a _____________________________ system. A. finance B. sales C. decentralized D. centralized E. product

49. In a decentralized system, individuals who oversee management of the entire product category and focus on the strategic role of the various brands in order to build profits and market share are known as A. category managers. B. art directors. C. account executives. D. account supervisors. E. media planners.

50. A company often uses a decentralized organizational system when A. it has multiple divisions and many different products. B. it does not facilitate a manufacturing or industrial operation. C. it wants one advertising manager to handle the promotional activities of all the products. D. it has a top management that is actively involved in day-to-day decision making. E. it lacks the ability to handle multiple brands.

51. Which of the following describes a limitation associated with the decentralized organizational structure for advertising? A. Brand managers are often overqualified and tend to feel superior to product managers. B. Brand managers are typically from nonmanagement backgrounds. C. Brand managers do not devote enough attention to short-term planning and administrative tasks. D. Brand managers often end up competing for management attention, marketing budgets, and other resources. E. Brand managers typically rely on intuition and often jeopardize the creative activities of the advertising agency.

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52. Diva Boutique, located in Manhattan, relies on external advertising agencies for its advertising needs, but due to its growing global presence, it is now worried that using external agencies may lead to inconsistency in delivery of its brand image. It also wants to maintain tighter control over its advertising and promotional activities. Which of the following advertising agencies should it adopt? A. collateral service agency B. buzz marketing agency C. in-house agency D. Centralized agency E. creative boutique

53. Which of the following is true of an in-house advertising agency? A. It avoids top management involvement with the marketing communications function. B. It increases advertising and promotion costs. C. It provides greater stability. D. It provides more objectivity and range of services in comparison to outside agencies. E. It offers more access to top creative talent.

54. A major reason why some companies choose to use an in-house agency is to A. maintain creative freshness. B. reduce advertising and promotions costs. C. reduce the threat of potential lawsuits. D. make use of top creative talent. E. dissimilate brand management and advertising from under one roof.

55. Which of the following is a potential benefit of an in-house advertising agency? A. greater control B. access to more highly skilled specialists C. potential to obtain varied perspective on advertising problems D. greater flexibility E. greater objectivity

56. A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency in order to A. obtain greater control over the advertising process. B. reduce costs. C. obtain greater objectivity. D. make coordination of the advertising and promotional process easier. E. save media commissions.

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57. Which of the following is a disadvantage of using a centralized organizational system? A. longer response time B. very little top-management involvement C. involvement of many people in making program decisions D. lack of communication E. discontinuity in staff

58. Which of the following is an advantage of a decentralized organizational system? A. effective decision making B. Rapid response to problems and opportunities C. lack of internal conflicts D. enhanced authority E. external rather than internal focus

59. Which of the following is a disadvantage of a decentralized organizational system? A. inability to handle multiple product lines B. ineffective decision making C. longer response time D. lack of flexibility E. lack of managerial attention

60. Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from A. a decentralized marketing system. B. an in-house agency. C. the use of full-service advertising agencies. D. a centralized marketing system. E. the use of creative boutiques.

61. Which of the following is a disadvantage of using an in-house advertising agency? A. external focus rather than internal B. limited access to top-level talent C. reduced cost savings D. less stability E. decreased coordination

62. Which of the following refers to the amount of client money that agencies spend on media purchases and other equivalent activities? A. billings B. media commissions C. retainers D. activity fees E. ad traffic compensation

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63. Superagencies were formed A. because advertisers were disenchanted with large agencies. B. because advertisers wanted agencies to be more flexible and responsive than traditional agencies. C. to save money for clients. D. so that agencies could provide their clients with integrated marketing communications services worldwide. E. to lessen the need for competitive pricing.

64. Which of the following statements is true about superagencies? A. They were formed when large advertising agencies were broken down into smaller, more specialized agencies. B. Advertisers who became disenchanted with the superagencies moved to smaller agencies that were flexible and more responsive. C. They were formed so that agencies could provide clients with effective supply chain management. D. Advertisers who generally worked with superagencies converted them into in-house agencies to gain greater flexibility and objectivity. E. They were formed so that agencies could provide clients with just-in-time inventory management systems.

65. Which of the following statements explains why an organization would want to use an external advertising agency? A. It reduces advertising and promotional costs for the client. B. It enables the client to gain more control of the promotional activities. C. It allows more access to the top management of the client firm. D. It helps provide a consistent and integrated global brand image. E. It provides the client with the services of highly skilled individuals.

66. Which of the following statements is true about outside advertising agencies? A. Typically, external ad agencies do not use media analysts and researchers. B. External agencies are often preferred for their greater skill and expertise levels. C. Generally, most external ad agencies do not offer creative services. D. External ad agencies are generally cheaper than in-house agencies. E. Unlike in-house agencies, outside agencies can be used to portray a singular global image.

67. Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media? A. a creative boutique B. a full-service agency C. a media buying service D. a collateral agency E. a switch marketing agency

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68. An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a(n) A. creative boutique. B. media buying service. C. account service agency. D. full-service agency. E. buzz marketing agency.

69. Mars Inc., a San Diego–based advertising agency, offers various services, such as sales promotion, marketing research, package design, direct marketing, and publicity as well as planning, creation, and advertising production. In this scenario, Mars is an example of a(n) A. creative boutique. B. full-service agency. C. media buying organization. D. account service organization. E. media specialist company.

70. Gerald is responsible for keeping track of his agency's ________________, or the amount of client money his agency spends on media purchases and other equivalent activities. A. billings B. publicity C. promotions D. media buying E. direct marketing

71. Which of the following statements is true about account services? A. It is an in-house service for the advertisement agency that is independent of its clients' obligations. B. It is an advertising agency that solely provides media space and time. C. It provides the creative team with in-depth storyboards. D. It is a research department in the advertising agency that assists in creating the advertising message for the client. E. It is the link between the advertising agency and its clients.

72. A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel. A. account executive B. database manager C. media specialist D. copywriter E. art director

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73. Which of the following is true of the role of an account executive? A. It is primarily considered a research function. B. It is used only by centralized organizations. C. It is generally considered a subsidiary function. D. It includes an extensive creative aspect. E. It is the focal point of agency-client relationships.

74. In a full-service agency, the function of gathering, analyzing, and interpreting information that is useful in developing advertising is the responsibility of the _____ department. A. audit B. personnel C. media D. account management E. research

75. Greg is hired into the marketing services department of a full-service advertising agency. His job profile includes gathering information relating to the client's product and service that can be used in the development of the creative strategy. He has to collect information from various other departments in the firm to gain a better understanding of the client's target audience. In this scenario, Greg has been hired as a(n) A. art director. B. account planner. C. illustrator. D. media specialist. E. account executive.

76. The _____ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts. A. tagline brief B. product data sheet C. creative brief D. copywriter collateral E. marketing plan

77. Account planning has become a very important and demanding function in many agencies because A. it facilitates organizations in reducing the number of effective communication channels. B. it enables organizations with a centralized management to reduce costs. C. it provides greater value to the final consumer. D. it provides the creative team with more insight into consumers. E. it has replaced brand management as the primary marketing function.

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78. Which of the following departments of a full-service agency analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message? A. research department B. media department C. account management department D. creative services department E. art department

79. Which of the following statements is true of media departments? A. Their brief is primarily creative. B. They lack the ability or the authority to negotiate prices. C. They review information on demographics and radio listenership. D. They are in charge of creating the clients' advertising message. E. They are generally headed by an account planner.

80. _____ are the individuals in the creative services department of an ad agency who conceive the ideas for the ads and compose the advertising message. A. Copywriters B. Art directors C. Account planners D. Account executives E. Media planners

81. Which of the following statements is true of media departments? A. Their brief is primarily creative. B. They lack the ability or the authority to negotiate prices. C. They review information on demographics and radio listenership. D. They are in charge of creating the clients' advertising message. E. They are generally headed by an account planner.

82. _____ are drawings that show what the print ad will look like and from which the final artwork will be produced. A. Creative briefs B. Packshots C. Layouts D. Art infusions E. Product sheets

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83. Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes? A. account services department B. art department C. traffic department D. media department E. production department

84. The _____ department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. A. research B. production C. art D. traffic E. personnel

85. With respect to the creative services department of a full-service agency, the layout for TV commercials is known as a(n) A. storyboard. B. logo. C. art infusion. D. packshot. E. creative brief.

86. Which of the following is true of the traffic department in a full-service agency? A. It is headed either by an art director or a graphic designer who produces the final artwork for the ad. B. It can be located only within the research department and is used to gather information through primary or secondary sources. C. It gathers, analyzes, and interprets information that will be useful in developing advertising for the agency's clients. D. It may be located in the creative services area of the agency or be a part of media or account management. E. It is headed either by a copywriter or a media planner who selects and contracts for space and time in media.

87. Which of the following departments in a full-service agency is responsible for the development and execution of advertisements? A. traffic department B. account services department C. media planning department D. creative services department E. production department

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88. Within the creative services department of a full-service agency, once the copy, layout, illustrations, and mechanical specifications of the ad have been completed and approved, the ad is turned over to the _____ department. A. traffic B. account planning C. production D. research E. art

89. A sequence of frames or panels that depict a TV commercial in still form is called a(n) A. screenplay. B. creative brief. C. storyboard. D. placard. E. art infusion.

90. The majority of an advertising agency's expenses are in the area of A. media costs. B. salaries and benefits for employees. C. sales promotions. D. production overheads. E. market research.

91. J&J is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. With respect to the organizational structures employed by a full-function advertising agency, J&J is using a _____ organizational system. A. departmental B. group C. matrix D. creative boutique E. media boutique

92. With respect to the types of organizational structures, some advertising agencies prefer the departmental system because A. it completely avoids the usage of a commission system to compensate ad agencies. B. it gives employees the opportunity to develop expertise in servicing a variety of accounts. C. it converts a full-function advertising agency into a creative boutique. D. it avoids the involvement of the top management in the decision-making processes. E. it allows the creative team and the media team to work together as a group.

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93. With respect to the types of organizational structures, many advertising agencies prefer the group system because A. it completely avoids the usage of the incentive-based compensation system. B. it leads to continuity in client servicing. C. it avoids the involvement of the top management in the decision-making processes. D. it converts a full-service agency into a media specialist agency. E. it keeps the departments within an organization independent of each other.

94. Which of the following is true of a creative boutique? A. They lack media, research, and account planning capabilities. B. They lack creative personnel such as copywriters and artists. C. They are headed by a media buying director. D. They have an inherent disadvantage of being cumbersome and time-consuming. E. They have lesser access to creative talent.

95. Pluto Inc. is a small agency that employs writers, artists, and other innovative personnel. It is a specialized agency and does not deal with research, account planning, or television and radio space buying. In this scenario, Pluto Inc. is an example of a(n) A. creative boutique. B. media specialist company. C. account services organization. D. media procurement specialist. E. content management specialist.

96. Which of the following statements is true about creative boutiques? A. They generally have media, research, and account planning capabilities. B. They are large ad agencies that provide all types of advertising and promotion services. C. They often subcontract work to full-service agencies. D. They tend to provide quicker innovative services due to less bureaucracy. E. They are generally characterized by extensive internal politics.

97. Independent companies that exclusively help in the purchase of radio and television time are known as A. creative boutiques. B. SMM organizations. C. macro-marketing agencies. D. media specialist companies. E. storyboard specialists.

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98. Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients? A. commission system B. fee arrangement system C. cost-plus system D. incentive-based compensation system E. objective-and-task compensation system

99. A major development in the purchasing of advertising media in recent years has been the rapid growth of _________________________, which refers to a wide range of technologies that are automating the buying, placement, and optimization of advertising media. A. commission systems B. programmatic buying C. cost-plus systems D. incentive-based systems E. objective-and-task systems

100. Defenders of the commission system argue that A. it is generally easier to administer and keeps the emphasis in agency compensation on nonprice factors. B. it encourages agencies to recommend direct mail, sales promotion, and public relations to their clients. C. it does not tie agency compensation to media costs. D. it helps in reducing skyrocketing media costs. E. it is similar to the fixed-fee method.

101. CL Ads, an ad agency, provides media services for its clients. It prepares and places ads in local and national magazines at a specified cost. However, the agency bills its clients a flat 15 percent of the ad cost as revenue. In this scenario, the agency is using a(n) _____ system. A. incentive-based B. flexible revenue C. cost-plus D. commission E. fixed-fee

102. _____ is a system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. A. Negotiated commission system B. Fixed-fee commission system C. Cost-plus commission system D. Incentive commission system E. Pro-rata commission system

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103. Which of the following statements is true about agency commissions? A. The negotiated commission system is increasingly replacing the traditional commission system. B. Agencies are increasingly relying on mass media for their income. C. Agencies rely on incentive-based commission as companies are expanding their IMC programs. D. Typically, agencies are unwilling to negotiate their commission rates. E. Generally, agencies receive their highest commissions from direct mail and sales promotions.

104. Negotiated commission rates for advertising agencies A. average between 8 and 10 percent. B. are usually set between 15 and 25 percent. C. are typically not based on a sliding scale. D. are rarely used by consumer-products advertisers. E. are designed primarily to benefit agencies.

105. A(n) _____ is a type of compensation arrangement where an agency charges a client a basic monthly amount for all of its services and credits to the client any media commissions earned. A. fixed-fee method B. negotiated commission method C. cost-plus agreement method D. incentive-based compensation system E. objective-and-task compensation system

106. Fixed-fee method of compensation is also called A. objective-and-task method. B. value-based compensation. C. incentive-based compensation. D. cost-plus fee method. E. straight-fee method.

107. Under the _____ system of compensation, the client agrees to pay the agency a fee based on the price of its work along with some agreed-on profit margin. A. fixed-fee B. negotiated commission C. straight-fee D. incentive-based E. cost-plus

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108. Under which of the following compensation systems is the agency compensation tied to performance? A. fixed-fee system B. incentive-based system C. cost-plus system D. negotiated commission system E. straight-fee system

109. Dynamic Inc., an advertising agency in Manhattan, receives compensation from its clients based on Dynamic's sales and market share performance. This is an example of a(n) _____ compensation system. A. fixed-fee B. straight-fee C. value-based D. cost-plus E. objective-and-task

110. Thirty-seven percent of companies surveyed in an ANA study used a combination of fees and commissions to compensate agencies, which is a _____ compensation system. A. fixed-fee B. straight-fee C. value-based D. cost-plus E. blended

111. Which of the following is the reason why companies are increasingly choosing to opt for an incentive-based system? A. to encourage agencies to use more mass-media advertising B. to encourage agencies to stop using network TV advertising C. to avoid the involvement of top management in the decision-making process D. to demand more accountability and pay the agencies based on their performance E. to encourage agencies to keep detailed records of the costs incurred while working with clients

112. As more companies adopt the integrated marketing communications approach to their advertising and promotions A. they are increasingly concentrating on a mass-media strategy as it is relatively cheaper. B. they are reducing their reliance on mass-media advertising, which is leading to changes in the way they compensate their agencies. C. they are likely to move completely to cost-plus compensation systems. D. incentive systems are becoming less important in compensating agencies. E. fee agreements and cost-plus systems are generally being avoided in favor of the traditional compensation method.

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113. A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers. A. financial B. operational C. departmental D. qualitative E. grant and contract

114. A _____ audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. A. quantitative B. social C. financial D. qualitative E. contract-grant

115. Pluto Inc., a new ad agency, primarily obtains clients through cold calls, promotional letters, and following up on known leads. The company maintains a separate department which is responsible for bringing in new accounts. In this scenario, the company is obtaining clients through A. referrals. B. solicitation. C. public relations. D. publicity. E. reputation management.

116. A(n) _____ is an individual who specializes in helping clients choose their advertising agencies. A. social media consultant B. ad agency review consultant C. ad agency account representative D. brand manager E. ad agency compensation specialist

117. The most effective way for an agency to acquire new business is through A. its image and reputation. B. solicitation. C. a qualitative audit. D. presentations. E. its pricing strategy.

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118. _____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate different types of communications that go straight to target customers. A. Digital-interactive agencies B. Sales promotion agencies C. Direct-marketing agencies D. Public relations firms E. Creative boutiques

119. Venus Corp. is an agency that specializes in providing media services, direct mail, database management, and research services. It also offers creative and production services to its clients. In this scenario, Venus is an example of a _____ agency. A. creative boutique B. public relations C. digital-interactive D. direct-marketing E. sales promotion

120. _____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs. A. Sales promotion agencies B. Direct-response agencies C. Creative boutiques D. Interactive agencies E. Collateral agencies

121. WriteOn Stationery is new in the market. They have hired a specialized agency to promote their products in the market. Which type of specialized service would help them coordinate a program to allow consumers to mail in Universal Product Codes from three WriteOn products to receive a free Redbox movie rental? A. sales promotion agency B. collateral agency C. creative boutique D. interactive agency E. direct-response agency

122. Rapp and Wunderman are subsidiaries of large agency holding companies that provide services for companies that want to communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of direct-response advertising. They are examples of ___________________ agencies. A. direct-marketing B. collateral C. boutique D. interactive E. sales promotion

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123. Organizations that specialize in the creation of marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns are known as A. sales promotion agencies. B. public relations firms. C. creative boutiques. D. interactive agencies. E. direct-response agencies.

124. A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience. A. PR agency B. sales promotion agency C. media mix organization D. creative boutique E. direct-response agency

125. A client wants to organize a concert to raise funds for The Little Ones, an orphanage in Houston. Which specialized service would be responsible for preparing news releases and promoting and managing the concert? A. a digital agency B. a marketing research firm C. an interactive agency D. a public relations firm E. a sales promotion agency

126. Interactive agencies are also called A. digital agencies. B. public relation firms. C. creative boutiques. D. sales promotion agencies. E. collateral agencies.

127. Package design firms, market research companies, photographers, and printers are examples of A. sales promotion agencies. B. interactive agencies. C. collateral service providers. D. companies that assist in media buying. E. creative boutiques.

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128. Which of the following is considered to be a collateral services provider? A. public relation firms B. sales promotion agencies C. digital marketing agencies D. full-service interactive agencies E. market research firms

129. Which of the following is likely to conduct in-depth interviews and focus groups, as well as market surveys in order to gather objective information that is valuable to the advertiser's promotional programs? A. market research companies B. media specialist organizations C. media buying organizations D. creative boutiques E. sales promotion agencies

130. Marketing research firms A. seldom conduct qualitative research for ad agencies. B. are one of the most widely used types of collateral service organizations. C. typically do not provide quantitative market research services. D. are not typically used by ad agencies. E. can gather only subjective information.

131. Which of the following is true about integrated services? A. They help in eliminating the requirement for economies of scale. B. They help in maintaining control of the entire promotional process. C. They create individual branding for varied products or services. D. They make it difficult for the client to coordinate all of its marketing efforts. E. They reduce synergy in the promotional process.

132. Which of the following is considered to be the greatest obstacle in implementing integrated marketing communications (IMC)? A. IMC often results in greater economies of scale. B. Since each communication discipline has the same cost structure, the concept of IMC itself becomes invalid. C. IMC is only compatible with smaller organizations and surveys have witnessed compatibility issues when the process is scaled up. D. The implementation of IMC is most likely to result in interdepartmental budget allocations problems. E. The lack of people with the requisite broad perspective and skills to implement IMC presents the biggest obstacle.

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133. Which of the following is an statement about integrated marketing communications firms? A. IMC often results in greater economies of scale. B. An agency that has all marketing operations in-house is usually perceived as best in breed. C. Having one agency in control of the entire IMC process achieves greater synergy among each of the communications program elements. D. One challenge to IMC is a lack of people with the requisite broad perspective and skills to make it work. E. IMC agencies make it convenient for the client to coordinate all of its marketing efforts through one agency.

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Chapter 03 Test Bank Key 1. The primary function of promotional planners is to provide information or entertainment to their subscribers, viewers, or readers. FALSE The primary function of media organizations is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

2. Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services. TRUE Organizations that provide specialized marketing communication services include direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms. These organizations provide services in their areas of expertise. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

3. While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm. TRUE While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: The Steps in an Advertising Campaign

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4. In the most common example of a centralized system, the advertising or marcom manager controls the entire promotions operation. TRUE In the most common example of a centralized system, the advertising or marcom manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

5. An advantage of the centralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. FALSE An advantage of the decentralized system is that each brand receives concentrated managerial attention. The brand manager system is also more flexible. AACSB: Analytical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

6. Retail giant Target has an internal creative department that handles the design of its weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing materials. This is an example of an in-house agency. TRUE An in-house agency is an advertising agency that is set up, owned, and operated by the advertiser. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

7. A decentralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. FALSE A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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8. A disadvantage of the decentralized system is that each brand does not receive concentrated managerial attention, resulting in slower response to both problems and opportunities. FALSE An advantage of the decentralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. The brand managers have full responsibility for the marketing program, including the identification of target markets as well as the development of integrated marketing communications programs that will differentiate the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

9. In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management. TRUE In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management. Another reason is the stability an in-house agency provides because external agencies have much higher turnover levels, which can take a toll on the client–agency relationship. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

10. Nearly two-thirds of the domestic billings are handled by 900 of the smallest agencies in the United States. FALSE Nearly two-thirds of the domestic billings are handled by the top 500 agencies. Just 10 U.S. agencies handle nearly 30 percent of the total volume done by the top 900 agencies in the United States. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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11. Superagencies were formed when large advertising organizations disintegrated to form separate, more specialized individual agencies. FALSE During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. These superagencies were formed so that agencies could provide clients with integrated marketing communications services worldwide. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

12. The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other. FALSE Account representatives will continue to serve an important role in managing the relationships between agencies and their clients. The account executive is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

13. Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists. TRUE Account planners work with the client as well as other agency personnel including the account executives, creative team members, media specialists, and research department personnel to collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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14. The creative services department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message. FALSE The media department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message. AACSB: Analytical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

15. The layout of a print ad is known as a storyboard. FALSE For print ads, the art director and graphic designers prepare layouts, which are drawings that show what the ad will look like and from which the final artwork will be produced. For TV commercials, the layout is known as a storyboard, a sequence of frames or panels that depict the commercial in still form. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

16. Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. TRUE Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. The task of purchasing advertising media has grown more complex due to the fragmentation of media audiences and the growth of digital media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

17. Programmatic buying has declined in recent years. FALSE Programmatic buying has grown, in part because of the wide range of technologies that are automating the buying, placement, and optimization of advertising media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: Promotion Budget

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18. Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge. TRUE Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge as a way of justifying the large commission they receive. Critics suggest it encourages agencies to recommend high-priced media to their clients to increase commission levels. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

19. A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account. TRUE The cost-plus system requires that the agency keep detailed records of the costs it incurs in working on the client's account. Direct costs (personnel time and out-of-pocket expenses) plus an allocation for overhead and a markup for profits determine the amount the agency bills the client. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

20. The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low. TRUE The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low or advertising is not seen as the most critical factor in the firm's marketing performance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

21. The qualitative audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. FALSE The qualitative audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. AACSB: Analytical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

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22. Loyalty to a single agency is becoming more common as marketers seek new ways of connecting with consumers. FALSE While many successful agency-client relationships go on for years, loyalty to a single agency is becoming less common as marketers seek new ways of connecting with consumers. In recent years, a number of long-standing client relationships have been terminated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

23. A typical direct-marketing agency does not include a creative department. FALSE A typical direct-marketing agency is divided into three main departments: account management, creative, and media. Some agencies also have a department whose function is to develop and manage databases for their clients. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: The Role of Advertising

24. One of the more widely used collateral service organizations is the marketing research firm. TRUE One of the more widely used collateral service organizations is the marketing research firm. Companies are increasingly turning to marketing research to help them understand their target audiences and to gather information that will be of value in designing and evaluating their advertising and promotions programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: The Role of Advertising

25. An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice. TRUE An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice. It is convenient for the client to coordinate all of its marketing efforts—media advertising, direct mail, special events, sales promotions, and public relations—through one agency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency. Topic: IMC

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26. According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work. TRUE Marketing executives say the biggest obstacle to implementing IMC is the lack of people with the broad perspective and skills to make it work. Internal turf battles, agency egos, and fear of budget reductions are also cited as major barriers to successful integrated marketing campaigns. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency. Topic: IMC

27. _____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions. A. Collateral service providers B. Clients C. Advertising agencies D. Media organizations E. Special service organizations The advertisers, or clients, are the key participants in the integrated marketing communications process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

28. Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In the given scenario, Momentum Automobiles would be classified as a(n) A. client. B. illustrator. C. full-service agency. D. advertising agency. E. media organization. In the above scenario, Momentum Automobiles would be classified as a client. The advertisers, or clients, are the key participants in the integrated marketing communications process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

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29. In the ad agency industry, clients refer to A. an advertiser or organization that has the product, service, or cause that needs to be marketed. B. the media, which plays a crucial role in the process of marketing communication. C. a purchaser of the consumer product advertised. D. a market for business or consumer products. E. an advertising agency that specializes in the creation of the communications message. The advertisers, or clients, are the key participants in the integrated marketing communications process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

30. A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other marketing and promotions-related services. A. media organization B. sales promotion firm C. research organization D. advertising agency E. creative boutique Many organizations use an advertising agency, an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other services to facilitate the marketing and promotions process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

31. From the perspective of a promotional planner, the primary purpose of media is to A. represent the company's senior management in negotiations with an ad agency. B. provide the company with strategic recommendations and analysis. C. provide an environment for the firm's marketing communications message. D. help conduct a SWOT analysis. E. provide appropriate funding for all marketing activities. Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

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32. The primary function of most media is to A. assist the market research organization by conducting market surveys. B. coordinate their activities with direct-marketing agencies. C. provide information and entertainment to their audience. D. prepare the budget for the advertising and promotion process. E. compensate ad agencies through a commission system. Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm's marketing communications message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

33. Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space and time with them by providing the same at discounted rates. Creative Networks helps these companies reach their target market effectively by communicating their message. In this scenario, Creative Networks is a(n) A. advertiser. B. collateral service provider. C. media organization. D. creative boutique. E. sales promotion agency. In the above scenario, Creative Networks is a media organization. Media organizations are a major participant in the advertising and promotions process. The media must have editorial or program content that attracts consumers so that advertisers and their agencies will want to buy time or space with them. While the media perform many other functions that help advertisers understand their markets and their customers, a medium's primary objective is to sell itself as a way for companies to reach their target markets with their messages effectively. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: The Steps in an Advertising Campaign

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34. With respect to the major participants in the advertising and promotions process, which of the following participants include sales promotion agencies, digital/interactive agencies, and public relations firms? A. advertising agencies B. media organizations C. collateral service agencies D. specialized marketing communications services agencies E. bait-and-switch marketing service agencies Organizations that provide specialized marketing communications services are one of the major participants in the advertising and promotions process. Specialized marketing communications services include direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: IMC

35. Basic functions of the manager and staff in advertising and marketing communications include all of the following A. administration and execution. B. coordination with other departments. C. preparing materials for the sales force. D. managing the sales force. E. coordination with outside agencies and services. The advertising department may be responsible for preparing materials the sales force can use when calling on customers, but it does not manage the sales force. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: The Steps in an Advertising Campaign

36. In companies that follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"? A. art director B. brand manager C. advertising manager D. product manager E. copywriter In some companies that follow a centralized organizational system, an advertising manager is also given the title marketing communications manager. The advertising manager is responsible for all promotions activities except sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

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37. Which of the following statements is true about the role of top management in the advertising and promotion decision-making process? A. The top management's day-to-day responsibilities usually include decision making and operations of advertising and promotion. B. The top management does not provide input in the advertising and promotion process. C. The top management is usually interested in how the advertising program represents the organization. D. The top management is only interested in the amount of money that must be allocated to advertising and promotion. E. The top management is more interested in tactical planning than strategic planning. Top management is usually interested in how the advertising program represents the firm, and this may also mean being involved in advertising decisions even when the decisions are not part of its day-to-day responsibilities. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions. Topic: Role of the Marketing Manager

38. Under a centralized organizational system, the responsibility for planning and controlling the advertising and promotional functions lies with the A. brand manager. B. marketing communications manager. C. product manager. D. art director. E. account planning supervisor. In a centralized system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. In some companies this individual has the title of marketing communications manager. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

39. Which of the following is true of the role of an advertising manager, under a centralized management system? A. It includes budgeting and planning media schedule. B. It primarily involves checking the accuracy of financial reports and records. C. It includes employee compensation management. D. It involves administering the firm's sales and sales promotion programs. E. It ensures that day-to-day sales targets are met. In a centralized system, the advertising manager is responsible for all promotional activities except sales. The advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

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40. Which of the following is true about the functions of the advertising manager in a centralized system? A. The advertising manager is responsible for all sales and sales management activities. B. The advertising manager has the final say in determining the sales forecasts. C. The role of an advertising manager is similar to the role of an art director in a decentralized organization. D. The advertising manager controls the entire promotions operation. E. The advertising manager does not deal with planning and budgeting. The advertising manager is responsible for all promotions activities except sales. The specific duties of the advertising or marketing communications manager depend on the size of the firm and the importance it places on promotional programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: Role of the Marketing Manager

41. In a centralized organizational structure, the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. A. production B. finance C. auditing D. advertising E. product planning In a centralized organizational structure, the advertising department is responsible for developing advertising and promotions plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

42. A company often uses a centralized organizational system when A. it has many different divisions within the company. B. it does not want to involve the top management in the decision-making process. C. it does not have many product lines or brands to advertise. D. it wants to involve a large number of people in making program decisions. E. it wants to have a category management system in place. A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. Many companies prefer a centralized advertising department because developing and coordinating advertising programs from one central location facilitates communication regarding the promotions program, making it easier for top management to participate in decision making. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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43. Which of the following differentiates a centralized organization from a decentralized organization? A. In a centralized organization, the advertising manager is responsible for all promotions activities including sales, whereas in a decentralized organization, the advertising manager is responsible for all promotions activities except sales. B. A centralized organizational system is used in large companies with more than 1,000 employees, whereas a decentralized organizational system is used only in smaller companies with no more than 500 employees. C. In a centralized organization, an advertising manager controls the entire promotions operation for all the products of a company, whereas in a decentralized organization, each product is assigned to a different brand manager. D. A centralized organizational structure includes a category management system, whereas a decentralized organizational structure does not include one. E. In a centralized organization, the efforts of all the brand managers are coordinated by the category managers, whereas in a decentralized organization, the efforts of all the brand managers are coordinated by the advertising managers. In a centralized system, the advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. In a decentralized organization, each brand is assigned to a brand manager who is responsible for the total management of that brand, including planning, budgeting, sales, and profit performance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

44. Which of the following is true of the problems associated with the centralized organizational structure? A. It does not enable a transfer of functions and responsibilities associated with advertising and promotions to the brand manager. B. It does not facilitate coordination with external advertising agencies. C. It makes it difficult for the advertising department to understand the overall marketing strategy of the brand. D. It makes it difficult for the brand manager to coordinate with the various departments within the organization. E. It facilitates disassociation of advertising managers from the category management system. Problems are inherent in a centralized operation. It is difficult for the advertising department to understand the overall marketing strategy for the brand. The department may also be slow in responding to specific needs and problems of a product or brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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45. In a decentralized system, a(n) _____ is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. A. brand manager B. media manager C. collateral services provider D. account executive E. sales manager Many companies that use a decentralized system assign each product or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. The brand manager, who may have one or more assistant brand managers, is also responsible for the planning, implementation, and control of the marketing program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

46. Under a decentralized system, the advertising department is generally a part of A. finance. B. sales. C. product development. D. marketing services. E. research and development. In a decentralized system, the advertising department is part of marketing services and provides support for the brand managers. The role of marketing services is to assist the brand managers in planning and coordinating the integrated marketing communications program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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47. Jim, an employee of CL Inc., is responsible for planning, marketing, budgeting, sales, and profit performance of a specific brand. He has two assistants who help in planning, implementing, and controlling the marketing program. In this scenario, Jim is an example of a(n) A. product manager. B. art director. C. account executive. D. copywriter. E. account director. In the above scenario, Jim is a product manager. Many companies that use a decentralized system assign each product or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance. The term is also used to describe this position. The brand manager, who may have one or more assistant brand managers, is also responsible for the planning, implementation, and control of the marketing program. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

48. When Procter & Gamble, Unilever, PepsiCo, Google, and Nestle assign each product/service or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance, these companies are using a _____________________________ system. A. finance B. sales C. decentralized D. centralized E. product In a decentralized system, brand managers are responsible for the total management of the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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49. In a decentralized system, individuals who oversee management of the entire product category and focus on the strategic role of the various brands in order to build profits and market share are known as A. category managers. B. art directors. C. account executives. D. account supervisors. E. media planners. Some companies have a layer of management above the brand managers to coordinate the efforts of all the brand managers handling a related group of products. This system—generally referred to as a category management system— includes category managers as well as brand and advertising managers. The category manager oversees management of the entire product category and focuses on the strategic role of the various brands in order to build profits and market share. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

50. A company often uses a decentralized organizational system when A. it has multiple divisions and many different products. B. it does not facilitate a manufacturing or industrial operation. C. it wants one advertising manager to handle the promotional activities of all the products. D. it has a top management that is actively involved in day-to-day decision making. E. it lacks the ability to handle multiple brands. In large corporations with multiple divisions and many different products, it is very difficult to manage all the advertising, promotional, and other functions through a centralized department. These types of companies generally have a decentralized system, with separate manufacturing, research and development, sales, and marketing departments for various divisions, product lines, or businesses. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

51. Which of the following describes a limitation associated with the decentralized organizational structure for advertising? A. Brand managers are often overqualified and tend to feel superior to product managers. B. Brand managers are typically from nonmanagement backgrounds. C. Brand managers do not devote enough attention to short-term planning and administrative tasks. D. Brand managers often end up competing for management attention, marketing budgets, and other resources. E. Brand managers typically rely on intuition and often jeopardize the creative activities of the advertising agency. There are some drawbacks to the decentralized approach. Individual brand managers often end up competing for management attention, marketing dollars, and other resources, which can lead to unproductive rivalries and potential misallocation of funds. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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52. Diva Boutique, located in Manhattan, relies on external advertising agencies for its advertising needs, but due to its growing global presence, it is now worried that using external agencies may lead to inconsistency in delivery of its brand image. It also wants to maintain tighter control over its advertising and promotional activities. Which of the following advertising agencies should it adopt? A. collateral service agency B. buzz marketing agency C. in-house agency D. Centralized agency E. creative boutique In the above scenario, Diva Boutique should adopt an in-house agency. Some companies, in an effort to reduce costs and maintain greater control over agency activities, have set up their own advertising agencies internally. An in-house agency is an advertising agency that is set up, owned, and operated by the advertiser. Saving money is not the only reason companies use in-house agencies. Companies can also maintain tighter control over the process and more easily coordinate promotions with the firm's overall marketing program. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

53. Which of the following is true of an in-house advertising agency? A. It avoids top management involvement with the marketing communications function. B. It increases advertising and promotion costs. C. It provides greater stability. D. It provides more objectivity and range of services in comparison to outside agencies. E. It offers more access to top creative talent. Some companies, in an effort to reduce costs and maintain greater control over agency activities, have set up their own advertising agencies internally. An in-house agency is an advertising agency that is set up, owned, and operated by the advertiser. It also provides greater stability and coordination. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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54. A major reason why some companies choose to use an in-house agency is to A. maintain creative freshness. B. reduce advertising and promotions costs. C. reduce the threat of potential lawsuits. D. make use of top creative talent. E. dissimilate brand management and advertising from under one roof. A major reason for using an in-house agency is to reduce advertising and promotion costs. Saving money is not the only reason companies use in-house agencies. Time savings, bad experiences with outside agencies, and the increased knowledge and understanding of the market that come from working on advertising and promotion for the product or service day-by-day are also reasons. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

55. Which of the following is a potential benefit of an in-house advertising agency? A. greater control B. access to more highly skilled specialists C. potential to obtain varied perspective on advertising problems D. greater flexibility E. greater objectivity Some of the advantages of in-house agencies include greater cost savings, greater control, increased coordination, better stability, and enhanced access to top management. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

56. A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency in order to A. obtain greater control over the advertising process. B. reduce costs. C. obtain greater objectivity. D. make coordination of the advertising and promotional process easier. E. save media commissions. A major disadvantage of in-house agencies is less objectivity. A firm can turn its advertising and promotion tasks over to an outside agency to obtain more objectivity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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57. Which of the following is a disadvantage of using a centralized organizational system? A. longer response time B. very little top-management involvement C. involvement of many people in making program decisions D. lack of communication E. discontinuity in staff Longer response time is one of the disadvantages of using a centralized organizational system. A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

58. Which of the following is an advantage of a decentralized organizational system? A. effective decision making B. Rapid response to problems and opportunities C. lack of internal conflicts D. enhanced authority E. external rather than internal focus An advantage of the decentralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. This system is also more flexible and makes it easier to adjust various aspects of the advertising and promotional program, such as creative platforms and media and sales promotion schedules. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

59. Which of the following is a disadvantage of a decentralized organizational system? A. inability to handle multiple product lines B. ineffective decision making C. longer response time D. lack of flexibility E. lack of managerial attention Ineffective decision making is one of the disadvantages of a decentralized system. Internal conflicts, lack of authority, and misallocation of funds are other disadvantages of using a decentralized system. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

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60. Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from A. a decentralized marketing system. B. an in-house agency. C. the use of full-service advertising agencies. D. a centralized marketing system. E. the use of creative boutiques. Some of the disadvantages of an in-house agency include less flexibility, less objectivity, and lack of access to the top creative talent. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

61. Which of the following is a disadvantage of using an in-house advertising agency? A. external focus rather than internal B. limited access to top-level talent C. reduced cost savings D. less stability E. decreased coordination Some of the disadvantages of an in-house agency include less flexibility, less objectivity, and lack of access to the top creative talent. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion. Topic: The Steps in an Advertising Campaign

62. Which of the following refers to the amount of client money that agencies spend on media purchases and other equivalent activities? A. billings B. media commissions C. retainers D. activity fees E. ad traffic compensation Billings refers to the amount of client money that agencies spend on media purchases and other equivalent activities. With respect to the U.S. advertising agency business, nearly two-thirds of the domestic billings are handled by the top 500 agencies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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63. Superagencies were formed A. because advertisers were disenchanted with large agencies. B. because advertisers wanted agencies to be more flexible and responsive than traditional agencies. C. to save money for clients. D. so that agencies could provide their clients with integrated marketing communications services worldwide. E. to lessen the need for competitive pricing. During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. These superagencies were formed so that agencies could provide clients with integrated marketing communications services worldwide. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

64. Which of the following statements is true about superagencies? A. They were formed when large advertising agencies were broken down into smaller, more specialized agencies. B. Advertisers who became disenchanted with the superagencies moved to smaller agencies that were flexible and more responsive. C. They were formed so that agencies could provide clients with effective supply chain management. D. Advertisers who generally worked with superagencies converted them into in-house agencies to gain greater flexibility and objectivity. E. They were formed so that agencies could provide clients with just-in-time inventory management systems. During the late 1980s and into the 1990s, the advertising industry underwent major changes as large agencies merged with or acquired other agencies and support organizations to form large advertising organizations, or superagencies. Some advertisers became disenchanted with the superagencies and moved to smaller agencies that were flexible and more responsive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

65. Which of the following statements explains why an organization would want to use an external advertising agency? A. It reduces advertising and promotional costs for the client. B. It enables the client to gain more control of the promotional activities. C. It allows more access to the top management of the client firm. D. It helps provide a consistent and integrated global brand image. E. It provides the client with the services of highly skilled individuals. The main reason why outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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66. Which of the following statements is true about outside advertising agencies? A. Typically, external ad agencies do not use media analysts and researchers. B. External agencies are often preferred for their greater skill and expertise levels. C. Generally, most external ad agencies do not offer creative services. D. External ad agencies are generally cheaper than in-house agencies. E. Unlike in-house agencies, outside agencies can be used to portray a singular global image. The main reason why outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in their chosen fields. An advertising agency staff may include artists, writers, media analysts, researchers, and others with specific skills, knowledge, and experience who can help market the client's products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

67. Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media? A. a creative boutique B. a full-service agency C. a media buying service D. a collateral agency E. a switch marketing agency Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

68. An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a(n) A. creative boutique. B. media buying service. C. account service agency. D. full-service agency. E. buzz marketing agency. Many companies employ what is known as a full-service agency, which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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69. Mars Inc., a San Diego–based advertising agency, offers various services, such as sales promotion, marketing research, package design, direct marketing, and publicity as well as planning, creation, and advertising production. In this scenario, Mars is an example of a(n) A. creative boutique. B. full-service agency. C. media buying organization. D. account service organization. E. media specialist company. In the above scenario, Mars Inc. is an example of a full-service agency. A full-service agency offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media. It may also offer nonadvertising services such as strategic market planning; sales promotions, direct marketing, and interactive capabilities; package design; and public relations and publicity. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

70. Gerald is responsible for keeping track of his agency's ________________, or the amount of client money his agency spends on media purchases and other equivalent activities. A. billings B. publicity C. promotions D. media buying E. direct marketing Billings refers to the amount of client money agencies spend on media purchases and other equivalent activities. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

71. Which of the following statements is true about account services? A. It is an in-house service for the advertisement agency that is independent of its clients' obligations. B. It is an advertising agency that solely provides media space and time. C. It provides the creative team with in-depth storyboards. D. It is a research department in the advertising agency that assists in creating the advertising message for the client. E. It is the link between the advertising agency and its clients. Account services, or account management, is the link between the ad agency and its clients. Depending on the size of the client and its advertising budget, one or more account executives serve as liaison. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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72. A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel. A. account executive B. database manager C. media specialist D. copywriter E. art director The account executive is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. He or she coordinates agency efforts in planning, creating, and producing ads. The account executive also presents agency recommendations and obtains client approval. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: IMC Topic: The Steps in an Advertising Campaign

73. Which of the following is true of the role of an account executive? A. It is primarily considered a research function. B. It is used only by centralized organizations. C. It is generally considered a subsidiary function. D. It includes an extensive creative aspect. E. It is the focal point of agency-client relationships. The account executive is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. As the focal point of agency-client relationships, the account executive must know a great deal about the client's business and be able to communicate this to specialists in the agency working on the account. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

74. In a full-service agency, the function of gathering, analyzing, and interpreting information that is useful in developing advertising is the responsibility of the _____ department. A. audit B. personnel C. media D. account management E. research Most full-service agencies maintain a research department whose function is to gather, analyze, and interpret information that will be useful in developing advertising for their clients. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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75. Greg is hired into the marketing services department of a full-service advertising agency. His job profile includes gathering information relating to the client's product and service that can be used in the development of the creative strategy. He has to collect information from various other departments in the firm to gain a better understanding of the client's target audience. In this scenario, Greg has been hired as a(n) A. art director. B. account planner. C. illustrator. D. media specialist. E. account executive. In the above scenario, Greg has been hired as an account planner. Account planners are individuals who gather information that is relevant to the client's product or service and can be used in the development of the creative strategy as well as other aspects of the integrated marketing communications (IMC) campaign. Account planners work with the client as well as other agency personnel to collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

76. The _____ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts. A. tagline brief B. product data sheet C. creative brief D. copywriter collateral E. marketing plan Account planners gather and organize information about consumers as well as developments in the marketplace that can be used to prepare the creative brief, which is a document that the agency's creative department uses to guide the development of advertising ideas and concepts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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77. Account planning has become a very important and demanding function in many agencies because A. it facilitates organizations in reducing the number of effective communication channels. B. it enables organizations with a centralized management to reduce costs. C. it provides greater value to the final consumer. D. it provides the creative team with more insight into consumers. E. it has replaced brand management as the primary marketing function. Account planning has become a very important function in many agencies because it provides the creative team, as well as other agency personnel, with more insight into consumers and how to use advertising and other IMC tools to communicate with them. The account planning function has also become more demanding as the number of marketing communication channels and ways of contacting consumers increases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

78. Which of the following departments of a full-service agency analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message? A. research department B. media department C. account management department D. creative services department E. art department The media department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

79. Which of the following statements is true of media departments? A. Their brief is primarily creative. B. They lack the ability or the authority to negotiate prices. C. They review information on demographics and radio listenership. D. They are in charge of creating the clients' advertising message. E. They are generally headed by an account planner. Media specialists must know what audiences the media reach, their rates, and how well they match the client's target market. The media planning department reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' Internet and TV viewing patterns to develop an effective media plan. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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80. _____ are the individuals in the creative services department of an ad agency who conceive the ideas for the ads and compose the advertising message. A. Copywriters B. Art directors C. Account planners D. Account executives E. Media planners The individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy (the words constituting the message) are known as copywriters. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

81. Which of the following statements is true of media departments? A. Their brief is primarily creative. B. They lack the ability or the authority to negotiate prices. C. They review information on demographics and radio listenership. D. They are in charge of creating the clients' advertising message. E. They are generally headed by an account planner. Media specialists must know what audiences the media reach, their rates, and how well they match the client's target market. The media planning department reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' Internet and TV viewing patterns to develop an effective media plan. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

82. _____ are drawings that show what the print ad will look like and from which the final artwork will be produced. A. Creative briefs B. Packshots C. Layouts D. Art infusions E. Product sheets The art department is responsible for how the ad looks. For print ads, the art director and graphic designers prepare layouts, which are drawings that show what the ad will look like and from which the final artwork will be produced. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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83. Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes? A. account services department B. art department C. traffic department D. media department E. production department The production department supervises the casting of people to appear in the ad and the setting for the scenes as well as chooses an independent production studio. The department may hire an outside director to turn the creative concept into a commercial. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

84. The _____ department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. A. research B. production C. art D. traffic E. personnel The traffic department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. The traffic department may be located in the creative services area of the agency, or be part of media or account management, or be separate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

85. With respect to the creative services department of a full-service agency, the layout for TV commercials is known as a(n) A. storyboard. B. logo. C. art infusion. D. packshot. E. creative brief. The creative services department is responsible for the creation and execution of advertisements. The layout for TV commercials is called a storyboard. It is a sequence of frames or panels that depict the commercial in still form. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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86. Which of the following is true of the traffic department in a full-service agency? A. It is headed either by an art director or a graphic designer who produces the final artwork for the ad. B. It can be located only within the research department and is used to gather information through primary or secondary sources. C. It gathers, analyzes, and interprets information that will be useful in developing advertising for the agency's clients. D. It may be located in the creative services area of the agency or be a part of media or account management. E. It is headed either by a copywriter or a media planner who selects and contracts for space and time in media. A traffic department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met. The traffic department may be located in the creative services area of the agency, or be part of media or account management, or be separate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

87. Which of the following departments in a full-service agency is responsible for the development and execution of advertisements? A. traffic department B. account services department C. media planning department D. creative services department E. production department The creative services department is responsible for the creation and execution of advertisements. Members of the creative department work together to develop ads that will communicate the key points determined to be the basis of the creative strategy for the client's product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

88. Within the creative services department of a full-service agency, once the copy, layout, illustrations, and mechanical specifications of the ad have been completed and approved, the ad is turned over to the _____ department. A. traffic B. account planning C. production D. research E. art Once the copy, layout, illustrations, and mechanical specifications have been completed and approved, the ad is turned over to the production department. Most agencies do not actually produce finished ads; they hire printers, engravers, photographers, typographers, and other suppliers to complete the finished product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

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89. A sequence of frames or panels that depict a TV commercial in still form is called a(n) A. screenplay. B. creative brief. C. storyboard. D. placard. E. art infusion. The layout for TV commercials is called a storyboard. It is a sequence of frames or panels that depict the commercial in still form. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Steps in an Advertising Campaign

90. The majority of an advertising agency's expenses are in the area of A. media costs. B. salaries and benefits for employees. C. sales promotions. D. production overheads. E. market research. The bulk of an advertising agency's income (approximately 64 percent) goes to salary and benefits for its employees. Thus, an agency must manage its personnel carefully and get maximum productivity from them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

91. J&J is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. With respect to the organizational structures employed by a full-function advertising agency, J&J is using a _____ organizational system. A. departmental B. group C. matrix D. creative boutique E. media boutique In the above scenario, J&J is using a group organizational system. In a group system, individuals from each department work together in groups to service particular accounts. The size and composition of the group vary depending on the client's billings and the importance of the account to the agency. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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92. With respect to the types of organizational structures, some advertising agencies prefer the departmental system because A. it completely avoids the usage of a commission system to compensate ad agencies. B. it gives employees the opportunity to develop expertise in servicing a variety of accounts. C. it converts a full-function advertising agency into a creative boutique. D. it avoids the involvement of the top management in the decision-making processes. E. it allows the creative team and the media team to work together as a group. Under the departmental system, each of the agency functions is set up as a separate department and is called on as needed to perform its specialty and serve all of the agency's clients. Some agencies prefer the departmental system because it gives employees the opportunity to develop expertise in servicing a variety of accounts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

93. With respect to the types of organizational structures, many advertising agencies prefer the group system because A. it completely avoids the usage of the incentive-based compensation system. B. it leads to continuity in client servicing. C. it avoids the involvement of the top management in the decision-making processes. D. it converts a full-service agency into a media specialist agency. E. it keeps the departments within an organization independent of each other. Many large agencies use the group system, in which individuals from each department work together in groups to service particular accounts. Many agencies prefer the group system because employees become very knowledgeable about the client's business and there is continuity in servicing the account. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

94. Which of the following is true of a creative boutique? A. They lack media, research, and account planning capabilities. B. They lack creative personnel such as copywriters and artists. C. They are headed by a media buying director. D. They have an inherent disadvantage of being cumbersome and time-consuming. E. They have lesser access to creative talent. Creative boutiques are small ad agencies that provide only creative services and have long been an important part of the advertising industry. These specialized agencies have creative personnel such as writers and artists on staff but do not have media, research, or account planning capabilities. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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95. Pluto Inc. is a small agency that employs writers, artists, and other innovative personnel. It is a specialized agency and does not deal with research, account planning, or television and radio space buying. In this scenario, Pluto Inc. is an example of a(n) A. creative boutique. B. media specialist company. C. account services organization. D. media procurement specialist. E. content management specialist. In the above scenario, Pluto Inc. exemplifies a creative boutique. Creative boutiques are small ad agencies that provide only creative services and have long been an important part of the advertising industry. Creative boutiques have developed in response to some companies' desires to use only the creative services of an outside agency while maintaining control of other marketing communication functions internally. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

96. Which of the following statements is true about creative boutiques? A. They generally have media, research, and account planning capabilities. B. They are large ad agencies that provide all types of advertising and promotion services. C. They often subcontract work to full-service agencies. D. They tend to provide quicker innovative services due to less bureaucracy. E. They are generally characterized by extensive internal politics. An advantage of creative boutiques is their ability to turn out inventive creative work quickly and without the cumbersome bureaucracy and politics of larger agencies. Many companies also prefer working directly with a smaller creative boutique because they can get more attention and better access to creative talent than they would at a larger agency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

97. Independent companies that exclusively help in the purchase of radio and television time are known as A. creative boutiques. B. SMM organizations. C. macro-marketing agencies. D. media specialist companies. E. storyboard specialists. Media specialist companies are companies that specialize in the buying of media, particularly radio and television time. The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play. Topic: The Role of Advertising

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98. Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients? A. commission system B. fee arrangement system C. cost-plus system D. incentive-based compensation system E. objective-and-task compensation system Critics of the commission system have long argued that it encourages agencies to recommend high-priced media to their clients to increase their commission level. Still others charge that the system encourages agencies to recommend mass-media advertising and avoid noncommissionable integrated marketing communications (IMC) tools such as direct mail, sales promotion, public relations, or event sponsorships, unless they are requested by the clients. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

99. A major development in the purchasing of advertising media in recent years has been the rapid growth of _________________________, which refers to a wide range of technologies that are automating the buying, placement, and optimization of advertising media. A. commission systems B. programmatic buying C. cost-plus systems D. incentive-based systems E. objective-and-task systems A major development in the purchasing of advertising media in recent years has been the rapid growth of programmatic buying, which refers to a wide range of technologies that are automating the buying, placement, and optimization of advertising media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

100. Defenders of the commission system argue that A. it is generally easier to administer and keeps the emphasis in agency compensation on nonprice factors. B. it encourages agencies to recommend direct mail, sales promotion, and public relations to their clients. C. it does not tie agency compensation to media costs. D. it helps in reducing skyrocketing media costs. E. it is similar to the fixed-fee method. Defenders of the commission system argue that it is easy to administer and keeps the emphasis in agency compensation on nonprice factors such as the quality of the advertising developed for clients. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

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101. CL Ads, an ad agency, provides media services for its clients. It prepares and places ads in local and national magazines at a specified cost. However, the agency bills its clients a flat 15 percent of the ad cost as revenue. In this scenario, the agency is using a(n) _____ system. A. incentive-based B. flexible revenue C. cost-plus D. commission E. fixed-fee In the above scenario, CL Ads is using a commission system. The traditional method of compensating agencies is through a commission system, where the agency receives a specified commission (usually 15 percent) from the media on any advertising time or space it purchases for its client. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

102. _____ is a system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. A. Negotiated commission system B. Fixed-fee commission system C. Cost-plus commission system D. Incentive commission system E. Pro-rata commission system Many advertisers are now using a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

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103. Which of the following statements is true about agency commissions? A. The negotiated commission system is increasingly replacing the traditional commission system. B. Agencies are increasingly relying on mass media for their income. C. Agencies rely on incentive-based commission as companies are expanding their IMC programs. D. Typically, agencies are unwilling to negotiate their commission rates. E. Generally, agencies receive their highest commissions from direct mail and sales promotions. Many advertisers have gone to a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. Agencies are also relying less on media commissions for their income as their clients expand their integrated marketing communications (IMC) programs to include other forms of promotion and cut back on mass-media advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

104. Negotiated commission rates for advertising agencies A. average between 8 and 10 percent. B. are usually set between 15 and 25 percent. C. are typically not based on a sliding scale. D. are rarely used by consumer-products advertisers. E. are designed primarily to benefit agencies. Among companies that use the commission system, most do not pay the traditional 15 percent. Many advertisers have gone to a negotiated commission system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

105. A(n) _____ is a type of compensation arrangement where an agency charges a client a basic monthly amount for all of its services and credits to the client any media commissions earned. A. fixed-fee method B. negotiated commission method C. cost-plus agreement method D. incentive-based compensation system E. objective-and-task compensation system In the straight or fixed-fee method, the agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. Agency and client agree on the specific work to be done and the amount the agency will be paid for it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

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106. Fixed-fee method of compensation is also called A. objective-and-task method. B. value-based compensation. C. incentive-based compensation. D. cost-plus fee method. E. straight-fee method. Fixed-fee method of compensation is also called straight-fee method. In the straight or fixed-fee method, the agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

107. Under the _____ system of compensation, the client agrees to pay the agency a fee based on the price of its work along with some agreed-on profit margin. A. fixed-fee B. negotiated commission C. straight-fee D. incentive-based E. cost-plus Under a cost-plus system, the client agrees to pay the agency a fee based on the costs of its work plus some agreed-on profit margin (often a percentage of total costs). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

108. Under which of the following compensation systems is the agency compensation tied to performance? A. fixed-fee system B. incentive-based system C. cost-plus system D. negotiated commission system E. straight-fee system Increasingly, clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. Recently a new variation of this system has emerged in the form of value-based compensation whereby agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed-upon metrics. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

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109. Dynamic Inc., an advertising agency in Manhattan, receives compensation from its clients based on Dynamic's sales and market share performance. This is an example of a(n) _____ compensation system. A. fixed-fee B. straight-fee C. value-based D. cost-plus E. objective-and-task The above scenario is an example of a value-based compensation system. Increasingly, clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. Recently a new variation of this system has emerged in the form of value-based compensation whereby agencies are compensated above their basic costs, if they achieve or exceed results as measured by agreed-upon metrics. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

110. Thirty-seven percent of companies surveyed in an ANA study used a combination of fees and commissions to compensate agencies, which is a _____ compensation system. A. fixed-fee B. straight-fee C. value-based D. cost-plus E. blended Blended compensation plans use a combination of fees and commissions to compensate agencies. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

111. Which of the following is the reason why companies are increasingly choosing to opt for an incentive-based system? A. to encourage agencies to use more mass-media advertising B. to encourage agencies to stop using network TV advertising C. to avoid the involvement of top management in the decision-making process D. to demand more accountability and pay the agencies based on their performance E. to encourage agencies to keep detailed records of the costs incurred while working with clients Increasingly, clients are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system. Recognizing the movement toward incentive-based systems, some agencies have agreed to tie their compensation to performance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

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112. As more companies adopt the integrated marketing communications approach to their advertising and promotions A. they are increasingly concentrating on a mass-media strategy as it is relatively cheaper. B. they are reducing their reliance on mass-media advertising, which is leading to changes in the way they compensate their agencies. C. they are likely to move completely to cost-plus compensation systems. D. incentive systems are becoming less important in compensating agencies. E. fee agreements and cost-plus systems are generally being avoided in favor of the traditional compensation method. An ANA study concluded that the use of performance incentives as the basis for agency compensation continues to grow, and is generally gaining

popularity across the board, regardless of advertiser type or size or type of agency service. As more companies adopt integrated marketing communications (IMC) approaches, they are reducing their reliance on traditional media advertising, and this is leading to changes in the way they compensate their agencies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Promotion Budget

113. A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers. A. financial B. operational C. departmental D. qualitative E. grant and contract The financial audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

114. A _____ audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. A. quantitative B. social C. financial D. qualitative E. contract-grant The qualitative audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

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115. Pluto Inc., a new ad agency, primarily obtains clients through cold calls, promotional letters, and following up on known leads. The company maintains a separate department which is responsible for bringing in new accounts. In this scenario, the company is obtaining clients through A. referrals. B. solicitation. C. public relations. D. publicity. E. reputation management. In the above scenario, Pluto Inc. is obtaining clients through solicitation. One of the more common ways to gain new business is through direct solicitation. In smaller agencies, the president may solicit new accounts. In most large agencies, a new business development group seeks out and establishes contact with new clients. The group is responsible for writing solicitation letters, making cold calls, and following up on leads. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

116. A(n) _____ is an individual who specializes in helping clients choose their advertising agencies. A. social media consultant B. ad agency review consultant C. ad agency account representative D. brand manager E. ad agency compensation specialist Due in part to the emphasis on speculative presentations, a very important role has developed for ad agency review consultants, who specialize in helping clients choose ad agencies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

117. The most effective way for an agency to acquire new business is through A. its image and reputation. B. solicitation. C. a qualitative audit. D. presentations. E. its pricing strategy. Perhaps the most effective way an agency can gain new business is through its reputation for doing excellent work for the clients it serves. Word travels fast through the advertising and marketing industry regarding the agencies that are doing outstanding creative work in advertising as well as in other areas of integrated marketing communications (IMC). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies. Topic: Role of the Marketing Manager

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118. _____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate different types of communications that go straight to target customers. A. Digital-interactive agencies B. Sales promotion agencies C. Direct-marketing agencies D. Public relations firms E. Creative boutiques Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media services, and creative and production capabilities. While direct mail was their primary weapon, many direct-response agencies are expanding their services to include such areas as infomercial production and database management. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

119. Venus Corp. is an agency that specializes in providing media services, direct mail, database management, and research services. It also offers creative and production services to its clients. In this scenario, Venus is an example of a _____ agency. A. creative boutique B. public relations C. digital-interactive D. direct-marketing E. sales promotion In the above scenario, Venus Corp. is an example of a direct-marketing agency. Direct-marketing agencies provide a variety of services, including database management, direct mail, research, media services, and creative and production capabilities. Many companies are using database marketing to pinpoint new customers and build relationships and loyalty among existing customers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

120. _____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs. A. Sales promotion agencies B. Direct-response agencies C. Creative boutiques D. Interactive agencies E. Collateral agencies Developing and managing sales promotion programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs are very complex tasks. Most companies use a sales promotion agency to develop and administer these programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

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121. WriteOn Stationery is new in the market. They have hired a specialized agency to promote their products in the market. Which type of specialized service would help them coordinate a program to allow consumers to mail in Universal Product Codes from three WriteOn products to receive a free Redbox movie rental? A. sales promotion agency B. collateral agency C. creative boutique D. interactive agency E. direct-response agency In the above scenario, sales promotion agencies would help WriteOn Stationery. Developing and managing sales promotion programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs are very complex tasks. Most companies use a sales promotion agency to develop and administer these programs. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

122. Rapp and Wunderman are subsidiaries of large agency holding companies that provide services for companies that want to communicate with consumers through telemarketing, direct mail, television, the Internet, and other forms of direct-response advertising. They are examples of ___________________ agencies. A. direct-marketing B. collateral C. boutique D. interactive E. sales promotion Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media services, and creative and production capabilities. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

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123. Organizations that specialize in the creation of marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns are known as A. sales promotion agencies. B. public relations firms. C. creative boutiques. D. interactive agencies. E. direct-response agencies. Many marketers are using interactive agencies that specialize in the development and strategic use of various interactive marketing tools such as websites for the Internet, banner ads, search engine optimization, mobile marketing, and social media campaigns. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: Advertising Appeals

124. A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience. A. PR agency B. sales promotion agency C. media mix organization D. creative boutique E. direct-response agency A public relations firm develops and implements programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, stockholders, government, labor groups, citizen action groups, and the general public. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

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125. A client wants to organize a concert to raise funds for The Little Ones, an orphanage in Houston. Which specialized service would be responsible for preparing news releases and promoting and managing the concert? A. a digital agency B. a marketing research firm C. an interactive agency D. a public relations firm E. a sales promotion agency In the above scenario, a public relations firm would be responsible for preparing news releases and promoting and managing the concert. The activities of a public relations firm include planning the PR strategy and program, generating publicity, conducting lobbying and public affairs efforts, becoming involved in community activities and events, preparing news releases and other communications, conducting research, promoting and managing special events, and managing crises. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

126. Interactive agencies are also called A. digital agencies. B. public relation firms. C. creative boutiques. D. sales promotion agencies. E. collateral agencies. Interactive agencies are also called digital agencies. With the rapid growth of the Internet and other forms of interactive media, a new type of specialized marketing communications organization has evolved—the interactive agency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

127. Package design firms, market research companies, photographers, and printers are examples of A. sales promotion agencies. B. interactive agencies. C. collateral service providers. D. companies that assist in media buying. E. creative boutiques. The final participants in the promotional process are those that provide various collateral services. They include marketing research companies, package design firms, consultants, photographers, printers, video production houses, and event marketing services companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

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128. Which of the following is considered to be a collateral services provider? A. public relation firms B. sales promotion agencies C. digital marketing agencies D. full-service interactive agencies E. market research firms The final participants in the promotional process are those that provide various collateral services. They include marketing research companies, package design firms, consultants, photographers, printers, video production houses, and event marketing services companies. One of the more widely used collateral service organizations is the marketing research firm. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

129. Which of the following is likely to conduct in-depth interviews and focus groups, as well as market surveys in order to gather objective information that is valuable to the advertiser's promotional programs? A. market research companies B. media specialist organizations C. media buying organizations D. creative boutiques E. sales promotion agencies Marketing research companies offer specialized services and can gather objective information that is valuable to the advertiser's promotional programs. They conduct qualitative research such as in-depth interviews and focus groups, as well as quantitative studies such as market surveys. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

130. Marketing research firms A. seldom conduct qualitative research for ad agencies. B. are one of the most widely used types of collateral service organizations. C. typically do not provide quantitative market research services. D. are not typically used by ad agencies. E. can gather only subjective information. One of the more widely used collateral service organizations is the marketing research firm. Marketing research companies offer specialized services and can gather objective information that is valuable to the advertiser's promotional programs. They conduct qualitative research such as in-depth interviews and focus groups, as well as quantitative studies such as market surveys. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations. Topic: IMC

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131. Which of the following is true about integrated services? A. They help in eliminating the requirement for economies of scale. B. They help in maintaining control of the entire promotional process. C. They create individual branding for varied products or services. D. They make it difficult for the client to coordinate all of its marketing efforts. E. They reduce synergy in the promotional process. Proponents of integrated marketing services contend that past problems are being solved and the various individuals in the agencies and subsidiaries are learning to work together to deliver a consistent message to the client's customers. They argue that maintaining control of the entire promotional process achieves greater synergy among each of the communications program elements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency. Topic: IMC

132. Which of the following is considered to be the greatest obstacle in implementing integrated marketing communications (IMC)? A. IMC often results in greater economies of scale. B. Since each communication discipline has the same cost structure, the concept of IMC itself becomes invalid. C. IMC is only compatible with smaller organizations and surveys have witnessed compatibility issues when the process is scaled up. D. The implementation of IMC is most likely to result in interdepartmental budget allocations problems. E. The lack of people with the requisite broad perspective and skills to implement IMC presents the biggest obstacle. Marketing executives say the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work. Internal turf battles, agency egos, and fear of budget reductions are also cited as major barriers to successful integrated marketing campaigns. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency. Topic: The Role of Advertising

133. Which of the following is an statement about integrated marketing communications firms? A. IMC often results in greater economies of scale. B. An agency that has all marketing operations in-house is usually perceived as best in breed. C. Having one agency in control of the entire IMC process achieves greater synergy among each of the communications program elements. D. One challenge to IMC is a lack of people with the requisite broad perspective and skills to make it work. E. IMC agencies make it convenient for the client to coordinate all of its marketing efforts through one agency. Specialized niche agencies are more likely to be perceived as best in breed than IMC agencies. Specialized agencies focus on doing one thing and doing it well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency. Topic: IMC

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Chapter 03 Test Bank Summary Category-# of Questions AACSB: Analytical Thinking-116 AACSB: Reflective Thinking-17 Accessibility: Keyboard Navigation-129 Blooms: Apply-18 Blooms: Remember-77 Blooms: Understand-38 Difficulty: 1 Easy-76 Difficulty: 2 Medium-43 Difficulty: 3 Hard-14 Learning Objective: 03-01 Describe how companies organize for advertising and integrated marketing communications functions.-13 Learning Objective: 03-02 Compare the advantages and disadvantages of different ways to organize for advertising and promotion.-31 Learning Objective: 03-03 Identify the types of advertising agencies and the roles they play.-44 Learning Objective: 03-04 Explain how to select, compensate, and evaluate advertising agencies.-25 Learning Objective: 03-05 Identify the role and functions of specialized marketing communication organizations.-15 Learning Objective: 03-06 Compare the pros and cons of using an integrated marketing services agency.-5 Topic: Advertising Appeals-1 Topic: IMC-26 Topic: Promotion Budget-18 Topic: Role of the Marketing Manager-15 Topic: The Role of Advertising-23 Topic: The Steps in an Advertising Campaign-51

03-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education

Chapter 04 Test Bank Student: ___________________________________________________________________________ 1. In order to be successful, marketers need to know the specific needs customers are attempting to satisfy and how they translate into purchase criteria. True False

2. Some purchase decisions are incidental, and may result from little more than seeing a product prominently displayed at a discount price in a store. True False

3. Although problem recognition is caused by a difference between the consumer's ideal state and actual state, the problem does not always imply a negative state. True False

4. When the consumer is in the stage of information search in the decision-making process, the relevant internal psychological process is motivation. True False

5. The insight that women like to bake cakes because they feel like they are giving birth to a baby was due to a finding from motivation research. True False

6. When a consumer's internal psychological process is attitude formation, she is likely to be in the stage of purchase decision in the decision-making process. True False

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7. Determining how much and which sources of external information to use involves several factors, including the importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available. True False

8. Those who relate psychoanalytic theory to consumer behavior believe that consumers know why they want the products they wish to buy. True False

9. In-depth interviews involve a structured questionnaire that includes numerous yes-or-no questions. True False

10. Projective techniques are applauded or celebrated for being very specific, recognizing the importance of the external environment, and relying so heavily on the early development of the individual. True False

11. An individual's perceptual processes usually focus on elements of the environment that are relevant to his or her needs and tune out irrelevant stimuli. True False

12. When Coca-Cola uses the color red to create contrast from other ads, it is focusing on its brand identity and trying to overcome selective exposure. True False

13. When a consumer interprets information in a manner that supports her own position, she is said to be engaging in selective retention. True False

14. The exact size of the evoked set varies from one consumer to another and depends on factors such as the importance of the purchase. True False

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15. When Mariah Carey's perfume associated its product with the looks and sweetness of lollipops, it was an example of applying cognitive learning theory. True False

16. Multiattribute models help marketers understand and diagnose the underlying basis of consumers' attitudes. True False

17. According to classical conditioning theory, there is no preexisting relationship between an unconditioned stimulus and unconditioned response. True False

18. Reinforcement occurs even when an ad encourages consumers to use a particular product or brand to avoid unpleasant consequences. True False

19. When Carfax shows how using its service will help avoid negative consequences, it is an application of classical conditioning. True False

20. Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual's responses are rewarded. True False

21. Cognitive learning theory has been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. True False

22. Aspirational reference groups represent groups to which me might like to belong, like when the United States Army shows strong leaders in its ads. True False

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23. The more advertisers assess situational determinants of consumer behavior, the more likely they are to succeed in communicating with their target audiences. True False

24. While psychologists study consumer responses to advertising and other forms of communication in controlled settings, sociologists and anthropologists study behavior in context. True False

25. Everyone believes neuroscience research is superior to all other traditional methods for understanding consumer behavior. True False

26. _____ can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. A. Consumer socialization B. Consumer culture C. Consumer behavior D. Consumer retention E. Consumer assimilation

27. Telluride ski resort appeals to the personality or ___________ of skiers, as these can influence purchase decisions. A. lifestyle B. loyalty C. impulses D. attenuation E. integration

28. Robert, an automobile engineer, detects a strange noise emanating from the engine of his car. As he is an expert mechanic, he diagnosed that the car required a new fan belt. Which of the following stages of the consumer decision-making process is represented in this scenario? A. external search B. postpurchase evaluation C. problem recognition D. purchase decision E. alternative evaluation

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29. Which of the following is the first stage of the consumer decision-making process? A. problem recognition B. internal search C. external search D. selective exposure E. selective retention

30. Which of the following is the most relevant internal psychological process associated with the problem recognition stage of the consumer decision-making process? A. employment status B. motivation C. assimilation D. dissociation E. internalization

31. Which of the following is the most relevant internal psychological process associated with the alternative evaluation stage of the consumer decision-making process? A. motivation B. attitude formation C. assimilation D. integration E. differentiation

32. Which of the following is the most relevant internal psychological process associated with the purchase decision stage of the consumer decision-making process? A. externalization B. perception C. culturalization D. integration E. learning

33. Which of the following is the most relevant internal psychological process associated with the postpurchase evaluation stage of the consumer decision-making process? A. motivation B. perception C. assimilation D. learning E. disintegration

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34. When McCann Erickson asked women to draw and describe how they felt about roaches and discovered that many women associated roaches with men who had abandoned them, and therefore the women preferred roach killers that let them see the roaches die, the agency was using __________________________ research. A. motivation B. perception C. assimilation D. neuroscience E. disintegration

35. Which of the following is the most relevant internal psychological process associated with the information search stage of the consumer decision-making process? A. differentiation B. perception C. valuation D. amalgamation E. disassociation

36. Which of the following statements describes a situation in which marketer-induced problem recognition was used? A. Shopaholic, a clothing and accessories brand, sends newsletters to all its customers at the end of each summer, stating that their existing wardrobe might be out of style. B. Ken buys a battery charging case after purchasing a smartphone. C. Casey purchased Hair Care shampoo but switched to Rejuvenate shampoo when he found that the shampoo contained extensive chemicals. D. Upgraded, an electronics store, recently sold goods at discounted prices to people who registered themselves on the company's website. E. Patrick hurt his toe while jogging and realized that his sports shoes were torn. He went to the store to purchase a new pair of shoes.

37. Marketers encourage _____ by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. A. brand switching B. brand extension C. brand dilution D. brand loyalty E. brand retention

38. Which of the following consumer behaviors leads them to seek different brands and try out various options? A. out-of-mind syndrome B. consumer assimilation C. consumer socialization D. novelty-seeking behavior E. consumer acculturation

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39. According to Abraham Maslow's hierarchy of needs, the most basic level of human needs is A. physiological needs. B. esteem needs. C. self-actualization needs. D. social needs. E. safety needs.

40. Jack, a student, has applied for a job in one of the top private banks in the United States. Jack feels securing a job with a private bank would fulfill his desire for steady employment. With respect to Maslow's hierarchy of needs theory, by securing a career in private banking, Jack is most likely to fulfill his _____ needs. A. physiological B. esteem C. social D. safety E. self-actualization

41. According to Abraham Maslow's hierarchy of needs theory, the highest level of needs is _____ needs. A. physiological B. safety C. self-actualization D. esteem E. social

42. Lower-level needs such as hunger and thirst are important to marketers because these needs A. are the hardest to satisfy. B. are an ongoing source of motivation for most consumer purchase behavior. C. require marketers to invest heavily on promotional activities. D. offer marketers a basis for differentiating their products. E. are the source for most market development and assimilation strategies.

43. Robert, the CEO of a software company in Houston, has fulfilled his career goals. Therefore, he decides to retire and help eliminate societal problems. In order to achieve this, he starts a charitable organization that helps in educating underprivileged children. With respect to Maslow's hierarchy of needs theory, Robert is looking to fulfill his _____ need. A. physiological B. social C. self-actualization D. esteem E. safety

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44. The desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance is a reflection of _____ need. A. physiological B. social C. self-actualization D. esteem E. safety

45. _____ theory is an approach that deals with the structure and development of personality and focuses on the underlying motivations for human behavior. A. Maslow's hierarchy B. Psychoanalytic C. Lamarckian D. World-systems E. Structuration

46. Psychoanalytic theory was pioneered by A. Abraham Maslow. B. Sigmund Freud. C. Ivan Pavlov. D. David McClelland. E. Victor Vroom.

47. With respect to motivation research, which of the following is a technique in which small numbers of people with similar backgrounds and/or interests are brought together to discuss a particular product, idea, or issue? A. in-depth interview B. delphi technique C. focus groups D. association tests E. nominal group technique

48. With respect to motivation research, which of the following is a face-to-face situation in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions? A. Focus group interview B. Stress interview C. Projective interview D. Coolhunting E. In-depth interview

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49. James, an interviewer, instructs Lily to respond to his questions with the first thing that comes to her mind. James provides Lily with several stimuli such as words, pictures, and ads. With respect to motivation research, James is using a(n) A. predictive test. B. in-depth interview. C. association test. D. focus group. E. projective technique.

50. When Bloomingdale's New York store sprayed Donna Karan's new perfume DKNY onto the sidewalks outside the store to introduce the perfume to consumers, it was trying to increase the level of _______________ so the product would get noticed. A. comprehension B. retention C. sensory input D. mnemonics E. subliminal perception

51. In the context of motivation research, _____ are efforts designed to gain insights into consumers' values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. A. projective techniques B. focus interviews C. assimilation techniques D. association tests E. subliminal tests

52. Critics of psychoanalytic theory believe any results from motivation research are unusable because A. the results are too predictable. B. the theory is too sensitive to external environmental stimuli. C. the research relies heavily on latter individual development. D. the theory is too vague. E. the research lacks flexibility.

53. Which of the following is true of the psychoanalytic theory? A. It is generally considered to have ignored the early development of an individual. B. It has been criticized for being unresponsive to the external environment. C. It has proven to be extremely useful as it is structured and easy to administer. D. It has been validated experimentally. E. It places less emphasis on the unconscious.

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54. _____ is the stage of the consumer decision-making process whereby the individual scans information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. A. Problem recognition B. Internal information search C. External information search D. Alternative evaluation E. Postpurchase evaluation

55. With respect to the consumer decision-making process, the stage that occurs immediately after the problem recognition stage is A. elaborative rehearsal. B. purchase decision. C. postpurchase evaluation. D. information search. E. goal-directed selection.

56. Before purchasing a car, John sought advice from his friends and researched auto reviews on the Internet. He also visited car dealers and went for a test-drive. In which of the following stages of the consumer decision-making process is John engaged? A. internal information search B. external information search C. postpurchase evaluation D. problem recognition E. evoked set manipulation

57. Which of the following is true of perception? A. Perception is an external process. B. Perception involves only one process—sensation. C. Perception is an individual process. D. Perception is independent of internal psychological factors. E. The perceptual process is unaffected by the characteristics of a stimulus like its size and color.

58. Which of the following best defines perception? A. It is an associative learning process that helps in associating a product or service with a favorable emotional state. B. It is the process of presenting a new production process or product into the market and promoting the same to prospective customers. C. It is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. D. It is the intense emotional response of a consumer when he realizes that a repressed conflict is about to emerge into consciousness. E. It is a situation that arises when a consumer's prior product knowledge and buying behavior gets distorted and leads to illegal buying situations.

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59. Which of the following perception processes is the immediate, direct response to the taste, smell, touch, and hearing of stimuli? A. selection B. sensation C. assimilation D. disintegration E. interpretation

60. Various brands of perfume use scented strips in their ads to influence _____ and to increase the probability that the ad will be perceived. A. the consumer's level of sensory input B. consumer personality C. the internal information search D. the consumer's cognitive dissonance E. echoic memory

61. Which of the following is the first step in the selective perception process? A. selective attention B. selective comprehension C. selective integration D. selective exposure E. selective retention

62. James wants to buy a new truck.While watching TV, he notices a series of truck ads. However, he fails to notice several other ads including those promoting cosmetics, snack foods, and sodas. In this scenario, James is exhibiting A. selective attention. B. selective retention. C. selective exposure. D. selective assimilation. E. selective comprehension.

63. While watching a basketball game on television, Ryan leaves the room during commercial breaks and returns only when the live broadcast returns. If he deliberately avoids viewing commercials, Ryan is likely exhibiting A. selective attention. B. selective exposure. C. selective comprehension. D. selective retention. E. selective recall.

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64. The step of the perception process where consumers interpret information based on their own attitudes, beliefs, motives, and experiences is known as A. selective attention. B. selective exposure. C. selective comprehension. D. selective retention. E. selective conditioning.

65. Through the use of mnemonics, advertisers hope consumers will not engage in _____ when they see the advertisements. A. selective rehearsal B. selective bias C. selective comprehension D. selective retention E. selective attention

66. Symbols, rhymes, associations, and images that assist in the learning and memory processes are known as A. drives. B. cues. C. mnemonics. D. trigger points. E. memes.

67. Ads that use telephone numbers that contain the company name are hoping to enhance A. selective sublimation. B. selective bias. C. selective determination. D. selective retention. E. selective understanding.

68. _____ is the ability to perceive a stimulus that is below the level of conscious awareness. A. Selective conditioning perception B. Observer bias C. Lightness constancy D. Subliminal perception E. Stimuli interception

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69. The various brands identified as purchase options to be considered during the alternative evaluation process are known as the consumer's A. perceptive list. B. attribution list. C. neutral list. D. evoked set. E. sublimation set.

70. Todd buys a fruit-based drink every afternoon. He either buys a Relish apple juice or an orange drink made by Joy Fruit Juices. He will not consider any other brand or type of soft drink because the two drinks make up his A. latent set. B. brand attribution list. C. natural selection list. D. evoked set. E. subliminal choices.

71. During which stage of the consumer decision-making process are evoked sets and evaluative criteria relevant? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. purchase decision

72. _____ are the dimensions or attributes of a product that are used to compare different alternatives. A. Evaluative criteria B. Salient beliefs C. Dissonance motives D. Attribute bundles E. Reinforcement criteria

73. During which stage of the consumer decision-making process are both functional and psychosocial consequences important considerations? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. observer bias

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74. Which of the following is considered to be a subjective evaluative criterion while purchasing an automobile? A. price B. warranty C. fuel economy D. styling E. insurance cost

75. Which of the following is true of a psychosocial consequence? A. They are concrete outcomes of products. B. They are intangible in nature. C. They are directly experienced by consumers. D. They lack subjectivity. E. They are highly impersonal.

76. _____ are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. A. Functional consequences B. Psychosocial consequences C. Attribute bundles D. Subjective consequences E. Personal stimuli

77. With respect to the alternative evaluation stage of the consumer decision-making process, how a golf cart handles, how the brakes on a bicycle work, and how well a stain remover eliminates dirt stains are all examples of A. functional consequences. B. psychosocial consequences. C. schedules of reinforcement. D. subjective bundles. E. physiological stimuli.

78. Which of the following is an example of a functional consequence? A. the need to order champagne to celebrate a birthday B. the desire to eat a pound of chocolate C. the feeling of euphoria that accompanies a purchase of a motorcycle D. the taste of buttered popcorn in a movie theater E. the joy of finding the perfect gift for a friend

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79. Which of the following is an example of a psychosocial consequence? A. the taste of a soft drink B. the feeling of prestige associated with wearing a luxury watch C. the acceleration of an automobile D. the processing speed of a computer E. the firmness of a mattress

80. In terms of the alternative evaluation stage of the consumer decision-making process, how you feel when you wear new shoes, the perception of how others like your new hair style, and how a recent weight-loss makes you feel about yourself are all examples of A. functional consequences. B. psychosocial consequences. C. mnemonics. D. heuristics. E. physiological consequences.

81. Which of the following is considered to be an objective evaluative criterion while purchasing an automobile? A. image B. price C. styling D. performance E. color

82. Which of the following differentiates a functional consequence from a psychosocial consequence? A. Functional consequences are concrete outcomes of a product, whereas psychosocial consequences are abstract outcomes. B. Psychosocial consequences are directly experienced by a customer, whereas functional consequences are not. C. Functional consequences are intangible, whereas psychosocial consequences are tangible outcomes. D. Psychosocial consequences are bundles of product attributes, whereas functional consequences are bundles of service attributes. E. Functional consequences deal with how a product makes you feel, whereas psychosocial consequences deal with tangible, concrete outcomes.

83. Which of the following best defines an attitude? A. It is defined as an intense emotional response of a consumer when the consumer realizes that a repressed conflict is about to emerge into consciousness. B. It is defined as a process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. C. It is defined as a situation that arises when a consumer's prior product knowledge and buying behavior gets distorted and leads to illegal buying situations. D. It is defined as a summary construct that represents an individual's overall feelings toward or evaluation of an object. E. It is defined as the process of presenting a new production process or product into the market and promoting the same to prospective customers.

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84. Which of the following is true of saliency of beliefs? A. It provides insight into ways markets can stimulate consumer attitudes. B. It helps consumers diagnose the underlying basis of marketers' attitudes. C. It tends to vary across different consumption situations. D. It does not vary among different market segments. E. It generally stays stagnant over time.

85. With respect to the consumer decision-making process, which of the following stages can be considered as an immediate outcome of the alternative evaluation stage? A. information search B. problem recognition C. purchase decision D. postpurchase evaluation E. elaborative rehearsal

86. Simplified decision rules such as "Always buy the largest size of the cheapest detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are called A. mnemonics. B. heuristics. C. cognitions. D. eruditions. E. cues.

87. In its ads, The Coffee House stresses consumers' overall emotional impressions of the brand with an attractive slogan. Through this slogan, The Coffee House wants to convey that it sells exquisite and refreshing coffee to its consumers. It wants its consumers to purchase on the basis of this impression and not comparison. This is an example of a marketer using A. the affect referral decision rule. B. the mirror-image rule. C. belief-bias effect. D. bait-and-switch marketing. E. nonqualitative evaluative criteria.

88. _____ is a heuristic in which consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. A. Affect referral decision rule B. Bait-and-switch advertising C. Guerilla advertising D. The mirror-image rule E. Cognitive appraisal theory of emotion

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89. Which of the following is true of the affect referral decision rule? A. It is synonymous with the mirror-image rule. B. It is a type of heuristic. C. It is synonymous with bait-and-switch marketing. D. It can be used only by marketers who sell luxury products. E. It is a type of mnemonic.

90. _____ is a preference for a particular brand that results in its repeated purchase. A. Brand extension B. Brand stretching C. Brand spin-off D. Brand loyalty E. Brand equity

91. As an outcome of the alternative evaluation stage, the consumer develops A. a heuristic tendency toward a particular brand. B. a predisposition to buy a certain brand. C. brand heuristics. D. individual brand recognition. E. a postpurchase evaluation set.

92. Peter owns several rental apartments. Initially, he used several appliance brands in his apartments and was dissatisfied with their short life span. Currently, Peter purchases appliances only from Insignia Inc., a manufacturer of home appliances, for his apartments. His repeat purchases indicate A. the existence of cognitive dissonance. B. the absence of any affect referral decisions. C. strong brand loyalty. D. extensive decision making and strong psychosocial consequences. E. a lack of evaluative criteria.

93. Which of the following is considered as the final stage in the consumer decision-making process? A. postpurchase evaluation B. purchase decision C. information search D. alternative evaluation E. problem recognition

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94. Which of the following is a possible consequence of postpurchase evaluation? A. brand extension B. purchase intention C. product differentiation D. cognitive resonance E. dissatisfaction

95. In the postpurchase evaluation stage, when performance of a product or service is below expectations, it would result in A. the development of consideration threat. B. the creation of an evoked set. C. dissatisfaction. D. the evaluation of attribute bundles. E. cognitive resonance.

96. _____ is a state of psychological tension or postpurchase doubt a consumer may experience after making a difficult purchase decision. A. Availability heurism B. Self-serving bias C. Cognitive dissonance D. Impact bias E. Subliminal erudition

97. After purchasing a fancy-cut diamond ring for his wife, Jason feels dissatisfied with his purchase as he feels that the ring was overpriced and poorly cut. Moreover, Jason feels that he should have selected the round brilliant-cut diamond rather than the fancy-cut diamond. In this scenario, Jason is experiencing

A. impact bias. B. cognitive dissonance. C. psychosocial heurism. D. belief-bias effect. E. overregularization.

98. Many of the purchase decisions made by consumers for low-priced, frequently purchased products are characterized by A. routine response behavior. B. cognitive dissonance. C. ambivalence. D. high involvement. E. cognitive learning.

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99. For which of the following situations is a consumer's purchase behavior most likely to be characterized by extended problem solving? A. purchase of laundry detergent B. selection of frozen meat C. purchase of a new set of skis by an avid skier D. selection of a restaurant for lunch with friends E. purchase of a brilliant-cut diamond wedding ring

100. _____ is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. A. Consumer lending B. Cognitive dissonance C. Consumer learning D. Cognitive distortion E. Cognitive extension

101. Which of the following is true of behavioral learning theories? A. These theories are based on stimulus-response orientation. B. These theories put too much emphasis on internal psychological processes. C. They are also known as associative process theories. D. These theories disagree that the external stimulus environment will elicit fairly predictable consumer responses. E. These theories disprove the classical conditioning theory.

102. Who among the following contributed to the classical conditioning theory by conducting studies on animals and providing well-known examples for the theory? A. Maslow B. Pavlov C. Vroom D. McClelland E. Freud

103. A dog that salivates during feeding time does so due to an innate reflex reaction. According to the conditioning theory in relation to this scenario, food will be considered as a(n) A. unconditioned stimulus. B. external stimulus. C. assimilated stimulus. D. programmed stimulus. E. conditioned stimulus.

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104. With respect to classical conditioning, _____ occurs when an unconditioned stimulus and a conditioned stimulus occur in close proximity in time and space. A. repetition B. dissociative behavior C. response orientation D. contiguity E. negative reinforcement

105. When Mariah Carey paired her new perfume with the looks and sweetness of lollipops, it was an application of the principles of A. repetition. B. dissociative behavior. C. classical conditioning. D. cognitive learning. E. operant conditioning.

106. Why are principles of operant conditioning useful in the development of promotional strategies? A. They explain the cognitive processes that mediate a consumer's response to advertising. B. They show that experiences with products provide reinforcements that affect future purchase behaviors. C. They explain why coupons and samples are unlikely to have any desirable effect on consumer behavior. D. They explain consumer behavior in both high- and low-involvement situations. E. They explain how the pairing of a neutral stimulus with a positive stimulus can produce an immediate desired response.

107. Yummy soups, a vegetable soup manufacturing company, uses coupons and sweepstakes to promote its soup. This reflects an application of A. belief-bias effect. B. bait-and-switch promotions. C. operant conditioning. D. classical conditioning. E. cognitive appraisal theory of emotion.

108. The presence of a prize in every box of Joy Stick Snacks is an example of A. classical reinforcement. B. continuous reinforcement. C. partial reinforcement. D. cognitive dissonance. E. intermittent reinforcement.

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109. Learning occurs most rapidly under a(n) _____ reinforcement schedule, but the behavior is likely to cease when the reinforcement stops. A. continuous B. partial C. intermittent D. disintegrated E. flexible

110. The process of _____ is the reinforcement of successive acts that leads to a desired behavior pattern or response. A. shaping B. blocking C. mapping D. counterconditioning E. flooding

111. Behavioral learning theories have been criticized for A. focusing on providing information through subliminal learning processes. B. using suggestive illustrations to make consumers respond to internal stimuli. C. employing the use of violence in altering mind-body awareness. D. emphasizing the role of internal psychological processes and basing the theories on stimulus-response orientation. E. assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors.

112. _____ refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. A. Neoculture B. Subculture C. Social class D. Dissociative group E. Reference group

113. Jemma is targeting a new tennis racquet to tennis enthusiasts with professional occupations who have annual household incomes above $250,000 and graduate degrees. Her target audience likely falls into the ___________ level of social class, which includes about 14 percent of people in the United States. A. upper B. middle C. lower D. innovator E. white collar

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114. Jorge realized his core target audience was characterized by common leisure activities (museum visits, polo matches), shopping patterns (preference for boutiques, designer labels), and media habits (read , ). His target audience may be most appropriately characterized by A. avoidance reference group. B. social class. C. motives. D. situational influences. E. demographics.

115. Frank is a location analyst for a fast-food restaurant chain. He knows that previous restaurants have been placed in locations where most people within a three-mile radius have the following characteristics: household incomes between $50,000 and $65,000 per year, children and parents are highly engaged in after-school activities, family is valued above work, and one or both parents has some education beyond high school. His target audience likely falls into the ___________ level of social class, which includes about 70 percent of people in the United States. A. upper B. middle C. lower D. innovator E. blue collar

116. _________________ is a broad, abstract external factor, and characterizes people based on their shared values, norms, learned meanings, and customs. A. Culture B. Geography C. Behavior D. Psychology E. Social class

117. Before Josephine expands her business into international markets, she has to understand the impact of ____________ on consumer behavior because each country has traditions, customs, and values that may impact the market's response to her marketing program. A. social class B. life cycle C. perception D. social identity E. culture

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118. _____ refers to smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. A. Subculture B. Social class C. Reference group D. Motivation E. Attitude

119. Adidas has different versions of its ads that are designed to appeal to different age groups and different regions of the United States, or _________________, because it found that these segments had different beliefs, values, norms, and patterns of behavior than the larger cultural mainstream. A. cultures B. social classes C. subcultures D. motivations E. attitudes

120. When Andy targets a new line of make-up to African Americans, he is targeting a(n) ____________________ within the larger cultural mainstream. A. aspirational group B. social class C. advocacy group D. subculture E. neoculture

121. Which of the following is best defined as a group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions? A. alpha-consumer group B. focus group C. reference group D. demographic group E. cultural sect

122. A reference group to which one does not wish to belong is a(n) _____ group. A. heuristic B. disassociative C. evoked D. mnemonic E. confrontational

04-23 . McGraw-Hill Education.

123. When the Saskatchwean Ministry of Health created an ad showing a woman who was passed out with a beer in her hand to communicate to college students that they have a choice when it comes to binge drinking, they were using a(n) _____ group to make their point. A. heuristic B. disassociative C. evoked D. mnemonic E. confrontational

124. Reference groups to which one would like to belong are called _____ groups. A. aspirational B. heuristic C. evoked D. mnemonic E. alpha

125. With respect to the roles in the family decision-making process, all the members of a family who use a car are referred to as the A. purchasing agents. B. consumers. C. influencers. D. information providers. E. initiators.

126. Jim's parents wish to buy a car. Knowing that Jim is a car enthusiast, they ask him to collect the relevant facts and figures required to make the purchase. Subsequently, Jim collects several magazines and articles for the same purpose. In this scenario, Jim is the A. decision maker. B. initiator. C. influencer. D. information provider. E. consumer.

127. With respect to the roles in the family decision-making process, the person who exerts power as to what criteria will be used in the selection process while purchasing a product is called the A. influencer. B. consumer. C. initiator. D. purchasing agent. E. decision maker.

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128. With respect to the roles in the family decision-making process, the individual who performs the physical act of buying the product is called the A. influencer. B. purchasing agent. C. decision maker. D. gatekeeper. E. consumer.

129. In the family decision-making process, the person in the family who is responsible for starting the purchase decision process is the A. purchasing agent. B. consumer. C. initiator. D. information provider. E. influencer.

130. The American Eurocopter company shows its product on a large yacht in its advertising in the hope that it will appeal to the upper stratum of _______________, which refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, behaviors, and interests can be grouped. A. social class B. reference group C. culture D. communications E. usage

131. Which of the following is true of cross-disciplinary research? A. It has been criticized for ignoring various behavioral stimuli such as motivation and culture. B. It fails to provide room for experimentation and remains a theorized ideology. C. It provides a greater understanding of consumer behavioral through neoviolence and neosocial theories. D. It fails to provide a better understanding of the role of cultural significance in advertising. E. It is better suited for the study of consumers because it takes into account their complexity and multidimensionality.

132. When it comes to neuroscience, Ray Poynter, social media consultant, believes that neuroscience is A. more hype than science. B. the way to identify a common truth. C. an effective way to identify the single scientific reality. D. sufficiently understood to draw conclusions. E. the best multidimensional method.

04-25 . McGraw-Hill Education.

Chapter 04 Test Bank Key 1. In order to be successful, marketers need to know the specific needs customers are attempting to satisfy and how they translate into purchase criteria. TRUE Marketers need to know the specific needs customers are attempting to satisfy and how they translate into purchase criteria. They also need to understand how consumers gather information regarding various alternatives and use this information to select among competing brands, and how they make purchase decisions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Discuss why an undersanding of consumer behavior is valuable in developing advertising and promotional programs. Topic: Consumer Behavior

2. Some purchase decisions are incidental, and may result from little more than seeing a product prominently displayed at a discount price in a store. TRUE While many products and services are purchased after a long, detailed process, some purchase decisions are more incidental, including impulse purchases. AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-01 Discuss why an undersanding of consumer behavior is valuable in developing advertising and promotional programs. Topic: Consumer Behavior

3. Although problem recognition is caused by a difference between the consumer's ideal state and actual state, the problem does not always imply a negative state. TRUE Problem recognition is caused by a difference between the consumer's ideal state and actual state. A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like. The problem does not always imply a negative state. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-26 . McGraw-Hill Education.

4. When the consumer is in the stage of information search in the decision-making process, the relevant internal psychological process is motivation. FALSE When the consumer is in the stage of information search in the decision-making process, the relevant internal psychological process is perception. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

5. The insight that women like to bake cakes because they feel like they are giving birth to a baby was due to a finding from motivation research. TRUE Motivation researchers use a variety of methodologies to gain insight into the underlying causes of consumer behavior. Consumers are encouraged to bring out associations related to products and brands. AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic:Psychological Influences

6. When a consumer's internal psychological process is attitude formation, she is likely to be in the stage of purchase decision in the decision-making process. FALSE When a consumer's internal psychological process is attitude formation, she is likely to be in the stage of alternative evaluation in the decision-making process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-27 . McGraw-Hill Education.

7. Determining how much and which sources of external information to use involves several factors, including the importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available. TRUE The importance of the purchase decision, the effort needed to acquire information, the amount of past experience relevant, the degree of perceived risk associated with the purchase, and the time available all affect the amount of information one seeks. Complex purchases tend to result in the consultation of more information sources. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

8. Those who relate psychoanalytic theory to consumer behavior believe that consumers know why they want the products they wish to buy. FALSE Those who attempt to relate psychoanalytic theory to consumer behavior believe consumers' motivations for purchasing are often very complex and unclear to the casual observer—and to the consumers themselves. Many motives for purchase and/or consumption may be driven by deep motives one can determine only by probing the subconscious. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

9. In-depth interviews involve a structured questionnaire that includes numerous yes-or-no questions. FALSE In-depth interviews include face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-28 . McGraw-Hill Education.

10. Projective techniques are applauded or celebrated for being very specific, recognizing the importance of the external environment, and relying so heavily on the early development of the individual. FALSE On the contrary, psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It is difficult to verify because it emphasizes the unconscious. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

11. An individual's perceptual processes usually focus on elements of the environment that are relevant to his or her needs and tune out irrelevant stimuli. TRUE An individual's perceptual processes usually focus on elements of the environment that are relevant to his or her needs and tune out irrelevant stimuli. Two people may perceive the same stimuli in very different ways because they select, attend, and comprehend differently. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

12. When Coca-Cola uses the color red to create contrast from other ads, it is focusing on its brand identity and trying to overcome selective exposure. FALSE In this example, Coca-Cola is using contrast to overcome selective attention, which occurs when the consumers chooses to focus attention on some stimuli while excluding others, not selective exposure, which occurs when consumers choose whether or not to make themselves available to information. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-29 . McGraw-Hill Education.

13. When a consumer interprets information in a manner that supports her own position, she is said to be engaging in selective retention. FALSE Consumers engage in selective comprehension—interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

14. The exact size of the evoked set varies from one consumer to another and depends on factors such as the importance of the purchase. TRUE The exact size of the evoked set (sometimes referred to as the consideration threat) varies from one consumer to another and depends on such factors as the importance of the purchase and the amount of time and energy the consumer wants to spend comparing alternatives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

15. When Mariah Carey's perfume associated its product with the looks and sweetness of lollipops, it was an example of applying cognitive learning theory. FALSE The association of Mariah Carey's perfume with lollipops is actually an application of classical conditioning, which falls under behavioral learning theory. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic:Psychological Influences

04-30 . McGraw-Hill Education.

16. Multiattribute models help marketers understand and diagnose the underlying basis of consumers' attitudes. TRUE Multiattribute models help marketers understand and diagnose the underlying basis of consumers' attitudes. By understanding the beliefs that underlie consumers' evaluations of a brand and the importance of various attributes or consequences, the marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

17. According to classical conditioning theory, there is no preexisting relationship between an unconditioned stimulus and unconditioned response. FALSE Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response. Because this relationship exists before the conditioning process, the stimulus is referred to as an unconditioned stimulus and the response is referred to as an unconditioned response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

18. Reinforcement occurs even when an ad encourages consumers to use a particular product or brand to avoid unpleasant consequences. TRUE Many ads emphasize the benefits or rewards a consumer will receive from using a product or service. Reinforcement also occurs when an ad encourages consumers to use a particular product or brand to avoid unpleasant consequences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-31 . McGraw-Hill Education.

19. When Carfax shows how using its service will help avoid negative consequences, it is an application of classical conditioning. FALSE Reinforcement is associated with instrumental conditioning, not classical conditioning. AACSB: Reflective Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

20. Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual's responses are rewarded. TRUE Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual's responses are rewarded. Promotional programs have partial reinforcement schedules. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

21. Cognitive learning theory has been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. FALSE Behavioral learning theories have been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. In contrast, cognitive learning theory focuses on cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration that are important to understanding the decision-making process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-32 . McGraw-Hill Education.

22. Aspirational reference groups represent groups to which me might like to belong, like when the United States Army shows strong leaders in its ads. TRUE Aspirational reference groups are used in advertisements and promotional strategies. They show groups to which we might like to belong. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

23. The more advertisers assess situational determinants of consumer behavior, the more likely they are to succeed in communicating with their target audiences. TRUE To the degree that advertisers can assess situational influences that may be operating, they will increase the likelihood of successfully communicating with their target audiences. If advertisers can isolate a particular time when the listener is likely to be attentive, they will probably earn his or her undivided attention. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

24. While psychologists study consumer responses to advertising and other forms of communication in controlled settings, sociologists and anthropologists study behavior in context. TRUE Whereas psychologists often study consumer responses to advertising and other forms of communication in controlled settings, where environmental variables can be kept constant, sociologists and anthropologists study behavior in context. For this reason, they often employ qualitative methodologies such as individual interviews, participant observation studies, and/or ethnographies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-06 Identify new ways to study consumer behavior. Topic:Psychological Influences

04-33 . McGraw-Hill Education.

25. Everyone believes neuroscience research is superior to all other traditional methods for understanding consumer behavior. FALSE Not everyone is on the neuroscience bandwagon. Neuroscience is a relatively new science; research has been funded by private corporations, and some researchers feel it is more hype than science. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-06 Identify new ways to study consumer behavior. Topic:Psychological Influences

26. _____ can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. A. Consumer socialization B. Consumer culture C. Consumer behavior D. Consumer retention E. Consumer assimilation Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-01 Discuss why an undersanding of consumer behavior is valuable in developing advertising and promotional programs. Topic: Consumer Behavior

27. Telluride ski resort appeals to the personality or ___________ of skiers, as these can influence purchase decisions. A. lifestyle B. loyalty C. impulses D. attenuation E. integration Consumer decision making can be impacted by personality and lifestyle. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-01 Discuss why an undersanding of consumer behavior is valuable in developing advertising and promotional programs. Topic: Consumer Behavior

04-34 . McGraw-Hill Education.

28. Robert, an automobile engineer, detects a strange noise emanating from the engine of his car. As he is an expert mechanic, he diagnosed that the car required a new fan belt. Which of the following stages of the consumer decision-making process is represented in this scenario? A. external search B. postpurchase evaluation C. problem recognition D. purchase decision E. alternative evaluation In the above scenario, the problem recognition stage is represented. The first stage in the consumer decision-making process is problem recognition, which occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

29. Which of the following is the first stage of the consumer decision-making process? A. problem recognition B. internal search C. external search D. selective exposure E. selective retention The first stage in the consumer decision-making process is problem recognition, which occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-35 . McGraw-Hill Education.

30. Which of the following is the most relevant internal psychological process associated with the problem recognition stage of the consumer decision-making process? A. employment status B. motivation C. assimilation D. dissociation E. internalization Problem-recognition occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

31. Which of the following is the most relevant internal psychological process associated with the alternative evaluation stage of the consumer decision-making process? A. motivation B. attitude formation C. assimilation D. integration E. differentiation Attitude formation is the most relevant internal psychological process associated with the alternative evaluation stage. In this stage, the consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-36 . McGraw-Hill Education.

32. Which of the following is the most relevant internal psychological process associated with the purchase decision stage of the consumer decision-making process? A. externalization B. perception C. culturalization D. integration E. learning Integration is the most relevant internal psychological process associated with the purchase decision stage. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

33. Which of the following is the most relevant internal psychological process associated with the postpurchase evaluation stage of the consumer decision-making process? A. motivation B. perception C. assimilation D. learning E. disintegration Learning is the most relevant internal psychological process associated with the postpurchase evaluation stage. The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-37 . McGraw-Hill Education.

34. When McCann Erickson asked women to draw and describe how they felt about roaches and discovered that many women associated roaches with men who had abandoned them, and therefore the women preferred roach killers that let them see the roaches die, the agency was using __________________________ research. A. motivation B. perception C. assimilation D. neuroscience E. disintegration Motivation research gives researchers insights into how consumers think. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic:Psychological Influences

35. Which of the following is the most relevant internal psychological process associated with the information search stage of the consumer decision-making process? A. differentiation B. perception C. valuation D. amalgamation E. disassociation Perception is the most relevant internal psychological process associated with the information search stage. The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-38 . McGraw-Hill Education.

36. Which of the following statements describes a situation in which marketer-induced problem recognition was used? A. Shopaholic, a clothing and accessories brand, sends newsletters to all its customers at the end of each summer, stating that their existing wardrobe might be out of style. B. Ken buys a battery charging case after purchasing a smartphone. C. Casey purchased Hair Care shampoo but switched to Rejuvenate shampoo when he found that the shampoo contained extensive chemicals. D. Upgraded, an electronics store, recently sold goods at discounted prices to people who registered themselves on the company's website. E. Patrick hurt his toe while jogging and realized that his sports shoes were torn. He went to the store to purchase a new pair of shoes. The above scenario is a situation in which a marketer-induced problem recognition was used. A source of problem recognition is marketers' actions that encourage consumers not to be content with their current state or situation. Ads for personal hygiene products such as mouthwash, deodorant, and foot sprays may be designed to create insecurities that consumers can resolve through the use of these products. Marketers change fashions and clothing designs and create perceptions among consumers that their wardrobes are out of style. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

37. Marketers encourage _____ by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. A. brand switching B. brand extension C. brand dilution D. brand loyalty E. brand retention Marketers take advantage of consumers' tendency toward novelty-seeking behavior, which leads them to try different brands. Marketers encourage brand switching by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

04-39 . McGraw-Hill Education.

38. Which of the following consumer behaviors leads them to seek different brands and try out various options? A. out-of-mind syndrome B. consumer assimilation C. consumer socialization D. novelty-seeking behavior E. consumer acculturation Marketers take advantage of consumers' tendency toward novelty-seeking behavior, which leads them to try different brands. Marketers encourage brand switching by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-02 Discuss the steps in the consumer decision-making process. Topic: Consumer Purchase Decision Process

39. According to Abraham Maslow's hierarchy of needs, the most basic level of human needs is A. physiological needs. B. esteem needs. C. self-actualization needs. D. social needs. E. safety needs. The five needs are physiological needs, safety needs, social/love and belonging needs, esteem needs, and self-actualization needs. Physiological needs is the basic level of primary needs for things required to sustain life, such as food, shelter, clothing, and sex. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

40. Jack, a student, has applied for a job in one of the top private banks in the United States. Jack feels securing a job with a private bank would fulfill his desire for steady employment. With respect to Maslow's hierarchy of needs theory, by securing a career in private banking, Jack is most likely to fulfill his _____ needs. A. physiological B. esteem C. social D. safety E. self-actualization In the above scenario, Jack is most likely to fulfill his safety needs. Safety need is the need for security and safety from physical harm. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

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McGraw-Hill Education.

41. According to Abraham Maslow's hierarchy of needs theory, the highest level of needs is _____ needs. A. physiological B. safety C. self-actualization D. esteem E. social The five needs are physiological needs, safety needs, social/love and belonging needs, esteem needs, and self-actualization needs. Self-actualization is the need for self-fulfillment and a desire to realize one's own potential. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

42. Lower-level needs such as hunger and thirst are important to marketers because these needs A. are the hardest to satisfy. B. are an ongoing source of motivation for most consumer purchase behavior. C. require marketers to invest heavily on promotional activities. D. offer marketers a basis for differentiating their products. E. are the source for most market development and assimilation strategies. Once the basic needs are satisfied, an individual moves on to attempting to satisfy higher-order needs such as self-esteem. In reality, it is unlikely that people move through the needs hierarchy in a stairstep manner. Lower-level needs are an ongoing source of motivation for consumer purchase behavior. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-41 . McGraw-Hill Education.

43. Robert, the CEO of a software company in Houston, has fulfilled his career goals. Therefore, he decides to retire and help eliminate societal problems. In order to achieve this, he starts a charitable organization that helps in educating underprivileged children. With respect to Maslow's hierarchy of needs theory, Robert is looking to fulfill his _____ need. A. physiological B. social C. self-actualization D. esteem E. safety In the above scenario, Robert is looking to fulfill his self-actualization need. Self-actualization need is the need for self-fulfillment and a desire to realize one's own potential. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

44. The desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance is a reflection of _____ need. A. physiological B. social C. self-actualization D. esteem E. safety Social/love and belonging need is the desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-42 . McGraw-Hill Education.

45. _____ theory is an approach that deals with the structure and development of personality and focuses on the underlying motivations for human behavior. A. Maslow's hierarchy B. Psychoanalytic C. Lamarckian D. World-systems E. Structuration A controversial approach to the study of consumer motives is the psychoanalytic theory pioneered by Sigmund Freud. Although his work dealt with the structure and development of personality, Freud also studied the underlying motivations for human behavior. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

46. Psychoanalytic theory was pioneered by A. Abraham Maslow. B. Sigmund Freud. C. Ivan Pavlov. D. David McClelland. E. Victor Vroom. A controversial approach to the study of consumer motives is the psychoanalytic theory pioneered by Sigmund Freud. Although his work dealt with the structure and development of personality, Freud also studied the underlying motivations for human behavior. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

47. With respect to motivation research, which of the following is a technique in which small numbers of people with similar backgrounds and/or interests are brought together to discuss a particular product, idea, or issue? A. in-depth interview B. delphi technique C. focus groups D. association tests E. nominal group technique Focus groups are small numbers of people with similar backgrounds and/or interests who are brought together to discuss a particular product, idea, or issue. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-43 . McGraw-Hill Education.

48. With respect to motivation research, which of the following is a face-to-face situation in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions? A. Focus group interview B. Stress interview C. Projective interview D. Coolhunting E. In-depth interview In-depth interviews are face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

49. James, an interviewer, instructs Lily to respond to his questions with the first thing that comes to her mind. James provides Lily with several stimuli such as words, pictures, and ads. With respect to motivation research, James is using a(n) A. predictive test. B. in-depth interview. C. association test. D. focus group. E. projective technique. In the above scenario, James is using an association test. Association test is a technique in which an individual is asked to respond with the first thing that comes to mind when he or she is presented with a stimulus; the stimulus may be a word, picture, ad, and so on. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

50. When Bloomingdale's New York store sprayed Donna Karan's new perfume DKNY onto the sidewalks outside the store to introduce the perfume to consumers, it was trying to increase the level of _______________ so the product would get noticed. A. comprehension B. retention C. sensory input D. mnemonics E. subliminal perception Bloomingdale's increased the level of sensory input with the intention of getting noticed by consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

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McGraw-Hill Education.

51. In the context of motivation research, _____ are efforts designed to gain insights into consumers' values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. A. projective techniques B. focus interviews C. assimilation techniques D. association tests E. subliminal tests Projective techniques are efforts designed to gain insights into consumers' values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

52. Critics of psychoanalytic theory believe any results from motivation research are unusable because A. the results are too predictable. B. the theory is too sensitive to external environmental stimuli. C. the research relies heavily on latter individual development. D. the theory is too vague. E. the research lacks flexibility. Psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It also uses a small sample for drawing conclusions. Because of the emphasis on the unconscious, results are difficult if not impossible to verify, leading motivation research to be criticized for both the conclusions drawn and its lack of experimental validation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-45 . McGraw-Hill Education.

53. Which of the following is true of the psychoanalytic theory? A. It is generally considered to have ignored the early development of an individual. B. It has been criticized for being unresponsive to the external environment. C. It has proven to be extremely useful as it is structured and easy to administer. D. It has been validated experimentally. E. It places less emphasis on the unconscious. Psychoanalytic theory has been criticized as being too vague, unresponsive to the external environment, and too reliant on the early development of the individual. It also uses a small sample for drawing conclusions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

54. _____ is the stage of the consumer decision-making process whereby the individual scans information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. A. Problem recognition B. Internal information search C. External information search D. Alternative evaluation E. Postpurchase evaluation The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

55. With respect to the consumer decision-making process, the stage that occurs immediately after the problem recognition stage is A. elaborative rehearsal. B. purchase decision. C. postpurchase evaluation. D. information search. E. goal-directed selection. The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-46 . McGraw-Hill Education.

56. Before purchasing a car, John sought advice from his friends and researched auto reviews on the Internet. He also visited car dealers and went for a test-drive. In which of the following stages of the consumer decision-making process is John engaged? A. internal information search B. external information search C. postpurchase evaluation D. problem recognition E. evoked set manipulation In the above scenario, John is engaged in external information search. External sources of information include personal sources such as friends, relatives, or co-workers; marketer-controlled sources such as information from advertising, salespeople, or point-of-purchase displays; Internet sources such as organic and sponsored information available through companies' websites and consumers' postings; public sources including articles in magazines or newspapers and reports on TV; and personal experience such as actually handling, examining, or testing the product. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

57. Which of the following is true of perception? A. Perception is an external process. B. Perception involves only one process—sensation. C. Perception is an individual process. D. Perception is independent of internal psychological factors. E. The perceptual process is unaffected by the characteristics of a stimulus like its size and color. Perception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person's beliefs, experiences, needs, moods, and expectations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-47 . McGraw-Hill Education.

58. Which of the following best defines perception? A. It is an associative learning process that helps in associating a product or service with a favorable emotional state. B. It is the process of presenting a new production process or product into the market and promoting the same to prospective customers. C. It is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. D. It is the intense emotional response of a consumer when he realizes that a repressed conflict is about to emerge into consciousness. E. It is a situation that arises when a consumer's prior product knowledge and buying behavior gets distorted and leads to illegal buying situations. Perception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person's beliefs, experiences, needs, moods, and expectations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

59. Which of the following perception processes is the immediate, direct response to the taste, smell, touch, and hearing of stimuli? A. selection B. sensation C. assimilation D. disintegration E. interpretation Sensation is the immediate, direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point-of-purchase display. Perception uses these senses to create a representation of the stimulus. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-48 . McGraw-Hill Education.

60. Various brands of perfume use scented strips in their ads to influence _____ and to increase the probability that the ad will be perceived. A. the consumer's level of sensory input B. consumer personality C. the internal information search D. the consumer's cognitive dissonance E. echoic memory Marketers try to increase the level of sensory input so that their advertising messages will get noticed. For example, Avon uses scent strips for many products from perfumes to bubble baths in their catalogs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

61. Which of the following is the first step in the selective perception process? A. selective attention B. selective comprehension C. selective integration D. selective exposure E. selective retention Selective exposure occurs as consumers choose whether or not to make themselves available to information. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

62. James wants to buy a new truck.While watching TV, he notices a series of truck ads. However, he fails to notice several other ads including those promoting cosmetics, snack foods, and sodas. In this scenario, James is exhibiting A. selective attention. B. selective retention. C. selective exposure. D. selective assimilation. E. selective comprehension. In the above scenario, James is exhibiting selective attention. Selective attention occurs when the consumer chooses to focus attention on certain stimuli while excluding others. One study of selective attention estimated that the typical consumer is exposed to nearly 1,500 ads per day yet perceives only 76 of these messages. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

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McGraw-Hill Education.

63. While watching a basketball game on television, Ryan leaves the room during commercial breaks and returns only when the live broadcast returns. If he deliberately avoids viewing commercials, Ryan is likely exhibiting A. selective attention. B. selective exposure. C. selective comprehension. D. selective retention. E. selective recall. In the above scenario, Ryan is exhibiting selective exposure. Selective exposure occurs as consumers choose whether or not to make themselves available to information. For example, a viewer of a television show may change channels or leave the room during commercial breaks. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

64. The step of the perception process where consumers interpret information based on their own attitudes, beliefs, motives, and experiences is known as A. selective attention. B. selective exposure. C. selective comprehension. D. selective retention. E. selective conditioning. Consumers may engage in selective comprehension, interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-50 . McGraw-Hill Education.

65. Through the use of mnemonics, advertisers hope consumers will not engage in _____ when they see the advertisements. A. selective rehearsal B. selective bias C. selective comprehension D. selective retention E. selective attention The final screening process is selective retention, which means consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

66. Symbols, rhymes, associations, and images that assist in the learning and memory processes are known as A. drives. B. cues. C. mnemonics. D. trigger points. E. memes. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. Many advertisers use telephone numbers that spell out the company name and are easy to remember. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-51 . McGraw-Hill Education.

67. Ads that use telephone numbers that contain the company name are hoping to enhance A. selective sublimation. B. selective bias. C. selective determination. D. selective retention. E. selective understanding. The above scenario is an example of selective retention. Selective retention means consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory process are helpful. Many advertisers use telephone numbers that spell out the company name and are easy to remember. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

68. _____ is the ability to perceive a stimulus that is below the level of conscious awareness. A. Selective conditioning perception B. Observer bias C. Lightness constancy D. Subliminal perception E. Stimuli interception Subliminal perception refers to the ability to perceive a stimulus that is below the level of conscious awareness. Psychologists generally agree it is possible to perceive things without being consciously aware of them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-52 . McGraw-Hill Education.

69. The various brands identified as purchase options to be considered during the alternative evaluation process are known as the consumer's A. perceptive list. B. attribution list. C. neutral list. D. evoked set. E. sublimation set. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer's evoked set. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

70. Todd buys a fruit-based drink every afternoon. He either buys a Relish apple juice or an orange drink made by Joy Fruit Juices. He will not consider any other brand or type of soft drink because the two drinks make up his A. latent set. B. brand attribution list. C. natural selection list. D. evoked set. E. subliminal choices. The above scenario exemplifies an evoked set. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer's evoked set. The evoked set is generally only a subset of all the brands of which the consumer is aware. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-53 . McGraw-Hill Education.

71. During which stage of the consumer decision-making process are evoked sets and evaluative criteria relevant? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. purchase decision Evoked sets and evaluative criteria are relevant during the alternative evaluation stage. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer's evoked set. Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

72. _____ are the dimensions or attributes of a product that are used to compare different alternatives. A. Evaluative criteria B. Salient beliefs C. Dissonance motives D. Attribute bundles E. Reinforcement criteria Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

73. During which stage of the consumer decision-making process are both functional and psychosocial consequences important considerations? A. problem recognition B. information search C. postpurchase evaluation D. alternative evaluation E. observer bias Functional and psychosocial consequences are important during the alternative evaluation stage of the consumer decision-making process. Once consumers have identified an evoked set and have a list of alternatives, they must evaluate the various brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

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McGraw-Hill Education.

74. Which of the following is considered to be a subjective evaluative criterion while purchasing an automobile? A. price B. warranty C. fuel economy D. styling E. insurance cost Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. For example, in buying an automobile, consumers use objective attributes such as price, warranty, and fuel economy as well as subjective factors such as image, styling, and performance. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

75. Which of the following is true of a psychosocial consequence? A. They are concrete outcomes of products. B. They are intangible in nature. C. They are directly experienced by consumers. D. They lack subjectivity. E. They are highly impersonal. Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

76. _____ are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. A. Functional consequences B. Psychosocial consequences C. Attribute bundles D. Subjective consequences E. Personal stimuli Functional consequences are the concrete outcomes of product or service usage that are tangible and directly experienced by consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-55 . McGraw-Hill Education.

77. With respect to the alternative evaluation stage of the consumer decision-making process, how a golf cart handles, how the brakes on a bicycle work, and how well a stain remover eliminates dirt stains are all examples of A. functional consequences. B. psychosocial consequences. C. schedules of reinforcement. D. subjective bundles. E. physiological stimuli. The above scenario exemplifies functional consequences. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

78. Which of the following is an example of a functional consequence? A. the need to order champagne to celebrate a birthday B. the desire to eat a pound of chocolate C. the feeling of euphoria that accompanies a purchase of a motorcycle D. the taste of buttered popcorn in a movie theater E. the joy of finding the perfect gift for a friend The above scenario is an illustration of a functional consequence. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-56 . McGraw-Hill Education.

79. Which of the following is an example of a psychosocial consequence? A. the taste of a soft drink B. the feeling of prestige associated with wearing a luxury watch C. the acceleration of an automobile D. the processing speed of a computer E. the firmness of a mattress The above scenario is an example of a psychosocial consequence. Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

80. In terms of the alternative evaluation stage of the consumer decision-making process, how you feel when you wear new shoes, the perception of how others like your new hair style, and how a recent weight-loss makes you feel about yourself are all examples of A. functional consequences. B. psychosocial consequences. C. mnemonics. D. heuristics. E. physiological consequences. The above scenario exemplifies psychosocial consequences. Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-57 . McGraw-Hill Education.

81. Which of the following is considered to be an objective evaluative criterion while purchasing an automobile? A. image B. price C. styling D. performance E. color Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective. For example, in buying an automobile, consumers use objective attributes such as price, warranty, and fuel economy as well as subjective factors such as image, styling, and performance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

82. Which of the following differentiates a functional consequence from a psychosocial consequence? A. Functional consequences are concrete outcomes of a product, whereas psychosocial consequences are abstract outcomes. B. Psychosocial consequences are directly experienced by a customer, whereas functional consequences are not. C. Functional consequences are intangible, whereas psychosocial consequences are tangible outcomes. D. Psychosocial consequences are bundles of product attributes, whereas functional consequences are bundles of service attributes. E. Functional consequences deal with how a product makes you feel, whereas psychosocial consequences deal with tangible, concrete outcomes. Functional consequences are concrete outcomes of product or service usage that are tangible and directly experienced by consumers. The taste of a soft drink or a potato chip, the acceleration of a car, and the speed of the Internet service provider are examples of functional consequences. Psychosocial consequences are abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-58 . McGraw-Hill Education.

83. Which of the following best defines an attitude? A. It is defined as an intense emotional response of a consumer when the consumer realizes that a repressed conflict is about to emerge into consciousness. B. It is defined as a process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. C. It is defined as a situation that arises when a consumer's prior product knowledge and buying behavior gets distorted and leads to illegal buying situations. D. It is defined as a summary construct that represents an individual's overall feelings toward or evaluation of an object. E. It is defined as the process of presenting a new production process or product into the market and promoting the same to prospective customers. Attitudes are learned predispositions to respond to an object and are some of the most heavily studied concepts in consumer behavior. More recent perspectives view an attitude as a summary construct that represents an individual's overall feelings toward or evaluation of an object. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

84. Which of the following is true of saliency of beliefs? A. It provides insight into ways markets can stimulate consumer attitudes. B. It helps consumers diagnose the underlying basis of marketers' attitudes. C. It tends to vary across different consumption situations. D. It does not vary among different market segments. E. It generally stays stagnant over time. Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are referred to as salient beliefs. Marketers should identify and understand these salient beliefs and recognize that the saliency of beliefs varies among different market segments, over time, and across different consumption situations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic:Psychological Influences

04-59 . McGraw-Hill Education.

85. With respect to the consumer decision-making process, which of the following stages can be considered as an immediate outcome of the alternative evaluation stage? A. information search B. problem recognition C. purchase decision D. postpurchase evaluation E. elaborative rehearsal At some point in the buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and make a purchase decision. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

86. Simplified decision rules such as "Always buy the largest size of the cheapest detergent" or "Only buy motor oil if the manufacturer is offering a rebate" are called A. mnemonics. B. heuristics. C. cognitions. D. eruditions. E. cues. The above scenario exemplifies heuristics. Sometimes consumers make their purchase decisions using more simplified decision rules known as heuristics. For familiar products that are purchased frequently, consumers may use price-based heuristics (buy the least expensive brand) or promotion-based heuristics (choose the brand for which I can get a price reduction through a coupon, rebate, or special deal). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-60 . McGraw-Hill Education.

87. In its ads, The Coffee House stresses consumers' overall emotional impressions of the brand with an attractive slogan. Through this slogan, The Coffee House wants to convey that it sells exquisite and refreshing coffee to its consumers. It wants its consumers to purchase on the basis of this impression and not comparison. This is an example of a marketer using A. the affect referral decision rule. B. the mirror-image rule. C. belief-bias effect. D. bait-and-switch marketing. E. nonqualitative evaluative criteria. The above scenario is an example of a marketer using the affect referral decision rule. In the affect referral decision rule, consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. Marketers selling familiar and popular brands may appeal to an affect referral rule by stressing overall affective feelings or impressions about their products. Market leaders, whose products enjoy strong overall brand images, often use ads that promote the brand by appealing to affect. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

88. _____ is a heuristic in which consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. A. Affect referral decision rule B. Bait-and-switch advertising C. Guerilla advertising D. The mirror-image rule E. Cognitive appraisal theory of emotion In the affect referral decision rule, consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-61 . McGraw-Hill Education.

89. Which of the following is true of the affect referral decision rule? A. It is synonymous with the mirror-image rule. B. It is a type of heuristic. C. It is synonymous with bait-and-switch marketing. D. It can be used only by marketers who sell luxury products. E. It is a type of mnemonic. One type of heuristic is the affect referral decision rule, in which consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. This decision rule suggests that consumers have affective impressions of brands stored in memory that can be accessed at the time of purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

90. _____ is a preference for a particular brand that results in its repeated purchase. A. Brand extension B. Brand stretching C. Brand spin-off D. Brand loyalty E. Brand equity Brand loyalty is a preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables. Consumers develop loyalties to many types of products and services. Marketers strive to develop and maintain brand loyalty among consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-62 . McGraw-Hill Education.

91. As an outcome of the alternative evaluation stage, the consumer develops A. a heuristic tendency toward a particular brand. B. a predisposition to buy a certain brand. C. brand heuristics. D. individual brand recognition. E. a postpurchase evaluation set. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

92. Peter owns several rental apartments. Initially, he used several appliance brands in his apartments and was dissatisfied with their short life span. Currently, Peter purchases appliances only from Insignia Inc., a manufacturer of home appliances, for his apartments. His repeat purchases indicate A. the existence of cognitive dissonance. B. the absence of any affect referral decisions. C. strong brand loyalty. D. extensive decision making and strong psychosocial consequences. E. a lack of evaluative criteria. In the above scenario, Peter's repeat purchases indicate strong brand loyalty. Brand loyalty is a preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables. Consumers develop loyalties to many types of products and services. Marketers strive to develop and maintain brand loyalty among consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-63 . McGraw-Hill Education.

93. Which of the following is considered as the final stage in the consumer decision-making process? A. postpurchase evaluation B. purchase decision C. information search D. alternative evaluation E. problem recognition The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. The postpurchase evaluation process is important because the feedback acquired from actual use of a product will influence the likelihood of future purchases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

94. Which of the following is a possible consequence of postpurchase evaluation? A. brand extension B. purchase intention C. product differentiation D. cognitive resonance E. dissatisfaction The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer's expectations are either met or exceeded; dissatisfaction results when performance is below expectations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-64 . McGraw-Hill Education.

95. In the postpurchase evaluation stage, when performance of a product or service is below expectations, it would result in A. the development of consideration threat. B. the creation of an evoked set. C. dissatisfaction. D. the evaluation of attribute bundles. E. cognitive resonance. The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer's expectations are either met or exceeded; dissatisfaction results when performance is below expectations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

96. _____ is a state of psychological tension or postpurchase doubt a consumer may experience after making a difficult purchase decision. A. Availability heurism B. Self-serving bias C. Cognitive dissonance D. Impact bias E. Subliminal erudition Cognitive dissonance is a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. Dissonance is more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

04-65 . McGraw-Hill Education.

97. After purchasing a fancy-cut diamond ring for his wife, Jason feels dissatisfied with his purchase as he feels that the ring was overpriced and poorly cut. Moreover, Jason feels that he should have selected the round brilliant-cut diamond rather than the fancy-cut diamond. In this scenario, Jason is experiencing

A. impact bias. B. cognitive dissonance. C. psychosocial heurism. D. belief-bias effect. E. overregularization. In the above scenario, Jason is experiencing cognitive dissonance. Cognitive dissonance is a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. Dissonance is more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

98. Many of the purchase decisions made by consumers for low-priced, frequently purchased products are characterized by A. routine response behavior. B. cognitive dissonance. C. ambivalence. D. high involvement. E. cognitive learning. Many of the purchase decisions we make as consumers are based on a habitual or routine choice process. For many low-priced, frequently purchased products, the decision process consists of little more than recognizing the problem, engaging in a quick internal search, and making the purchase. The consumer spends little or no effort engaging in external search or alternative evaluation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

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99. For which of the following situations is a consumer's purchase behavior most likely to be characterized by extended problem solving? A. purchase of laundry detergent B. selection of frozen meat C. purchase of a new set of skis by an avid skier D. selection of a restaurant for lunch with friends E. purchase of a brilliant-cut diamond wedding ring A more extensive decision-making process may occur when consumers have limited experience in purchasing a particular product or service and little or no knowledge of the brands available and/or the criteria to use in making a purchase decision. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation. Topic: Consumer Purchase Decision Process

100. _____ is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior. A. Consumer lending B. Cognitive dissonance C. Consumer learning D. Cognitive distortion E. Cognitive extension Consumer learning has been defined as "the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-67 . McGraw-Hill Education.

101. Which of the following is true of behavioral learning theories? A. These theories are based on stimulus-response orientation. B. These theories put too much emphasis on internal psychological processes. C. They are also known as associative process theories. D. These theories disagree that the external stimulus environment will elicit fairly predictable consumer responses. E. These theories disprove the classical conditioning theory. Behavioral learning theories are based on the stimulus-response orientation (S-R), the premise that learning occurs as the result of responses to external stimuli in the environment. Behavioral learning theorists believe learning occurs through the connection between a stimulus and a response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

102. Who among the following contributed to the classical conditioning theory by conducting studies on animals and providing well-known examples for the theory? A. Maslow B. Pavlov C. Vroom D. McClelland E. Freud Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response. Probably the best-known example of this type of learning comes from the studies done with animals by the Russian psychologist Pavlov. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-68 . McGraw-Hill Education.

103. A dog that salivates during feeding time does so due to an innate reflex reaction. According to the conditioning theory in relation to this scenario, food will be considered as a(n) A. unconditioned stimulus. B. external stimulus. C. assimilated stimulus. D. programmed stimulus. E. conditioned stimulus. In the above scenario, food will be considered as an unconditioned stimulus. Probably the best-known example of this type of learning comes from the studies done with animals by the Russian psychologist Pavlov. Pavlov noticed that at feeding times, his dogs would salivate at the sight of food. The connection between food and salivation is not taught; it is an innate reflex reaction. Because this relationship exists before the conditioning process, the food is referred to as an unconditioned stimulus and salivation is an unconditioned response. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

104. With respect to classical conditioning, _____ occurs when an unconditioned stimulus and a conditioned stimulus occur in close proximity in time and space. A. repetition B. dissociative behavior C. response orientation D. contiguity E. negative reinforcement Contiguity occurs when an unconditioned stimulus and conditioned stimulus must be close in time and space. In Pavlov's experiment, the dog learns to associate the ringing of the bell with food because of the contiguous presentation of the two stimuli. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-69 . McGraw-Hill Education.

105. When Mariah Carey paired her new perfume with the looks and sweetness of lollipops, it was an application of the principles of A. repetition. B. dissociative behavior. C. classical conditioning. D. cognitive learning. E. operant conditioning. The perfume example is an application of classical conditioning, which pairs a stimulus that gets a response (the lollipop is associated with sweetness) with a stimulus that will be paired with the unconditioned stimulus over time to generate the same response (Mariah Carey's perfume will yield a conditioned response: sweetness). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

106. Why are principles of operant conditioning useful in the development of promotional strategies? A. They explain the cognitive processes that mediate a consumer's response to advertising. B. They show that experiences with products provide reinforcements that affect future purchase behaviors. C. They explain why coupons and samples are unlikely to have any desirable effect on consumer behavior. D. They explain consumer behavior in both high- and low-involvement situations. E. They explain how the pairing of a neutral stimulus with a positive stimulus can produce an immediate desired response. Operant conditioning is also referred to as instrumental conditioning because the individual's response is instrumental in getting a positive reinforcement or negative reinforcement. Behavior that is reinforced strengthens the bond between a stimulus and a response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

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107. Yummy soups, a vegetable soup manufacturing company, uses coupons and sweepstakes to promote its soup. This reflects an application of A. belief-bias effect. B. bait-and-switch promotions. C. operant conditioning. D. classical conditioning. E. cognitive appraisal theory of emotion. The above scenario reflects an application of operant conditioning. Operant conditioning is sometimes referred to as instrumental conditioning because the individual's response is instrumental in getting a positive reinforcement (reward) or negative reinforcement. Companies attempt to provide their customers with products and services that satisfy their needs and reward them to reinforce the probability of repeat purchase. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

108. The presence of a prize in every box of Joy Stick Snacks is an example of A. classical reinforcement. B. continuous reinforcement. C. partial reinforcement. D. cognitive dissonance. E. intermittent reinforcement. The above scenario is an example of continuous reinforcement. Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-71 . McGraw-Hill Education.

109. Learning occurs most rapidly under a(n) _____ reinforcement schedule, but the behavior is likely to cease when the reinforcement stops. A. continuous B. partial C. intermittent D. disintegrated E. flexible Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

110. The process of _____ is the reinforcement of successive acts that leads to a desired behavior pattern or response. A. shaping B. blocking C. mapping D. counterconditioning E. flooding Reinforcement schedules can also be used to influence consumer learning and behavior through a process known as shaping, the reinforcement of successive acts that lead to a desired behavior pattern or response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

04-72 . McGraw-Hill Education.

111. Behavioral learning theories have been criticized for A. focusing on providing information through subliminal learning processes. B. using suggestive illustrations to make consumers respond to internal stimuli. C. employing the use of violence in altering mind-body awareness. D. emphasizing the role of internal psychological processes and basing the theories on stimulus-response orientation. E. assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. Behavioral learning theories have been criticized for assuming a mechanistic view of the consumer that puts too much emphasis on external stimulus factors. They ignore internal psychological processes such as motivation, thinking, and perception; they assume that the external stimulus environment will elicit fairly predictable responses. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory. Topic: Consumer Behavior

112. _____ refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. A. Neoculture B. Subculture C. Social class D. Dissociative group E. Reference group Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

04-73 . McGraw-Hill Education.

113. Jemma is targeting a new tennis racquet to tennis enthusiasts with professional occupations who have annual household incomes above $250,000 and graduate degrees. Her target audience likely falls into the ___________ level of social class, which includes about 14 percent of people in the United States. A. upper B. middle C. lower D. innovator E. white collar Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

114. Jorge realized his core target audience was characterized by common leisure activities (museum visits, polo matches), shopping patterns (preference for boutiques, designer labels), and media habits (read , ). His target audience may be most appropriately characterized by A. avoidance reference group. B. social class. C. motives. D. situational influences. E. demographics. Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

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115. Frank is a location analyst for a fast-food restaurant chain. He knows that previous restaurants have been placed in locations where most people within a three-mile radius have the following characteristics: household incomes between $50,000 and $65,000 per year, children and parents are highly engaged in after-school activities, family is valued above work, and one or both parents has some education beyond high school. His target audience likely falls into the ___________ level of social class, which includes about 70 percent of people in the United States. A. upper B. middle C. lower D. innovator E. blue collar Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. Sociologists generally agree there are three broad levels of social classes in the United States: the upper (14 percent), middle (70 percent), and lower (16 percent) classes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

116. _________________ is a broad, abstract external factor, and characterizes people based on their shared values, norms, learned meanings, and customs. A. Culture B. Geography C. Behavior D. Psychology E. Social class Culture captures the complexity of learned meanings, values, norms, and customs, which makes it the broadest and most abstract of the external factors that influence consumer behavior. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

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117. Before Josephine expands her business into international markets, she has to understand the impact of ____________ on consumer behavior because each country has traditions, customs, and values that may impact the market's response to her marketing program. A. social class B. life cycle C. perception D. social identity E. culture Culture captures the complexity of learned meanings, values, norms, and customs, which makes it the broadest and most abstract of the external factors that influence consumer behavior. Each country has certain cultural traditions, customs, and values that marketers must understand as they develop marketing programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

118. _____ refers to smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. A. Subculture B. Social class C. Reference group D. Motivation E. Attitude Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

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119. Adidas has different versions of its ads that are designed to appeal to different age groups and different regions of the United States, or _________________, because it found that these segments had different beliefs, values, norms, and patterns of behavior than the larger cultural mainstream. A. cultures B. social classes C. subcultures D. motivations E. attitudes Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

120. When Andy targets a new line of make-up to African Americans, he is targeting a(n) ____________________ within the larger cultural mainstream. A. aspirational group B. social class C. advocacy group D. subculture E. neoculture Subcultures, or subsets within a given culture with shared beliefs, values, norms, and patterns of behavior that set them apart from the larger cultural mainstream, may be based on differences due to age, geography, religion, race, and/or ethnicity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

04-77 . McGraw-Hill Education.

121. Which of the following is best defined as a group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions? A. alpha-consumer group B. focus group C. reference group D. demographic group E. cultural sect A reference group is "a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

122. A reference group to which one does not wish to belong is a(n) _____ group. A. heuristic B. disassociative C. evoked D. mnemonic E. confrontational Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

04-78 . McGraw-Hill Education.

123. When the Saskatchwean Ministry of Health created an ad showing a woman who was passed out with a beer in her hand to communicate to college students that they have a choice when it comes to binge drinking, they were using a(n) _____ group to make their point. A. heuristic B. disassociative C. evoked D. mnemonic E. confrontational Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

124. Reference groups to which one would like to belong are called _____ groups. A. aspirational B. heuristic C. evoked D. mnemonic E. alpha Marketers use reference group influences in developing advertisements and promotional strategies. Aspirational reference groups are groups to which we might like to belong and disassociative groups are groups to which we do not wish to belong. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

125. With respect to the roles in the family decision-making process, all the members of a family who use a car are referred to as the A. purchasing agents. B. consumers. C. influencers. D. information providers. E. initiators. In the above scenario, all the members of a family who use a car are referred to as the consumers. Consumers are the actual users of the product. In the case of a family car, all family members are consumers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

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126. Jim's parents wish to buy a car. Knowing that Jim is a car enthusiast, they ask him to collect the relevant facts and figures required to make the purchase. Subsequently, Jim collects several magazines and articles for the same purpose. In this scenario, Jim is the A. decision maker. B. initiator. C. influencer. D. information provider. E. consumer. In the above scenario, Jim is the information provider. The information provider is an individual responsible for gathering information to be used in making the decision. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

127. With respect to the roles in the family decision-making process, the person who exerts power as to what criteria will be used in the selection process while purchasing a product is called the A. influencer. B. consumer. C. initiator. D. purchasing agent. E. decision maker. The influencer is the person who exerts power as to what criteria will be used in the selection process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

128. With respect to the roles in the family decision-making process, the individual who performs the physical act of buying the product is called the A. influencer. B. purchasing agent. C. decision maker. D. gatekeeper. E. consumer. The individual who performs the physical act of making the purchase is called the purchasing agent. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

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129. In the family decision-making process, the person in the family who is responsible for starting the purchase decision process is the A. purchasing agent. B. consumer. C. initiator. D. information provider. E. influencer. Initiator is the person responsible for initiating the purchase decision process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

130. The American Eurocopter company shows its product on a large yacht in its advertising in the hope that it will appeal to the upper stratum of _______________, which refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, behaviors, and interests can be grouped. A. social class B. reference group C. culture D. communications E. usage Social class structures are usually based on occupational status, educational attainment, and income. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables. Topic: Environmental Influences on Marketing

131. Which of the following is true of cross-disciplinary research? A. It has been criticized for ignoring various behavioral stimuli such as motivation and culture. B. It fails to provide room for experimentation and remains a theorized ideology. C. It provides a greater understanding of consumer behavioral through neoviolence and neosocial theories. D. It fails to provide a better understanding of the role of cultural significance in advertising. E. It is better suited for the study of consumers because it takes into account their complexity and multidimensionality. Some consumer researchers believe that cross-disciplinary research is better suited for the study of consumers because it takes into account their complexity and multidimensionality. When considered along with psychological research, these alternative approaches help researchers better understand the impact of communications. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-06 Identify new ways to study consumer behavior. Topic:Psychological Influences

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132. When it comes to neuroscience, Ray Poynter, social media consultant, believes that neuroscience is A. more hype than science. B. the way to identify a common truth. C. an effective way to identify the single scientific reality. D. sufficiently understood to draw conclusions. E. the best multidimensional method. Ray Poynter believes neuroscience is more hype than science, and that neuromarketers massively overclaim their success stories. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 04-06 Identify new ways to study consumer behavior. Topic:Psychological Influences

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Chapter 04 Test Bank 01/09/2017 22:03:15 Summary Category-# of Questions AACSB: Analytical Thinking-104 AACSB: Reflective Thinking-28 Accessibility: Keyboard Navigation-129 Blooms: Apply-41 Blooms: Remember-56 Blooms: Understand-35 Difficulty: 1 Easy-71 Difficulty: 2 Medium-38 Difficulty: 3 Hard-23 Learning Objective: 04-01 Discuss why an undersanding of consumer behavior is valuable in developing advertising and promotional programs.-4 Learning Objective: 04-02 Discuss the steps in the consumer decision-making process.-16 Learning Objective: 04-03 Explain the influence on consumer behavior of psychological processes like perception and motivation.-69 Learning Objective: 04-04 Discuss behavioral learning theory and cognitive learning theory.-18 Learning Objective: 04-05 Explain the influence of external factors like culture and demographic variables.-21 Learning Objective: 04-06 Identify new ways to study consumer behavior.-4 Topic: Consumer Behavior-21 Topic: Consumer Purchase Decision Process-43 Topic: Environmental Influences on Marketing-21 Topic:Psychological Influences-47

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Chapter 05 Test Bank Student: ___________________________________________________________________________ 1. The receiver's perception of the source of the message may affect the source's ability to communicate. True False

2. The responsibility to encode a message in a way that can be well understood lies with the receiver.

True False

3. For many products, it is not the actual words of the message that determine its communication effectiveness but rather the impression or image the ad creates. True False

4. When Coach uses its brand name and picture to communicate an intended message of aspirational heritage mixed with an urban attitude, it is relying on the impression or image the ad creates, not the actual words or the message. True False

5. A TV commercial viewed by a person who lives alone is an example of communication through a personal channel. True False

6. Salespeople serve as personal channels of communication when they deliver a selling message or presentation to a buyer or potential customer. True False

7. Buzz marketing, consumer-generated marketing, and viral marketing are new names for what used to be known simply as word-of-mouth communication. True False

05-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8. Companies that utilize viral marketing must develop a seeding strategy to start the viral process. True False

9. Phone conversations account for the vast majority of word-of-mouth communications about a brand. True False

10. Female and younger consumers tend to exert more influence on their target recipients and be more susceptible to viral influences than male and older consumers. True False

11. Television is the only advertising tool that influences word of mouth about a brand. True False

12. Distractions from technology, including laptops, tablets, and mobile phones/smartphones, can introduce noise into the communication model. True False

13. The field of experience is the process of transforming the sender's message back into thought. True False

14. The marketing communication process really begins when the audience acts on the marketer's message. True False

15. Very small, well-defined groups of customers are often referred to as individuals. True False

16. The information processing model of advertising effects assumes that the receiver does not have the capacity to solve problems. True False

05-2 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

17. The AIDA model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. True False

18. Hierarchy models of communication response delineate the series of steps potential purchasers must be taken through to move them from unawareness to readiness to purchase a product. True False

19. Low-involvement purchase decisions are areas where a standard hierarchy response process is likely. True False

20. The consumer decision journey framework views the consumer decision-making process as a linear, single uniform path to purchase. True False

21. According to the McKinsey group, mass media is a unique component of the consumer decision journey because it's the only form of marketing that can touch consumers at each and every stage, from when they're pondering brands and products right through to post-purchase, when their potential advocacy influences others. True False

22. The advanced analytics available from digital media allow data-driven consumer packaged goods marketers to identify target audiences based on their purchase or other behavior. True False

23. When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments. True False

24. Source bolsters occur when the target audience reacts favorably to the source and the source generates favorable thoughts. True False

05-3 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

25. According to the elaboration likelihood model (ELM), if the involvement level of the target audience is high, peripheral cues may be more important than detailed message arguments. True False

26. Three critical intermediate effects occur between advertising and purchase: cognition, affect, and experience. True False

27. Which of the following is true of the way organizations send communication messages? A. They communicate using press releases, websites, and package designs. B. They are legally not allowed to use graphic systems and visual images. C. They use promotions for B2B communications solely. D. They typically use brand names to create recognition but not for communication. E. They do not use logos as a means of communication.

28. _____ is defined as the passing of information, the exchange of ideas, or process of establishing a commonness of thought between a sender and a receiver. A. Negotiation B. Source integration C. Assimilation D. Perception E. Communication

29. Which of the following statements is true about effective communication? A. Advertising is an effective way of communication because marketers are able to tell consumers how to interpret their messages. B. For effective communication, marketers must understand the meanings that consumers attach to words and symbols. C. Effective integrated marketing communications is usually nonpersonal in nature. D. Effective communication is unaffected by the reception environment. E. The visual nature or color characteristic of an ad has no impact on effectiveness of communication.

30. The _____ of a communication is the person or organization that has information to share with another person or group of people. A. essence B. source C. message D. receiver E. channel

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31. The process of putting thoughts, ideas, or information together in symbolic form is called A. encoding. B. deciphering. C. sourcing. D. seeding. E. decoding.

32. An ad by the Minnesota State Tourism Department, which promotes Minnesota as a vacation destination, was published in Life Mode magazine. The ad includes a picture of a couple against a scenic backdrop. In this print ad, the source of the advertising message

A. is the Minnesota State Tourism Department. B. is Life Mode magazine.

C. is the couple in the scenic picture. D. is the slogan. E. is the reader of the magazine.

33. Commercials for Vinnie's Marshmallows describe its marshmallows as a delicious snack for all ages. The commercials show toddlers eating marshmallows as part of their usual diet as well as adults roasting marshmallows over a fire. In these commercials, Vinnie's is the A. channel messenger. B. encoder. C. decoder. D. source. E. receiver.

34. Lily hosts a well-known television show, . She also appears in an ad for Rochelle Cosmetics and explains the potential benefits of using these cosmetics. In this scenario, the source of the ad is A. the television network that airs the ad. B. Rochelle Cosmetics. C. Lily. D. the audience. E. the television show, Real Life.

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35. The communication process begins with the process of A. encoding. B. encrypting. C. channeling. D. decoding E. bolstering.

36. The source or sender of an advertising communication A. is typically the owner and shareholder of a company. B. cannot be a nonpersonal entity. C. is typically identified as the owner of the medium in which the communication appeared. D. can be an individual who promotes the product in an ad, such as a celebrity. E. is never involved in the encoding process.

37. Which of the following is true of encoding? A. It is also known as channel managing. B. It involves identifying and interpreting a message. C. It involves putting ideas into a symbolic form. D. It involves the creation of "noise." E. It involves the development of the message.

38. The encoding process leads to the development of A. a message. B. noise. C. a channel. D. feedback. E. a response.

39. In a communication process, _____ refers to the information and/or meaning contained in a message. A. source B. encoding C. decoding D. content E. noise

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40. According to the basic model of communication, _____ refers to the way a message is put together in order to deliver an information or intended meaning. A. source B. encoding C. decoding D. design E. content

41. Jim, a doctor, takes out a print ad to advertise his new clinic. He opts for a full-page ad in a weekly publication known as Doctor's Info. According to the basic model of communication, Doctor's Info is the

A. channel. B. receiver. C. encoder. D. source. E. decoder.

42. According to the basic model of communication, which of the following is an example of a channel? A. The number of customers that redeemed a cents-off coupon B. A billboard beside an interstate highway C. The creative team that designed an ad for a leading retail chain D. A company's spokesperson E. A celebrity appearing in an ad for a cosmetics brand

43. Which of the following is an example of a nonpersonal communication channel? A. magazines B. e-mail C. social media D. telemarketing E. stress interviews

44. Which of the following is true of nonpersonal channels of communication? A. They include direct mail and billboards. B. They include methods such as e-mail and social media. C. The Internet cannot be considered a nonpersonal channel. D. They do not include include print media. E. They do not include broadcast media.

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45. Which of the following is an example of a personal communication channel? A. radio B. billboards C. newspapers D. e-mail E. magazines

46. Which of the following can serve as a personal channel of communication? A. sales team B. newspaper C. radio D. magazines E. television

47. Which of the following is true of word-of-mouth (WOM) marketing? A. It involves very formal communication among consumers. B. It is known as company-generated marketing. C. It is considered a weak marketing strategy. D. It can also be described as buzz marketing. E. It is considered to be a part of nonpersonal communication.

48. Aino, a leading automaker, broadcasts a commercial during the airing of Moral Decree, a TV program that is viewed by eight million viewers. Which of the following types of communication is witnessed in this scenario?

A. individualized B. direct response

C. nonpersonal D. semiotic E. personal

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49. Iconix supermarkets placed an insert in Tuesday's , a regional newspaper that has more than 100,000 subscribers. The newspaper is an example of a(n) _____ channel of communication. A. buzz B. direct-response C. nonpersonal D. interpersonal E. verbal

50. Which of the following is true of buzz marketing? A. It is an important part of company-generated marketing. B. It uses print media as a primary communication channel, especially for high-end luxury goods. C. It is considered synonymous with bait-and-switch marketing. D. It is a systemized process that encourages people to speak favorably about a product. E. It includes radio and television marketing.

51. _____ is the process of transforming a sender's message back into thought. A. Decoding B. Encoding C. Channeling D. Sourcing E. Transmitting

52. Which of the following is true of decoding? A. It is heavily influenced by the receiver's frame of reference. B. It is an interpretation process that requires expert knowledge. C. In most cases, decoding occurs smoothly when a common ground does not exist. D. In order for the process to be effective, the decoder must contradict the encoder. E. It is not influenced by the receiver's field of experience.

53. Which of the following communication processes will be most influenced by the experiences, perceptions, attitudes, and values of a message recipient? A. channel transmission B. decoding C. noise D. feedback E. transmission

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54. Which of the following components of a communication process is heavily influenced by a receiver's field of experience? A. encoding B. decoding C. message D. channel E. noise

55. The experiences, perceptions, attitudes, and values a consumer brings to a communication situation is referred to as his or her A. semiotic involvement. B. field of experience. C. common ground. D. source characteristics. E. selective bindings.

56. Zing Candy launches an ad that shows people being revitalized after eating its candy bar. The ad attempts to deliver the message of "Instant energy." Janice Cooper, a viewer of the ad, thinks that the ad reflects people in it as rude and irritating. In terms of the communication process, Janice has _____ the message improperly. A. encoded B. conveyed C. decoded D. transmitted E. channeled

57. The fact that marketing and advertising people have backgrounds and interests that are often quite different from consumers who comprise mass markets for many products and services makes it difficult to establish A. an encoding process. B. conditioned perceptions. C. response hierarchies. D. a common ground. E. fields of experience.

58. Syn-ergy Drinks, an energy drink manufacturer, launches a television ad in which people are seen feeling energized after consuming Syn-ergy's drinks. "Revitalization of body and mind" is the message the ad is intended to deliver. However, those who view the ad interpret it as being frivolous and lacking context. One of the possible explanations for such a highly differential perception of the ads is due to the absence of A. an interpretative link. B. a feedback mechanism. C. response hierarchies. D. common ground. E. binding influences.

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59. Which of the following statements is true about ageism in advertising? A. Mature people are more likely to be shown in television than print ads. B. Advertisers typically avoid using adults over the age of 60 and children below the age of 8.

C. Because the mean age of the population is increasing, one can expect to see more youth-oriented advertising. D. Age differences generally create disturbances in terms of encoding and channel messaging. E. The difference between the senders' and receivers' age can create problems in establishing common ground.

60. _____ is any unplanned distortion or interference in the communication process. A. Semiotics B. Selectivity C. Noise D. Dissonance E. Blocking

61. Bradley is watching an interesting TV program with a group of friends. During the commercial break, he is unable to concentrate on a commercial for a soda drink because all his friends are discussing the events of the show. In this scenario, Bradley is encountering A. poor encoding. B. selective sourcing. C. inappropriate advertiser binding. D. limited response hierarchies. E. disturbances known as noise.

62. Justin failed to understand the message in an ad for Smithline Catering in a daily newspaper as the newspaper print was unclear. With reference to the communication process, the unclear print would constitute A. an encoding hazard. B. a sourcing block. C. negative feedback. D. a perceptive block. E. noise.

63. In a communication process, a receiver's set of reactions after seeing, hearing, or reading a message is known as a A. noise. B. perception. C. source. D. channeling. E. response.

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64. In a communication process, _____ is the part of a receiver's response that is communicated back to the sender. A. feedback B. noise C. sourcing D. encoding E. decoding

65. Which of the following provides the sender of an advertising message with an appropriate way of monitoring the effectiveness of an intended message? A. encoding mechanisms B. decoding mechanisms C. feedback D. noise filters E. channel

66. An ad for the Tributary Hotel in Chicago has a number that people can call if they are interested in reserving rooms at the hotel or for further information about the hotel. One way to determine the effectiveness of this ad is to count the number of phone calls the hotel receives in response to the ad. This response count is an example of A. feedback. B. encoding. C. noise filtering. D. noise blocking. E. decoding.

67. The element of the communication process that closes the loop in the communications flow and allows a sender to monitor how a message is being received and interpreted is known as A. encoding. B. decoding. C. feedback. D. noise. E. filters.

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68. Instantaneous feedback on the effectiveness of a marketing communication method is most likely possible in A. personal-selling situations. B. radio advertising. C. television advertising. D. direct-mail advertising.

E. mass-communication channels.

69. Counts of customer visits to a store, consumer inquiries, coupon redemptions, and reply cards are all possible forms of gathering A. encoding systems. B. feedback. C. noise. D. message channels. E. decoding mechanisms.

70. In the context of the marketing communications process, which of the following products is most likely to be promoted by targeting individuals?

A. chocolate bars B. fizzy drinks C. real estate D. soap E. pizza

71. Which of the following is true of market niches? A. They are usually large mass market segments. B. They are well-defined market segments. C. They are typically reached using mass communication such as advertising and publicity. D. They are not suitable for specialized goods. E. They include broader classes of buyers who have similar needs.

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72. The best way to reach a narrowly defined group of customers or a market niche is through A. television advertising and billboards. B. personal-selling and targeted direct mail. C. advertising and radio advertising. D. any form of broadcast media. E. transit advertising, billboards, and publicity.

73. Which of the following is most suitable for reaching a large consumer market segment with a broad class of buyers? A. e-mail marketing B. personal selling C. magazine advertising D. targeted direct-mail advertising

E. buzz marketing

74. The AIDA model was developed to represent the stages during the _____ process. A. personal-selling B. magazine advertising C. mass marketing D. sales promotions E. radio advertising

75. According to the AIDA model, a prospective consumer first passes through the _____ stage. A. attention B. comprehension C. interest D. desire E. action

76. According to the AIDA model, a customer expressing interest and desire is in the A. affective stage. B. cognitive stage. C. behavioral stage. D. action stage. E. adoption stage.

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77. The _____ model is a response model that was developed as a paradigm for setting and measuring advertising objectives. A. AIDA B. hierarchy of effects C. innovation adoption D. adoption response E. diffusion rate

78. The _____ model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. A. diffusion rate B. objective-task C. innovation adoption D. hierarchy of effects E. adoption objective

79. Which of the following response hierarchy models depicts consumers going through the successive stages of awareness, interest, evaluation, trial, and adoption? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the adoption differentiation model

80. Which of the following response hierarchy models depicts consumers going through the stages of attention, presentation, comprehension, yielding, retention, and behavior? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the integrated information response model

81. Which of the following hierarchical response models assumes the receiver in a persuasive communication situation to be an information processor or problem solver? A. the AIDA model B. the hierarchy of effects models C. the innovation adoption model

D. the information processing model E. the five Ws model

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82. DigiData Inc. launched a new smartphone in the market with new features. Moreover, the company plans to launch tablets and other groundbreaking digital devices as well. In this scenario, the _____ model would be most relevant for communicating information about the new product to consumers. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing

83. Gianna is using “insight selling,” which is based on the ______________ model, which takes a customer through the different stages in the sales process, ending with action. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing

84. Only the _____ model has a retention stage, which is important for consumers who are considering purchase decisions and who are not ready to make a purchase immediately. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing

85. Velocity Inc., a manufacturer of sports shoes, conducted a marketing research study and found that a vast majority of consumers recall the company's "Accelerate further" slogan. In this scenario, it can be concluded that A. consumers are aware of Velocity's advertising. B. consumers have favorable attitudes toward Velocity. C. Velocity is using a concentrated marketing program. D. consumers have evaluated Velocity's products. E. Velocity has adopted a niche marketing strategy.

86. Attention, awareness, and knowledge are all examples of the _____ stage of the response process and appear in all of the models describing the consumer response process. A. cognitive B. affective C. behavioral D. conative E. comprehension

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87. Trial, purchase, adoption, and rejection are all examples of the _____ stage of the response process. A. cognitive B. affective C. behavioral D. motivational E. learning

88. The _____ stage of the response process refers to a receiver's feelings for a particular brand and includes stronger levels of desire, preference, or conviction. A. cognitive B. affective C. behavioral D. conative E. learning

89. According to the _____, a consumer is an active participant in a communication process who gathers information through active studying. A. standard learning hierarchy B. low-involvement hierarchy C. dissonance/attribution model D. peripheral processing model E. maximum likelihood model

90. According to the standard learning model, through which of the following response sequences does a consumer pass? A. learn → feel → do B. learn → do → feel C. feel → learn → do D. do → feel → learn E. do → learn → feel

91. The _____ model, as proposed by Michael Ray, explains the decision-making process when a consumer buys a high-involvement product for which there is a high amount of differentiation among competing brands. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws

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92. The _____ model proposed by Michael Ray involves selective learning, whereby a consumer seeks information that supports a purchase choice made and avoids information that would raise doubts about the decision. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws

93. Management schools that offer MBA courses are typically rated annually by business publications. When an MBA program rates high on a list, the information is publicized. The purpose of the communication is to help prospective students choose between two equally viable but complex MBA courses. In this scenario, the _____ model is applicable. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws

94. According to the dissonance/attribution model, during the decision-making process, through which of the following response sequences does a consumer pass?

A. learn →feel → do B. learn → do → feel C. feel → learn → do D. do → feel → learn E. do → learn → feel

95. According to the _____ model proposed by Michael Ray, learning from the mass media occurs after a purchase is made. A. low-involvement B. standard learning C. dissonance/attribution D. cognitive response E. elaboration likelihood

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96. A study conducted by Scott Hawkins and Stephen Hoch found that under _____ conditions, repetition of simple product claims increased consumers' memory of and belief in those claims, and other items bought without much consideration use a heavy repetition strategy. A. individual response B. standard learning C. dissonance/attribution D. low-involvement E. customary learning

97. For which of the following products would an advertiser be more likely to use the low-involvement hierarchy to explain the consumer decision-making process?

A. bar of soap B. digital camera C. refrigerator D. yard landscaping E. wedding dress

98. When Brian explains to his supervisor that advertising communication may not lead to immediate behavioral response or purchase, and uses a purchase funnel analogy to explain that a series of effects must occur, with each step fulfilled before the consumer can move to the next stage, he is explaining the _________________ model of how advertising works. A. AIDA B. diffusion of innovations C. hierarchy of effects D. innovation adoption E. information processing

99. Which of the following is true of the low-involvement hierarchy? A. It usually occurs during the purchase of expensive products. B. It occurs when differences among brands are minimal. C. It is also known as the dissonance/attribute model. D. It does not advocate the use of broadcast media. E. It follows a feel → learn → do sequence.

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100. In the _____ hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. information processing

101. Pluto Inc., a dairy products manufacturer, recognizes that many customers are passive learners and are generally averse to active information seeking. In order to reach out to these customers, the company incorporated jingles and slogans in its ads. In this scenario, Pluto is assuming that customers make purchases based on the _____ hierarchy. A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. information processing

102. Which of the following is true of low-involvement advertising? A. It involves using a strategy that is known as visual image personality. B. It is typically used for products that require extensive evaluation. C. It is generally considered to be an ineffective strategy. D. It is heavily utilized by luxury automobile manufacturers. E. It does not include mass-media advertising strategies.

103. Marketers of products such as mustard, paper towels, and batteries A. must avoid using mass-media advertising strategies. B. must use slogans, symbols, and visual image personalities to promote their products. C. must use personal-selling strategies in order to create a sustainable marketing program. D. must opt for high-involvement advertising strategies. E. must avoid sales promotions and publicity.

104. As a part of their creative strategy, advertisers of Vittle's Nuts use "Snippy the Bunny" as the brand's symbol in its ad campaigns. Through this strategy, the company aims to enhance brand identification and recognition. In this scenario, Snippy is an example of a(n) A. visual image personality. B. affective character. C. selectively remembered personality. D. high-involvement advertising appeal. E. pseudo celebrity.

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105. Visual image personalities A. are typically used with complex products that require high involvement. B. generally appear in ads for low-involvement products. C. require central route processing to be effective. D. typically abbreviate the cognitive stage of a consumer decision-making process. E. are used when consumers must go through all stages of AIDA before making a purchase.

106. From a promotional planning perspective, it is important that marketers A. create a divisional marketing communications program. B. avoid using broadcast and print media strategies. C. determine which type of response process is most likely to occur. D. avoid using an integrated marketing communications program. E. eliminate the need for the trial stage in the response process.

107. Typically, when consumers are in a "passive" shopping mode A. they are purposefully seeking assistance in order to make informed purchase decisions. B. the information and advice they need to make a purchase comes to them unsolicited. C. they tend to visit the website of a company or brand for product information. D. they are perpetually in an information processing role. E. they seek help from search engines in selecting brands of their choice.

108. The social consumer decision journey framework recognizes that A. consumers make purchase decisions regarding low-involvement products based on their social status and purchasing power. B. consumers follow a linear sequence of awareness, interest, evaluation, and trial before ultimately adopting a product. C. consumers are always active participants in a communication process and they gather information through active learning. D. promotional campaigns should be designed to motivate consumers to take immediate action. E. consumers connect with large numbers of brands through digital channels that are often beyond marketers' control.

109. Consumers in an "active" shopping mode A. typically receive information in an unsolicited manner. B. do not pass through the "evaluate" and "awareness" stages. C. are more likely to purposefully seek information and/or assistance. D. are generally averse to purchasing new products. E. are not influenced by marketer-dominated touch points.

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110. _____ are thoughts that occur to a consumer when reading, viewing, and/or hearing a communication of advertising messages. A. Cognitive responses B. Affective responses C. Selective impressions D. Behavioral responses E. Conative impressions

111. Jessica was asked to view a television ad for a movie that was due to be released at a later date. After viewing the ad, she was required to fill a questionnaire that included questions such as "Did the ad make you want to see the movie?" "Did the movie title seem appropriate?" and "Did you understand the theme of the movie?" In this scenario, Jessica's _____ responses are being noted. A. cognitive B. kinesthetic C. selective D. behavioral E. creative

112. After watching a detergent ad that claimed to remove stains with "just a few drops," Jim stated, "I doubt any detergent can remove stains with only a few drops." This scenario is an example of a A. counterargument. B. support argument. C. source bolster. D. cognitive dissonance. E. source blockage.

113. Tia saw a television commercial that claimed a specific brand of pain reliever to be much more effective than any other brand available in the market. After watching the entire message, Tia stated, "This painkiller cannot be more effective than mine." In this scenario, Tia is expressing A. a counterargument. B. a support argument. C. source bolstering. D. negative dissonance. E. positive dissonance.

114. An ad for Hush designer handbags shows the company's new line of affordable handbags made from genuine alligator leather. After seeing the ad, Erika stated, "You can't get a genuine alligator handbag for $50! Please!" Erika's response to the ad is an example of a A. negative ad execution thought. B. negative source derogation. C. support argument. D. counterargument. E. positive source bolster.

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115. Bianca saw a magazine ad for Savvy Sheen hair shampoo that claimed to contain only natural herbal extracts and milk proteins. The ad also stated that Savvy's products were devoid of sodium laureth sulfate. Bianca instantly remarked, "I'm going to try this shampoo. I think I will like it." Bianca's response to the ad is an example of a A. negative source bolster. B. source derogation. C. support argument. D. counterargument. E. positive source bolster.

116. Kevin saw a television ad for the season finale of Expedition of Triumph, a reality series. As he was impressed with the ad, he made a mental note of the day and time the finale was set to be aired. In this scenario, Kevin's response is an example of a(n)

A. noncognitive response. B. source derogation. C. support argument. D. counterargument. E. emotional argument.

117. Jared hears a radio commercial for a weight-loss program that claims significant results in 30 days through the use of hypnosis. Jared thinks to himself, "This sounds promising. I think I should give it a try." This thought would be an example of a(n) A. positive source derogation. B. rebuttal. C. counterargument. D. support argument. E. ad executive thought.

118. Which of the following is true of source derogation? A. They are positive thoughts about the spokesperson in an ad. B. They generally lead to a reduction in message acceptance. C. They enhance brand recognition. D. They are considered to be a useful tool for measuring consumer loyalty. E. They are one of the least important types of emotional responses to an ad.

119. Negative thoughts about a spokesperson or organization making a claim are known as A. source derogations. B. counterarguments. C. source bolsters. D. source blockages. E. message filters.

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120. Katy sees a television commercial for a shampoo, which is being endorsed by Adriana Tatum, a young movie actress. Katy thinks to herself, "She's such a drama queen! She'll do anything for media attention. I wouldn't buy anything she promotes." This is an example of a A. counterargument. B. support argument. C. source bolster. D. source derogation. E. message blockage.

121. Which of the following is true of source bolsters? A. They are positive reflections toward an ad. B. They are emotional responses to an ad. C. They are also known as positive counterarguments. D. They are less likely to lead to consumer purchase. E. They are an individual's thoughts about the ad itself.

122. AB Corp. hires Natasha Cooper, a popular movie actress, to be the brand ambassador for the company. The company hopes that endorsements of its products by the actress will increase the popularity of the brand and also attract a large number of customers. Receivers who respond favorably to Natasha's endorsements will express A. source derogations. B. counterarguments. C. source bolsters. D. source blockages. E. message synergy.

123. A company that hires a spokesperson with whom its target audience is likely to identify and respond favorably is A. attempting to create cognitive dissonance. B. creating a source bolster. C. engaging in niche marketing. D. creating an ambivalent situation. E. enabling counterarguments.

124. _____ include consumers' reactions to ad factors such as the creativity of an ad, the quality of the visual effects, colors, and voice tones. A. Source bolsters B. Source derogations C. Ad execution-related thoughts D. Counterarguments E. Ad dissonance thoughts

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125. With reference to ad execution thoughts, advertisers are interested in consumers' reactions to an ad because A. the image of a company is directly proportional to the number of advertisements it produces annually. B. they want to segregate the target audience according to their cognitive reactions toward an advertisement. C. affective reactions are an important determinant of advertising effectiveness. D. it enables organizations to create suitable counterarguments. E. it helps organizations determine the direction of the integrated marketing communications process.

126. The _____ model addresses the differences in the way consumers process and respond to persuasive advertising messages. A. elaboration likelihood B. five Ws

C. AIDA D. information processing E. cognitive response

127. The elaboration likelihood model (ELM) was developed to explain the process by which persuasive communications lead to persuasion by influencing A. dissonance formation. B. attributions. C. source bolsters. D. attitudes. E. group norms.

128. According to the elaboration likelihood model, the _____ to process a message depends on such factors as involvement, personal relevance, and individuals' needs and arousal levels. A. dissonance B. motivation C. ability D. attitude E. competency

129. Jake is planning to buy a new smartphone. He studied the contents of an ad describing the superiority of TL smartphones and scrutinized how the advertising message argued in favor of TL's superiority. According to the elaboration likelihood model (ELM), Jake is engaging in which of the following routes to persuasion? A. support arguing B. central processing C. peripheral processing D. source bolstering E. comparative analysis

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130. The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. Under the central route to persuasion, a message recipient is viewed as A. a pioneer of word-of-mouth advertising campaigns. B. a passive participant who relies heavily on imagery processing. C. a very involved participant in the communications process. D. having low ability to attend to and comprehend a message. E. likely to engage in only minor cognitive processing.

131. According to the elaboration likelihood model (ELM), a receiver lacks the ability or motivation to process information under the _____ route to persuasion. A. central B. peripheral C. cognitive D. high-involvement E. affective

132. The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. In the case of the peripheral route to persuasion A. the message will more likely create favorable attitudes if the endorser in the ad is attractive and likeable. B. the message should contain a lot of detailed information. C. the receiver is actively involved in the communication process. D. the quality of the message claims are more important than a spokesperson, headline, pictures, or music. E. the message deals with high-involvement buying situations.

133. Trevor is watching a late night TV show when a low-budget commercial for a local restaurant comes on air. He is affronted by the poor quality of the commercial and immediately tunes out the message without processing any of the information. According to the elaboration likelihood model (ELM), Trevor is engaging in which of the following routes to persuasion? A. support arguing B. central processing C. peripheral processing D. source bolstering E. source blocking

134. Research on the elaboration likelihood model (ELM) has shown that A. celebrities are effective peripheral cues in a high-involvement situation. B. celebrity endorsers have a significant effect on brand attitudes in low-involvement situations. C. the quality of message arguments is likely to be very important in low-involvement situations. D.the quality of message claims is always less likely to be persuasive than the status of celebrity endorsers. E. peripheral cues are more important than detailed messages in high-involvement situations.

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135. Mellow Inc., a manufacturer of toiletry products, believes commercials for toiletries are processed primarily through a peripheral processing route. Which of the following advertising strategies should Mellow use? A. very detailed ads with a great deal of information about body hygiene B. detailed ads with strong message arguments about Mellow brands C. ads that use popular celebrity endorsers such as movie stars and sports personalities D. ads that pay more attention to information in the copy than executional elements such as visual imagery E. ads that are free of any distractions like pictures or jingles

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Chapter 05 Test Bank Key 1. The receiver's perception of the source of the message may affect the source's ability to communicate. TRUE The receiver's perception of the source and the medium used to transmit the message may also affect the ability to communicate, as do many other factors. Words, pictures, sounds, and colors may have different meanings to different audiences, and people's perceptions and interpretations of them vary. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Describe the communication process and its role in IMC. Topic: The Communication Process

2. The responsibility to encode a message in a way that can be well understood lies with the receiver. FALSE The sender's goal is to encode a message in such a way that it will be understood by the receiver. This means using words, signs, or symbols that are familiar to the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

3. For many products, it is not the actual words of the message that determine its communication effectiveness but rather the impression or image the ad creates. TRUE Messages must be put in a transmittable form that is appropriate for the channel of communication being used, and must contain the information or meaning the source hopes to convey. AACSB: Analytical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 05-01 Describe the communication process and its role in IMC. Topic: The Communication Process

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4. When Coach uses its brand name and picture to communicate an intended message of aspirational heritage mixed with an urban attitude, it is relying on the impression or image the ad creates, not the actual words or the message. TRUE For many products, it is not the actual words of the message that determine its communication effectiveness but rather the impression or image the ad creates. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

5. A TV commercial viewed by a person who lives alone is an example of communication through a personal channel. FALSE Nonpersonal channels of communication are those that carry a message without direct, interpersonal contact between the sender and receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

6. Salespeople serve as personal channels of communication when they deliver a selling message or presentation to a buyer or potential customer. TRUE Salespeople serve as personal channels of communication when they deliver a selling message or presentation to a buyer or potential customer. A major advantage of personal channels of communication is that the message or presentation can be tailored to the individual or audience and the sender receives direct feedback from them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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7. Buzz marketing, consumer-generated marketing, and viral marketing are new names for what used to be known simply as word-of-mouth communication. TRUE The use of word-of-mouth marketing is nothing new, but buzz marketing is a systematic and organized effort to encourage favorable word-of-mouth. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

8. Companies that utilize viral marketing must develop a seeding strategy to start the viral process. TRUE Companies that utilize viral marketing must develop a seeding strategy which involves determining how many initial consumers or "seeds" are needed and selecting the right consumers to start the viral process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

9. Phone conversations account for the vast majority of word-of-mouth communications about a brand. FALSE Face-to-face interaction accounts for the vast majority of word-of-mouth communications about a brand while phone conversations rank second. Only a small percent of word of mouth takes place through online channels such as e-mail/instant messages, blogs, and chat rooms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

10. Female and younger consumers tend to exert more influence on their target recipients and be more susceptible to viral influences than male and older consumers. TRUE Traits such as extroversion, innovativeness, and altruism are related to tendencies to share messages, as well as demographics like age and gender. AACSB: Analytical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: Consumer Behavior

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11. Television is the only advertising tool that influences word of mouth about a brand. FALSE Advertising plays a role in word of mouth (WOM), and about a quarter of all consumer conversations about brands involve discussions about advertising, but other forms of advertising can be used to drive word of mouth as well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

12. Distractions from technology, including laptops, tablets, and mobile phones/smartphones, can introduce noise into the communication model. TRUE Noise is an extraneous factor that can distort or interfere with message reception. Multitasking that leverages technology can result in unplanned distortion or interference. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

13. The field of experience is the process of transforming the sender's message back into thought. FALSE Decoding is the process of transforming the sender's message back into thought. The field of experience is the experiences, perceptions, attitudes, and values receivers bring to the communication situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

14. The marketing communication process really begins when the audience acts on the marketer's message. FALSE Action usually occurs at the end, as a result of communications. The marketing communication process really begins with identifying the audience that will be the focus of the firm's advertising and promotional efforts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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15. Very small, well-defined groups of customers are often referred to as individuals. FALSE Very small, well-defined groups are referred to as market niches, which occur at a group (not individual) level aggregation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: Consumer Behavior

16. The information processing model of advertising effects assumes that the receiver does not have the capacity to solve problems. FALSE The information processing model of advertising effects, developed by William McGuire, assumes that the receiver in a persuasive communication situation like advertising is an information processor or problem solver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: The Communication Process

17. The AIDA model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. FALSE The hierarchy of effects model is the basis for the classic purchase funnel metaphor. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

18. Hierarchy models of communication response delineate the series of steps potential purchasers must be taken through to move them from unawareness to readiness to purchase a product. TRUE The hierarchy models of communication response are useful to promotional planners from several perspectives. They delineate the series of steps potential purchasers must be taken through to move them from unawareness of a product or service to readiness to purchase it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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19. Low-involvement purchase decisions are areas where a standard hierarchy response process is likely. FALSE The standard learning hierarchy is likely when the consumer is highly involved in the purchase process and there is much differentiation among competing brands. High-involvement purchase decisions such as those for industrial products and services and consumer durables like personal computers, printers, cameras, appliances, and cars are areas where a standard learning hierarchy response process is likely. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

20. The consumer decision journey framework views the consumer decision-making process as a linear, single uniform path to purchase. FALSE The consumer decision journey framework views the consumer decision-making process as a winding journey with multiple feedback loops rather than a linear, single uniform path to purchase based on active shopping and influenced by marketer dominated and controlled touch points such as media advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: Consumer Behavior

21. According to the McKinsey group, mass media is a unique component of the consumer decision journey because it's the only form of marketing that can touch consumers at each and every stage, from when they're pondering brands and products right through to post-purchase, when their potential advocacy influences others. FALSE According to the McKinsey group, social media is a unique component of the consumer decision journey because it's the only form of marketing that can touch consumers at each and every stage, from when they're pondering brands and products right through to post-purchase, when their potential advocacy influences others. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: Consumer Behavior

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22. The advanced analytics available from digital media allow data-driven consumer packaged goods marketers to identify target audiences based on their purchase or other behavior. TRUE One of the reasons consumer packaged goods (CPG) marketers have shifted more of their budgets to digital media is the efficiency of digital ads appeals to them, especially as they try to control spending. Another reason is many of the CPG marketers are highly data-driven, so the advance analytics help them be more efficient. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: The Communication Process

23. When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments. TRUE When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments. A high level of cognitive response activity or processing occurs, and the ad's ability to persuade the receiver depends primarily on the receiver's evaluation of the quality of the arguments presented. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

24. Source bolsters occur when the target audience reacts favorably to the source and the source generates favorable thoughts. TRUE Advertisers try to hire spokespeople their target audience likes. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: Psychological Influences

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25. According to the elaboration likelihood model (ELM), if the involvement level of the target audience is high, peripheral cues may be more important than detailed message arguments. FALSE If the involvement level of the target audience is low, peripheral cues may be more important than detailed message arguments. If the involvement level of consumers in the target audience is high, an ad or sales presentation should contain strong arguments that are difficult for the message recipient to refute or counterargue. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

26. Three critical intermediate effects occur between advertising and purchase: cognition, affect, and experience. TRUE Cognition is the thinking dimension of the person's response; affect is the feeling dimension of the person's response; and experience is the feedback dimension based on the outcomes of product purchasing and usage. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: Consumer Behavior

27. Which of the following is true of the way organizations send communication messages? A. They communicate using press releases, websites, and package designs. B. They are legally not allowed to use graphic systems and visual images. C. They use promotions for B2B communications solely. D. They typically use brand names to create recognition but not for communication. E. They do not use logos as a means of communication. Organizations send communications and messages in a variety of ways, such as through advertisements, brand names, logos and graphic systems, websites, press releases, package designs, promotions, and visual images. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Describe the communication process and its role in IMC. Topic: The Communication Process

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28. _____ is defined as the passing of information, the exchange of ideas, or process of establishing a commonness of thought between a sender and a receiver. A. Negotiation B. Source integration C. Assimilation D. Perception E. Communication Communication has been variously defined as the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Describe the communication process and its role in IMC. Topic: The Communication Process

29. Which of the following statements is true about effective communication? A. Advertising is an effective way of communication because marketers are able to tell consumers how to interpret their messages. B. For effective communication, marketers must understand the meanings that consumers attach to words and symbols. C. Effective integrated marketing communications is usually nonpersonal in nature. D. Effective communication is unaffected by the reception environment. E. The visual nature or color characteristic of an ad has no impact on effectiveness of communication. The communication process is often very complex. Words, pictures, sounds, and colors may have different meanings to different audiences, and people's perceptions and interpretations of them vary. Marketers must understand the meanings that words and symbols take on and how they influence consumers' interpretation of products and messages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Describe the communication process and its role in IMC. Topic: The Communication Process

30. The _____ of a communication is the person or organization that has information to share with another person or group of people. A. essence B. source C. message D. receiver E. channel The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

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31. The process of putting thoughts, ideas, or information together in symbolic form is called A. encoding. B. deciphering. C. sourcing. D. seeding. E. decoding. The communication process begins when a source selects words, symbols, pictures, and the like, to represent the message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

32. An ad by the Minnesota State Tourism Department, which promotes Minnesota as a vacation destination, was published in Life Mode magazine. The ad includes a picture of a couple against a scenic backdrop. In this print ad, the source of the advertising message A. is the Minnesota State Tourism Department. B. is Life Mode magazine. C. is the couple in the scenic picture. D. is the slogan. E. is the reader of the magazine. In the above scenario, the Minnesota State Tourism Department is the source. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company's advertisements) or a nonpersonal entity (such as the corporation or organization itself). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

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33. Commercials for Vinnie's Marshmallows describe its marshmallows as a delicious snack for all ages. The commercials show toddlers eating marshmallows as part of their usual diet as well as adults roasting marshmallows over a fire. In these commercials, Vinnie's is the A. channel messenger. B. encoder. C. decoder. D. source. E. receiver. In the above scenario, Vinnie's is considered the sender or the source of the ad. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company's advertisements) or a nonpersonal entity (such as the corporation or organization itself). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

34. Lily hosts a well-known television show, . She also appears in an ad for Rochelle Cosmetics and explains the potential benefits of using these cosmetics. In this scenario, the source of the ad is A. the television network that airs the ad. B. Rochelle Cosmetics. C. Lily. D. the audience. E. the television show, Real Life. In the above scenario, Lily is considered the sender or the source of the ad. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company's advertisements) or a nonpersonal entity (such as the corporation or organization itself). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

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35. The communication process begins with the process of A. encoding. B. encrypting. C. channeling. D. decoding E. bolstering. The communication process begins when the source selects words, symbols, pictures, and the like to represent a message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. The encoding process leads to development of a message that contains the information or meaning the source hopes to convey. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

36. The source or sender of an advertising communication A. is typically the owner and shareholder of a company. B. cannot be a nonpersonal entity. C. is typically identified as the owner of the medium in which the communication appeared. D. can be an individual who promotes the product in an ad, such as a celebrity. E. is never involved in the encoding process. The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company's advertisements) or a nonpersonal entity (such as the corporation or organization itself). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

37. Which of the following is true of encoding? A. It is also known as channel managing. B. It involves identifying and interpreting a message. C. It involves putting ideas into a symbolic form. D. It involves the creation of "noise." E. It involves the development of the message. The communication process begins when the source selects words, symbols, pictures, and the like to represent a message that will be delivered to the receiver(s). This process, known as encoding, involves putting thoughts, ideas, or information into a symbolic form. A sender's goal is to encode a message in such a way that it will be understood by a receiver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

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38. The encoding process leads to the development of A. a message. B. noise. C. a channel. D. feedback. E. a response. The encoding process leads to development of a message that contains the information or meaning a source hopes to convey. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

39. In a communication process, _____ refers to the information and/or meaning contained in a message. A. source B. encoding C. decoding D. content E. noise Content refers to information and/or meaning contained in a message, while structure and design refer to the way the message is put together in order to deliver the information or intended meaning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

40. According to the basic model of communication, _____ refers to the way a message is put together in order to deliver an information or intended meaning. A. source B. encoding C. decoding D. design E. content Structure and design refer to the way a message is put together in order to deliver an information or intended meaning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

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41. Jim, a doctor, takes out a print ad to advertise his new clinic. He opts for a full-page ad in a weekly publication known as Doctor's Info. According to the basic model of communication, Doctor's Info is the A. channel. B. receiver. C. encoder. D. source. E. decoder. In the above scenario, Doctor's Info is the channel used for communication. A channel is the method by which a communication travels from a source or sender to a receiver. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the basic model of the communication process. Topic: The Communication Process

42. According to the basic model of communication, which of the following is an example of a channel? A. The number of customers that redeemed a cents-off coupon B. A billboard beside an interstate highway C. The creative team that designed an ad for a leading retail chain D. A company's spokesperson E. A celebrity appearing in an ad for a cosmetics brand A channel is the method by which a communication travels from a source or sender to a receiver. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

43. Which of the following is an example of a nonpersonal communication channel? A. magazines B. e-mail C. social media D. telemarketing E. stress interviews Nonpersonal channels of communication consist of two major types, print and broadcast. Print media include newspapers, magazines, direct mail, and billboards; broadcast media include radio and television. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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44. Which of the following is true of nonpersonal channels of communication? A. They include direct mail and billboards. B. They include methods such as e-mail and social media. C. The Internet cannot be considered a nonpersonal channel. D. They do not include include print media. E. They do not include broadcast media. Nonpersonal channels of communication consist of two major types, print and broadcast. Print media include newspapers, magazines, direct mail, and billboards; broadcast media include radio and television. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

45. Which of the following is an example of a personal communication channel? A. radio B. billboards C. newspapers D. e-mail E. magazines Personal channels involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as e-mail or through social media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

46. Which of the following can serve as a personal channel of communication? A. sales team B. newspaper C. radio D. magazines E. television Personal channels of communication involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as e-mail or through social media. Salespeople serve as personal channels of communication when they deliver their sales message to a buyer or potential customer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

05-42 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

47. Which of the following is true of word-of-mouth (WOM) marketing? A. It involves very formal communication among consumers. B. It is known as company-generated marketing. C. It is considered a weak marketing strategy. D. It can also be described as buzz marketing. E. It is considered to be a part of nonpersonal communication. Members of one's social networks such as friends, neighbors, associates, co-workers, or family members are also personal channels of communication. They often represent word-of-mouth (WOM) influence that involves informal communication among consumers about products and services and is a very powerful source of information. Buzz marketing is just one of the new names for what used to be known simply as word-of-mouth communication while terms such as consumer-generated marketing and viral marketing are also used to describe the process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

48. Aino, a leading automaker, broadcasts a commercial during the airing of Moral Decree, a TV program that is viewed by eight million viewers. Which of the following types of communication is witnessed in this scenario? A. individualized B.direct response C. nonpersonal D. semiotic E. personal The above scenario is an illustration of nonpersonal communication. Nonpersonal channels of communication are those that carry a message without interpersonal contact between a sender and a receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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49. Iconix supermarkets placed an insert in Tuesday's , a regional newspaper that has more than 100,000 subscribers. The newspaper is an example of a(n) _____ channel of communication. A. buzz B. direct-response C. nonpersonal D. interpersonal E. verbal The above scenario is an example of nonpersonal communication. Nonpersonal channels of communication are those that carry a message without interpersonal contact between a sender and a receiver. Nonpersonal channels are generally referred to as the mass media or mass communications, since the message they contain is directed to more than one person and is often sent to many individuals at one time. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

50. Which of the following is true of buzz marketing? A. It is an important part of company-generated marketing. B. It uses print media as a primary communication channel, especially for high-end luxury goods. C. It is considered synonymous with bait-and-switch marketing. D. It is a systemized process that encourages people to speak favorably about a product. E. It includes radio and television marketing. What makes buzz marketing different from traditional word-of-mouth communication is that it includes systematic and organized efforts to encourage people to speak favorably about a company, brand, organization, or issue and often to recommend it to others in their social network. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

51. _____ is the process of transforming a sender's message back into thought. A. Decoding B. Encoding C. Channeling D. Sourcing E. Transmitting Decoding is the process of transforming a sender's message back into thought. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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52. Which of the following is true of decoding? A. It is heavily influenced by the receiver's frame of reference. B. It is an interpretation process that requires expert knowledge. C. In most cases, decoding occurs smoothly when a common ground does not exist. D. In order for the process to be effective, the decoder must contradict the encoder. E. It is not influenced by the receiver's field of experience. Decoding is the process of transforming the sender's message back into thought. This process is heavily influenced by the receiver's frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

53. Which of the following communication processes will be most influenced by the experiences, perceptions, attitudes, and values of a message recipient? A. channel transmission B. decoding C. noise D. feedback E. transmission Decoding is the process of transforming a sender's message back into thought. This process is heavily influenced by a receiver's frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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54. Which of the following components of a communication process is heavily influenced by a receiver's field of experience? A. encoding B. decoding C. message D. channel E. noise Decoding is the process of transforming a sender's message back into thought. This process is heavily influenced by a receiver's frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

55. The experiences, perceptions, attitudes, and values a consumer brings to a communication situation is referred to as his or her A. semiotic involvement. B. field of experience. C. common ground. D. source characteristics. E. selective bindings. Decoding is the process of transforming a sender's message back into thought. This process is heavily influenced by a receiver's frame of reference or field of experience, which refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

05-46 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

56. Zing Candy launches an ad that shows people being revitalized after eating its candy bar. The ad attempts to deliver the message of "Instant energy." Janice Cooper, a viewer of the ad, thinks that the ad reflects people in it as rude and irritating. In terms of the communication process, Janice has _____ the message improperly. A. encoded B. conveyed C. decoded D. transmitted E. channeled In the above scenario, Janice has decoded the message improperly. Decoding is the process of transforming a sender's message back into thought. For effective communication to occur, the message decoding process of the receiver must match the encoding of the sender. Simply put, this means the receiver understands and correctly interprets what the source is trying to communicate. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

57. The fact that marketing and advertising people have backgrounds and interests that are often quite different from consumers who comprise mass markets for many products and services makes it difficult to establish A. an encoding process. B. conditioned perceptions. C. response hierarchies. D. a common ground. E. fields of experience. Effective communication is more likely when there is some common ground between the two parties. While this notion of common ground between sender and receiver may sound basic, it often causes great difficulty in the advertising communications process. Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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58. Syn-ergy Drinks, an energy drink manufacturer, launches a television ad in which people are seen feeling energized after consuming Syn-ergy's drinks. "Revitalization of body and mind" is the message the ad is intended to deliver. However, those who view the ad interpret it as being frivolous and lacking context. One of the possible explanations for such a highly differential perception of the ads is due to the absence of A. an interpretative link. B. a feedback mechanism. C. response hierarchies. D. common ground. E. binding influences. In the above scenario, one of the possible explanations for such a highly differential perception of the ads is due to the absence of common ground. Effective communication is more likely when there is some common ground between the two parties. Marketing and advertising people often have very different fields of experience from the consumers who constitute the mass markets with whom they must communicate. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

59. Which of the following statements is true about ageism in advertising? A. Mature people are more likely to be shown in television than print ads. B. Advertisers typically avoid using adults over the age of 60 and children below the age of 8. C. Because the mean age of the population is increasing, one can expect to see more youth-oriented advertising. D. Age differences generally create disturbances in terms of encoding and channel messaging. E. The difference between the senders' and receivers' age can create problems in establishing common ground. Age is a factor that can lead to problems in establishing common ground between senders and receivers. As the population of the United States and many other countries grows older, concern has been expressed over the potential problems that might arise because of age differences between advertising agency personnel and older consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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60. _____ is any unplanned distortion or interference in the communication process. A. Semiotics B. Selectivity C. Noise D. Dissonance E. Blocking Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

61. Bradley is watching an interesting TV program with a group of friends. During the commercial break, he is unable to concentrate on a commercial for a soda drink because all his friends are discussing the events of the show. In this scenario, Bradley is encountering A. poor encoding. B. selective sourcing. C. inappropriate advertiser binding. D. limited response hierarchies. E. disturbances known as noise. In the above scenario, Bradley is encountering disturbances known as noise. Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

62. Justin failed to understand the message in an ad for Smithline Catering in a daily newspaper as the newspaper print was unclear. With reference to the communication process, the unclear print would constitute A. an encoding hazard. B. a sourcing block. C. negative feedback. D. a perceptive block. E. noise. In the above scenario, Justin encounters noise. Throughout the communication process, a message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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63. In a communication process, a receiver's set of reactions after seeing, hearing, or reading a message is known as a A. noise. B. perception. C. source. D. channeling. E. response. A receiver's set of reactions after seeing, hearing, or reading the message is known as a response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

64. In a communication process, _____ is the part of a receiver's response that is communicated back to the sender. A. feedback B. noise C. sourcing D. encoding E. decoding Marketers are very interested in feedback, that part of a receiver's response that is communicated back to the sender. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

65. Which of the following provides the sender of an advertising message with an appropriate way of monitoring the effectiveness of an intended message? A. encoding mechanisms B. decoding mechanisms C. feedback D. noise filters E. channel Feedback, which may take a variety of forms, closes the loop in a communications flow and lets a sender monitor how an intended message is being decoded and received. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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66. An ad for the Tributary Hotel in Chicago has a number that people can call if they are interested in reserving rooms at the hotel or for further information about the hotel. One way to determine the effectiveness of this ad is to count the number of phone calls the hotel receives in response to the ad. This response count is an example of A. feedback. B. encoding. C. noise filtering. D. noise blocking. E. decoding. This scenario is an illustration of feedback. Marketers are very interested in feedback, that part of a receiver's response that is communicated back to a sender. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

67. The element of the communication process that closes the loop in the communications flow and allows a sender to monitor how a message is being received and interpreted is known as A. encoding. B. decoding. C. feedback. D. noise. E. filters. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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68. Instantaneous feedback on the effectiveness of a marketing communication method is most likely possible in A. personal-selling situations. B. radio advertising. C. television advertising. D. direct-mail advertising. E. mass-communication channels. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. A salesperson has the advantage of receiving instant feedback through the customer's reactions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

69. Counts of customer visits to a store, consumer inquiries, coupon redemptions, and reply cards are all possible forms of gathering A. encoding systems. B. feedback. C. noise. D. message channels. E. decoding mechanisms. Marketers are very interested in feedback, that part of a receiver's response that is communicated back to the sender. Feedback, which may take a variety of forms, closes the loop in the communications flow and lets a sender monitor how an intended message is being decoded and received. Customer inquiries, store visits, coupon redemptions, and reply cards are all methods of obtaining feedback. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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70. In the context of the marketing communications process, which of the following products is most likely to be promoted by targeting individuals? A. chocolate bars B. fizzy drinks C. real estate D. soap E. pizza The marketing communications process really begins with identifying the audience that will be the focus of a firm's advertising and promotional efforts. The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience. Marketers approach each of these audiences differently. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

71. Which of the following is true of market niches? A. They are usually large mass market segments. B. They are well-defined market segments. C. They are typically reached using mass communication such as advertising and publicity. D. They are not suitable for specialized goods. E. They include broader classes of buyers who have similar needs. Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

72. The best way to reach a narrowly defined group of customers or a market niche is through A. television advertising and billboards. B. personal-selling and targeted direct mail. C. advertising and radio advertising. D. any form of broadcast media. E. transit advertising, billboards, and publicity. Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

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73. Which of the following is most suitable for reaching a large consumer market segment with a broad class of buyers? A. e-mail marketing B. personal selling C. magazine advertising D. targeted direct-mail advertising E. buzz marketing Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. The next level of audience aggregation is market segments, broader classes of buyers who have similar needs and can be reached with similar messages. As market segments get larger, marketers usually turn to broader-based media such as newspapers, magazines, and TV to reach them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing. Topic: The Communication Process

74. The AIDA model was developed to represent the stages during the _____ process. A. personal-selling B. magazine advertising C. mass marketing D. sales promotions E. radio advertising The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

75. According to the AIDA model, a prospective consumer first passes through the _____ stage. A. attention B. comprehension C. interest D. desire E. action The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. This model depicts the buyer as passing successively through attention, interest, desire, and action. The salesperson must first get the customer's attention and then arouse some interest in the company's product or service. Strong levels of interest should create desire to own or use the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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76. According to the AIDA model, a customer expressing interest and desire is in the A. affective stage. B. cognitive stage. C. behavioral stage. D. action stage. E. adoption stage. According to the AIDA model, a customer expressing interest and desire is likely to be in the affective stage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

77. The _____ model is a response model that was developed as a paradigm for setting and measuring advertising objectives. A. AIDA B. hierarchy of effects C. innovation adoption D. adoption response E. diffusion rate The hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise of this model is that advertising effects occur over a period of time. It was developed as a paradigm for setting and measuring advertising objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

78. The _____ model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. A. diffusion rate B. objective-task C. innovation adoption D. hierarchy of effects E. adoption objective The hierarchy of effects model is the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through. The consumer starts at the top of the funnel with a number of brands in mind, methodically reduces that number as he or she becomes familiar with and evaluates these alternatives, and then emerges with the brand he or she chooses to purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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79. Which of the following response hierarchy models depicts consumers going through the successive stages of awareness, interest, evaluation, trial, and adoption? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the adoption differentiation model The innovation adoption model evolved from work on the diffusion of innovations. This model represents the stages a consumer passes through in adopting a new product or service. The steps preceding adoption are awareness, interest, evaluation, and trial. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

80. Which of the following response hierarchy models depicts consumers going through the stages of attention, presentation, comprehension, yielding, retention, and behavior? A. the AIDA model B. the hierarchy of effects model C. the innovation adoption model D. the information processing model E. the integrated information response model The stages of the information processing model are similar to the hierarchy of effects sequence; attention and comprehension are similar to awareness and knowledge, and yielding is synonymous with liking. McGuire's model includes a stage not found in the other models: retention, or a receiver's ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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81. Which of the following hierarchical response models assumes the receiver in a persuasive communication situation to be an information processor or problem solver? A. the AIDA model B. the hierarchy of effects models C. the innovation adoption model D. the information processing model E. the five Ws model The information processing model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

82. DigiData Inc. launched a new smartphone in the market with new features. Moreover, the company plans to launch tablets and other groundbreaking digital devices as well. In this scenario, the _____ model would be most relevant for communicating information about the new product to consumers. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing In the above scenario, the innovation adoption model would be most relevant for communicating information about the new product to consumers. The innovation adoption model is especially important to companies who are using integrated marketing communications (IMC) tools to introduce new products to the market. These marketers recognize that there are certain types of consumers who are of particular interest to them because of their interest in new products and their ability to influence others. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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83. Gianna is using “insight selling,” which is based on the ______________ model, which takes a customer through the different stages in the sales process, ending with action. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing The AIDA model was developed to represent the stages a salesperson must take a customer through in the personal-selling process. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

84. Only the _____ model has a retention stage, which is important for consumers who are considering purchase decisions and who are not ready to make a purchase immediately. A. hierarchy of effects B. AIDA C. innovation adoption D. cognitive response E. information processing The information processing model of advertising effects, developed by William McGuire, includes a stage not found in the other models: retention, or the receiver's ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. This stage is important since most promotional campaigns are designed not to motivate consumers to take immediate action but rather to provide information they will use later when making a purchase decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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85. Velocity Inc., a manufacturer of sports shoes, conducted a marketing research study and found that a vast majority of consumers recall the company's "Accelerate further" slogan. In this scenario, it can be concluded that A. consumers are aware of Velocity's advertising. B. consumers have favorable attitudes toward Velocity. C. Velocity is using a concentrated marketing program. D. consumers have evaluated Velocity's products. E. Velocity has adopted a niche marketing strategy. In this scenario, it can be concluded that consumers are aware of Velocity's products. The cognitive stage of the response process represents what a receiver knows or perceives about a particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

86. Attention, awareness, and knowledge are all examples of the _____ stage of the response process and appear in all of the models describing the consumer response process. A. cognitive B. affective C. behavioral D. conative E. comprehension All the four models describing the consumer response process consist of movement through a sequence of three basic stages—cognitive, affective, and behavioral. The cognitive stage represents what a receiver knows or perceives about a particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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87. Trial, purchase, adoption, and rejection are all examples of the _____ stage of the response process. A. cognitive B. affective C. behavioral D. motivational E. learning All the four models describing the consumer response process consist of movement through a sequence of three basic stages—cognitive, affective, and behavioral. The conative or behavioral stage refers to a consumer's action toward the brand: trial, purchase, adoption, or rejection. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

88. The _____ stage of the response process refers to a receiver's feelings for a particular brand and includes stronger levels of desire, preference, or conviction. A. cognitive B. affective C. behavioral D. conative E. learning The affective stage of the response process refers to a receiver's feelings or affect level (like or dislike) for a particular brand. This stage also includes stronger levels of affect such as desire, preference, or conviction. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

89. According to the _____, a consumer is an active participant in a communication process who gathers information through active studying. A. standard learning hierarchy B. low-involvement hierarchy C. dissonance/attribution model D. peripheral processing model E. maximum likelihood model The standard learning model consists of a learn → feel → do sequence. In this hierarchy, a consumer is viewed as an active participant in a communication process who gathers information through active learning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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90. According to the standard learning model, through which of the following response sequences does a consumer pass? A. learn → feel → do B. learn → do → feel C. feel → learn → do D. do → feel → learn E. do → learn → feel The standard learning model consists of a learn → feel → do sequence. Information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what a consumer will do. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

91. The _____ model, as proposed by Michael Ray, explains the decision-making process when a consumer buys a high-involvement product for which there is a high amount of differentiation among competing brands. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws Michael Ray suggests the standard learning hierarchy is likely when a consumer is highly involved in the purchase process and there is much differentiation among competing brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

92. The _____ model proposed by Michael Ray involves selective learning, whereby a consumer seeks information that supports a purchase choice made and avoids information that would raise doubts about the decision. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws The dissonance/attribution model involves selective learning, whereby a consumer seeks information that supports a purchase choice made and avoids information that would raise doubts about the decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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93. Management schools that offer MBA courses are typically rated annually by business publications. When an MBA program rates high on a list, the information is publicized. The purpose of the communication is to help prospective students choose between two equally viable but complex MBA courses. In this scenario, the _____ model is applicable. A. standard learning B. dissonance/attribution C. low-involvement D. cognitive response E. five-Ws In this scenario, the dissonance/attribution model is applicable. The dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. Dissonance reduction involves selective learning, whereby a consumer seeks information that supports a choice made and avoids information that would raise doubts about the decision. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

94. According to the dissonance/attribution model, during the decision-making process, through which of the following response sequences does a consumer pass? A. learn →feel → do B. learn → do → feel C. feel → learn → do D. do → feel → learn E. do → learn → feel The dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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95. According to the _____ model proposed by Michael Ray, learning from the mass media occurs after a purchase is made. A. low-involvement B. standard learning C. dissonance/attribution D. cognitive response E. elaboration likelihood This dissonance/attribution model, or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. According to this model, marketers need to recognize that in some situations, attitudes develop after purchase, as does learning from the mass media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

96. A study conducted by Scott Hawkins and Stephen Hoch found that under _____ conditions, repetition of simple product claims increased consumers' memory of and belief in those claims, and other items bought without much consideration use a heavy repetition strategy. A. individual response B. standard learning C. dissonance/attribution D. low-involvement E. customary learning The low-involvement hierarchy tends to occur when involvement in a purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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97. For which of the following products would an advertiser be more likely to use the low-involvement hierarchy to explain the consumer decision-making process? A. bar of soap B. digital camera C. refrigerator D. yard landscaping E. wedding dress The low-involvement hierarchy tends to occur when involvement in a purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

98. When Brian explains to his supervisor that advertising communication may not lead to immediate behavioral response or purchase, and uses a purchase funnel analogy to explain that a series of effects must occur, with each step fulfilled before the consumer can move to the next stage, he is explaining the _________________ model of how advertising works. A. AIDA B. diffusion of innovations C. hierarchy of effects D. innovation adoption E. information processing The hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

99. Which of the following is true of the low-involvement hierarchy? A. It usually occurs during the purchase of expensive products. B. It occurs when differences among brands are minimal. C. It is also known as the dissonance/attribute model. D. It does not advocate the use of broadcast media. E. It follows a feel → learn → do sequence. In the low-involvement hierarchy, a receiver is viewed as passing from cognition to behavior to attitude change. This learn → do → feel sequence is thought to characterize situations of low consumer involvement in a purchase process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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100. In the _____ hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. information processing In the low-involvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

101. Pluto Inc., a dairy products manufacturer, recognizes that many customers are passive learners and are generally averse to active information seeking. In order to reach out to these customers, the company incorporated jingles and slogans in its ads. In this scenario, Pluto is assuming that customers make purchases based on the _____ hierarchy. A. standard learning B. low-involvement C. dissonance/attribution D. habit formation E. information processing In the above scenario, Pluto Inc. assumes that customers use a low-involvement hierarchy while purchasing its products. In the low-involvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. An advertiser must recognize that a passive, uninterested consumer may focus more on nonmessage elements such as music, characters, symbols, and slogans or jingles than actual message content. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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102. Which of the following is true of low-involvement advertising? A. It involves using a strategy that is known as visual image personality. B. It is typically used for products that require extensive evaluation. C. It is generally considered to be an ineffective strategy. D. It is heavily utilized by luxury automobile manufacturers. E. It does not include mass-media advertising strategies. Low-involvement advertising appeals prevail in much of the advertising we see for frequently purchased consumer products. Another popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

103. Marketers of products such as mustard, paper towels, and batteries A. must avoid using mass-media advertising strategies. B. must use slogans, symbols, and visual image personalities to promote their products. C. must use personal-selling strategies in order to create a sustainable marketing program. D. must opt for high-involvement advertising strategies. E. must avoid sales promotions and publicity. In the low-involvement hierarchy, a consumer engages in passive learning and random information catching rather than active information seeking. The advertiser must recognize that a passive, uninterested consumer may focus more on nonmessage elements such as music, characters, symbols, and slogans or jingles than actual message content. Visual image personality is a popular low-involvement strategy. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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104. As a part of their creative strategy, advertisers of Vittle's Nuts use "Snippy the Bunny" as the brand's symbol in its ad campaigns. Through this strategy, the company aims to enhance brand identification and recognition. In this scenario, Snippy is an example of a(n) A. visual image personality. B. affective character. C. selectively remembered personality. D. high-involvement advertising appeal. E. pseudo celebrity. In the above scenario, Snippy is a visual image personality. A popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. Advertisers often use symbols like the Pillsbury Doughboy, Morris the Cat, Tony the Tiger, and Mr. Clean to develop visual images that will lead consumers to identify and retain ads. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

105. Visual image personalities A. are typically used with complex products that require high involvement. B. generally appear in ads for low-involvement products. C. require central route processing to be effective. D. typically abbreviate the cognitive stage of a consumer decision-making process. E. are used when consumers must go through all stages of AIDA before making a purchase. A popular creative strategy used by advertisers of low-involvement products is what advertising analyst Harry McMahan calls VIP, or visual image personality. Advertisers often use symbols like the Pillsbury Doughboy, Morris the Cat, Tony the Tiger, and Mr. Clean to develop visual images that will lead consumers to identify and retain ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

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106. From a promotional planning perspective, it is important that marketers A. create a divisional marketing communications program. B. avoid using broadcast and print media strategies. C. determine which type of response process is most likely to occur. D. avoid using an integrated marketing communications program. E. eliminate the need for the trial stage in the response process. From a promotional planning perspective, it is important that marketers examine the communication situation for their product or service and determine which type of response process is most likely to occur. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy. Topic: Consumer Behavior

107. Typically, when consumers are in a "passive" shopping mode A. they are purposefully seeking assistance in order to make informed purchase decisions. B. the information and advice they need to make a purchase comes to them unsolicited. C. they tend to visit the website of a company or brand for product information. D. they are perpetually in an information processing role. E. they seek help from search engines in selecting brands of their choice. According to the findings of Advertising Research Foundation (ARF), when consumers are in a "passive" shopping mode, the information and advice they need to make a purchase comes to them unsolicited, such as a comment on a social media site; an ad seen on a TV show, in a magazine, or on a website; or by observing someone using a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: Consumer Behavior

108. The social consumer decision journey framework recognizes that A. consumers make purchase decisions regarding low-involvement products based on their social status and purchasing power. B. consumers follow a linear sequence of awareness, interest, evaluation, and trial before ultimately adopting a product. C. consumers are always active participants in a communication process and they gather information through active learning. D. promotional campaigns should be designed to motivate consumers to take immediate action. E. consumers connect with large numbers of brands through digital channels that are often beyond marketers' control. The social consumer decision journey framework recognizes that consumers connect with large numbers of brands through digital and social media channels that are often beyond the marketers' or retailers' control, evaluate a shifting array of them, and often expand the pool before narrowing it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: Consumer Behavior

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109. Consumers in an "active" shopping mode A. typically receive information in an unsolicited manner. B. do not pass through the "evaluate" and "awareness" stages. C. are more likely to purposefully seek information and/or assistance. D. are generally averse to purchasing new products. E. are not influenced by marketer-dominated touch points. Consumers who are in an "active" shopping mode purposefully seek information and/or assistance so they can make informed purchase decisions with confidence. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the influence of social media on the consumer decision process. Topic: Consumer Behavior

110. _____ are thoughts that occur to a consumer when reading, viewing, and/or hearing a communication of advertising messages. A. Cognitive responses B. Affective responses C. Selective impressions D. Behavioral responses E. Conative impressions One of the most widely used methods for examining consumers' cognitive processing of advertising messages is assessment of their cognitive responses, the thoughts that occur to them while reading, viewing, and/or hearing a communication. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

111. Jessica was asked to view a television ad for a movie that was due to be released at a later date. After viewing the ad, she was required to fill a questionnaire that included questions such as "Did the ad make you want to see the movie?" "Did the movie title seem appropriate?" and "Did you understand the theme of the movie?" In this scenario, Jessica's _____ responses are being noted. A. cognitive B. kinesthetic C. selective D. behavioral E. creative In the above scenario, Jessica's cognitive responses are being recorded. One of the most widely used methods for examining consumers' cognitive processing of advertising messages is assessment of their cognitive responses, the thoughts that occur to them while reading, viewing, and/or hearing a communication. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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112. After watching a detergent ad that claimed to remove stains with "just a few drops," Jim stated, "I doubt any detergent can remove stains with only a few drops." This scenario is an example of a A. counterargument. B. support argument. C. source bolster. D. cognitive dissonance. E. source blockage. In this scenario, Jim is expressing a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

113. Tia saw a television commercial that claimed a specific brand of pain reliever to be much more effective than any other brand available in the market. After watching the entire message, Tia stated, "This painkiller cannot be more effective than mine." In this scenario, Tia is expressing A. a counterargument. B. a support argument. C. source bolstering. D. negative dissonance. E. positive dissonance. In the above scenario, Tia is expressing a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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114. An ad for Hush designer handbags shows the company's new line of affordable handbags made from genuine alligator leather. After seeing the ad, Erika stated, "You can't get a genuine alligator handbag for $50! Please!" Erika's response to the ad is an example of a A. negative ad execution thought. B. negative source derogation. C. support argument. D. counterargument. E. positive source bolster. In the above scenario, Erika's response is an example of a counterargument. Counterarguments are thoughts a recipient has that are opposed to the position taken in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

115. Bianca saw a magazine ad for Savvy Sheen hair shampoo that claimed to contain only natural herbal extracts and milk proteins. The ad also stated that Savvy's products were devoid of sodium laureth sulfate. Bianca instantly remarked, "I'm going to try this shampoo. I think I will like it." Bianca's response to the ad is an example of a A. negative source bolster. B. source derogation. C. support argument. D. counterargument. E. positive source bolster. In the above scenario, Bianca is expressing a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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116.Kevin saw a television ad for the season finale of Expedition of Triumph, a reality series. As he was impressed with the ad, he made a mental note of the day and time the finale was set to be aired. In this scenario, Kevin's response is an example of a(n) A. noncognitive response. B. source derogation. C. support argument. D. counterargument. E. emotional argument. In the above scenario, Kevin's response is an example of a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

117. Jared hears a radio commercial for a weight-loss program that claims significant results in 30 days through the use of hypnosis. Jared thinks to himself, "This sounds promising. I think I should give it a try." This thought would be an example of a(n) A. positive source derogation. B. rebuttal. C. counterargument. D. support argument. E. ad executive thought. The above scenario is an illustration of a support argument. Support arguments are the thoughts of a consumer that affirm the claims made in an advertising message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

118. Which of the following is true of source derogation? A. They are positive thoughts about the spokesperson in an ad. B. They generally lead to a reduction in message acceptance. C. They enhance brand recognition. D. They are considered to be a useful tool for measuring consumer loyalty. E. They are one of the least important types of emotional responses to an ad. One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. Such thoughts generally lead to a reduction in message acceptance. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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119. Negative thoughts about a spokesperson or organization making a claim are known as A. source derogations. B. counterarguments. C. source bolsters. D. source blockages. E. message filters. One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

120. Katy sees a television commercial for a shampoo, which is being endorsed by Adriana Tatum, a young movie actress. Katy thinks to herself, "She's such a drama queen! She'll do anything for media attention. I wouldn't buy anything she promotes." This is an example of a A. counterargument. B. support argument. C. source bolster. D. source derogation. E. message blockage. In the above scenario, Katy is expressing source derogation. One of the most important types of cognitive responses is source derogations, or negative thoughts about a spokesperson or organization making a claim. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

121. Which of the following is true of source bolsters? A. They are positive reflections toward an ad. B. They are emotional responses to an ad. C. They are also known as positive counterarguments. D. They are less likely to lead to consumer purchase. E. They are an individual's thoughts about the ad itself. Receivers who react favorably to the source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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122. AB Corp. hires Natasha Cooper, a popular movie actress, to be the brand ambassador for the company. The company hopes that endorsements of its products by the actress will increase the popularity of the brand and also attract a large number of customers. Receivers who respond favorably to Natasha's endorsements will express A. source derogations. B. counterarguments. C. source bolsters. D. source blockages. E. message synergy. The above scenario is an illustration of a source bolster. Receivers who react favorably to a source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

123. A company that hires a spokesperson with whom its target audience is likely to identify and respond favorably is A. attempting to create cognitive dissonance. B. creating a source bolster. C. engaging in niche marketing. D. creating an ambivalent situation. E. enabling counterarguments. Receivers who react favorably to a source generate favorable thoughts, or source bolsters. Most advertisers attempt to hire spokespeople their target audience likes so as to carry this effect over to the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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124. _____ include consumers' reactions to ad factors such as the creativity of an ad, the quality of the visual effects, colors, and voice tones. A. Source bolsters B. Source derogations C. Ad execution-related thoughts D. Counterarguments E. Ad dissonance thoughts Ad execution-related thoughts include reactions to ad execution factors such as the creativity of the ad, the quality of the visual effects, colors, and voice tones. They can be either favorable or unfavorable, and are important because of their effect on attitudes toward an advertisement as well as a brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

125. With reference to ad execution thoughts, advertisers are interested in consumers' reactions to an ad because A. the image of a company is directly proportional to the number of advertisements it produces annually. B. they want to segregate the target audience according to their cognitive reactions toward an advertisement. C. affective reactions are an important determinant of advertising effectiveness. D. it enables organizations to create suitable counterarguments. E. it helps organizations determine the direction of the integrated marketing communications process. Advertisers are interested in consumers' reactions to an ad because they know that affective reactions are an important determinant of advertising effectiveness, since these reactions may be transferred to a brand itself or directly influence purchase intentions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

126. The _____ model addresses the differences in the way consumers process and respond to persuasive advertising messages. A. elaboration likelihood B. five Ws C. AIDA D. information processing E. cognitive response Differences in the ways consumers process and respond to persuasive messages are addressed in the elaboration likelihood model (ELM) of persuasion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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127. The elaboration likelihood model (ELM) was developed to explain the process by which persuasive communications lead to persuasion by influencing A. dissonance formation. B. attributions. C. source bolsters. D. attitudes. E. group norms. The elaboration likelihood model (ELM) was devised by Richard Petty and John Cacioppo to explain the process by which persuasive communications (such as ads) lead to persuasion by influencing attitudes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

128. According to the elaboration likelihood model, the _____ to process a message depends on such factors as involvement, personal relevance, and individuals' needs and arousal levels. A. dissonance B. motivation C. ability D. attitude E. competency The elaboration likelihood model (ELM) shows that elaboration likelihood is a function of two elements, motivation and ability to process the message. Motivation to process a message depends on such factors as involvement, personal relevance, and individuals' needs and arousal levels. Ability depends on an individual's knowledge, intellectual capacity, and opportunity to process a message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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129. Jake is planning to buy a new smartphone. He studied the contents of an ad describing the superiority of TL smartphones and scrutinized how the advertising message argued in favor of TL's superiority. According to the elaboration likelihood model (ELM), Jake is engaging in which of the following routes to persuasion? A. support arguing B. central processing C. peripheral processing D. source bolstering E. comparative analysis In this scenario, Jake is engaging in central processing. When central processing of an advertising message occurs, a consumer pays close attention to message content and scrutinizes the message arguments. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

130. The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. Under the central route to persuasion, a message recipient is viewed as A. a pioneer of word-of-mouth advertising campaigns. B. a passive participant who relies heavily on imagery processing. C. a very involved participant in the communications process. D. having low ability to attend to and comprehend a message. E. likely to engage in only minor cognitive processing. Under the central route to persuasion, a receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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131. According to the elaboration likelihood model (ELM), a receiver lacks the ability or motivation to process information under the _____ route to persuasion. A. central B. peripheral C. cognitive D. high-involvement E. affective Under the peripheral route to persuasion, a receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

132. The elaboration likelihood model (ELM) states that there are two basic routes to persuasion, the central route and the peripheral route. In the case of the peripheral route to persuasion A. the message will more likely create favorable attitudes if the endorser in the ad is attractive and likeable. B. the message should contain a lot of detailed information. C. the receiver is actively involved in the communication process. D. the quality of the message claims are more important than a spokesperson, headline, pictures, or music. E. the message deals with high-involvement buying situations. Under the peripheral route to persuasion, a receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. Favorable attitudes may be formed if the endorser in an ad is viewed as an expert or is attractive and/or likable or if a consumer likes certain executional aspects of an ad such as the way it is made, the music, or the imagery. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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133. Trevor is watching a late night TV show when a low-budget commercial for a local restaurant comes on air. He is affronted by the poor quality of the commercial and immediately tunes out the message without processing any of the information. According to the elaboration likelihood model (ELM), Trevor is engaging in which of the following routes to persuasion? A. support arguing B. central processing C. peripheral processing D. source bolstering E. source blocking Peripheral cues can lead to rejection of a message. For example, ads that advocate extreme positions, use endorsers who are not well liked or have credibility problems, or are not executed well (such as low-budget ads for local retailers) may be rejected without any consideration of their information or message arguments. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

134. Research on the elaboration likelihood model (ELM) has shown that A. celebrities are effective peripheral cues in a high-involvement situation. B. celebrity endorsers have a significant effect on brand attitudes in low-involvement situations. C. the quality of message arguments is likely to be very important in low-involvement situations. D. the quality of message claims is always less likely to be persuasive than the status of celebrity endorsers. E. peripheral cues are more important than detailed messages in high-involvement situations. An interesting test of the elaboration likelihood model (ELM) showed that the effectiveness of a celebrity endorser in an ad depends on a receiver's involvement level. When involvement was low, a celebrity endorser had a significant effect on attitudes. When the receiver's involvement was high, however, the use of a celebrity had no effect on brand attitudes; the quality of the arguments used in the ad was more important. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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135. Mellow Inc., a manufacturer of toiletry products, believes commercials for toiletries are processed primarily through a peripheral processing route. Which of the following advertising strategies should Mellow use? A. very detailed ads with a great deal of information about body hygiene B. detailed ads with strong message arguments about Mellow brands C. ads that use popular celebrity endorsers such as movie stars and sports personalities D. ads that pay more attention to information in the copy than executional elements such as visual imagery E. ads that are free of any distractions like pictures or jingles In the above scenario, Mellow Inc. should utilize popular celebrity endorsers such as movie stars and sports personalities in their ads. Under the peripheral route to persuasion, favorable attitudes may be formed if the endorser in an ad is viewed as an expert or is attractive and/or likable or if a consumer likes certain executional aspects of the ad such as the way it is made, the music, or the imagery. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications. Topic: The Communication Process

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Chapter 05 Test Bank 01/09/2017 22:03:09 Summary Category-# of Questions AACSB: Analytical Thinking-101 AACSB: Reflective Thinking-34 Accessibility: Keyboard Navigation-130 Blooms: Apply-35 Blooms: Remember-63 Blooms: Understand-37 Difficulty: 1 Easy-64 Difficulty: 2 Medium-38 Difficulty: 3 Hard-33 Learning Objective: 05-01 Describe the communication process and its role in IMC.-5 Learning Objective: 05-02 Describe the basic model of the communication process.-14 Learning Objective: 05-03 Discuss the role of word-of-mouth influence and viral marketing.-42 Learning Objective: 05-04 Analyze receivers' responses to marketing communications and their implications for promotional planning and strategy.-38 Learning Objective: 05-05 Describe the influence of social media on the consumer decision process.-6 Learning Objective: 05-06 Discuss consumers' cognitive processing of marketing communications.-30 Topic: Consumer Behavior-45 Topic: Psychological Influences-1 Topic: The Communication Process-89

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Chapter 06 Test Bank Student: ___________________________________________________________________________ 1. Independent variables are the steps a receiver goes through in being persuaded. True False

2. Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't enhance one stage at the expense of another. True False

3. A model/celebrity, when used as an indirect source, delivers the main message of an advertisement. True False

4. Source credibility leads to identification. True False

5. There are two important dimensions to credibility: expertise and trustworthiness. True False

6. The perceived attractiveness of celebrity spokespeople is more important than their perceived expertise or trustworthiness. True False

7. In 2009, the Federal Trade Commission passed a set of guidelines requiring online endorsers and bloggers to disclose any material connection they might have to a company. True False

8. Creating an image or culture around the CEO protects the corporate brand image from being affected by controversy. True False

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9. Some research suggests the use of a company president or CEO can improve attitudes and increase the likelihood that consumers will inquire about a company's product or service. True False

10. One of the reasons a high-credibility source may become as ineffective as a low-credibility source is the sleeper effect. True False

11. High- and low-credibility sources are equally effective when they are arguing for a position opposing their own best interest. True False

12. In terms of source attractiveness, unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. True False

13. Slice-of-life advertising can be used to establish a bond of similarity between the communicator and the receiver, and to increase the source's level of persuasiveness. True False

14. The "vampire effect" happens when consumers focus their attention on the celebrity and fail to notice or recall the brand or advertising message. True False

15. Consumer skepticism of endorsements is reduced when a celebrity endorses many products. True False

16. Consumers who are particularly knowledgeable about a product or service or have strongly established attitudes are more influenced by a celebrity than those with little knowledge or neutral attitudes. True False

17. Presenting the strongest arguments at the beginning of a message assumes a recency effect, whereby information presented first is the most effective. True False

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18. Many press releases use the "pyramid style" of writing, whereby most of the important information is presented at the end to build up suspense and excitement for the hook. True False

19. When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, a closed-ended message is ideal. True False

20. Advertisers who are concerned about the negative effects of acknowledging a weakness in their brand are likely to choose two-sided messages. True False

21. The use of comparative advertising is not limited to new brands or those with a small market share. True False

22. Sometimes advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information presented because they think the use of an unexpected visual image will grab consumers' attention and get them to engage in more effortful or elaborative processing. True False

23. High levels of fear in an advertisement can produce inhibiting effects; the receiver may emotionally block the message by tuning it out. True False

24. Wearout may occur if consumers no longer pay attention to a commercial after several exposures. True False

25. Information from the Internet is self-paced, whereas information from the broadcast media of radio and television is externally paced. True False

26. Clutter levels in television are lowest during daytime programs. True False

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27. The _____ is a promotional planning tool that can be used by marketers to consider how each controllable element of the communications model interacts with the consumer's response process. A. dissonance/attribution matrix B. persuasion matrix C. AIDA model D. response model E. elaboration likelihood model

28. According to the persuasion matrix, which of the following is a dependable variable of the communications model? A. source B. message C. comprehension D. channel E. type of message appeal

29. The independent variable in the persuasion matrix that takes into account the passage of information from one person to another is A. the source. B. the message. C. the behavior. D. the retention. E. the destination.

30. According to the persuasion matrix, which of the following is an independent variable in the consumer's response process? A. attention B. comprehension C. destination D. yielding E. retention

31. A television ad for VenusCell Inc. shows a famous celebrity describing the features of the latest smartphone launched by the company. The celebrity talks about the features of the new smartphone such as 4G technology, AMOLED touchscreen, SVGA, tri-band, and WAP. According to the persuasion matrix, it is likely that a less educated audience will face problems associated with _____ due to the use of mobile jargons in the ad. A. attention B. yielding C. presentation D. comprehension E. retention

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32. An ad for Kool Kids, a kidswear company, is featured in the August issue of a teen magazine, Teen 360. The ad shows children between the ages of 3 and 12 on a ramp. In terms of the response stages of the persuasion matrix, the ad is ineffective in reaching the intended target audience, the parents, because A. its portrayal is offensive. B. it contains jargons that is incomprehensible to the target audience. C. the media channel used is inappropriate. D. of the extensive clutter. E. it is not endorsed by a celebrity parent.

33. CL Inc., a cellphone company, features Leah Carter, a popular movie actor, in all of its print and broadcast advertising. The reason behind choosing the actor is that she is more likely to attract potential customers. The company faces heavy competition and the marketing team concluded that using a popular spokesperson will help break through the advertising clutter. Which of the following stages of the persuasion matrix is CL Inc. trying to influence? A. reception B. channel C. attention D. presentation E. behavior

34. When advertisers attempt to answer the question, "Who will be effective in getting consumers’ attention?" they are addressing the ______________________ component of the persuasion matrix. A. channel/yielding B. source/attention C. receiver/comprehension D. channel/presentation E. message/yielding

35. A spokesperson who delivers an advertising message and endorses a product or service is known as a(n) A. direct source. B. indirect source. C. message shaper. D. source mirage. E. source echo.

36. A(n) _____ doesn't actually deliver a message but draws attention to and enhances the appearance of an ad. A. direct source B. indirect source C. message shaper D. source mirage E. source echo

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37. Marketers typically select spokespeople whose traits will maximize their message influence. According to Herbert Kelman, the three categories of source attributes that should be considered during the selection process are A. power, image, and knowledge. B. credibility, attractiveness, and power. C. knowledge, fee, and differentiability. D. consistency, credibility, and continuity. E. credibility, reputation, and individuality.

38. _____ is the extent to which a recipient sees a source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. A. Source attractiveness B. Source popularity C. Source credibility D. Source power E. Source identification

39. Marketers who try to select spokespeople whose traits will maximize their message influence are concerned about their credibility. The two important dimensions associated with credibility are A. consistency and image. B. image and trustworthiness. C. differentiability and expertise. D. expertise and trustworthiness. E. image and expertise.

40. _____ is the process where a receiver adopts the opinion of a credible communicator since he or she believes information from this source is accurate. A. Identification B. Compliance C. Internalization D. Conformity E. Yielding

41. Expertise and trustworthiness are very important when focusing on source _____, one of the categories of source attributes developed by Herbert Kelman. A. power B. attractiveness C. credibility D. identification E. image

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42. A fatal accident at the production facility of GA Inc., a mobile manufacturer, has killed 58 factory workers. The company is now perceived negatively among customers. In an attempt to revive its reputation, the company has hired Adam Murphy, a popular golfer, as its spokesperson. Murphy is a distinguished personality and is well known for his philanthropic activities. Murphy, being a credible source, can help GA restore its tainted reputation by A. acting as a positive source derogation. B. inhibiting counterarguments about the company and its products. C. eliminating advertising clutter. D. attempting to change consumer buying patterns. E. stimulating consumers to purchase the company's products.

43. A study conducted by Roobina Ohanian about consumers' perceptions of celebrity endorsers found that the characteristic which influenced consumers' intentions to purchase a product endorsed by a celebrity is his or her perceived A. expertise. B. attractiveness. C. trustworthiness. D. similarity. E. likability.

44. A marketer of super computers will recruit individuals with backgrounds in computer science and engineering to work as salespeople in order to ensure its sales force has high levels of A. expertise. B. trustworthiness. C. attractiveness. D. attention. E. yielding.

45. When country music star Miranda Lambert delivered a message that endorsed milk when she appeared in an ad that is part of "The Breakfast Project" campaign sponsored by the Milk Processor Education Program, she was acting as a(n) _________________ source. A. corporate B. overexposed C. internal D. indirect E. direct

46. One way a supermarket can make its ads seem more trustworthy is by A. showing customers talking about the supermarket on hidden cameras. B. increasing its advertising clutter in its print ads. C. using cartoon characters in humorous shopping experiences. D. using loud music or an unsettling color combination. E. advertising repetitively in short intervals.

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47. The owner of Elan Style Inc., a global fashion house, features in all of his stores' commercials. He explains how his company differs from other chain stores and gives advice on buying fashion clothing and accessories. Since he is recognized as a professional style expert, his presence in his company's ads can enhance the ads' source A. credibility. B. attractiveness. C. power. D. differentiability. E. likability.

48. Which of the following statements is true about the use of corporate leaders as advertising spokespersons? A. Many companies believe the use of a company president or CEO is an ineffective way of expressing the company's commitment to quality and customer service. B. Only Fortune 500 companies use corporate leaders as spokespersons. C. If a firm's image is too closely tied to its leader, it will face problems if and when the leader leaves the company. D. Corporate spokespersons are ineffective for consumer products. E. Corporate spokespersons improve the message source image but have no effect on its trustworthiness.

49. Which of the following statements is true about source credibility? A. The influence of a knowledgeable source will be increased if audience members think he or she has underlying personal motives for advocating a position. B. Enhanced counterarguing should result in greater message acceptance and persuasion. C. The persuasiveness of a low-credibility source may decline over time due to the sleeper effect phenomenon. D. A very credible source is more effective when message recipients are not in favor of the position advocated in a message. E. Advertisers can increase the perception that their sources are trustworthy by using hidden cameras to show that a consumer is a paid spokesperson.

50. The notion that a low-credibility source may be just as effective as a high-credibility source with the passage of time is known as the A. sleeper effect. B. time/place consequence. C. open source paradox. D. decay effect. E. mirage effect.

51. According to the sleeper effect phenomenon A. the impact of a persuasive message diminishes over time. B. people subconsciously retain advertising messages that they see moments before sleeping and rehearse them in their sleep. C. the impact of a persuasive message from a low-credibility source can increase over time, since the message content becomes disassociated from the source. D. with the passage of time, the impact of a persuasive message from a low-credibility source can decrease, since people forget the content of the message. E. people instinctively disassociate a low-credibility source from the message when they are paying less than full attention to the message.

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52. The source characteristic of attractiveness encompasses A. power, expertise, and aesthetics. B. similarity, likability, and familiarity. C. comfort, individuality, and beauty. D. beauty, familiarity, and differentiability. E. expertise, familiarity, and comfort.

53. _____ is defined as an attraction for a source based on a resemblance between the source and receiver of a message. A. Likability B. Familiarity C. Similarity D. Expertise E. Power

54. _____ is defined as an affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics. A. Expertise B. Power C. Compliance D. Familiarity E. Likability

55. Source attractiveness leads to persuasion through a process of _____, whereby a receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. A. internalization B. identification C. compliance D. repositioning E. comprehension

56. Which of the following is a difference between identification and internalization? A. Unlike identification, internalization of a message does not occur when the source is a celebrity. B. Unlike internalization, identification is synonymous with receiver comprehension. C. Unlike identification, internalization is often considered to be a negative source characteristic. D. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. E. Unlike identification, internalization does not lead to counterarguments and source derogations by the receiver.

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57. Marketers can try to capitalize on source similarity by hiring A. beautiful models to appear in television ads. B. well-known athletes to endorse sporting goods in commercials. C. salespeople who have characteristics that match those of their customers. D. individuals with liberal arts backgrounds to work as sales representatives for technical products. E. actors to portray themselves as ordinary consumers.

58. A commercial for a floor cleaner shows a young mother cleaning her kitchen floor after feeding her toddler. The commercial is considered to be effective because it utilizes high source similarity. This is an example of a _____ commercial. A. comparative B. reputational C. slice-of-life D. spokesperson-oriented E. power-based

59. Which of the following source characteristics is utilized by a slice-of-life commercial that shows an average head of household facing difficulty in filing his federal income tax? A. power B. compliance C. expertise D. similarity E. attractiveness

60. Which of the following statements is true of celebrity endorsements? A. Consumers who are very knowledgeable about a product or service tend to be most persuaded by celebrity endorsers. B. When a celebrity endorses several products simultaneously, it leads to enhanced popularity of the celebrity and also results in increased sales of all the products the celebrity endorses. C. Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. D. Typically, the use of celebrity endorsers is highest among news and business publications. E. Marketers do not have to worry about the personal image of celebrities while choosing one to endorse a product or a service.

61. Which of the following source characteristics is likely to suffer when a celebrity endorses too many products and is seen too often by consumers? A. expertise B. trustworthiness C. physical attractiveness D. compliance E. internalization

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62. Advertisers can protect themselves against overexposure A. by hiring more than one celebrity for endorsing a particular brand. B. with an exclusivity clause limiting the number of products a celebrity can endorse. C. by attempting to match the characteristics of the target market with the personality of a celebrity. D. by creating celebrity advertisements that generate counterarguments. E. by hiring common consumers instead of celebrities to feature in their commercials.

63. Cirrus Shoes received negative publicity when the company's brand ambassador was convicted of sexual assault. The company was forced to rescind their association with entertainer Adrian Richardson due to the negative impact on its image. This scenario is an example of A. overexposure. B. risk to the advertiser. C. celebrity popularity. D. overshadowing the product. E. consumer-celebrity merging.

64. According to the meaning transfer model of the celebrity endorsement process, celebrities draw their meanings from A. their association with the companies whose products they endorse. B. their popularity among consumers and their perceived level of attractiveness. C. the image the media portrays about them through various channels such as television, magazines, and the Internet. D. the roles they assume in their careers and the objects, persons, and contexts these roles bring them in contact with. E. their family and cultural background that influence their decisions about the types of products they want to endorse.

65. According to the meaning transfer model developed by Grant McCracken, which of the following statements is true of celebrity endorsers? A. Credibility and attractiveness can effectively explain how and why celebrity endorsements work. B. Celebrity endorsers bring their meanings and images to an ad and transfer them to the product they are endorsing. C. The image that celebrities project to consumers is more important than their ability to attract attention. D. Once the first two stages of the model have been implemented, the final stage is simple and easy to achieve. E. Celebrities' overexposure in advertisements helps marketers achieve the desired recognition.

66. Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities? A. a professional golfer endorsing electronics home appliances B. a boxer endorsing an automobile repair service C. an actress endorsing a cell phone service D. a model endorsing a brand of cosmetics E. a race car driver endorsing lawn mowers

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67. In the final stage of the meaning transfer model developed by Grant McCracken A. celebrities draw powerful meanings from the roles they assume in their careers. B. celebrities bring their meanings and images into ads for the products they are endorsing. C. the meanings that celebrities have given to products are transferred to consumers. D. promotional campaigns are organized in the presence of the media. E. the meanings created by celebrities are developed into advertisements.

68. The _____ score indicates the percentage of people who have heard of an endorser or a performer. A. familiarity B. attractiveness C. similarity D. one of my favorites E. Q rating

69. Which of the following is true of a Q-score? A. It explains the popularity of a prime-time television show. B. It describes the size of television viewing audiences that prefer to buy a product based solely on the celebrity who endorsed it. C. It answers the question, "How appealing is a celebrity endorser among people who do know him or her?" D. It answers the question, "What percentage of people see celebrities as trendsetters?" E. It identifies the emotional impact that advertisements have on the target audience.

70. A television commercial for Elate perfume features a woman walking along a beach. The ad attempts to connect the woman's physical beauty to the attractiveness of the perfume. In the ad, the model serves as a(n) A. source echo. B. message shaper. C. direct source. D. passive model. E. active communicator.

71. For which of the following product ads would a marketer find a physically attractive model to be most effective? A. cattle feed B. bricks C. fertilizer D. cookies E. lipstick

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72. Which of the following statements is true of source power? A. Power as a source characteristic is very easy to apply in a nonpersonal influence situation such as advertising. B. The use of source power is not effective in situations involving personal communication and influence. C. The source must be perceived as being able to administer only positive sanctions to the receiver. D. A source has power when he or she can actually administer rewards and punishments to a receiver. E. The receiver's estimate of the source's ability to observe conformity is not important.

73. When a source is able to administer rewards and punishments to a receiver, the influence occurs through a process known as A. compliance. B. identification. C. internalization. D. retention. E. perceived concern.

74. Mettle Inc., an automaker, hires a popular boxer, Darrell Hilton, as the spokesperson for its "Save the Globe" campaign, an initiative for preserving the environment. If viewers of the commercial perceive Darrell as being able to mete out punishment when citizens don't comply to environmental policies, then Darrell, as a message source, is said to have A. perceived control. B. control persuasion. C. perceived integration. D. expertise. E. perceived concern.

75. Mars Inc., an automaker, hires a popular celebrity, Emma Hunt, as the spokesperson for its "Keep the World Green" campaign, an initiative for preserving trees. The viewers of the commercial perceive Emma as being sincerely interested in citizen initiatives to preserve trees. Emma as a message source is said to have A. perceived control. B. control persuasion. C. perceived scrutiny. D. expertise. E. perceived concern.

76. Which of the following is true of persuasion induced through compliance? A. It is difficult to administer in a personal selling situation. B. It is usually superficial. C. It is easy to apply in nonpersonal influence situations. D. It usually occurs as a result of a celebrity's perceived concern. E. It usually results in a receiver rejecting the source's position.

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77. _____ is the process by which a source perceived by a receiver as having high power can influence the receiver's behavior. A. Internalization B. Identification C. Compliance D. Retention E. Scrutiny

78. A(n) _____ is a communication variable that includes order of presentation, conclusion drawing, and refutation. A. channel B. source C. message structure D. receiver E. emotional appeal

79. Presenting the strongest arguments at the beginning of an advertising message assumes that a _____ is operating. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy

80. A magazine advertisement reads, "Is it just forgetfulness or Alzheimer's disease?" and then lists the warning signs of Alzheimer's, stating its strongest point first to gain reader attention on a subject that most people would rather not consider. The rest of the ad describes a new prescription medicine to treat mild and moderate cases of Alzheimer's. The advertisement uses a _____ to arouse interest. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy

81. An advertisement that places the strongest points at the end of a message assumes a _____, whereby the last arguments presented are the most persuasive. A. recency effect B. primacy effect C. sleeper effect D. credibility effect E. compliance hierarchy

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82. An advertisement for Flora Gardening Supplies begins with a discussion of how beautiful and enjoyable gardens can be. It ends with the directive to visit the company website and guarantees that the online experience will convince consumers to buy the company's products. By placing the strongest point at the end of the ad, Flora is hoping to benefit from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy.

83. When Cassie presented her sales pitch to a skeptical audience that was not interested in what she was selling, she opened with strong arguments to arouse interest in her message. This is an application of the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy.

84. A public awareness advertisement that aims to convince people to give up smoking features three teens bungee jumping off a bridge. When they reach the ground, each grabs a soda can, opens it, and takes a sip. As the third person takes a sip, the can explodes and kills him. The final screen reads, "No other product but tobacco kills every third consumer." By placing the strongest point in the ad at the end, the ad's source is hoping its message benefits from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy.

85. The beginning of an ad in a women's magazine reads, "Charlotte BB cream has been approved by dermatologists. It is good for sensitive skin and has no side effects." The rest of the ad copy explains the benefits of the BB cream and features user testimonials. By placing its most important message in the heading, the ad's source is hoping its message benefits from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy.

86. If the target audience is opposed to a communicator's position, presenting strong points first can A. increase the extent of disapproval. B. increase criticism of the message. C. reduce the level of counterargument. D. reduce the level of interest in the message. E. encourage recipients to draw their own conclusions.

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87. A marketer should present the strong points at the beginning of an advertising message when A. the target audience can connect well with the marketer's position. B. the target audience is not interested in the topic. C. the target audience is not biased toward certain brands. D. the target audience has used the product and has a favorable image of the product. E. immediate action is an objective.

88. Marketers should draw definite conclusions in their advertising messages when A. the audience is highly educated. B. the product requires emotional involvement. C. immediate action is an objective. D. high audience involvement is required. E. the message is simple and likely to be easily understood by the audience.

89. An ad headline for Fantasia ice cream in a local newspaper reads, "How can you relive your childhood this summer?" The only other information in the ad is a list of locations of Fantasia ice cream parlors in the city. This ad is A. an example of a rational appeal. B. designed to let the target audience draw their own conclusions. C. an example of an appeal based on refutation. D. designed to express a two-sided message. E. effective irrespective of the context of the advertising medium.

90. A marketer may want to use a message that draws an explicit conclusion for a target audience that is A. highly involved with the topic. B. highly educated. C. low in complexity. D. exposed to the message frequently. E. less educated.

91. Which of the following types of message structure should a marketer use if immediate behavior is not an objective and if repeated exposure will give the target audience an opportunity to draw its own conclusions? A. an open-ended message B. a close-ended message C. a primacy message D. a refutational appeal E. a fear appeal

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92. _____ are messages that mention only positive product attributes or benefits. A. One-sided messages B. Close-ended messages C. Refutational appeals D. Conclusive messages E. Slice-of-life messages

93. In its ads, Xenon, an antibacterial mouthwash, claims to effectively kill germs but admits to possessing a bittersweet taste. This is an example of a A. one-sided message. B. two-sided message. C. confrontational appeal. D. conclusive message. E. slice-of-life commercial.

94. When SeaWorld Entertainment ran an integrated campaign to defend itself against criticism by the animal activist group PETA, it was using __________________ messages. A. sleeper B. indirect C. confrontational D. refutational E. slice-of-life

95. When a target audience already holds a favorable opinion of a topic, a(n) _____ is most effective. A. one-sided message B. two-sided message C. nonverbal appeal D. open-ended message E. fear appeal

96. While designing a commercial for Bliss Burgers, the marketing department proposed using a two-sided message structure. However, the company management was apprehensive and insisted on using a one-sided advertising message. Which of the following statements best describes the reason for the management's apprehension? A. The management was concerned about the impact of a two-sided message on source credibility. B. The management was concerned over presenting only the negative attributes of Bliss Burgers. C. The management was concerned over the negative effects of acknowledging a weakness in its brand. D. Two-sided messages were proven ineffective by a number of different advertising research studies. E. Two-sided messages cause consumers to expect more than any product could offer.

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97. A(n) _____ is a special type of two-sided message in which a communicator presents both sides of an issue and then disproves an opposing viewpoint. A. contradictory appeal B. nonverbal message C. emotional appeal D. refutational appeal E. slice-of-life appeal

98. A radio commercial begins with the following line: "Our competitors think we can't sell furniture for so little money, but we want our customers to know that we work hard to bring you value for your dollar, and our prices are for real." The furniture store is using a(n) _____ appeal. A. one-sided B. functional C. emotional D. refutational E. slice-of-life

99. Wafers Lounge Inc., a manufacturer of packaged foods, specializes in potato-based snacks and features ads which acknowledge the perception that potatoes are fattening. However, they subsequently present information that counters this belief. This is an example of A. conclusion drawing. B. a fear appeal. C. a refutational appeal. D. a humorous appeal. E. an affective conclusion.

100. Which of the following is true of refutational appeals? A. They are not as effective as one-sided messages. B. They do not feature negative connotations of the products advertised. C. They tend to "inoculate" the target audience against a competitor's counterclaims. D. They are used typically when the target audience is less educated. E. They are a special type of one-sided message.

101. An advertisement for Pete's Peanut Butter centers on the perception that peanut butter has a high fat content. It goes on to state that Pete's Peanut Butter is a rich source of protein and fiber and also has a great taste. The ad closes by stating that Pete's Peanut Butter contains less fat than most other peanut butter brands in the market. This is an example of a A. confrontational appeal. B. recency appeal. C. nonverbal message. D. refutational appeal. E. one-sided message.

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102. A two-sided message with a refutational appeal is more effective than a one-sided message because it A. presents only arguments favoring an advertiser's position. B. puts the strongest arguments in the middle of an advertising message. C. inoculates the target audience against a competitor's counterclaim. D. increases the level of counterargument. E. is easily understood and accepted by the target audience.

103. Mars Inc. aired a radio ad for its pizza with a catchy jingle that garnered huge appreciation. After two weeks, it ran a magazine ad for the pizza but failed in its appeal. Which of the following reasons can explain the reduction in persuasiveness of the magazine ad for Mars's pizza? A. The magazine ad is part of a huge clutter which has negatively affected the attitude of the target audience toward Mars's Pizza. B. The processing stimulated by the magazine ad is less controlled and less favorable than the processing stimulated by the radio ad. C. In order to view a magazine ad, people have to buy the magazine which features the ad, resulting in reduced appeal. D. The magazine ad does not create a primacy effect unlike the radio ad. E. The radio ad creates a stimulation based on the recency effect, unlike the magazine ad.

104. Krypton Inc., a toothbrush manufacturer, prints a magazine ad with a picture of a smiling, toothless monster with a caption that reads, "Smooth care for your teeth and gums." Krypton's advertisers believe that using a picture that contradicts the verbal message will grab more attention, thus A. getting consumers to engage in more elaborative processing. B. stimulating immediate purchasing behaviors in consumers. C. reinforcing the primacy effect. D. reinforcing the recency effect. E. creating a strong refutational appeal.

105. Typically, advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information in order to A. gain the attention of consumers. B. enable consumers to draw their own conclusions. C. reinforce the primacy effect. D. get consumers to engage in more simplistic processing. E. distract consumers from the negative aspects of the product.

106. Which of the following situations would be most conducive to the use of a comparative advertising message? A. when a company is a market leader with high market share B. when a company is a market leader and is concerned about a new, smaller company entering the market C. when a market leader wants to promote its brand to customers of smaller companies in the same industry D. when a company with a new brand wants to position that brand against established brands E. when a company wants its audience to know the different companies that it is competing with

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107. _____ is the practice of either directly or indirectly naming competitors in an ad and measuring the similarity or dissimilarity of one or more specific attributes. A. Slice-of-life advertising B. Two-sided advertising C. Comparative advertising D. Verbal appealing E. Refutation advertising

108. Which of the following statements best describes a reason for using comparative advertising? A. It prevents a new market entrant from positioning itself against established brands. B. It positions a brand in the evoked set of alternate brands that consumers consider. C. It is perceived as more ethical than noncomparative ads. D. It is generally not considered to be useful for new brands. E. It is not permitted by the Federal Trade Commission.

109. A magazine ad for Spotless Fabric Care detergent states that it cleans stains better than either Fauna detergent or Neon Laundry detergent. Therefore, this ad is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a recency appeal. E. refutational advertising.

110. "Pamper yourself with Silk Sheen body lotion. It's better for your skin than Inflame, Genesis, or Dusk body lotions." This headline from a Silk Sheen ad in Belle Ménage magazine is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a recency appeal. E. refutational advertising.

111. A magazine ad features a picture of a woman walking along a beach on a bright, sunny day with the copy, "Arianne sun screen lotion provides better UV protection than Gisele sun screen." This ad is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a verbal appeal. E. refutational advertising.

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112. An ad for Trice antacid shows a patron at a restaurant asking for Trice to alleviate heartburn. The waiter points to a bowl that is filled with a mix of Oxyline, Polar, Trice, and other antacids. The waiter says that all antacids are the same and the patron then explains to him that Trice is the only antacid that has vitamin E. In this scenario, Trice is using A. one-sided advertising. B. two-sided advertising. C. comparative advertising. D. verbal appeals. E. refutation.

113. Advertising appeals that imply some type of physical or emotional danger and try to rouse consumers to take steps to remove the threat are known as _____ appeals. A. comparative B. refutational C. humor D. fear E. conditional

114. A television ad for Corona deodorant shows a college freshman being socially rejected for having body odor. He is teased and rejected by members of the college dance club. A fellow student gives him a Corona deodorant. After using the deodorant, the freshman is accepted in the dance club and becomes popular. In this ad, Corona is using a _____ appeal. A. comparative B. noncognitive C. humor D. fear E. refutational

115. An ad campaign to convince people to stop driving under the influence of alcohol features images of auto accidents caused by drunk drivers, as well as experiences related by people who have been in such accidents. This ad is using a(n) _____ appeal. A. comparative B. irrational C. leveling D. fear E. nonverbal

116. A television commercial for Prime mouthwash shows a young man at a night club approaching a group of women. As he opens his mouth to introduce himself, the women get up from their seats and leave. The ad's caption reads, "Do you suffer from bad breath?" This is an example of A. a fear appeal. B. an irrational appeal. C. comparative advertising. D. a refutational appeal. E. noncognitive advertising.

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117. A potential problem of using advertising with a strong fear appeal to discourage drug abuse among teenagers is that A. there is no appropriate medium. B. it works only in combination with a refutational appeal. C. it may have inhibiting effects and be tuned out by teenagers. D. a message with high levels of fear creates low self-esteem. E. parents may be offended if the message is perceived as too frightening.

118. The _____ is an approach to explain the curvilinear nature of fear appeals that suggests that both the cognitive appraisal of information in a fear appeal message and the emotional response mediate persuasion. A. protection motivation model B. nonmonotonic model C. cognitive response model D. response-stimuli hierarchy E. persuasive delimiter model

119. Which of the following is true of humor appeals? A. They usually generate more counterarguments among consumers. B. They enhance effectiveness by putting consumers in a positive mood. C. The television medium does not lend itself to humor appeals. D. The print medium is not feasible for humor appeals. E. They cannot be presented through radio.

120. Humorous messages are generally considered effective as they enhance A. comprehension. B. attention. C. support arguments. D. source derogation. E. counterargument.

121. Humorous messages enhance the effectiveness of an advertisement by A. eliminating fear appeals. B. reinforcing the recency effect. C. reinforcing the primacy effect. D. stimulating immediate purchasing behavior. E. putting consumers in a positive mood.

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122. The tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly is known as A. the repetition paradox. B. the qualitative effect. C. wearout. D. commercial reactance. E. message decay.

123. Which of the following statements is true of the use of humor in ad campaigns and commercials? A. Humorous commercials are always perceived as entertaining. B. Humorous commercials distract a receiver from counterarguing against an advertiser's message. C. Research evidence proves humor does not wear out as fast as other types of advertising appeals. D. Humor is not used in print ads but is only presented through radio and TV commercials. E. High-involvement products are better suited for advertising humor than low-involvement products.

124. Critics of humorous commercials argue that funny ads A. distract consumers from a brand and its attributes. B. have no shock value. C. often put people in a gloomy mood. D. do not draw consumers' attention to the ads. E. compel consumers to engage in counterarguments.

125. During the live television broadcast of a basketball match, an ad for Humberto's Pizza is aired frequently during the commercial breaks. Jason, who is watching the match on television, expresses annoyance every time he sees the pizza commercial. Humberto's Pizza's commercial is likely to be facing A. a qualitative degradation. B. a fear appeal. C. a wearout. D. a commercial reactance. E. a refutation.

126. Which of the following statements is true of a channel used in the communication process? A. Information received via mass media is more persuasive than information received from personal influence channels. B. As objections arise and are voiced by buyers, an advertisement can treat the objections in an appropriate manner. C. A message in a good sales presentation is determined in advance. D. An advertisement is typically prepared by people who have maximum personal contact with customers. E. From the standpoint of persuasion, a sales message is more flexible and powerful than an advertisement.

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127. For which of the following media is the processing of information in advertisements likely to be externally paced? A. Television and radio B. Magazines and billboards C. Magazines and newspapers D. Transit advertising and billboards E. Internet and direct mail

128. Which of the following media should be used when an advertiser wants to present a detailed message with a large amount of information? A. television B. billboards C. magazines D. transit signs E. radio

129. Information from ads presented in broadcast media is A. externally paced. B. self-paced. C. internally paced. D. personally paced. E. intermittently paced.

130. A direct-mail piece advertising a collection of home maintenance books would have its information A. externally paced. B. self-paced. C. virtually paced. D. controlled by the message recipient. E. placed in qualitative media.

131. A magazine titled Utopia: Holiday Digest would have a strong _____ on an ad for destination resorts. A. externally paced impact B. favorable quantitative media effect C. cluttered media effect D. shaping effect E. positive qualitative media effect

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132. Recently, some cable networks such as TBS and TNT have been using compression technology to speed up the transmission of programs and allow more time for commercials, which is adding to the _____________ problem. A. impact B. quantitative C. clutter D. shaping E. positivity

133. Advertisers who want to advertise during award-winning television shows are looking to transfer the favorable impressions of the shows onto their products. This transference is called a A. self-paced impact. B. favorable quantitative media effect. C. cluttered effect. D. shaping effect. E. positive qualitative media effect.

134. Which of the following is true of the qualitative media effect? A. It is the influence a medium has on a message. B. It is the general guideline used to determine the quality of a medium. C. It indicates that the image a message conveys is transferred to the medium. D. It is also known as the shaping effect. E. It is the measurement used to indicate the effectiveness of a message.

135. Companies are willing to pay premium rates to advertise on popular programs such as the Olympic Games and Christmas specials because these televised events A. attract only affluent viewers. B. create positive moods that can make viewers more responsive to commercials. C. show very few commercials. D. have low levels of advertising clutter. E. have effective appeals that are minimized by the cognitive appeal of the commercials.

136. A study by Andrew Aylesworth and Scott MacKenzie found that commercials placed in programs that induce negative moods are A. prone to extensive critical scrutiny of the companies' products or services by the audience. B. processed less systematically than ads placed in programs that put viewers in positive moods. C. useful when the message is intended to work through a central route to persuasion. D. useful when viewers are knowledgeable and can analyze an ad in detail. E. helpful in exciting the readers and viewers of the message about the product or the service.

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137. An advertiser whose message is placed in the middle of five consecutive commercials during a program break faces the problem of A. clutter. B. media flooding. C. media bombardment. D. flighting. E. information overload.

138. _____ is an aspect of the media environment and is defined as the amount of advertising in a medium. A. Qualitative media effect B. Wearout C. Clutter D. Familiarity score E. Refutation

139. All nonprogram material that appears in a broadcast environment including commercials, public service announcements, and promotional messages for shows contributes to A. a message comparison phenomenon. B. comparative advertising. C. the clutter problem. D. media reduction. E. the quantitative media effect.

140. Which of the following factors contribute the most to the problem of clutter in television advertising? A. the use of celebrities in ads B. the use of emotional appeals C. the trend toward shorter commercials D. the increase in zapping or channel hopping E. the use of fear appeals

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Chapter 06 Test Bank Key 1. Independent variables are the steps a receiver goes through in being persuaded. FALSE Independent variables are the controllable components of the communication process; dependent variables are the steps a receiver goes through in being persuaded. Marketers can choose the person or source who delivers the message, the type of message appeal used, and the channel or medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

2. Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't enhance one stage at the expense of another. TRUE Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don't enhance one stage at the expense of another. For example, a humorous message may gain attention but result in decreased comprehension if consumers fail to process its content. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

3. A model/celebrity, when used as an indirect source, delivers the main message of an advertisement. FALSE An indirect source, say, a model, doesn't actually deliver a message but draws attention to and/or enhances the appearance of the ad. Some ads use neither a direct nor an indirect source; the source is the organization with the message to communicate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

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4. Source credibility leads to identification. FALSE Source credibility leads to internalization. Source attractiveness leads to identification. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

5. There are two important dimensions to credibility: expertise and trustworthiness. TRUE A communicator who is seen as knowledgeable—someone with expertise—is more persuasive than one with less expertise. The source also has to be trustworthy—honest, ethical, and believable. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

6. The perceived attractiveness of celebrity spokespeople is more important than their perceived expertise or trustworthiness. FALSE Expertise is actually more important than attractiveness or trustworthiness. Celebrities who are perceived to be experts can lend persuasive power to an advertising message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

7. In 2009, the Federal Trade Commission passed a set of guidelines requiring online endorsers and bloggers to disclose any material connection they might have to a company. TRUE The FTC developed the guidelines in response to studies that showed as many as 30 percent of online reviews were fake and were coming from someone who had been paid to write them or failed to reveal their association with a company or brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

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8. Creating an image or culture around the CEO protects the corporate brand image from being affected by controversy. FALSE One of the concerns of creating an image or culture around the CEO is that it can make the corporate brand image more vulnerable if the individual becomes involved in any type of controversy such as a labor dispute, political issue, or personal problem. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Branding Strategy

9. Some research suggests the use of a company president or CEO can improve attitudes and increase the likelihood that consumers will inquire about a company's product or service. TRUE Defenders of the practice argue that the use of top executives or business owners in ads is an effective way of projecting an image of trust and honesty and, more important, the idea that the company isn't run by some faceless corporate monolith. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

10. One of the reasons a high-credibility source may become as ineffective as a low-credibility source is the sleeper effect. FALSE One of the reasons a low-credibility source may become as effective as a high-credibility source is the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. The immediate impact of a persuasive message may be inhibited; but with time, the association of the message with the source diminishes and the receiver's attention focuses more on favorable information in the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

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11. High- and low-credibility sources are equally effective when they are arguing for a position opposing their own best interest. TRUE High- and low-credibility sources are equally effective when they are arguing for a position opposing their own best interest. A very credible source is more effective when message recipients are not in favor of the position advocated in the message. A very credible source is less important when the audience has a neutral position, and such a source may be even less effective than a moderately credible source when the receiver's initial attitude is favorable. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

12. In terms of source attractiveness, unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. TRUE Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. The receiver may maintain the attitudinal position or behavior only as long as it is supported by the source or the source remains attractive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

13. Slice-of-life advertising can be used to establish a bond of similarity between the communicator and the receiver, and to increase the source's level of persuasiveness. TRUE In a slice-of-life commercial, the advertiser usually starts by presenting a predicament with the hope of getting the consumer to think, "I can see myself in that situation." This can help establish a bond of similarity between the communicator and the receiver, increasing the source's level of persuasiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

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14. The "vampire effect" happens when consumers focus their attention on the celebrity and fail to notice or recall the brand or advertising message. TRUE The "vampire effect" occurs when the personality of the celebrity endorser overshadows the brand he or she is advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

15. Consumer skepticism of endorsements is reduced when a celebrity endorses many products. FALSE Overexposure increases consumer skepticism of celebrity endorsers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

16. Consumers who are particularly knowledgeable about a product or service or have strongly established attitudes are more influenced by a celebrity than those with little knowledge or neutral attitudes. FALSE The opposite is true—consumers with little knowledge or neutral attitudes are more likely to be influenced by a celebrity than consumers who are particularly knowledgeable about a product or service or have strongly established attitudes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

17. Presenting the strongest arguments at the beginning of a message assumes a recency effect, whereby information presented first is the most effective. FALSE Presenting the strongest arguments at the beginning of the message assumes a primacy effect is operating, whereby information presented first is most effective. Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: The Communication Process

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18. Many press releases use the "pyramid style" of writing, whereby most of the important information is presented at the end to build up suspense and excitement for the hook. FALSE Many press releases use the pyramid style of writing, but that means the most important information is presented up front to make sure that it is read. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: The Communication Process

19. When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, a closed-ended message is ideal. FALSE When immediate impact is not the objective and repeated exposure will give the audience members opportunities to draw their own conclusions, an open-ended message may be used. Drawing a conclusion in a message may make sure the target audience gets the point the marketer intended. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

20. Advertisers who are concerned about the negative effects of acknowledging a weakness in their brand are likely to choose two-sided messages. FALSE Most advertisers use one-sided messages. They are concerned about the negative effects of acknowledging a weakness in their brand or don't want to say anything positive about their competitors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

21. The use of comparative advertising is not limited to new brands or those with a small market share. TRUE The use of comparative advertising is not limited to new brands or those with a small market share; a number of high-profile marketers have been using comparative appeals to differentiate their brands in a competitive marketplace. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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22. Sometimes advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information presented because they think the use of an unexpected visual image will grab consumers' attention and get them to engage in more effortful or elaborative processing. TRUE A number of studies have shown that the use of a visual that is inconsistent with the verbal content leads to more recall and greater processing of the information presented. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

23. High levels of fear in an advertisement can produce inhibiting effects; the receiver may emotionally block the message by tuning it out. TRUE Increasing the level of fear in a message from low to moderate can result in increased persuasion. High levels of fear, however, can produce inhibiting effects; the receiver may emotionally block the message by tuning it out, perceiving it selectively, or denying its arguments outright. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

24. Wearout may occur if consumers no longer pay attention to a commercial after several exposures. TRUE Wearout may occur if consumers no longer pay attention to a commercial after several exposures or become annoyed at seeing or hearing an ad multiple times. Some experts argue that humorous ads wear out faster than other formats because once the consumer gets the joke, the ad becomes boring. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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25. Information from the Internet is self-paced, whereas information from the broadcast media of radio and television is externally paced. TRUE Information from ads in print media, such as newspapers, magazines, or direct mail, as well as the Internet is self-paced; readers process the ad at their own rate and can study it as long as they desire. In contrast, information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

26. Clutter levels in television are lowest during daytime programs. FALSE Clutter levels are higher on many cable networks and during daytime programs. For television, clutter is often viewed as including all the nonprogram material that appears in the broadcast environment—commercials, promotional messages for shows, public service announcements (PSAs), and the like. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

27. The _____ is a promotional planning tool that can be used by marketers to consider how each controllable element of the communications model interacts with the consumer's response process. A. dissonance/attribution matrix B. persuasion matrix C. AIDA model D. response model E. elaboration likelihood model The persuasion matrix helps marketers see how each controllable element of the communications model interacts with consumer's response process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

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28. According to the persuasion matrix, which of the following is a dependable variable of the communications model? A. source B. message C. comprehension D. channel E. type of message appeal According to the persuasion matrix, comprehension is a dependent variable of the communications model. Dependent variables are the steps a receiver goes through in being persuaded. Marketers can choose the person or source who delivers a message, the type of message appeal used, and the channel or medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

29. The independent variable in the persuasion matrix that takes into account the passage of information from one person to another is A. the source. B. the message. C. the behavior. D. the retention. E. the destination. Independent variables are the controllable components of the communication process. The destination variable is included because the initial message recipient may pass on information to others, such as friends or associates, through word of mouth. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

30. According to the persuasion matrix, which of the following is an independent variable in the consumer's response process? A. attention B. comprehension C. destination D. yielding E. retention Independent variables are the controllable components of the communication process. The destination variable is included because the initial message recipient may pass on information to others, such as friends or associates, through word of mouth. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

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31. A television ad for VenusCell Inc. shows a famous celebrity describing the features of the latest smartphone launched by the company. The celebrity talks about the features of the new smartphone such as 4G technology, AMOLED touchscreen, SVGA, tri-band, and WAP. According to the persuasion matrix, it is likely that a less educated audience will face problems associated with _____ due to the use of mobile jargons in the ad. A. attention B. yielding C. presentation D. comprehension E. retention In this scenario, a less educated audience is likely to face issues with comprehension. Marketers must know their target market to make their messages clear and understandable. A less educated person may have more difficulty interpreting a complicated message. Jargon may be unfamiliar to some receivers. The more marketers know about the target market, the more they see which words, symbols, and expressions their customers understand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

32. An ad for Kool Kids, a kidswear company, is featured in the August issue of a teen magazine, Teen 360. The ad shows children between the ages of 3 and 12 on a ramp. In terms of the response stages of the persuasion matrix, the ad is ineffective in reaching the intended target audience, the parents, because A. its portrayal is offensive. B. it contains jargons that is incomprehensible to the target audience. C. the media channel used is inappropriate. D. of the extensive clutter. E. it is not endorsed by a celebrity parent. In the above scenario, the ad is ineffective as an improper media channel is used. It is important that a media vehicle should reach the marketer's target audience well. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

06-36 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

33. CL Inc., a cellphone company, features Leah Carter, a popular movie actor, in all of its print and broadcast advertising. The reason behind choosing the actor is that she is more likely to attract potential customers. The company faces heavy competition and the marketing team concluded that using a popular spokesperson will help break through the advertising clutter. Which of the following stages of the persuasion matrix is CL Inc. trying to influence? A. reception B. channel C. attention D. presentation E. behavior In the above scenario, CL Inc. is trying to influence the attention channel. The large number of ads people are bombarded with every day makes it difficult for advertisers to break through the clutter. Marketers deal with this problem by using sources who will attract the target audience's attention—actors, athletes, rock stars, or attractive models. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

34. When advertisers attempt to answer the question, "Who will be effective in getting consumers’ attention?" they are addressing the ______________________ component of the persuasion matrix. A. channel/yielding B. source/attention C. receiver/comprehension D. channel/presentation E. message/yielding The large number of ads people are bombarded with every day makes it difficult for advertisers to break through the clutter. Marketers deal with this problem by using sources who will attract the target audience's attention—actors, athletes, rock stars, or attractive models. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages. Topic: The Communication Process

06-37 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

35. A spokesperson who delivers an advertising message and endorses a product or service is known as a(n) A. direct source. B. indirect source. C. message shaper. D. source mirage. E. source echo. A direct source is a spokesperson who delivers a message and/or endorses a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

36. A(n) _____ doesn't actually deliver a message but draws attention to and enhances the appearance of an ad. A. direct source B. indirect source C. message shaper D. source mirage E. source echo An indirect source doesn't actually deliver a message but draws attention to and/or enhances the appearance of an ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

37. Marketers typically select spokespeople whose traits will maximize their message influence. According to Herbert Kelman, the three categories of source attributes that should be considered during the selection process are A. power, image, and knowledge. B. credibility, attractiveness, and power. C. knowledge, fee, and differentiability. D. consistency, credibility, and continuity. E. credibility, reputation, and individuality. Herbert Kelman developed three basic categories of source attributes: credibility, attractiveness, and power. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

06-38 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

38. _____ is the extent to which a recipient sees a source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. A. Source attractiveness B. Source popularity C. Source credibility D. Source power E. Source identification Credibility is the extent to which a recipient sees a source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

39. Marketers who try to select spokespeople whose traits will maximize their message influence are concerned about their credibility. The two important dimensions associated with credibility are A. consistency and image. B. image and trustworthiness. C. differentiability and expertise. D. expertise and trustworthiness. E. image and expertise. There are two important dimensions to credibility, expertise and trustworthiness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

40. _____ is the process where a receiver adopts the opinion of a credible communicator since he or she believes information from this source is accurate. A. Identification B. Compliance C. Internalization D. Conformity E. Yielding Information from a credible source influences beliefs, opinions, attitudes, and/or behavior through a process known as internalization, which occurs when a receiver adopts the opinion of a credible communicator since he or she believes information from this source is accurate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

06-39 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

41. Expertise and trustworthiness are very important when focusing on source _____, one of the categories of source attributes developed by Herbert Kelman. A. power B. attractiveness C. credibility D. identification E. image There are two important dimensions to credibility, expertise and trustworthiness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

42. A fatal accident at the production facility of GA Inc., a mobile manufacturer, has killed 58 factory workers. The company is now perceived negatively among customers. In an attempt to revive its reputation, the company has hired Adam Murphy, a popular golfer, as its spokesperson. Murphy is a distinguished personality and is well known for his philanthropic activities. Murphy, being a credible source, can help GA restore its tainted reputation by A. acting as a positive source derogation. B. inhibiting counterarguments about the company and its products. C. eliminating advertising clutter. D. attempting to change consumer buying patterns. E. stimulating consumers to purchase the company's products. In the above scenario, the use of a credible source is likely to reduce counterarguments against the company. A highly credible communicator is particularly important when message recipients have a negative position toward a product, service, company, or issue being promoted, because the credible source is likely to inhibit counterarguments. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

06-40 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

43. A study conducted by Roobina Ohanian about consumers' perceptions of celebrity endorsers found that the characteristic which influenced consumers' intentions to purchase a product endorsed by a celebrity is his or her perceived A. expertise. B. attractiveness. C. trustworthiness. D. similarity. E. likability. The importance of using expert sources was shown in a study by Roobina Ohanian, who found that the perceived expertise of celebrity endorsers was more important in explaining purchase intentions than their attractiveness or trustworthiness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

44. A marketer of super computers will recruit individuals with backgrounds in computer science and engineering to work as salespeople in order to ensure its sales force has high levels of A. expertise. B. trustworthiness. C. attractiveness. D. attention. E. yielding. In the above scenario, a marketer of super computers is likely to recruit people with high levels of expertise. Marketers of highly technical products recruit sales reps with specialized technical backgrounds in engineering, computer science, and other areas to ensure their expertise. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

45. When country music star Miranda Lambert delivered a message that endorsed milk when she appeared in an ad that is part of "The Breakfast Project" campaign sponsored by the Milk Processor Education Program, she was acting as a(n) _________________ source. A. corporate B. overexposed C. internal D. indirect E. direct A direct source delivers a message and/or endorses a product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-41 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

46. One way a supermarket can make its ads seem more trustworthy is by A. showing customers talking about the supermarket on hidden cameras. B. increasing its advertising clutter in its print ads. C. using cartoon characters in humorous shopping experiences. D. using loud music or an unsettling color combination. E. advertising repetitively in short intervals. Advertisers use various techniques to increase the perception that their sources are trustworthy. Hidden cameras are used to show that a consumer is not a paid spokesperson and is making an objective evaluation of a product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

47. The owner of Elan Style Inc., a global fashion house, features in all of his stores' commercials. He explains how his company differs from other chain stores and gives advice on buying fashion clothing and accessories. Since he is recognized as a professional style expert, his presence in his company's ads can enhance the ads' source A. credibility. B. attractiveness. C. power. D. differentiability. E. likability. In the above scenario, the use of a fashion expert is likely to improve the store's credibility. A way of enhancing source credibility is to use the company president or chief executive officer as a spokesperson in a firm's advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

48. Which of the following statements is true about the use of corporate leaders as advertising spokespersons? A. Many companies believe the use of a company president or CEO is an ineffective way of expressing the company's commitment to quality and customer service. B. Only Fortune 500 companies use corporate leaders as spokespersons. C. If a firm's image is too closely tied to its leader, it will face problems if and when the leader leaves the company. D. Corporate spokespersons are ineffective for consumer products. E. Corporate spokespersons improve the message source image but have no effect on its trustworthiness. If a firm's image becomes too closely tied to a popular leader, there can be problems if that person leaves the company. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-42 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

49. Which of the following statements is true about source credibility? A. The influence of a knowledgeable source will be increased if audience members think he or she has underlying personal motives for advocating a position. B. Enhanced counterarguing should result in greater message acceptance and persuasion. C. The persuasiveness of a low-credibility source may decline over time due to the sleeper effect phenomenon. D. A very credible source is more effective when message recipients are not in favor of the position advocated in a message. E. Advertisers can increase the perception that their sources are trustworthy by using hidden cameras to show that a consumer is a paid spokesperson. A very credible source is more effective when message recipients are not in favor of the position advocated in a message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

50. The notion that a low-credibility source may be just as effective as a high-credibility source with the passage of time is known as the A. sleeper effect. B. time/place consequence. C. open source paradox. D. decay effect. E. mirage effect. A low-credibility source may be as effective as a high-credibility source because of the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-43 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

51. According to the sleeper effect phenomenon A. the impact of a persuasive message diminishes over time. B. people subconsciously retain advertising messages that they see moments before sleeping and rehearse them in their sleep. C. the impact of a persuasive message from a low-credibility source can increase over time, since the message content becomes disassociated from the source. D. with the passage of time, the impact of a persuasive message from a low-credibility source can decrease, since people forget the content of the message. E. people instinctively disassociate a low-credibility source from the message when they are paying less than full attention to the message. A low-credibility source may be as effective as a high-credibility source because of the sleeper effect, whereby the persuasiveness of a message increases with the passage of time. With time, the association of the message with the source diminishes and the receiver's attention focuses more on favorable information in the message, resulting in more support. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

52. The source characteristic of attractiveness encompasses A. power, expertise, and aesthetics. B. similarity, likability, and familiarity. C. comfort, individuality, and beauty. D. beauty, familiarity, and differentiability. E. expertise, familiarity, and comfort. A source characteristic frequently used by advertisers is attractiveness, which encompasses similarity, familiarity, and likability. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

53. _____ is defined as an attraction for a source based on a resemblance between the source and receiver of a message. A. Likability B. Familiarity C. Similarity D. Expertise E. Power Similarity is a supposed resemblance between a source and a receiver of a message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

06-44 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

54. _____ is defined as an affection for a source as a result of the source's physical appearance, behavior, or other physical characteristics. A. Expertise B. Power C. Compliance D. Familiarity E. Likability Likability is an affection for a source as a result of physical appearance, behavior, or other personal traits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

55. Source attractiveness leads to persuasion through a process of _____, whereby a receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. A. internalization B. identification C. compliance D. repositioning E. comprehension Source attractiveness leads to persuasion through a process of identification, whereby a receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

56. Which of the following is a difference between identification and internalization? A. Unlike identification, internalization of a message does not occur when the source is a celebrity. B. Unlike internalization, identification is synonymous with receiver comprehension. C. Unlike identification, internalization is often considered to be a negative source characteristic. D. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. E. Unlike identification, internalization does not lead to counterarguments and source derogations by the receiver. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver's belief system. The receiver may maintain the attitudinal position or behavior only as long as it is supported by the source or the source remains attractive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: The Communication Process

06-45 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

57. Marketers can try to capitalize on source similarity by hiring A. beautiful models to appear in television ads. B. well-known athletes to endorse sporting goods in commercials. C. salespeople who have characteristics that match those of their customers. D. individuals with liberal arts backgrounds to work as sales representatives for technical products. E. actors to portray themselves as ordinary consumers. Similarity is used in various ways in marketing communications. Companies select salespeople whose characteristics match well with their customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

58. A commercial for a floor cleaner shows a young mother cleaning her kitchen floor after feeding her toddler. The commercial is considered to be effective because it utilizes high source similarity. This is an example of a _____ commercial. A. comparative B. reputational C. slice-of-life D. spokesperson-oriented E. power-based The above scenario is an example of a slice-of-life commercial. In a slice-of-life commercial, an advertiser usually starts by presenting a predicament with the hope of getting a consumer to think, "I can see myself in that situation." This can help establish a bond of similarity between the communicator and the receiver, increasing the source's level of persuasiveness. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

59. Which of the following source characteristics is utilized by a slice-of-life commercial that shows an average head of household facing difficulty in filing his federal income tax? A. power B. compliance C. expertise D. similarity E. attractiveness In a slice-of-life commercial, an advertiser usually starts by presenting a predicament with the hope of getting a consumer to think, "I can see myself in that situation." This can help establish a bond of similarity between the communicator and the receiver, increasing the source's level of persuasiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-46 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

60. Which of the following statements is true of celebrity endorsements? A. Consumers who are very knowledgeable about a product or service tend to be most persuaded by celebrity endorsers. B. When a celebrity endorses several products simultaneously, it leads to enhanced popularity of the celebrity and also results in increased sales of all the products the celebrity endorses. C. Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. D. Typically, the use of celebrity endorsers is highest among news and business publications. E. Marketers do not have to worry about the personal image of celebrities while choosing one to endorse a product or a service. Advertisers should select a celebrity spokesperson who will attract attention and enhance the sales message, yet not overshadow the company's brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

61. Which of the following source characteristics is likely to suffer when a celebrity endorses too many products and is seen too often by consumers? A. expertise B. trustworthiness C. physical attractiveness D. compliance E. internalization Consumers are often skeptical of endorsements because they know the celebrities are being paid. This problem is particularly pronounced when a celebrity endorses too many products or companies and becomes overexposed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

62. Advertisers can protect themselves against overexposure A. by hiring more than one celebrity for endorsing a particular brand. B. with an exclusivity clause limiting the number of products a celebrity can endorse. C. by attempting to match the characteristics of the target market with the personality of a celebrity. D. by creating celebrity advertisements that generate counterarguments. E. by hiring common consumers instead of celebrities to feature in their commercials. Advertisers can protect themselves against overexposure with an exclusivity clause limiting the number of products a celebrity can endorse. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-47 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

63. Cirrus Shoes received negative publicity when the company's brand ambassador was convicted of sexual assault. The company was forced to rescind their association with entertainer Adrian Richardson due to the negative impact on its image. This scenario is an example of A. overexposure. B. risk to the advertiser. C. celebrity popularity. D. overshadowing the product. E. consumer-celebrity merging. The above scenario is an example of risk to the advertiser. Celebrities can be involved in activities that could embarrass the companies whose products they endorse. Companies must be very selective in selecting endorsers and in how much they pay them. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

64. According to the meaning transfer model of the celebrity endorsement process, celebrities draw their meanings from A. their association with the companies whose products they endorse. B. their popularity among consumers and their perceived level of attractiveness. C. the image the media portrays about them through various channels such as television, magazines, and the Internet. D. the roles they assume in their careers and the objects, persons, and contexts these roles bring them in contact with. E. their family and cultural background that influence their decisions about the types of products they want to endorse. According to meaning transfer model, a celebrity's effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process. Celebrities draw these powerful meanings from the roles they assume in their television, movie, military, athletic, and other careers. Each new dramatic role brings the celebrity into contact with a range of objects, persons, and contexts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-48 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

65. According to the meaning transfer model developed by Grant McCracken, which of the following statements is true of celebrity endorsers? A. Credibility and attractiveness can effectively explain how and why celebrity endorsements work. B. Celebrity endorsers bring their meanings and images to an ad and transfer them to the product they are endorsing. C. The image that celebrities project to consumers is more important than their ability to attract attention. D. Once the first two stages of the model have been implemented, the final stage is simple and easy to achieve. E. Celebrities' overexposure in advertisements helps marketers achieve the desired recognition. McCracken suggests celebrity endorsers bring their meanings and image into an ad and transfer them to the product they are endorsing. According to this model, a celebrity's effectiveness as an endorser depends on the culturally acquired meanings he or she brings to the endorsement process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

66. Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities? A. a professional golfer endorsing electronics home appliances B. a boxer endorsing an automobile repair service C. an actress endorsing a cell phone service D. a model endorsing a brand of cosmetics E. a race car driver endorsing lawn mowers A model endorsing a brand of cosmetics is the best example of a celebrity endorser enhancing consumers' perceptions of a product's performance capabilities. McCracken suggests celebrity endorsers bring their meanings and image into an ad and transfer them to the product they are endorsing. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

67. In the final stage of the meaning transfer model developed by Grant McCracken A. celebrities draw powerful meanings from the roles they assume in their careers. B. celebrities bring their meanings and images into ads for the products they are endorsing. C. the meanings that celebrities have given to products are transferred to consumers. D. promotional campaigns are organized in the presence of the media. E. the meanings created by celebrities are developed into advertisements. In the final stage of McCracken's meaning transfer model, the meanings the celebrity has given to the product are transferred to the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-49 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

68. The _____ score indicates the percentage of people who have heard of an endorser or a performer. A. familiarity B. attractiveness C. similarity D. one of my favorites E. Q rating The familiarity score indicates what percentage of people have heard of an endorser or a performer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

69. Which of the following is true of a Q-score? A. It explains the popularity of a prime-time television show. B. It describes the size of television viewing audiences that prefer to buy a product based solely on the celebrity who endorsed it. C. It answers the question, "How appealing is a celebrity endorser among people who do know him or her?" D. It answers the question, "What percentage of people see celebrities as trendsetters?" E. It identifies the emotional impact that advertisements have on the target audience. The well-known Q-score is calculated by taking the percentage of respondents who indicate that a person is "one of my favorites" and then dividing that number by the percentage of respondents who indicate they have heard of that person. This score thus answers the question, "How appealing is the person among those who do know him or her?" AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

70. A television commercial for Elate perfume features a woman walking along a beach. The ad attempts to connect the woman's physical beauty to the attractiveness of the perfume. In the ad, the model serves as a(n) A. source echo. B. message shaper. C. direct source. D. passive model. E. active communicator. In the above scenario, the woman is a passive model. Advertisers often draw attention to their ads by featuring a physically attractive person who serves as a passive or decorative model rather than as an active communicator. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-50 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

71. For which of the following product ads would a marketer find a physically attractive model to be most effective? A. cattle feed B. bricks C. fertilizer D. cookies E. lipstick Products such as cosmetics or fashionable clothing are likely to benefit from the use of an attractive model, since physical appearance is very relevant in marketing these items. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

72. Which of the following statements is true of source power? A. Power as a source characteristic is very easy to apply in a nonpersonal influence situation such as advertising. B. The use of source power is not effective in situations involving personal communication and influence. C. The source must be perceived as being able to administer only positive sanctions to the receiver. D. A source has power when he or she can actually administer rewards and punishments to a receiver. E. The receiver's estimate of the source's ability to observe conformity is not important. A source has power when he or she can actually administer rewards and punishments to a receiver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

73. When a source is able to administer rewards and punishments to a receiver, the influence occurs through a process known as A. compliance. B. identification. C. internalization. D. retention. E. perceived concern. When a receiver perceives a source as having power, the influence process occurs through a process known as compliance. A source has power when he or she can actually administer rewards and punishments to the receiver. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

06-51 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

74. Mettle Inc., an automaker, hires a popular boxer, Darrell Hilton, as the spokesperson for its "Save the Globe" campaign, an initiative for preserving the environment. If viewers of the commercial perceive Darrell as being able to mete out punishment when citizens don't comply to environmental policies, then Darrell, as a message source, is said to have A. perceived control. B. control persuasion. C. perceived integration. D. expertise. E. perceived concern. In this scenario, Darrell is said to have perceived control. Perceived control is when a source is perceived as being able to administer positive or negative sanctions to a receiver. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

75. Mars Inc., an automaker, hires a popular celebrity, Emma Hunt, as the spokesperson for its "Keep the World Green" campaign, an initiative for preserving trees. The viewers of the commercial perceive Emma as being sincerely interested in citizen initiatives to preserve trees. Emma as a message source is said to have A. perceived control. B. control persuasion. C. perceived scrutiny. D. expertise. E. perceived concern. In this scenario, Emma is said to have perceived concern. Perceived concern is when a receiver thinks that a source cares about whether or not the receiver conforms. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

76. Which of the following is true of persuasion induced through compliance? A. It is difficult to administer in a personal selling situation. B. It is usually superficial. C. It is easy to apply in nonpersonal influence situations. D. It usually occurs as a result of a celebrity's perceived concern. E. It usually results in a receiver rejecting the source's position. Persuasion induced through compliance may be superficial and last only as long as the receiver perceives that the source can administer some reward or punishment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

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77. _____ is the process by which a source perceived by a receiver as having high power can influence the receiver's behavior. A. Internalization B. Identification C. Compliance D. Retention E. Scrutiny When a receiver perceives a source as having power, the influence process occurs through a process known as compliance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message. Topic: Advertising Appeals

78. A(n) _____ is a communication variable that includes order of presentation, conclusion drawing, and refutation. A. channel B. source C. message structure D. receiver E. emotional appeal Extensive research has been conducted on how the structure of a persuasive message can influence its effectiveness, including order of presentation, conclusion drawing, message sidedness, refutation, and verbal versus visual message characteristics. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: The Communication Process

79. Presenting the strongest arguments at the beginning of an advertising message assumes that a _____ is operating. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating, whereby information presented first is most effective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: The Communication Process

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80. A magazine advertisement reads, "Is it just forgetfulness or Alzheimer's disease?" and then lists the warning signs of Alzheimer's, stating its strongest point first to gain reader attention on a subject that most people would rather not consider. The rest of the ad describes a new prescription medicine to treat mild and moderate cases of Alzheimer's. The advertisement uses a _____ to arouse interest. A. primacy effect B. recency effect C. sleeper effect D. credibility effect E. compliance hierarchy In the above scenario, the advertising is using a primacy effect. Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating, whereby information presented first is most effective. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

81. An advertisement that places the strongest points at the end of a message assumes a _____, whereby the last arguments presented are the most persuasive. A. recency effect B. primacy effect C. sleeper effect D. credibility effect E. compliance hierarchy Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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82. An advertisement for Flora Gardening Supplies begins with a discussion of how beautiful and enjoyable gardens can be. It ends with the directive to visit the company website and guarantees that the online experience will convince consumers to buy the company's products. By placing the strongest point at the end of the ad, Flora is hoping to benefit from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy. In the above scenario, Flora is attempting to use the recency effect. Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

83. When Cassie presented her sales pitch to a skeptical audience that was not interested in what she was selling, she opened with strong arguments to arouse interest in her message. This is an application of the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy. In the above scenario, Cassie is attempting to use the primacy effect. Putting the strong arguments at the beginning to arouse interest from people who are not interested in the message is an application of the primacy effect. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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84. A public awareness advertisement that aims to convince people to give up smoking features three teens bungee jumping off a bridge. When they reach the ground, each grabs a soda can, opens it, and takes a sip. As the third person takes a sip, the can explodes and kills him. The final screen reads, "No other product but tobacco kills every third consumer." By placing the strongest point in the ad at the end, the ad's source is hoping its message benefits from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy. The above scenario is an illustration of the recency effect. Putting the strong points at the end assumes a recency effect, whereby the last arguments presented are most persuasive. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

85. The beginning of an ad in a women's magazine reads, "Charlotte BB cream has been approved by dermatologists. It is good for sensitive skin and has no side effects." The rest of the ad copy explains the benefits of the BB cream and features user testimonials. By placing its most important message in the heading, the ad's source is hoping its message benefits from the A. primacy effect. B. recency effect. C. sleeper effect. D. credibility effect. E. compliance hierarchy. In the above scenario, Charlotte BB cream is attempting to use the primacy effect. Presenting the strongest arguments at the beginning of a message assumes a primacy effect is operating. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

86. If the target audience is opposed to a communicator's position, presenting strong points first can A. increase the extent of disapproval. B. increase criticism of the message. C. reduce the level of counterargument. D. reduce the level of interest in the message. E. encourage recipients to draw their own conclusions. If the target audience is opposed to a communicator's position, presenting strong points first can reduce the level of counterarguing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: The Communication Process

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87. A marketer should present the strong points at the beginning of an advertising message when A. the target audience can connect well with the marketer's position. B. the target audience is not interested in the topic. C. the target audience is not biased toward certain brands. D. the target audience has used the product and has a favorable image of the product. E. immediate action is an objective. Strong arguments work best at the beginning of a message if the audience is not interested in the topic, so it can develop interest in the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

88. Marketers should draw definite conclusions in their advertising messages when A. the audience is highly educated. B. the product requires emotional involvement. C. immediate action is an objective. D. high audience involvement is required. E. the message is simple and likely to be easily understood by the audience. If immediate action is an objective, a message should draw a definite conclusion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

89. An ad headline for Fantasia ice cream in a local newspaper reads, "How can you relive your childhood this summer?" The only other information in the ad is a list of locations of Fantasia ice cream parlors in the city. This ad is A. an example of a rational appeal. B. designed to let the target audience draw their own conclusions. C. an example of an appeal based on refutation. D. designed to express a two-sided message. E. effective irrespective of the context of the advertising medium. In the above scenario, the advertisers have opted to let their readers draw their own conclusions from the ad. Many advertisers believe that letting customers draw their own conclusions reinforces the points being made in a message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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90. A marketer may want to use a message that draws an explicit conclusion for a target audience that is A. highly involved with the topic. B. highly educated. C. low in complexity. D. exposed to the message frequently. E. less educated. Stating the conclusion may be necessary for a less educated audience, who may not draw any conclusion or may make an incorrect inference from the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

91. Which of the following types of message structure should a marketer use if immediate behavior is not an objective and if repeated exposure will give the target audience an opportunity to draw its own conclusions? A. an open-ended message B. a close-ended message C. a primacy message D. a refutational appeal E. a fear appeal When immediate impact is not an objective and repeated exposure will give the audience members opportunities to draw their own conclusions, an open-ended message may be used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

92. _____ are messages that mention only positive product attributes or benefits. A. One-sided messages B. Close-ended messages C. Refutational appeals D. Conclusive messages E. Slice-of-life messages A one-sided message mentions only positive attributes or benefits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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93. In its ads, Xenon, an antibacterial mouthwash, claims to effectively kill germs but admits to possessing a bittersweet taste. This is an example of a A. one-sided message. B. two-sided message. C. confrontational appeal. D. conclusive message. E. slice-of-life commercial. In the above scenario, Xenon uses a two-sided message. A two-sided message presents both good and bad points. Two-sided messages are more effective when the target audience holds an opposing opinion or is highly educated. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

94. When SeaWorld Entertainment ran an integrated campaign to defend itself against criticism by the animal activist group PETA, it was using __________________ messages. A. sleeper B. indirect C. confrontational D. refutational E. slice-of-life Refutational messages may be useful when marketers wish to build attitudes that resist change and/or must defend against attacks or criticism of their products or the company AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

95. When a target audience already holds a favorable opinion of a topic, a(n) _____ is most effective. A. one-sided message B. two-sided message C. nonverbal appeal D. open-ended message E. fear appeal One-sided messages are most effective when the target audience already holds a favorable opinion about a topic. Two-sided messages are more effective when the target audience holds an opposing opinion or is highly educated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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96. While designing a commercial for Bliss Burgers, the marketing department proposed using a two-sided message structure. However, the company management was apprehensive and insisted on using a one-sided advertising message. Which of the following statements best describes the reason for the management's apprehension? A. The management was concerned about the impact of a two-sided message on source credibility. B. The management was concerned over presenting only the negative attributes of Bliss Burgers. C. The management was concerned over the negative effects of acknowledging a weakness in its brand. D. Two-sided messages were proven ineffective by a number of different advertising research studies. E. Two-sided messages cause consumers to expect more than any product could offer. In the above scenario, Bliss Burgers' management was apprehensive about acknowledging any potential weaknesses in their products. Most advertisers use one-sided messages. They are concerned about the negative effects of acknowledging a weakness in their brand and don't want to say anything positive about their competitors. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

97. A(n) _____ is a special type of two-sided message in which a communicator presents both sides of an issue and then disproves an opposing viewpoint. A. contradictory appeal B. nonverbal message C. emotional appeal D. refutational appeal E. slice-of-life appeal In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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98. A radio commercial begins with the following line: "Our competitors think we can't sell furniture for so little money, but we want our customers to know that we work hard to bring you value for your dollar, and our prices are for real." The furniture store is using a(n) _____ appeal. A. one-sided B. functional C. emotional D. refutational E. slice-of-life In this scenario, the radio commercial is using a refutational appeal. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

99. Wafers Lounge Inc., a manufacturer of packaged foods, specializes in potato-based snacks and features ads which acknowledge the perception that potatoes are fattening. However, they subsequently present information that counters this belief. This is an example of A. conclusion drawing. B. a fear appeal. C. a refutational appeal. D. a humorous appeal. E. an affective conclusion. In the above scenario, Wafers Lounge is using a refutational appeal. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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100. Which of the following is true of refutational appeals? A. They are not as effective as one-sided messages. B. They do not feature negative connotations of the products advertised. C. They tend to "inoculate" the target audience against a competitor's counterclaims. D. They are used typically when the target audience is less educated. E. They are a special type of one-sided message. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. Since refutational appeals tend to "inoculate" the target audience against a competitor's counterclaims, they are more effective than one-sided messages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

101. An advertisement for Pete's Peanut Butter centers on the perception that peanut butter has a high fat content. It goes on to state that Pete's Peanut Butter is a rich source of protein and fiber and also has a great taste. The ad closes by stating that Pete's Peanut Butter contains less fat than most other peanut butter brands in the market. This is an example of a A. confrontational appeal. B. recency appeal. C. nonverbal message. D. refutational appeal. E. one-sided message. In the above scenario, Pete's Peanut Butter is using a refutational appeal. In a special type of two-sided message known as a refutational appeal, a communicator presents both sides of an issue and then refutes an opposing viewpoint. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

102. A two-sided message with a refutational appeal is more effective than a one-sided message because it A. presents only arguments favoring an advertiser's position. B. puts the strongest arguments in the middle of an advertising message. C. inoculates the target audience against a competitor's counterclaim. D. increases the level of counterargument. E. is easily understood and accepted by the target audience. Since refutational appeals tend to "inoculate" the target audience against a competitor's counterclaims, they are more effective than one-sided messages in making consumers resistant to an opposing message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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103. Mars Inc. aired a radio ad for its pizza with a catchy jingle that garnered huge appreciation. After two weeks, it ran a magazine ad for the pizza but failed in its appeal. Which of the following reasons can explain the reduction in persuasiveness of the magazine ad for Mars's pizza? A. The magazine ad is part of a huge clutter which has negatively affected the attitude of the target audience toward Mars's Pizza. B. The processing stimulated by the magazine ad is less controlled and less favorable than the processing stimulated by the radio ad. C. In order to view a magazine ad, people have to buy the magazine which features the ad, resulting in reduced appeal. D. The magazine ad does not create a primacy effect unlike the radio ad. E. The radio ad creates a stimulation based on the recency effect, unlike the magazine ad. In the above scenario, the magazine ad garnered less attention due to its visual component. In some cases, the visual portion of an ad may reduce its persuasiveness, since the processing stimulated by the picture may be less controlled and consequently less favorable than that stimulated by words. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

104. Krypton Inc., a toothbrush manufacturer, prints a magazine ad with a picture of a smiling, toothless monster with a caption that reads, "Smooth care for your teeth and gums." Krypton's advertisers believe that using a picture that contradicts the verbal message will grab more attention, thus A. getting consumers to engage in more elaborative processing. B. stimulating immediate purchasing behaviors in consumers. C. reinforcing the primacy effect. D. reinforcing the recency effect. E. creating a strong refutational appeal. In the above scenario, Krypton is attempting to get consumers to engage in more elaborative processing. Sometimes advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information presented. The logic behind this strategy is that the use of an unexpected picture or visual image will grab consumers' attention and get them to engage in more effortful or elaborative processing. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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105. Typically, advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information in order to A. gain the attention of consumers. B. enable consumers to draw their own conclusions. C. reinforce the primacy effect. D. get consumers to engage in more simplistic processing. E. distract consumers from the negative aspects of the product. Sometimes advertisers design ads in which the visual portion is incongruent with or contradicts the verbal information presented. The logic behind this strategy is that the use of an unexpected picture or visual image will grab consumers' attention and get them to engage in more effortful or elaborative processing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

106. Which of the following situations would be most conducive to the use of a comparative advertising message? A. when a company is a market leader with high market share B. when a company is a market leader and is concerned about a new, smaller company entering the market C. when a market leader wants to promote its brand to customers of smaller companies in the same industry D. when a company with a new brand wants to position that brand against established brands E. when a company wants its audience to know the different companies that it is competing with Comparative advertising may be particularly useful for new brands, since it allows a new market entrant to position itself directly against the more established brands and to promote its distinctive advantages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

107. _____ is the practice of either directly or indirectly naming competitors in an ad and measuring the similarity or dissimilarity of one or more specific attributes. A. Slice-of-life advertising B. Two-sided advertising C. Comparative advertising D. Verbal appealing E. Refutation advertising Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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108. Which of the following statements best describes a reason for using comparative advertising? A. It prevents a new market entrant from positioning itself against established brands. B. It positions a brand in the evoked set of alternate brands that consumers consider. C. It is perceived as more ethical than noncomparative ads. D. It is generally not considered to be useful for new brands. E. It is not permitted by the Federal Trade Commission. Direct comparisons can help position a new brand in the evoked, or choice, set of brands the customer may be considering. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

109. A magazine ad for Spotless Fabric Care detergent states that it cleans stains better than either Fauna detergent or Neon Laundry detergent. Therefore, this ad is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a recency appeal. E. refutational advertising. In the above scenario, Spotless Fabric Care detergent is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

110. "Pamper yourself with Silk Sheen body lotion. It's better for your skin than Inflame, Genesis, or Dusk body lotions." This headline from a Silk Sheen ad in Belle Ménage magazine is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a recency appeal. E. refutational advertising. In the above scenario, Silk Sheen is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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111. A magazine ad features a picture of a woman walking along a beach on a bright, sunny day with the copy, "Arianne sun screen lotion provides better UV protection than Gisele sun screen." This ad is an example of A. confrontational advertising. B. two-sided advertising. C. comparative advertising. D. a verbal appeal. E. refutational advertising. In the above scenario, Arianne is using comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

112. An ad for Trice antacid shows a patron at a restaurant asking for Trice to alleviate heartburn. The waiter points to a bowl that is filled with a mix of Oxyline, Polar, Trice, and other antacids. The waiter says that all antacids are the same and the patron then explains to him that Trice is the only antacid that has vitamin E. In this scenario, Trice is using A. one-sided advertising. B. two-sided advertising. C. comparative advertising. D. verbal appeals. E. refutation. The above scenario is an example of comparative advertising. Comparative advertising is the practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

113. Advertising appeals that imply some type of physical or emotional danger and try to rouse consumers to take steps to remove the threat are known as _____ appeals. A. comparative B. refutational C. humor D. fear E. conditional Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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114. A television ad for Corona deodorant shows a college freshman being socially rejected for having body odor. He is teased and rejected by members of the college dance club. A fellow student gives him a Corona deodorant. After using the deodorant, the freshman is accepted in the dance club and becomes popular. In this ad, Corona is using a _____ appeal. A. comparative B. noncognitive C. humor D. fear E. refutational In the above scenario, Corona is using a fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

115. An ad campaign to convince people to stop driving under the influence of alcohol features images of auto accidents caused by drunk drivers, as well as experiences related by people who have been in such accidents. This ad is using a(n) _____ appeal. A. comparative B. irrational C. leveling D. fear E. nonverbal In the above scenario, the campaign is using a fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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116. A television commercial for Prime mouthwash shows a young man at a night club approaching a group of women. As he opens his mouth to introduce himself, the women get up from their seats and leave. The ad's caption reads, "Do you suffer from bad breath?" This is an example of A. a fear appeal. B. an irrational appeal. C. comparative advertising. D. a refutational appeal. E. noncognitive advertising. The above scenario is an example of fear appeal. Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger. Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take steps to remove the threat. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

117. A potential problem of using advertising with a strong fear appeal to discourage drug abuse among teenagers is that A. there is no appropriate medium. B. it works only in combination with a refutational appeal. C. it may have inhibiting effects and be tuned out by teenagers. D. a message with high levels of fear creates low self-esteem. E. parents may be offended if the message is perceived as too frightening. High levels of fear can produce inhibiting effects; the receiver may emotionally block the message by tuning it out, perceiving it selectively, or denying its arguments outright. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

118. The _____ is an approach to explain the curvilinear nature of fear appeals that suggests that both the cognitive appraisal of information in a fear appeal message and the emotional response mediate persuasion. A. protection motivation model B. nonmonotonic model C. cognitive response model D. response-stimuli hierarchy E. persuasive delimiter model An approach to the curvilinear explanation of fear is the protection motivation model. This model suggests that both the cognitive appraisal of the information in a fear appeal message and the emotional response mediate persuasion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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119. Which of the following is true of humor appeals? A. They usually generate more counterarguments among consumers. B. They enhance effectiveness by putting consumers in a positive mood. C. The television medium does not lend itself to humor appeals. D. The print medium is not feasible for humor appeals. E. They cannot be presented through radio. Humorous ads are often the best known and best remembered of all advertising messages. They enhance effectiveness by putting consumers in a positive mood. Humor is usually presented through radio and TV commercials as these media lend themselves to the execution of humorous messages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

120. Humorous messages are generally considered effective as they enhance A. comprehension. B. attention. C. support arguments. D. source derogation. E. counterargument. Humorous messages attract and hold consumers' attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of an ad itself and their feeling toward the product or service. Humor can distract the receiver from counterarguments against the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

121. Humorous messages enhance the effectiveness of an advertisement by A. eliminating fear appeals. B. reinforcing the recency effect. C. reinforcing the primacy effect. D. stimulating immediate purchasing behavior. E. putting consumers in a positive mood. Humorous messages attract and hold consumers' attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of the ad itself and their feeling toward the product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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122. The tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly is known as A. the repetition paradox. B. the qualitative effect. C. wearout. D. commercial reactance. E. message decay. Wearout refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

123. Which of the following statements is true of the use of humor in ad campaigns and commercials? A. Humorous commercials are always perceived as entertaining. B. Humorous commercials distract a receiver from counterarguing against an advertiser's message. C. Research evidence proves humor does not wear out as fast as other types of advertising appeals. D. Humor is not used in print ads but is only presented through radio and TV commercials. E. High-involvement products are better suited for advertising humor than low-involvement products. Humorous messages attract and hold consumers' attention. They enhance effectiveness by putting consumers in a positive mood, increasing their liking of the ad itself and their feeling toward the product or service. And humor can distract the receiver from counterarguing against the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

124. Critics of humorous commercials argue that funny ads A. distract consumers from a brand and its attributes. B. have no shock value. C. often put people in a gloomy mood. D. do not draw consumers' attention to the ads. E. compel consumers to engage in counterarguments. Critics argue that funny ads draw people to a humorous situation but distract them from the brand and its attributes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

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125. During the live television broadcast of a basketball match, an ad for Humberto's Pizza is aired frequently during the commercial breaks. Jason, who is watching the match on television, expresses annoyance every time he sees the pizza commercial. Humberto's Pizza's commercial is likely to be facing A. a qualitative degradation. B. a fear appeal. C. a wearout. D. a commercial reactance. E. a refutation. In the above scenario, the repetition of Humberto's ads has created a wearout. Wearout refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly. Wearout may occur if consumers no longer pay attention to a commercial after several exposures or become annoyed at seeing or hearing an ad multiple times. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 06-03 Compare the different types of message structures and appeals. Topic: Advertising Appeals

126. Which of the following statements is true of a channel used in the communication process? A. Information received via mass media is more persuasive than information received from personal influence channels. B. As objections arise and are voiced by buyers, an advertisement can treat the objections in an appropriate manner. C. A message in a good sales presentation is determined in advance. D. An advertisement is typically prepared by people who have maximum personal contact with customers. E. From the standpoint of persuasion, a sales message is more flexible and powerful than an advertisement. From the standpoint of persuasion, a sales message is far more flexible, personal, and powerful than an advertisement. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: The Communication Process

127. For which of the following media is the processing of information in advertisements likely to be externally paced? A. Television and radio B. Magazines and billboards C. Magazines and newspapers D. Transit advertising and billboards E. Internet and direct mail Information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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128. Which of the following media should be used when an advertiser wants to present a detailed message with a large amount of information? A. television B. billboards C. magazines D. transit signs E. radio Self-paced print media make it easier for a message recipient to process a long, complex message. Advertisers often use print ads when they want to present a detailed message with a lot of information. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

129. Information from ads presented in broadcast media is A. externally paced. B. self-paced. C. internally paced. D. personally paced. E. intermittently paced. Information from the broadcast media of radio and television is externally paced; the transmission rate is controlled by the medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

130. A direct-mail piece advertising a collection of home maintenance books would have its information A. externally paced. B. self-paced. C. virtually paced. D. controlled by the message recipient. E. placed in qualitative media. Information from ads in print media, such as newspapers, magazines, or direct mail, as well as the Internet is self-paced; readers process the ad at their own rate and can study it as long as they desire. Self-paced print media make it easier for recipients to process a long, complex message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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131. A magazine titled Utopia: Holiday Digest would have a strong _____ on an ad for destination resorts. A. externally paced impact B. favorable quantitative media effect C. cluttered media effect D. shaping effect E. positive qualitative media effect The above scenario is an example of a positive qualitative media effect. A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. For example, an ad for a high-quality men's clothing line might have more of an impact in a fashion magazine like GQ than in Sports Afield. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

132. Recently, some cable networks such as TBS and TNT have been using compression technology to speed up the transmission of programs and allow more time for commercials, which is adding to the _____________ problem. A. impact B. quantitative C. clutter D. shaping E. positivity The above scenario describes a situation that increases clutter, which has been defined as the amount of advertising in a medium. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

133. Advertisers who want to advertise during award-winning television shows are looking to transfer the favorable impressions of the shows onto their products. This transference is called a A. self-paced impact. B. favorable quantitative media effect. C. cluttered effect. D. shaping effect. E. positive qualitative media effect. The above scenario is an example of a positive qualitative media effect. A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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134. Which of the following is true of the qualitative media effect? A. It is the influence a medium has on a message. B. It is the general guideline used to determine the quality of a medium. C. It indicates that the image a message conveys is transferred to the medium. D. It is also known as the shaping effect. E. It is the measurement used to indicate the effectiveness of a message. A qualitative media effect is the influence a medium has on a message. The image of a media vehicle can affect reactions to a message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

135. Companies are willing to pay premium rates to advertise on popular programs such as the Olympic Games and Christmas specials because these televised events A. attract only affluent viewers. B. create positive moods that can make viewers more responsive to commercials. C. show very few commercials. D. have low levels of advertising clutter. E. have effective appeals that are minimized by the cognitive appeal of the commercials. Advertisers pay premium dollars to advertise on popular programs that create positive moods, like the Olympic Games and Christmas specials. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

136. A study by Andrew Aylesworth and Scott MacKenzie found that commercials placed in programs that induce negative moods are A. prone to extensive critical scrutiny of the companies' products or services by the audience. B. processed less systematically than ads placed in programs that put viewers in positive moods. C. useful when the message is intended to work through a central route to persuasion. D. useful when viewers are knowledgeable and can analyze an ad in detail. E. helpful in exciting the readers and viewers of the message about the product or the service. A study by Andrew Aylesworth and Scott MacKenzie found that commercials placed in programs that induce negative moods are processed less systematically than ads placed in programs that put viewers in positive moods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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137. An advertiser whose message is placed in the middle of five consecutive commercials during a program break faces the problem of A. clutter. B. media flooding. C. media bombardment. D. flighting. E. information overload. Clutter is an aspect of the media environment that is important to advertisers. It is defined as the amount of advertising in a medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

138. _____ is an aspect of the media environment and is defined as the amount of advertising in a medium. A. Qualitative media effect B. Wearout C. Clutter D. Familiarity score E. Refutation An aspect of the media environment which is important to advertisers is the problem of clutter, which has been defined as the amount of advertising in a medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

139. All nonprogram material that appears in a broadcast environment including commercials, public service announcements, and promotional messages for shows contributes to A. a message comparison phenomenon. B. comparative advertising. C. the clutter problem. D. media reduction. E. the quantitative media effect. For television, clutter is often viewed as including all the nonprogram material that appears in the broadcast environment—commercials, promotional messages for shows, public service announcements (PSAs), and the like. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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140. Which of the following factors contribute the most to the problem of clutter in television advertising? A. the use of celebrities in ads B. the use of emotional appeals C. the trend toward shorter commercials D. the increase in zapping or channel hopping E. the use of fear appeals Clutter has become a major concern among television advertisers as a result of increases in nonprogram time and the trend toward shorter commercials. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process. Topic: Advertising Media

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Chapter 06 Test Bank 01/09/2017 22:03:20 Summary Category-# of Questions AACSB: Analytical Thinking-101 AACSB: Reflective Thinking-39 Accessibility: Keyboard Navigation-139 Blooms: Apply-39 Blooms: Remember-60 Blooms: Understand-41 Difficulty: 1 Easy-58 Difficulty: 2 Medium-44 Difficulty: 3 Hard-38 Learning Objective: 06-01 Discuss the variables in the communication system and how they influence consumers' processing of promotional messages.-10 Learning Objective: 06-02 Identify decision factors involved in selecting a source for a promotional message.-57 Learning Objective: 06-03 Compare the different types of message structures and appeals.-56 Learning Objective: 06-04 Explain how different types of channels influence the marketing communications process.-17 Topic: Advertising Appeals-90 Topic: Advertising Media-16 Topic: Branding Strategy-1 Topic: The Communication Process-33

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Chapter 07 Test Bank Student: ___________________________________________________________________________ 1. An objective is said to be measurable if it specifies a method and criteria for determining how well a program is working. True False

2. Decisions should be made between different strategic and tactical options based on how well a particular strategy matches the firm's promotional objectives. True False

3. Most organizations are concerned about the return on their promotional investment, and comparing actual performance against measurable objectives is the best way to determine if the return justifies the expense. True False

4. To be effective, marketing objectives need to be quantifiable, realistic, attainable, delineate the target market, and note the time frame. True False

5. An advantage of sales-oriented objectives is that they provide sufficient guidance to those responsible for planning and developing the promotional program. True False

6. Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales. True False

7. The initial stages, at the base of the communications effects pyramid, are harder to accomplish than those toward the top, such as trial and repurchase. True False

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8. Critics of communications-oriented objectives argue that it is too difficult to translate a sales goal into a specific communications objective. True False

9. Critics of the purchase funnel feel it should be more linear, and characterized more like a plunge down a slope from awareness to purchase. True False

10. Under the Defining Advertising Goals for Measured Advertising Results (DAGMAR) approach, an advertising goal involves a communications task that is specific and measurable. True False

11. In his DAGMAR approach to advertising planning, Colley argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). True False

12. DAGMAR is favored by those who argue that the only relevant measure of advertising objectives is sales. True False

13. An outside-in planning process for IMC is based on a hierarchical response model and considers how marketers can develop and disseminate advertising messages to move consumers along an effects path. True False

14. An inside-out planning process for integrated marketing communications (IMC) starts with the customer and builds backward to the brand. True False

15. While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision. True False

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16. In the social consumer decision journey, the marketer must continuously monitor to know what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace. True False

17. In the social consumer decision journey, the final objective, amplification, deals with designing the communications program, particularly as it relates to social media, to take the consumer to long-term behavioral changes. True False

18. In the integrated marketing communications (IMC) model, the flow between the communications analysis and budget determination is a two-way interaction. True False

19. When times get tough, managers who treat the communications budget as an investment instead of an expense tend to cut down the advertising and promotional budget first. True False

20. There is strong, consistent evidence that cutting back on advertising does not hurt sales during and after a recession. True False

21. Marginal analysis assumes that sales are a direct result of advertising and promotional expenditures and that this effect can be measured. True False

22. According to the concave-downward function model, as the amount of advertising decreases, its incremental value increases. True False

23. If sales are used as a direct measure of response to advertising, products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. True False

24. In the top-down approach, the budgetary amount is established usually at the departmental level. True False

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25. In the arbitrary allocation approach to budgeting, systematic thinking occurs and objectives are budgeted for. True False

26. The competitive parity method takes advantage of the collective wisdom of the industry. True False

27. In the objective and task method to budget setting, managers closest to the marketing effort do not have specific strategies to achieve the objective. True False

28. One important purpose of setting specific advertising goals and objectives is to A. provide a benchmark against which performance can be measured. B. put constraints on the creative department. C. have a method of determining when to delete products from the product line. D. forecast the market share level that can be attained by good advertising. E. protect all investors and debt holders.

29. Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl-siding cleanser. We can tell him that A. his task is impossible. B. all he needs is the sales results to determine what the program accomplished. C. his task could be made easier by setting specific communication objectives. D. he requires just the post-promotional consumer awareness levels to determine what the program accomplished. E. all he needs to do is measure the effectiveness of the media used for promoting the product.

30. The more specific the firm's advertising objectives, the A. easier it becomes to measure advertising effectiveness. B. more difficult it is for competitors' advertising to be effective. C. easier it is to measure the advertising-sales response function. D. lesser the funding needed to meet advertising goals. E. more difficult it is for a competitor to use competitive parity budgeting.

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31. Jaden is making a push to shift some of his company's communications budget to mobile, but is met with resistance from his team, who all have different ideas about what they are trying to accomplish with the communications budget, so they are not using objectives to plan or make decisions. Which of the following characterizes the reason for resistance from Jaden's team? A. They recognize the value of specific objectives for their integrated marketing communications program. B. They disagree as to what the specific objectives should be. C. They want to increase emphasis on data-driven marketing spending. D. They believe in behavioral targeting. E. They believe mobile spending is tactical, not strategic.

32. Before setting objectives for advertising and promotion, an organization should A. conduct a situation analysis to identify marketing and promotional issues facing the firm. B. develop its media plan and allocate the budget to each media. C. evaluate the effectiveness of the advertising and promotional strategies. D. conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services. E. set its advertising and promotional budgets.

33. Which of the following is true of marketing objectives? A. The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C. They are stated only in a company's communication plan. D. They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience. E. The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience.

34. Which of the following statements best describes the relationship between marketing and communications objectives? A. Marketing objectives and communications objectives are synonymous. B. Marketing objectives evolve from communications objectives. C. Communications objectives are derived from marketing objectives. D. Communications objectives can be developed before the development of marketing objectives. E. Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy.

35. To be effective, marketing objectives need to be A. realistic and attainable. B. erudite and challenging. C. philosophical and fungible. D. unquantifiable. E. elaborate.

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36. Many marketing managers prefer sales-oriented objectives for advertising because they believe that A. the reason a company spends money on advertising and promotion is to sell its products or service. B. the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service. C. the primary role of an IMC program is to communicate. D. objectives should be based on the achievement of communication objectives. E. they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur.

37. According to a recent study by Webmarketing 123 of both business-to-business (B2B) and business-to-consumer (B2C) marketers, while 87 percent of B2B marketers used social media, only ____________ claimed they were able to measure ROI. A. 7 percent B. 17 percent C. 25 percent D. 27 percent E. 35 percent

38. The concept of advertising expenditures producing long-term, rather than immediate, results is known as A. the carryover effect. B. the communication effect. C. the low-involvement effect. D. the halo effect. E. the mirror-image effect.

39. The carryover effect A. has no impact on sales objectives. B. has no effect on the relationship between advertising and sales. C. encourages the use of nonspecific objectives. D. is particularly apparent with mature, low-priced, and frequently purchased products. E. helps in determining the precise relationship between advertising and sales.

40. Which of the following problems is a manager most likely to face if he or she uses sales as a measure of advertising effectiveness? A. Sales results offer little guidance or direction to those responsible for planning and developing the advertising program. B. There is a short, often immeasurable, time period between when advertising is run and when sales actually occur. C. Sales results are affected by no marketing-mix variable other than price and promotion. D. No internal-environmental variables have any significant influence on sales results. E. Sales are generally not considered a good indicator for an IMC program.

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41. For which of the following would an advertiser be most likely to use a sales-oriented objective? A. a direct-response ad for a record album B. a commercial for a new type of electric-powered automobile C. a political announcement D. an antidrug public announcement E. a commercial comparing two telecommunication giants

42. Direct-response advertisers generally set objectives and measure success in terms of A. brand awareness. B. brand attitudes. C. purchase intentions of the target audience. D. sales response generated by an ad. E. brand equity.

43. Sales-oriented objectives are appropriate for A. all online-marketing strategies. B. retail advertising promoting special events. C. products that have been introduced in highly volatile markets. D. any advertising campaign aimed at maintaining brand awareness. E. bait-and-switch marketing campaigns.

44. Which of the following is at the base of the communication effects pyramid? A. awareness B. preference C. trial D. purchase E. repurchase

45. While moving from the base to the top of the communication effects pyramid, which of the following comes just before repurchase of a product? A. awareness B. comprehension C. trial D. liking E. knowledge

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46. While moving from the base to the top of the communication effects pyramid, which of the following comes just before trial of a product? A. knowledge B. preference C. repurchase D. awareness E. comprehension

47. Managers who use the communications effects pyramid to set objectives believe that A. lower-level objectives such as purchase and reuse form the foundation of the communications program. B. the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension. C. advertising and promotion should first accomplish lower-level objectives such as trial and purchase. D. advertising and promotion should first accomplish higher-order objectives, such as trial and purchase, and then create awareness and brand knowledge. E. advertising and promotion cannot accomplish lower-order objectives.

48. Which of the following is at the top of the communication effects pyramid? A. awareness B. knowledge C. liking D. preference E. repurchase

49. Encouraging current buyers of Spirit, an energy drink, to drink more of the beverage would be an example of a _____ objective. A. sales-oriented B. repositioning C. product development D. public relations E. diversification

50. Which of the following statements is true of communications objectives? A. It is difficult to translate sales goals into communications objectives. B. It is always easy to determine the relationship between communications objectives and sales performance. C. Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of promotional programs. D. All marketing and advertising managers accept communications objectives. E. Precise formulas are to be followed when translating sales goals into specific communications objectives.

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51. Which of the following is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A. awareness B. purchase C. familiarity D. consideration E. imagery

52. Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A. awareness B. imagery C. consideration D. shopping E. model intention

53. With respect to the stages in Russell Colley's hierarchical model of the communication process, the _____ stage deals with developing an understanding of what the product is and what it will do for the consumer. A. conviction B. comprehension C. awareness D. action E. screening

54. The _____ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company. A. conviction B. screening C. comprehension D. action E. awareness

55. The _____ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product. A. action B. conviction C. screening D. comprehension E. awareness

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56. Which of the following statements is true of communications objectives? A. When setting objectives using the communications effect pyramid, the last step to reach is trial. B. Sales goals cannot be translated into communications objectives. C. Marketing and advertising managers don't usually rely on experience and intuition when setting communications goals. D. Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals. E. Communications objectives are used particularly when the advertiser seeks an immediate response.

57. DAGMAR is A. a model for setting advertising goals. B. a philosophy of consumer behavior. C. a method of setting sales objectives. D. a tool used to measure financial assets. E. an attitude measurement device.

58. _____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured. A. SOSTAC B. The hierarchy of effects model C. The BCG matrix D. The Ansoff matrix E. DAGMAR

59. According to DAGMAR, the basic function of advertising is to A. create sales. B. communicate. C. increase market share. D. eliminate competition. E. change consumer behavior.

60. Under the DAGMAR model, a _____ can be performed by, and attributed to, advertising rather than to a combination of marketing factors. A. human resources task B. financial task C. communications task D. marketing task E. product production task

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61. According to the criteria outlined in DAGMAR, which of the following makes the best quantitative communications objective? A. "Increase product users to 40 percent of the total market." B. "Double the production budget, hire more assembly workers, and double the production speed in one year." C. "Increase the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent in one year." D. "Increase awareness of the brand in one year." E. "Increase sales revenue by 10 percent."

62. According to DAGMAR, advertising objectives should be written in measurable terms that specify A. a communications task, a target market, a benchmark starting point, a time period, and the degree of change sought. B. a budget, a message strategy, a media plan, and the degree of carryover effect desired. C. the reach, frequency, and point of wearout for the advertising messages. D. the purchase motives, demographic composition, and buying habits of the target market. E. sales potentials, market share, return on investment, and budget forecasts.

63. According to the DAGMAR model, which of the following is a characteristic of a good objective? A. A good objective is elaborative in nature. B. A good objective specifies the target audience. C. A good objective avoids specifying a time period. D. A good objective specifies the current market share. E. A good objective is based only on sales results.

64. An airline company set the following objective for its new advertising campaign: "To increase the percentage of consumers who know our fares are lower than the competitors' to 75 percent over the next six months." Using the criteria outlined by the DAGMAR approach to setting objectives, identify what is wrong with this objective. A. It is not a concrete statement of what message the airline wants to communicate. B. It does not contain a benchmark starting point and the degree of change sought. C. It does not specify a specific time period for accomplishing the objective. D. It does not specify a well-defined target audience. E. It fails to utilize the IMC process.

65. Jeremiah asked his team to determine what communications tasks needed to be done and what communications functions should be used, and to what extent. He was asking his team to use a(n) ___________________________ approach to IMC. A. zero-based communications planning B. outside-in planning C. inside-out planning D. spiral planning E. social consumer planning

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66. Determining a target market's present level of awareness and knowledge of, and liking for, a product often requires _____ measures. A. benchmark B. sales interval C. secondary D. frequency E. reach

67. Before beginning its new advertising campaign, Capital Bank conducted a study to determine its clients' levels of awareness and knowledge of the bank and its services, as well as their perceptions of the bank's image. This was done to A. communicate advertising goals. B. communicate tasks. C. establish benchmark measures. D. communicate DAGMAR objectives. E. establish marketing research goals.

68. For which of the following advertising communication tasks should the specified time period be the longest? A. creating brand awareness B. increasing brand awareness levels C. creating knowledge of a brand attribute D. increasing knowledge levels of a brand attribute E. repositioning a brand

69. The DAGMAR approach to setting objectives has A. a negligible effect on the advertising planning process. B. focused advertisers' attention on the value of using communications objectives rather than sales objectives. C. never been criticized because it focuses on the hierarchy of effects model. D. increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed. E. been successful because it is easy to implement.

70. DAGMAR MOD II was developed to alleviate problems with A. the response hierarchy used in the original DAGMAR model. B. the costs of using DAGMAR. C. the fact that DAGMAR ignores sales results. D. setting benchmark measures. E. creating measurable communications objectives.

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71. Which of the following is considered a major criticism of the DAGMAR approach? A. its belief that the only relevant measure of advertising objectives is sales B. its focus on using sales-based objectives rather than communications-based objectives C. its inability to define what constitutes a good advertising objective D. its reliance on the hierarchy of effects model E. its lack of concern with the quantitative assessment of the impact on awareness

72. Robert is working in the advertising department of a large consumer-product company. He suggests that the company use the DAGMAR approach for setting advertising goals. Which of the following statements is Robert likely to hear as an argument against the use of the DAGMAR approach? A. Sales-oriented goals should be the measure of advertising effectiveness rather than communications objectives. B. The DAGMAR approach is too creative and leads to difficulty in understanding. C. DAGMAR can be quite expensive due to research costs and is, therefore, not suitable for large companies. D. DAGMAR is too concerned with quantitative assessment of a campaign's impact on awareness. E. DAGMAR is appropriate only in the case of direct-response advertising.

73. Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it A. puts too much emphasis on the quantitative assessment of an advertising campaign. B. requires that speculative presentations be created and used to set benchmark measures. C. is only successful if it develops a message that contributes to brand equity. D. does not provide any type of communications guidelines. E. is too concerned with qualitative assessments of an advertising campaign.

74. According to Professor Don Schultz, inside-out planning A. focuses on what the marketer wants to say, when the marketer wants to say it, and the media the marketer wants to use. B. is another term for zero-based communications planning. C. starts with the customer and builds backward to the brand when developing an IMC program. D. is a method of implementing DAGMAR objectives. E. is used to forecast the validity of DAGMAR objectives.

75. According to Professor Don Schultz, outside-in planning A. focuses on what the marketer wants to say, when the marketer wants to say it, and the media the marketer wants to use. B. is another term for zero-based communications planning. C. starts with the customer and builds backward to the brand when developing an IMC program. D. is a method of implementing DAGMAR objectives. E. is used to forecast the validity of DAGMAR objectives.

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76. _____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them. A. The objective/task pyramid B. DAGMAR C. The BCG matrix D. Zero-based communications planning E. Refutation planning

77. According to Duncan's zero-based marketing communications planning approach A. advertising should always be the main tool for accomplishing marketing communications objectives. B. sales promotion is usually the best tool for accomplishing marketing communications objectives. C. big ideas for a promotional campaign are typically based on public relations, advertising, sales promotion, or media advertising. D. integrated marketing communications programs should lead with the promotional function that least effectively addresses a company's communication problem or opportunity. E. managers should focus on what the customer wants and work backward to the brand.

78. According to Don Schultz, in which type of communications planning process do the promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when customers are likely to be most receptive to the message? A. zero-based communications planning B. inside-out planning C. outside-in planning D. the carryover process E. the recency process

79. In the social consumer decision journey, _____ deals with designing the communications program. A. benchmarking B. monitoring C. amplification D. leading E. responding

80. In the social consumer decision journey, which of the following objectives is designed to take the consumer to long-term behavioral changes? A. respond B. amplify C. monitor D. lead E. benchmark

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81. In the social consumer decision journey, which of the following objectives deals with marketers reacting to specific issues regarding the product or brand at a personal level? A. monitor B. respond C. benchmark D. lead E. amplify

82. In the social consumer decision journey, which of the following objectives involves the marketer being aware of what is being said online about the product or brand to gain insights into how it is being perceived in the marketplace and then responding accordingly? A. monitor B. benchmark C. lead D. respond E. amplify

83. According to the IMC planning model, the flow between communications analysis and budget determination is _____ A. a two-way interaction. B. nonlinear. C. unidirectional. D. diagonal. E. top-down.

84. According to Robert Steiner, which of the following terms is synonymous with contribution margin? A. asset allocation B. net worth C. financial optimization D. marginal analysis E. capital margin

85. In the case of the marginal-analysis approach, profits are shown to be a result of A. advertising expenditure minus sales. B. sales minus advertising expenditures. C. gross margin minus advertising expenditures. D. gross margin minus sales. E. net worth minus sales.

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86. Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget? A. It is unsuitable as a basis for budgeting only in the case of direct-response advertising. B. It only considers environmental factors that affect the effectiveness of the promotional program. C. The budget is often set according to the FIFO method. D. The budget is determined by management solely on the basis of what is felt to be necessary. E. It assumes that sales are determined solely by advertising and promotion.

87. The two models that are commonly used to explain the relationship between advertising and sales are the A. concave-downward function and the S-shaped response function. B. S-shaped response function and the concave-upward function. C. marginal utility function and the S-shaped demand function. D. S-shaped demand function and the contribution margin function. E. concave-upward function and the S-shaped demand function.

88. According to the _____ model, the effects of advertising budgets follow the microeconomics law of diminishing returns. A. concave-upward B. S-shaped demand C. S-shaped response D. marginal utility E. concave-downward

89. According to the concave-downward function A. the incremental value of advertising increases. B. creativity is the primary advertising function. C. advertising is unlikely to be effective as a short-term solution. D. as the amount of advertising increases, its incremental value decreases. E. the effects of advertising do not diminish quickly.

90. Which of the following companies increased advertising spending by $1 billion during 2010, at the height of the recession, with an emphasis on campaigns for Gillette Fusion ProGlide razors, Pantene shampoo, and the launch of Pampers Dry Max diapers? A. Procter and Gamble B. Kraft C. General Mills D. Kmart E. Unilever

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91. The concave-downward function model is based on A. the microeconomics law of diminishing returns. B. the economic law of supply and demand. C. price elasticity of demand quotients. D. the change in contribution margins as item price is changed. E. perceptual mapping results.

92. During the last recessionary period in the United States, ______ percent of marketers indicated they had plans to reduce their advertising budgets. A. 90 B. 77 C. 53 D. 20 E. 7

93. The S-shaped response function implies that A. initial advertising expenditures will have little impact on sales. B. initial advertising expenditures will have major impact on sales. C. sales effects will follow the microeconomic law of diminishing returns. D. small advertising budgets have a high impact on sales when word of mouth is the only promotional tool used. E. small advertising budgets have a high impact on sales when public relations is the only promotional tool used.

94. According to the concave-downward model A. the effects of advertising quickly begin to diminish. B. the carryover effect is especially true for low-priced, frequently purchased consumer products. C. sales decrease rapidly if the price is too high. D. initial outlays of the advertising budget have little impact on sales. E. sales are not directly related to the size of the advertising budget.

95. The S-shaped response curve suggests that A. advertising effectiveness will not be related to spending. B. extremely low advertising budgets will not work. C. advertising effectiveness will vary inversely with the spending levels. D. the carryover effect is especially true for low-priced, frequently purchased consumer products. E. sales and spending on advertising are not directly related.

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96. Which of the following factors creates a positive relationship between advertising and sales? A. the market share of the company B. the corporate structure C. the basis for product differentiation D. the extent of selective retention E. the recruitment plans

97. According to the factors influencing advertising budgets, which of the following stages of the product life cycle negatively influences the advertising budget? A. introduction B. maturity C. growth D. reinvestment E. research

98. According to the factors influencing advertising budgets, which of the following stages of the product life cycle leads to a positive effect of advertising on sales? A. alteration B. maturity C. introduction D. decline E. harvesting

99. Which of the following strategy factors leads to a positive effect of advertising on sales? A. hidden product qualities B. elasticity in demand C. long channels of distribution D. emotional buying motives E. inelastic product demand

100. When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a _____ approach is being used. A. nominal group B. marginal contribution C. top-down D. Delphi E. focus group

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101. The _____ method of budgeting is being employed when expenditure is allocated by an analysis of expenditure in areas such as production and operations, and the amount left over is considered to be the advertising budget. A. arbitrary allocation B. percentage of sales C. affordable D. return on investment E. competitive parity

102. According to the promotional budgeting approaches, which of the following is an example of a top-down approach? A. the razor and blades method B. the bricks and clicks method C. the competitive parity method D. the objective and task method E. the payout planning method

103. We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where." A. arbitrary allocation B. percentage of sales C. contribution margin D. return on investment E. competitive parity

104. Which top-down budgeting method is being employed when the budget is determined based on what is felt to be necessary? A. arbitrary allocation B. percentage of sales C. affordable method D. payout planning E. competitive parity

105. Which of the following is true of the arbitrary allocation method? A. This method is not considered to be particularly weak. B. This method keeps ad spending within reasonable limits. C. This method uses a logical basis for determining the budgets. D. This method of budgeting is generally stable. E. This method has no obvious advantages.

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106. The most commonly utilized method of budget determination by large firms is the A. competitive parity method. B. objective and task method. C. percentage-of-sales method. D. arbitrary allocation method. E. affordable method.

107. The _____ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold. A. arbitrary allocation B. percentage-of-sales C. objective and task D. return on investment E. competitive parity

108. In the _____ method to budgeting, sales are projected for the coming year based on the marketing manager's estimates. A. competitive parity B. objective and task C. unit cost production D. straight-percentage E. arbitrary

109. Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand, easy to implement, financially safe, and keeps the spending within reasonable limits? A. competitive parity B. marginal analysis C. percentage of sales D. objective and task E. arbitrary

110. Which of the following is true of the percentage-of-sales method? A. It is financially unsafe. B. It is tough to implement. C. It is simple and straightforward. D. It is synonymous with the arbitrary allocation method. E. It is synonymous with the affordable method.

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111. Which of the following is a major problem associated with the percentage-of-sales method? A. It reverses the cause-and-effect relationship between advertising and sales. B. It is financially unsafe. C. It is extremely tough to implement. D. It is used only by firms that do not understand the role of advertising and promotions. E. It has no theoretical basis, and the budgetary amount is often set using a flat rate.

112. To set an advertising budget, a marketer of filing cabinets examines advertising-to-sales ratios published in trade magazines and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed? A. competitive parity and percentage-of-sales methods B. competitive parity and payout planning methods C. payout planning and percentage-of-sales methods D. percentage-of-sales and objective and task methods E. payout planning and arbitrary allocation methods

113. The _____ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as take advantage of the collective wisdom of the industry. A. ROI B. affordable C. percentage-of-sales D. competitive parity E. objective and task

114. When using the competitive parity method to budgeting, the firm A. matches its percentage-of-sales expenditures with those of others in the market/industry. B. spends as much as it can. C. allocates some portion of planned sales for the period to advertising. D. spends the same total amount as its major competitors spend. E. bases its advertising and promotion expenditures on sales.

115. Which of the following budgeting methods requires a marketing manager to use input from a clipping service? A. ROI method B. arbitrary allocation method C. percentage-of-sales method D. competitive parity method E. objective and task method

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116. The _____ method of budgeting is being employed when expenditures are allocated based on the industry averages of advertising expenditures. The budget is set to maintain a level consistent with industry spending. A. arbitrary allocation B. percentage-of-sales C. objective and task D. return on investment E. competitive parity

117. Which of the following is an advantage of the competitive parity method? A. It makes use of the buildup approach to establishment of promotional budgets. B. It leads to stability in the marketplace by minimizing marketing warfare. C. It is based on the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities. D. It gives due recognition to the contributions of creative executions and/or media allocations. E. Under this method, the budget is driven by the objectives to be attained.

118. A disadvantage of the _____ method is its assumption that the programs of firms with similar promotional expenditures will be equally effective. A. return on investment B. affordable C. competitive parity D. objective and task E. payout planning

119. In the _____ method of budget determination, advertising is considered an investment, similar to plant and equipment. A. payout planning B. objective and task C. ROI budgeting D. competitive parity E. percentage-of-sales

120. Top-down budgeting methods are commonly used because of A. their effectiveness. B. the upper management's desire for control. C. the growing availability of computer simulations. D. the ease with which a manager can assess the impact of sales on ROI. E. their quantitative nature.

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121. Which of the following allocation methods makes use of a buildup approach to setting budgets? A. percentage-of-sales B. arbitrary allocation C. competitive parity D. objective and task E. affordable

122. Defining the communications goals to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting. A. competitive parity B. payout planning C. return on captial D. return on investment E. objective and task

123. The first task in the objective and task method of budgeting is to A. conduct a system analysis. B. create an organizational budget. C. isolate advertising objectives. D. determine what tasks need to be accomplished. E. reevaluate objectives.

124. According to James O. Peckham, which of the following statements provides a good rule of thumb for a company setting the advertising budget for a new product? A. Its advertising budget should be twice the desired market share. B. Its advertising budget should be equal to that of the largest market shareholder in the product category. C. Its advertising budget should be as much as the firm can afford. D. Its advertising budget should be 10 percent greater than the average budget planned for the entire payout period. E. Its advertising budget should be less than that needed to maintain the desired market share.

125. The objective and task method is most difficult to use when A. the product to be promoted is intangible and in the maturity stage of its product lifecycle. B. the product to be promoted is in the decline stage of its product lifecycle. C. the product to be promoted is a cash cow. D. the product to be promoted is new to the market. E. the product is typically tied to after-sales service.

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126. A(n) _____ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation. A. payout plan B. instant rebate C. profit chart D. beat-sheet E. incentive program

127. As a tool for budget allocation, multiple regression analysis is most often employed in budget models using A. computer simulations. B. competitive parity. C. arbitrary allocations. D. percentage of sales. E. downward curves.

128. Which of the following is a quantitative model used to budget advertising expenditures? A. ROI budgeting model B. competitive parity model C. computer simulation model D. arbitrary allocation model E. percentage-of-sales model

129. As a result of economies of scale, smaller advertisers A. are likely to enjoy more favorable advertising time and space than large advertisers. B. have declining average costs of production. C. get higher advertising rates than large advertisers. D. can maintain advertising expenditure shares that are smaller than their market shares. E. can accrue the advantages of advertising several products jointly.

130. As a result of _____, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly. A. economies of scale B. differential advertising advantages C. competitive parity D. a concave-downward response E. multiple advertising channels

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131. As a result of economies of scale, large advertisers A. are likely to enjoy more favorable advertising time and space than smaller advertisers. B. get lower advertising rates than smaller advertisers. C. accrue the disadvantages of advertising several products jointly. D. have higher average costs of production. E. must spend more money on advertising to realize a better return.

132. Forrest, the CMA of Acme Widgets Corp., sets the spending limit for his teams and requires all spending to stay within the promotional budget. What type of budgeting is being used by Widgets Corp.? A. bottom-up budgeting B. top-down budgeting C. the affordable method of budgeting D. the arbitrary allocation method of budgeting E. the percentage-of-sales method of budgeting

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Chapter 07 Test Bank Key 1. An objective is said to be measurable if it specifies a method and criteria for determining how well a program is working. TRUE One characteristic of good objectives is that they are measurable; they specify a method and criteria for determining how well the promotional program is working. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Elements of a Marketing Plan

2. Decisions should be made between different strategic and tactical options based on how well a particular strategy matches the firm's promotional objectives. TRUE Promotional planners are often faced with a number of strategic and tactical options in terms of choosing creative options, selecting media, and allocating the budget among various elements of the promotional mix. Choices should be made based on how well a particular strategy matches the firm's promotional objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives.

3. Most organizations are concerned about the return on their promotional investment, and comparing actual performance against measurable objectives is the best way to determine if the return justifies the expense. TRUE Promotional spending represents an investment of a firm's resources that requires an economic justification. Managers generally compare investment options on a common financial basis, such as return on investment (ROI). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Sales Forecasting

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4. To be effective, marketing objectives need to be quantifiable, realistic, attainable, delineate the target market, and note the time frame. TRUE Good marketing objectives are quantifiable, realistic, and attainable. They delineate the target market and note the time frame for accomplishing the goal. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives. Topic: Elements of a Marketing Plan

5. An advantage of sales-oriented objectives is that they provide sufficient guidance to those responsible for planning and developing the promotional program. FALSE One problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program. The creative and media people working on the account need some direction as to the nature of the advertising message the company hopes to communicate, the intended audience, and the particular effect or response sought. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

6. Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales. TRUE Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Strategic Marketing Planning

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7. The initial stages, at the base of the communications effects pyramid, are harder to accomplish than those toward the top, such as trial and repurchase. FALSE The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid (or down the funnel). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

8. Critics of communications-oriented objectives argue that it is too difficult to translate a sales goal into a specific communications objective. TRUE Not all marketing and advertising managers accept communications objectives; they say that it is too difficult to translate a sales goal into a specific communications objective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

9. Critics of the purchase funnel feel it should be more linear, and characterized more like a plunge down a slope from awareness to purchase. FALSE Due to the impact of social, digital, and mobile information, the new decision sequence is more akin to a kid browsing at a fair than plunging down a slope. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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10. Under the Defining Advertising Goals for Measured Advertising Results (DAGMAR) approach, an advertising goal involves a communications task that is specific and measurable. TRUE Under the DAGMAR approach, an advertising goal involves a communications task that is specific and measurable. A communications task, as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

11. In his DAGMAR approach to advertising planning, Colley argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). TRUE Good advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

12. DAGMAR is favored by those who argue that the only relevant measure of advertising objectives is sales. FALSE People who argue that the only relevant measure of advertising objectives is sales object to DAGMAR. They have little tolerance for ad campaigns that achieve communications objectives but fail to increase sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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13. An outside-in planning process for IMC is based on a hierarchical response model and considers how marketers can develop and disseminate advertising messages to move consumers along an effects path. FALSE Inside-out planning focuses on what the marketer wants to say, when s/he wants to say it, what the marketer believe is important, and what media the marketer wants to use. On the other hand, outside-in planning starts from the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

14. An inside-out planning process for integrated marketing communications (IMC) starts with the customer and builds backward to the brand. FALSE Inside-out planning process begins with the marketer. It focuses on what the marketer wants to say, when the marketer wants to say it, and about things the marketer believes are important. An outside-in planning process for IMC starts with the customer and builds backward to the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

15. While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision. TRUE While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision. Like the traditional model, marketers need to take specific marketing actions to help the consumer along through the process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Elements of a Marketing Strategy

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16. In the social consumer decision journey, the marketer must continuously monitor to know what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace. TRUE In the social consumer decision journey, the marketer must continuously monitor to know what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace and then respond accordingly. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

17. In the social consumer decision journey, the final objective, amplification, deals with designing the communications program, particularly as it relates to social media, to take the consumer to long-term behavioral changes. FALSE The final objective is lead. It is designed to take the consumers to long-term behavioral changes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

18. In the integrated marketing communications (IMC) model, the flow between the communications analysis and budget determination is a two-way interaction. TRUE In the IMC planning model, flow of the processes is unidirectional, while the flow between the communications analysis and budget determination is a two-way interaction. What this means is that while establishing objectives is an important part of the planning process, the limitations of the budget are important too. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

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19. When times get tough, managers who treat the communications budget as an investment instead of an expense tend to cut down the advertising and promotional budget first. FALSE Most managers treat the communications budget as an expense rather than an investment. As a result, when times get tough, the advertising and promotional budget is the first to be cut—even though there is strong evidence that exactly the opposite should occur. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

20. There is strong, consistent evidence that cutting back on advertising does not hurt sales during and after a recession. FALSE There is strong, consistent evidence that cutting back on advertising can hurt sales during and after a recession. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

21. Marginal analysis assumes that sales are a direct result of advertising and promotional expenditures and that this effect can be measured. TRUE While marginal analysis seems logical intuitively, certain weaknesses limit its usefulness. These weaknesses include the assumptions that (1) sales are a direct result of advertising and promotional expenditures and this effect can be measured and (2) advertising and promotion are solely responsible for sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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22. According to the concave-downward function model, as the amount of advertising decreases, its incremental value increases. FALSE The effects of advertising budgets follow the microeconomic law of diminishing returns. As the amount of advertising increases, its incremental value decreases. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change as a result of the advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

23. If sales are used as a direct measure of response to advertising, products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. TRUE A weakness in attempting to use sales as a direct measure of response to advertising is that various situational factors may have an effect. Products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

24. In the top-down approach, the budgetary amount is established usually at the departmental level. FALSE In top-down approaches, budgetary amount is established usually at an executive level and then the monies are passed down to the various departments. These budgets are essentially predetermined and have no true theoretical basis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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25. In the arbitrary allocation approach to budgeting, systematic thinking occurs and objectives are budgeted for. FALSE The arbitrary allocation approach has no obvious advantages. No systematic thinking has occurred, no objectives have been budgeted for, and the concept and purpose of advertising and promotion have been largely ignored. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

26. The competitive parity method takes advantage of the collective wisdom of the industry. TRUE In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

27. In the objective and task method to budget setting, managers closest to the marketing effort do not have specific strategies to achieve the objective. FALSE The major advantage of the objective and task method is that the budget is driven by the objectives to be attained. The managers closest to the marketing effort will have specific strategies and input into the budget-setting process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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28. One important purpose of setting specific advertising goals and objectives is to A. provide a benchmark against which performance can be measured. B. put constraints on the creative department. C. have a method of determining when to delete products from the product line. D. forecast the market share level that can be attained by good advertising. E. protect all investors and debt holders. An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firm's advertising and promotion efforts accomplished. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Elements of a Marketing Plan

29. Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl-siding cleanser. We can tell him that A. his task is impossible. B. all he needs is the sales results to determine what the program accomplished. C. his task could be made easier by setting specific communication objectives. D. he requires just the post-promotional consumer awareness levels to determine what the program accomplished. E. all he needs to do is measure the effectiveness of the media used for promoting the product. In the above example, we can tell Arden that his task could be made easier by setting specific communication objectives. An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Elements of a Marketing Plan

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30. The more specific the firm's advertising objectives, the A. easier it becomes to measure advertising effectiveness. B. more difficult it is for competitors' advertising to be effective. C. easier it is to measure the advertising-sales response function. D. lesser the funding needed to meet advertising goals. E. more difficult it is for a competitor to use competitive parity budgeting. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Elements of a Marketing Plan

31. Jaden is making a push to shift some of his company's communications budget to mobile, but is met with resistance from his team, who all have different ideas about what they are trying to accomplish with the communications budget, so they are not using objectives to plan or make decisions. Which of the following characterizes the reason for resistance from Jaden's team? A. They recognize the value of specific objectives for their integrated marketing communications program. B. They disagree as to what the specific objectives should be. C. They want to increase emphasis on data-driven marketing spending. D. They believe in behavioral targeting. E. They believe mobile spending is tactical, not strategic. One of the reasons companies fail to set objectives that can be used for planning and decision making is the people at the companies do not agree about the objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion. Topic: Elements of a Marketing Plan

32. Before setting objectives for advertising and promotion, an organization should A. conduct a situation analysis to identify marketing and promotional issues facing the firm. B. develop its media plan and allocate the budget to each media. C. evaluate the effectiveness of the advertising and promotional strategies. D. conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services. E. set its advertising and promotional budgets. Integrated marketing communications objectives should be based on a thorough situation analysis that identifies the marketing and promotional issues facing the company or a brand. The situation analysis is the foundation on which marketing objectives are determined and the marketing plan is developed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives. Topic: Elements of a Marketing Plan

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33. Which of the following is true of marketing objectives? A. The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C. They are stated only in a company's communication plan. D. They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience. E. The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience. Marketing objectives are generally stated in the firm's marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. Marketing objectives are usually defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives. Topic: Elements of a Marketing Plan

34. Which of the following statements best describes the relationship between marketing and communications objectives? A. Marketing objectives and communications objectives are synonymous. B. Marketing objectives evolve from communications objectives. C. Communications objectives are derived from marketing objectives. D. Communications objectives can be developed before the development of marketing objectives. E. Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy. Managers must be able to translate general marketing goals into communications goals and specific promotional objectives. Sometimes companies do not have a formal marketing plan, and the information needed may not be readily available. In this case, the promotional planner must attempt to gather as much information as possible about the product and its markets from sources both inside and outside the company. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives. Topic: Elements of a Marketing Plan

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35. To be effective, marketing objectives need to be A. realistic and attainable. B. erudite and challenging. C. philosophical and fungible. D. unquantifiable. E. elaborate. Good marketing objectives are quantifiable; they delineate the target market and note the time frame for accomplishing the goal (often one year). To be effective, objectives must also be realistic and attainable. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives.

36. Many marketing managers prefer sales-oriented objectives for advertising because they believe that A. the reason a company spends money on advertising and promotion is to sell its products or service. B. the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service. C. the primary role of an IMC program is to communicate. D. objectives should be based on the achievement of communication objectives. E. they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur. To many managers, the only meaningful objective for their promotional program is sales. They take the position that the basic reason a firm spends money on advertising and promotion is to sell its product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

37. According to a recent study by Webmarketing 123 of both business-to-business (B2B) and business-to-consumer (B2C) marketers, while 87 percent of B2B marketers used social media, only ____________ claimed they were able to measure ROI. A. 7 percent B. 17 percent C. 25 percent D. 27 percent E. 35 percent Only 17 percent of B2B marketers who used social media were able to measure its ROI. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

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38. The concept of advertising expenditures producing long-term, rather than immediate, results is known as A. the carryover effect. B. the communication effect. C. the low-involvement effect. D. the halo effect. E. the mirror-image effect. Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales. Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

39. The carryover effect A. has no impact on sales objectives. B. has no effect on the relationship between advertising and sales. C. encourages the use of nonspecific objectives. D. is particularly apparent with mature, low-priced, and frequently purchased products. E. helps in determining the precise relationship between advertising and sales. A review of econometric studies that examined the duration of cumulative advertising effects found that for mature, frequently purchased, low-priced products, advertising's effect on sales lasts up to nine months. Models have been developed to account for the carryover effect of advertising and to help determine the long-term effect of advertising on sales. The carryover effect adds to the difficulty of determining the precise relationship between advertising and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

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40. Which of the following problems is a manager most likely to face if he or she uses sales as a measure of advertising effectiveness? A. Sales results offer little guidance or direction to those responsible for planning and developing the advertising program. B. There is a short, often immeasurable, time period between when advertising is run and when sales actually occur. C. Sales results are affected by no marketing-mix variable other than price and promotion. D. No internal-environmental variables have any significant influence on sales results. E. Sales are generally not considered a good indicator for an IMC program. One problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program. The creative and media people working on the account need some direction as to the nature of the advertising message the company hopes to communicate, the intended audience, and the particular effect or response sought. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

41. For which of the following would an advertiser be most likely to use a sales-oriented objective? A. a direct-response ad for a record album B. a commercial for a new type of electric-powered automobile C. a political announcement D. an antidrug public announcement E. a commercial comparing two telecommunication giants In the above scenario, an advertiser would most likely use a sales-oriented objective for a record album's direct-response ad. Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales. Certain types of promotion efforts are direct action in nature; they attempt to induce an immediate behavioral response from the prospective customer. A major objective of most sales promotion programs is to generate short-term increases in sales. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

42. Direct-response advertisers generally set objectives and measure success in terms of A. brand awareness. B. brand attitudes. C. purchase intentions of the target audience. D. sales response generated by an ad. E. brand equity. Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales. The direct-response advertiser generally sets objectives and measures success in terms of the sales response generated by the ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

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43. Sales-oriented objectives are appropriate for A. all online-marketing strategies. B. retail advertising promoting special events. C. products that have been introduced in highly volatile markets. D. any advertising campaign aimed at maintaining brand awareness. E. bait-and-switch marketing campaigns. Retail advertising, which accounts for a significant percentage of all advertising expenditures, is one area where the advertiser often seeks an immediate response, particularly when sales or special events are being promoted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-03 Discuss sales-oriented objectives. Topic: Sales Forecasting

44. Which of the following is at the base of the communication effects pyramid? A. awareness B. preference C. trial D. purchase E. repurchase Awareness is at the base of the communications pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

45. While moving from the base to the top of the communication effects pyramid, which of the following comes just before repurchase of a product? A. awareness B. comprehension C. trial D. liking E. knowledge While moving from the base to the top of the communication effects pyramid, trial comes just before repurchase of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

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46. While moving from the base to the top of the communication effects pyramid, which of the following comes just before trial of a product? A. knowledge B. preference C. repurchase D. awareness E. comprehension While moving from the base to the top of the communication effects pyramid, preference comes just before trial of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

47. Managers who use the communications effects pyramid to set objectives believe that A. lower-level objectives such as purchase and reuse form the foundation of the communications program. B. the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension. C. advertising and promotion should first accomplish lower-level objectives such as trial and purchase. D. advertising and promotion should first accomplish higher-order objectives, such as trial and purchase, and then create awareness and brand knowledge. E. advertising and promotion cannot accomplish lower-order objectives. Advertising and promotion perform communications tasks in the same way that a pyramid is built, by first accomplishing lower-level objectives such as awareness and knowledge or comprehension. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

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48. Which of the following is at the top of the communication effects pyramid? A. awareness B. knowledge C. liking D. preference E. repurchase Repurchase is at the top of the communication effects pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

49. Encouraging current buyers of Spirit, an energy drink, to drink more of the beverage would be an example of a _____ objective. A. B. C. D. E.

sales-oriented repositioning product development public relations diversification

The above scenario is an example of a sales-oriented objective. Sales-oriented objectives include: (1) increasing the percentage of consumers in the target market who associate specific features, benefits, or advantages with our brand, (2) encouraging current users of the product to use it more frequently or in more situations, etc. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

50. Which of the following statements is true of communications objectives? A. It is difficult to translate sales goals into communications objectives. B. It is always easy to determine the relationship between communications objectives and sales performance. C. Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of promotional programs. D. All marketing and advertising managers accept communications objectives. E. Precise formulas are to be followed when translating sales goals into specific communications objectives. Not all marketing and advertising managers accept communications objectives; some say it is too difficult to translate a sales goal into a specific communications objective. But at some point a sales goal must be transformed into a communications objective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

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51. Which of the following is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A. awareness B. purchase C. familiarity D. consideration E. imagery Purchase is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

52. Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making? A. awareness B. imagery C. consideration D. shopping E. model intention Awareness is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Sales Forecasting

53. With respect to the stages in Russell Colley's hierarchical model of the communication process, the _____ stage deals with developing an understanding of what the product is and what it will do for the consumer. A. conviction B. comprehension C. awareness D. action E. screening Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the comprehension stage deals with developing an understanding of what the product is and what it will do for the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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54. The _____ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company. A. conviction B. screening C. comprehension D. action E. awareness Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. The awareness stage deals with making the consumer aware of the existence of the brand or company. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

55. The _____ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product. A. action B. conviction C. screening D. comprehension E. awareness Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the action stage deals with getting the consumer to purchase the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

56. Which of the following statements is true of communications objectives? A. When setting objectives using the communications effect pyramid, the last step to reach is trial. B. Sales goals cannot be translated into communications objectives. C. Marketing and advertising managers don't usually rely on experience and intuition when setting communications goals. D. Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals. E. Communications objectives are used particularly when the advertiser seeks an immediate response. Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals and objectives, which has become one of the most influential approaches to the advertising planning process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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57. DAGMAR is A. a model for setting advertising goals. B. a philosophy of consumer behavior. C. a method of setting sales objectives. D. a tool used to measure financial assets. E. an attitude measurement device. Colley developed the DAGMAR model for setting advertising objectives and measuring the results of an ad campaign. The major thesis of this model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

58. _____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured. A. SOSTAC B. The hierarchy of effects model C. The BCG matrix D. The Ansoff matrix E. DAGMAR The major thesis of the DAGMAR model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

59. According to DAGMAR, the basic function of advertising is to A. create sales. B. communicate. C. increase market share. D. eliminate competition. E. change consumer behavior. The major thesis of the DAGMAR model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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60. Under the DAGMAR model, a _____ can be performed by, and attributed to, advertising rather than to a combination of marketing factors. A. human resources task B. financial task C. communications task D. marketing task E. product production task Under the DAGMAR approach, an advertising goal involves a communications task that is specific and measurable. A communications task, as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

61. According to the criteria outlined in DAGMAR, which of the following makes the best quantitative communications objective? A. "Increase product users to 40 percent of the total market." B. "Double the production budget, hire more assembly workers, and double the production speed in one year." C. "Increase the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent in one year." D. "Increase awareness of the brand in one year." E. "Increase sales revenue by 10 percent." Increasing the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent in one year is the best example of a quantitative communications objective. Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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62. According to DAGMAR, advertising objectives should be written in measurable terms that specify A. a communications task, a target market, a benchmark starting point, a time period, and the degree of change sought. B. a budget, a message strategy, a media plan, and the degree of carryover effect desired. C. the reach, frequency, and point of wearout for the advertising messages. D. the purchase motives, demographic composition, and buying habits of the target market. E. sales potentials, market share, return on investment, and budget forecasts. Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

63. According to the DAGMAR model, which of the following is a characteristic of a good objective? A. A good objective is elaborative in nature. B. A good objective specifies the target audience. C. A good objective avoids specifying a time period. D. A good objective specifies the current market share. E. A good objective is based only on sales results. Russell Colley, the founder of DAGMAR, argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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64. An airline company set the following objective for its new advertising campaign: "To increase the percentage of consumers who know our fares are lower than the competitors' to 75 percent over the next six months." Using the criteria outlined by the DAGMAR approach to setting objectives, identify what is wrong with this objective. A. It is not a concrete statement of what message the airline wants to communicate. B. It does not contain a benchmark starting point and the degree of change sought. C. It does not specify a specific time period for accomplishing the objective. D. It does not specify a well-defined target audience. E. It fails to utilize the IMC process. Colley argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective(s). In the above scenario, the objective does not contain a benchmark starting point and the degree of change sought. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

65. Jeremiah asked his team to determine what communications tasks needed to be done and what communications functions should be used, and to what extent. He was asking his team to use a(n) ___________________________ approach to IMC. A. zero-based communications planning B. outside-in planning C. inside-out planning D. spiral planning E. social consumer planning Zero-based communications planning focuses on the task to be done and searches for the best ideas and media to accomplish it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

66. Determining a target market's present level of awareness and knowledge of, and liking for, a product often requires _____ measures. A. benchmark B. sales interval C. secondary D. frequency E. reach Determining the target market's present position regarding the various response stages requires benchmark measures. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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67. Before beginning its new advertising campaign, Capital Bank conducted a study to determine its clients' levels of awareness and knowledge of the bank and its services, as well as their perceptions of the bank's image. This was done to A. communicate advertising goals. B. communicate tasks. C. establish benchmark measures. D. communicate DAGMAR objectives. E. establish marketing research goals. In the above scenario, Capital Bank was trying to establish benchmark measures. Determining the target market's present position regarding the various response stages requires benchmark measures. It often involves conducting a market research study to determine prevailing levels of the response hierarchy. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

68. For which of the following advertising communication tasks should the specified time period be the longest? A. creating brand awareness B. increasing brand awareness levels C. creating knowledge of a brand attribute D. increasing knowledge levels of a brand attribute E. repositioning a brand Awareness levels for a brand can be created or increased fairly quickly through an intensive media schedule of widespread, repetitive advertising to the target audience. Repositioning of a product requires a change in consumers' perceptions and takes much more time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

69. The DAGMAR approach to setting objectives has A. a negligible effect on the advertising planning process. B. focused advertisers' attention on the value of using communications objectives rather than sales objectives. C. never been criticized because it focuses on the hierarchy of effects model. D. increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed. E. been successful because it is easy to implement. DAGMAR focused advertisers' attention on the value of using communications-based rather than sales-based objectives to measure advertising effectiveness and encouraged the measurement of stages in the response hierarchy to assess a campaign's impact. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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70. DAGMAR MOD II was developed to alleviate problems with A. the response hierarchy used in the original DAGMAR model. B. the costs of using DAGMAR. C. the fact that DAGMAR ignores sales results. D. setting benchmark measures. E. creating measurable communications objectives. A major criticism of the DAGMAR approach is its reliance on the hierarchy of effects model. DAGMAR MOD II recognizes that the appropriate response model depends on the situation and emphasizes identifying the sequence of decision-making steps that apply in a buying situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

71. Which of the following is considered a major criticism of the DAGMAR approach? A. its belief that the only relevant measure of advertising objectives is sales B. its focus on using sales-based objectives rather than communications-based objectives C. its inability to define what constitutes a good advertising objective D. its reliance on the hierarchy of effects model E. its lack of concern with the quantitative assessment of the impact on awareness A major criticism of the DAGMAR approach is its reliance on the hierarchy of effects model. The fact that consumers do not always go through this sequence of communications effects before making a purchase has been recognized, and alternative response models have been developed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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72. Robert is working in the advertising department of a large consumer-product company. He suggests that the company use the DAGMAR approach for setting advertising goals. Which of the following statements is Robert likely to hear as an argument against the use of the DAGMAR approach? A. Sales-oriented goals should be the measure of advertising effectiveness rather than communications objectives. B. The DAGMAR approach is too creative and leads to difficulty in understanding. C. DAGMAR can be quite expensive due to research costs and is, therefore, not suitable for large companies. D. DAGMAR is too concerned with quantitative assessment of a campaign's impact on awareness. E. DAGMAR is appropriate only in the case of direct-response advertising. In the above scenario, Robert is likely to hear that DAGMAR is too quantitative for most managers to understand. Many creative personnel think the DAGMAR approach is too concerned with quantitative assessment of a campaign's impact on awareness, brand-name recall, or specific persuasion measures. The emphasis is on passing the numbers test rather than developing a message that is truly creative and contributes to brand equity. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

73. Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it A. puts too much emphasis on the quantitative assessment of an advertising campaign. B. requires that speculative presentations be created and used to set benchmark measures. C. is only successful if it develops a message that contributes to brand equity. D. does not provide any type of communications guidelines. E. is too concerned with qualitative assessments of an advertising campaign. Many creative personnel think the DAGMAR approach is too concerned with quantitative assessment of a campaign's impact on awareness, brand-name recall, or specific persuasion measures. The emphasis is on passing the numbers test rather than developing a message that is truly creative and contributes to brand equity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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74. According to Professor Don Schultz, inside-out planning A. focuses on what the marketer wants to say, when the marketer wants to say it, and the media the marketer wants to use. B. is another term for zero-based communications planning. C. starts with the customer and builds backward to the brand when developing an IMC program. D. is a method of implementing DAGMAR objectives. E. is used to forecast the validity of DAGMAR objectives. According to Professor Don Schultz, inside-out planning "focuses on what the marketer wants to say, when the marketer wants to say it, things the marketer believes are important about his or her brand, and in the media forms the marketer wants to use." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

75. According to Professor Don Schultz, outside-in planning A. focuses on what the marketer wants to say, when the marketer wants to say it, and the media the marketer wants to use. B. is another term for zero-based communications planning. C. starts with the customer and builds backward to the brand when developing an IMC program. D. is a method of implementing DAGMAR objectives. E. is used to forecast the validity of DAGMAR objectives. Schultz advocates an outside-in planning process for IMC that starts with the customer and builds backward to the brand. This means that promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when they are likely to be most receptive to the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

76. _____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them. A. The objective/task pyramid B. DAGMAR C. The BCG matrix D. Zero-based communications planning E. Refutation planning Zero-based communications planning involves determining what tasks need to be done and which marketing communications functions should be used and to what extent. This approach focuses on the task to be done and searches for the best ideas and media to accomplish it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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77. According to Duncan's zero-based marketing communications planning approach A. advertising should always be the main tool for accomplishing marketing communications objectives. B. sales promotion is usually the best tool for accomplishing marketing communications objectives. C. big ideas for a promotional campaign are typically based on public relations, advertising, sales promotion, or media advertising. D. integrated marketing communications programs should lead with the promotional function that least effectively addresses a company's communication problem or opportunity. E. managers should focus on what the customer wants and work backward to the brand. The zero-based communications planning approach focuses on the task to be done and searches for the best ideas and media to accomplish it. The promotional planner should determine what role various sales promotion techniques, publicity and public relations, direct marketing, the Internet, and personal selling will play in the overall marketing program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

78. According to Don Schultz, in which type of communications planning process do the promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when customers are likely to be most receptive to the message? A. zero-based communications planning B. inside-out planning C. outside-in planning D. the carryover process E. the recency process Don Schultz advocates an outside-in planning process for IMC that starts with the customer and builds backward to the brand. This means that promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when they are likely to be most receptive to the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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79. In the social consumer decision journey, _____ deals with designing the communications program. A. benchmarking B. monitoring C. amplification D. leading E. responding In the social consumer decision journey, amplification deals with designing the communications program—particularly as it relates to social media—to foster engagement and sharing, as well as loyalty. The objective of amplifying is to get consumers more involved in the brand, extending the experience the brand has to offer, and have them communicate their positive experiences to others in the social network. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

80. In the social consumer decision journey, which of the following objectives is designed to take the consumer to long-term behavioral changes? A. respond B. amplify C. monitor D. lead E. benchmark With respect to objectives and strategies in the social consumer decision journey, the final objective, lead, is designed to take the consumer to long-term behavioral changes. At the early stages of the process, it may simply include creating more brand awareness. Later in the process, lead may be designed to create buzz or promote time-sensitive issues like sales or promotions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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81. In the social consumer decision journey, which of the following objectives deals with marketers reacting to specific issues regarding the product or brand at a personal level? A. monitor B. respond C. benchmark D. lead E. amplify With respect to the objectives and strategies in the social consumer decision journey, the second objective, respond, deals with marketers responding to specific issues at a personal level. Responses may be positive in nature (customer service or sales leads) or (more likely) be part of crisis management, dealing with negative issues regarding the product or brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

82. In the social consumer decision journey, which of the following objectives involves the marketer being aware of what is being said online about the product or brand to gain insights into how it is being perceived in the marketplace and then responding accordingly? A. monitor B. benchmark C. lead D. respond E. amplify With respect to objectives and strategies in the social consumer decision journey, the first objective, monitor, deals with the marketer knowing what is being said online about the product or brand to gain insights as to how it is being perceived in the marketplace and then responding accordingly. This process, according to the model, must take place continuously. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs. Topic: Strategic Marketing Planning

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83. According to the IMC planning model, the flow between communications analysis and budget determination is _____ A. a two-way interaction. B. nonlinear. C. unidirectional. D. diagonal. E. top-down. According to the IMC planning model, the flow between the communications analysis and budget determination is a two-way interaction. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

84. According to Robert Steiner, which of the following terms is synonymous with contribution margin? A. asset allocation B. net worth C. financial optimization D. marginal analysis E. capital margin Contribution margin is the difference between the total revenue generated by a brand and its total variable costs. Robert Steiner says that marginal analysis and contribution margin are essentially synonymous terms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

85. In the case of the marginal-analysis approach, profits are shown to be a result of A. advertising expenditure minus sales. B. sales minus advertising expenditures. C. gross margin minus advertising expenditures. D. gross margin minus sales. E. net worth minus sales. According to the concept of marginal analysis, as advertising/promotional expenditures increase, sales and gross margins also increase to a point, but then they level off. Profits are shown to be a result of the gross margin minus advertising expenditures. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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86. Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget? A. It is unsuitable as a basis for budgeting only in the case of direct-response advertising. B. It only considers environmental factors that affect the effectiveness of the promotional program. C. The budget is often set according to the FIFO method. D. The budget is determined by management solely on the basis of what is felt to be necessary. E. It assumes that sales are determined solely by advertising and promotion. The marginal analysis approach assumes that sales are determined solely by advertising and promotion. However, it ignores the fact that environmental factors may also affect the promotional program, leading the marketing manager to assume the advertising was or was not effective when some other factor may have helped or hindered the accomplishment of the desired objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

87. The two models that are commonly used to explain the relationship between advertising and sales are the A. concave-downward function and the S-shaped response function. B. S-shaped response function and the concave-upward function. C. marginal utility function and the S-shaped demand function. D. S-shaped demand function and the contribution margin function. E. concave-upward function and the S-shaped demand function. The relationship between advertising and sales has been the topic of much research and discussion designed to determine the shape of the response curve. Almost all advertisers subscribe to one of two models of the advertising/sales response function: the concave-downward function or the S-shaped response curve. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

88. According to the _____ model, the effects of advertising budgets follow the microeconomics law of diminishing returns. A. concave-upward B. S-shaped demand C. S-shaped response D. marginal utility E. concave-downward According to the concave-downward function model, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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89. According to the concave-downward function A. the incremental value of advertising increases. B. creativity is the primary advertising function. C. advertising is unlikely to be effective as a short-term solution. D. as the amount of advertising increases, its incremental value decreases. E. the effects of advertising do not diminish quickly. According to the concave-downward function, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

90. Which of the following companies increased advertising spending by $1 billion during 2010, at the height of the recession, with an emphasis on campaigns for Gillette Fusion ProGlide razors, Pantene shampoo, and the launch of Pampers Dry Max diapers? A. Procter and Gamble B. Kraft C. General Mills D. Kmart E. Unilever Procter and Gamble's increase in advertising expenditures during the recession resulted in an increase of 4 share points in men's shaving, 0.5 point in shampoo, and an increase of 1.5 share points for Pampers across all marketing channels. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

91. The concave-downward function model is based on A. the microeconomics law of diminishing returns. B. the economic law of supply and demand. C. price elasticity of demand quotients. D. the change in contribution margins as item price is changed. E. perceptual mapping results. According to the concave-downward function model, the effects of advertising budgets follow the microeconomic law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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92. During the last recessionary period in the United States, ______ percent of marketers indicated they had plans to reduce their advertising budgets. A. 90 B. 77 C. 53 D. 20 E. 7 A downturn in the economy leads to spending cutbacks. Unfortunately, one of the first areas to feel the pain of these cutbacks is marketing—particularly advertising. Take the last recessionary period experienced in the United States as an example. In a survey conducted at that time by the Association of National Advertisers, a staggering 77 percent of marketers indicated that they had plans to reduce their advertising media budgets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 07-05 Describe the process of budgeting for IMC. Topic: Promotion Budget

93. The S-shaped response function implies that A. initial advertising expenditures will have little impact on sales. B. initial advertising expenditures will have major impact on sales. C. sales effects will follow the microeconomic law of diminishing returns. D. small advertising budgets have a high impact on sales when word of mouth is the only promotional tool used. E. small advertising budgets have a high impact on sales when public relations is the only promotional tool used. As per the S-shaped response function, initial outlays of the advertising budget have little impact. After a certain budget level has been reached, advertising and promotional efforts begin to have an effect, as additional increments of expenditures result in increased sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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94. According to the concave-downward model A. the effects of advertising quickly begin to diminish. B. the carryover effect is especially true for low-priced, frequently purchased consumer products. C. sales decrease rapidly if the price is too high. D. initial outlays of the advertising budget have little impact on sales. E. sales are not directly related to the size of the advertising budget. According to the concave-downward function model, the effects of advertising quickly begin to diminish. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change as a result of the advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

95. The S-shaped response curve suggests that A. advertising effectiveness will not be related to spending. B. extremely low advertising budgets will not work. C. advertising effectiveness will vary inversely with the spending levels. D. the carryover effect is especially true for low-priced, frequently purchased consumer products. E. sales and spending on advertising are not directly related. The S-shaped response model suggests a small advertising budget is likely to have no impact beyond the sales that may have been generated through other means such as word of mouth. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

96. Which of the following factors creates a positive relationship between advertising and sales? A. the market share of the company B. the corporate structure C. the basis for product differentiation D. the extent of selective retention E. the recruitment plans The basis for product differentiation creates a positive relationship between advertising and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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97. According to the factors influencing advertising budgets, which of the following stages of the product life cycle negatively influences the advertising budget? A. introduction B. maturity C. growth D. reinvestment E. research The product life cycle generally involves four stages which are introduction, growth, maturity, and decline. The maturity and decline stages of the product life cycle negatively influence the setting of the advertising budget. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

98. According to the factors influencing advertising budgets, which of the following stages of the product life cycle leads to a positive effect of advertising on sales? A. alteration B. maturity C. introduction D. decline E. harvesting The product life cycle generally involves four stages: introduction, growth, maturity, and decline. The introductory and growth stages of the product life cycle positively influence the setting of the advertising budget. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

99. Which of the following strategy factors leads to a positive effect of advertising on sales? A. hidden product qualities B. elasticity in demand C. long channels of distribution D. emotional buying motives E. inelastic product demand Long channels of distribution are one of the strategy factors that lead to a positive effect of advertising on sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting. Topic: Promotion Budget

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100. When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a _____ approach is being used. A. nominal group B. marginal contribution C. top-down D. Delphi E. focus group In case of top-down approaches, the budgetary amount is established (usually at an executive level) and then the monies are passed down to the various departments. These budgets are essentially predetermined and have no true theoretical basis. Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity, and return on investment (ROI). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

101. The _____ method of budgeting is being employed when expenditure is allocated by an analysis of expenditure in areas such as production and operations, and the amount left over is considered to be the advertising budget. A. arbitrary allocation B. percentage of sales C. affordable D. return on investment E. competitive parity In the affordable method, the firm determines the amount to be spent in various areas such as production and operations. Then it allocates what's left to advertising and promotion, considering this to be the amount it can afford. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

102. According to the promotional budgeting approaches, which of the following is an example of a top-down approach? A. the razor and blades method B. the bricks and clicks method C. the competitive parity method D. the objective and task method E. the payout planning method Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity, and return on investment (ROI). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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103. We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where." A. arbitrary allocation B. percentage of sales C. contribution margin D. return on investment E. competitive parity The above scenario is an example of the arbitrary allocation method. It is a weaker method than the affordable method for establishing a budget; virtually no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

104. Which top-down budgeting method is being employed when the budget is determined based on what is felt to be necessary? A. arbitrary allocation B. percentage of sales C. affordable method D. payout planning E. competitive parity A weaker method than the affordable method for establishing a budget is arbitrary allocation, in which virtually no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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105. Which of the following is true of the arbitrary allocation method? A. This method is not considered to be particularly weak. B. This method keeps ad spending within reasonable limits. C. This method uses a logical basis for determining the budgets. D. This method of budgeting is generally stable. E. This method has no obvious advantages. The arbitrary allocation approach has no obvious advantages. No systematic thinking has occurred, no objectives have been budgeted for, and the concept and purpose of advertising and promotion have been largely ignored. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

106. The most commonly utilized method of budget determination by large firms is the A. competitive parity method. B. objective and task method. C. percentage-of-sales method. D. arbitrary allocation method. E. affordable method. Perhaps the most commonly used method for budget setting (particularly in large firms) is the percentage-of-sales method, in which the advertising and promotions budget is based on sales of the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

107. The _____ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold. A. arbitrary allocation B. percentage-of-sales C. objective and task D. return on investment E. competitive parity In case of the percentage-of-sales method, management determines the budget amount by either (1) taking a percentage of the sales dollars or (2) assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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108. In the _____ method to budgeting, sales are projected for the coming year based on the marketing manager's estimates. A. competitive parity B. objective and task C. unit cost production D. straight-percentage E. arbitrary In the straight-percentage method, sales are projected for the coming year based on the marketing manager's estimates. The budget is a percentage of these sales, often an industry standard percentage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

109. Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand, easy to implement, financially safe, and keeps the spending within reasonable limits? A. competitive parity B. marginal analysis C. percentage of sales D. objective and task E. arbitrary Proponents of the percentage-of-sales method cite a number of advantages. It is financially safe and keeps ad spending within reasonable limits. The percentage-of-sales method is simple, straightforward, and easy to implement. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

110. Which of the following is true of the percentage-of-sales method? A. It is financially unsafe. B. It is tough to implement. C. It is simple and straightforward. D. It is synonymous with the arbitrary allocation method. E. It is synonymous with the affordable method. Proponents of the percentage-of-sales method cite a number of advantages. It is financially safe and keeps ad spending within reasonable limits. The percentage-of-sales method is simple, straightforward, and easy to implement. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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111. Which of the following is a major problem associated with the percentage-of-sales method? A. It reverses the cause-and-effect relationship between advertising and sales. B. It is financially unsafe. C. It is extremely tough to implement. D. It is used only by firms that do not understand the role of advertising and promotions. E. It has no theoretical basis, and the budgetary amount is often set using a flat rate. The percentage-of-sales method has some serious disadvantages; letting the level of sales determine the amount of advertising and promotions dollars to be spent reverses the cause-and-effect relationship between advertising and sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

112. To set an advertising budget, a marketer of filing cabinets examines advertising-to-sales ratios published in trade magazines and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed? A. competitive parity and percentage-of-sales methods B. competitive parity and payout planning methods C. payout planning and percentage-of-sales methods D. percentage-of-sales and objective and task methods E. payout planning and arbitrary allocation methods The above scenario exemplifies the competitive parity and percentage-of-sales methods. In the case of the percentage-of-sales method, management determines the budget amount by taking a percentage of the sales dollars. In the case of the competitive parity method, marketing managers set their advertising and promotions budgets on the basis of what their competitors allocate. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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113. The _____ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as take advantage of the collective wisdom of the industry. A. ROI B. affordable C. percentage-of-sales D. competitive parity E. objective and task In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. It also takes the competition into consideration, which leads to stability in the marketplace by minimizing marketing warfare. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

114. When using the competitive parity method to budgeting, the firm A. matches its percentage-of-sales expenditures with those of others in the market/industry. B. spends as much as it can. C. allocates some portion of planned sales for the period to advertising. D. spends the same total amount as its major competitors spend. E. bases its advertising and promotion expenditures on sales. In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

115. Which of the following budgeting methods requires a marketing manager to use input from a clipping service? A. ROI method B. arbitrary allocation method C. percentage-of-sales method D. competitive parity method E. objective and task method In the case of the competitive parity method, smaller companies often use a clipping service, which clips competitors' ads from local print media, allowing the company to work backward to determine the cumulative costs of the ads placed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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116. The _____ method of budgeting is being employed when expenditures are allocated based on the industry averages of advertising expenditures. The budget is set to maintain a level consistent with industry spending. A. arbitrary allocation B. percentage-of-sales C. objective and task D. return on investment E. competitive parity In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

117. Which of the following is an advantage of the competitive parity method? A. It makes use of the buildup approach to establishment of promotional budgets. B. It leads to stability in the marketplace by minimizing marketing warfare. C. It is based on the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities. D. It gives due recognition to the contributions of creative executions and/or media allocations. E. Under this method, the budget is driven by the objectives to be attained. The competitive parity method takes the competition into consideration, which leads to stability in the marketplace by minimizing marketing warfare. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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118. A disadvantage of the _____ method is its assumption that the programs of firms with similar promotional expenditures will be equally effective. A. return on investment B. affordable C. competitive parity D. objective and task E. payout planning The competitive parity method has a number of disadvantages. For one, it ignores the fact that advertising and promotions are designed to accomplish specific objectives by addressing certain problems and opportunities. Second, it assumes that because firms have similar expenditures, their programs will be equally effective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

119. In the _____ method of budget determination, advertising is considered an investment, similar to plant and equipment. A. payout planning B. objective and task C. ROI budgeting D. competitive parity E. percentage-of-sales In the ROI budgeting method, advertising and promotions are considered investments, like plant and equipment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

120. Top-down budgeting methods are commonly used because of A. their effectiveness. B. the upper management's desire for control. C. the growing availability of computer simulations. D. the ease with which a manager can assess the impact of sales on ROI. E. their quantitative nature. Tradition and top management's desire for control are probably the major reasons why top-down methods continue to be popular. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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121. Which of the following allocation methods makes use of a buildup approach to setting budgets? A. percentage-of-sales B. arbitrary allocation C. competitive parity D. objective and task E. affordable The objective and task method of budget setting uses a buildup approach consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. The total budget is based on the accumulation of these costs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

122. Defining the communications goals to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting. A. B. C. D. E.

competitive parity payout planning return on captial return on investment objective and task

The objective and task method of budget setting uses a buildup approach consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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123. The first task in the objective and task method of budgeting is to A. conduct a system analysis. B. create an organizational budget. C. isolate advertising objectives. D. determine what tasks need to be accomplished. E. reevaluate objectives. The first step in the objective and task method of budget setting is to isolate the objectives. When the promotional planning model is presented, a company will have two sets of objectives to accomplish—the marketing objectives for the product and the communications objectives. After the former are established, the task involves determining what specific communications objectives will be designed to accomplish these goals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

124. According to James O. Peckham, which of the following statements provides a good rule of thumb for a company setting the advertising budget for a new product? A. B. C. D. E.

Its advertising budget should be twice the desired market share. Its advertising budget should be equal to that of the largest market shareholder in the product category. Its advertising budget should be as much as the firm can afford. Its advertising budget should be 10 percent greater than the average budget planned for the entire payout period. Its advertising budget should be less than that needed to maintain the desired market share.

After studying more than 40 years of Nielsen figures, James O. Peckham estimated that the average share of advertising to sales ratio necessary to launch a new product successfully is approximately 1.5:2.0. This means that a new entry should be spending at approximately twice the desired market share. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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125. The objective and task method is most difficult to use when A. the product to be promoted is intangible and in the maturity stage of its product lifecycle. B. the product to be promoted is in the decline stage of its product lifecycle. C. the product to be promoted is a cash cow. D. the product to be promoted is new to the market. E. the product is typically tied to after-sales service. The objective and task method offers advantages over methods discussed earlier but is more difficult to implement when there is no track record for the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

126. A(n) _____ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation. A. payout plan B. instant rebate C. profit chart D. beat-sheet E. incentive program To determine how much to spend, marketers often develop a payout plan that determines the investment value of the advertising and promotion appropriation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

127. As a tool for budget allocation, multiple regression analysis is most often employed in budget models using A. computer simulations. B. competitive parity. C. arbitrary allocations. D. percentage of sales. E. downward curves. Computer simulation models involve statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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128. Which of the following is a quantitative model used to budget advertising expenditures? A. ROI budgeting model B. competitive parity model C. computer simulation model D. arbitrary allocation model E. percentage-of-sales model Attempts to apply quantitative models to budgeting have met with limited success. For the most part, these methods employ computer simulation models involving statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

129. As a result of economies of scale, smaller advertisers A. are likely to enjoy more favorable advertising time and space than large advertisers. B. have declining average costs of production. C. get higher advertising rates than large advertisers. D. can maintain advertising expenditure shares that are smaller than their market shares. E. can accrue the advantages of advertising several products jointly. Due to economies of scale, firms and/or brands maintaining a large share of the market have an advantage over smaller competitors and thus can spend less money on advertising and realize a better return. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

130. As a result of _____, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly. A. economies of scale B. differential advertising advantages C. competitive parity D. a concave-downward response E. multiple advertising channels Larger advertisers can maintain advertising shares that are smaller than their market shares because they get better advertising rates, have declining average costs of production, and accrue the advantages of advertising several products jointly. These advantages are known as economies of scale. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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131. As a result of economies of scale, large advertisers A. are likely to enjoy more favorable advertising time and space than smaller advertisers. B. get lower advertising rates than smaller advertisers. C. accrue the disadvantages of advertising several products jointly. D. have higher average costs of production. E. must spend more money on advertising to realize a better return. Due to economies of scale, large advertisers are likely to enjoy more favorable time and space positions, cooperation of middle people, and favorable publicity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

132. Forrest, the CMA of Acme Widgets Corp., sets the spending limit for his teams and requires all spending to stay within the promotional budget. What type of budgeting is being used by Widgets Corp.? A. bottom-up budgeting B. top-down budgeting C. the affordable method of budgeting D. the arbitrary allocation method of budgeting E. the percentage-of-sales method of budgeting In top-down approaches, the budgetary amount is established at an executive level and monies are passed down to various departments. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 07-07 Compare different methods of setting budgets. Topic: Promotion Budget

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Chapter 07 Test Bank 01/11/2017 16:37:07 Summary Category-# of Questions AACSB: Analytical Thinking-122 AACSB: Reflective Thinking-10 Accessibility: Keyboard Navigation-131 Blooms: Apply-14 Blooms: Remember-80 Blooms: Understand-38 Difficulty: 1 Easy-79 Difficulty: 2 Medium-45 Difficulty: 3 Hard-8 Learning Objective: 07-01 Discuss the value of setting objectives for advertising and promotion.-6 Learning Objective: 07-02 Describe the relationship between promotional objectives and marketing objectives.-6 Learning Objective: 07-03 Discuss sales-oriented objectives.-10 Learning Objective: 07-04 Compare the value of sales objectives and communications objectives as goals for promotional programs.-50 Learning Objective: 07-05 Describe the process of budgeting for IMC.-6 Learning Objective: 07-06 Compare the economic and sales response perspectives on budgeting.-17 Learning Objective: 07-07 Compare different methods of setting budgets.-37 Topic: Elements of a Marketing Plan-9 Topic: Elements of a Marketing Strategy-1 Topic: Promotion Budget-60 Topic: Sales Forecasting-21 Topic: Strategic Marketing Planning-39

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Chapter 08 Test Bank Student: ___________________________________________________________________________ 1. Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention. True False

2. Divergence refers to the extent to which the various elements of an ad are meaningful, useful, or valuable to the consumer. True False

3. Ads for products such as fashionable clothing, jewelry, and liquor often provide specific product information rather than relying on visual images to deliver their message. True False

4. Many creative people follow proven formulas when creating ads because they are safe. True False

5. The "suits" argue that the most important thing good advertising does is make an emotional connection with consumers. True False

6. Creativity is not the exclusive domain of those who work in the creative department of ad agencies. True False

7. According to Young's model of the creative process, the stage of digestion involves the process of gathering material and information through research. True False

8. According to Young's model of the creative process, studying the idea to see if it still looks good then shaping the idea to practical usefulness occurs in the last stage of verification. True False

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9. Observations made on trends, developments, and happenings in the marketplace are part of general preplanning input. True False

10. Focus group interviews bring creative people and others involved in creative strategy development into contact with customers. True False

11. Generally, creative people are not open to research or information that could help them understand the client's target market better. True False

12. Viewer reaction profiles are usually used in the incubation stage of the creative process. True False

13. Viewer reaction profiles are usually used in the incubation stage of the creative process. True False

14. Advertisement campaign plans are long term in nature. True False

15. In large agencies, an individual from the research department is likely to prepare the creative brief. True False

16. Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention. True False

17. Slogans are a key element of a brand's identity, as they can enhance a brand's image, aid in its recognition and recall, and help differentiate it in the minds of consumers. True False

18. The unique selling proposition (USP) must be one that the competition either cannot or does not offer. True False

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19. Positioning is not preferred by a firm that has multiple brands competing in the same market. True False

20. The challenge of developing creative advertising that captures the attention of consumers has become greater with the spread of new media. True False

21. With respect to advertising messages, which of the following best defines creative strategy? A. It involves determining what the advertising message will say or communicate. B. It involves determining how much the advertising campaign will cost. C. It involves determining the number of creative personnel required for the advertising campaign. D. It deals with optimizing the budget for online advertising campaigns. E. It deals with avoiding factors that lead to divergence in advertising creativity.

22. Which of the following is true of creative tactics in relation to advertising messages? A. They deal with avoiding the creation of animatics for testing a commercial. B. They involve determining how much the advertising campaign will cost. C. They involve determining how the message strategy will be executed. D. They deal with avoiding the factors which lead to divergence in advertising creativity. E. They involve determining what the advertising message will say or communicate.

23. Which of the following creativity combinations is the least effective, as it relates to sales uplift relative to average effectiveness? A. flexibility and artistic value B. flexibility and synthesis C. originality and synthesis D. elaboration and artistic value E. originality and elaboration

24. Which of the following statements is true of the use of creativity in an advertising campaign? A. Because most advertising is unique, creativity is not enough to break through the clutter. B. Creative advertising always has a positive impact on sales. C. Creative advertising that lacks flexibility and artistic value may have a greater impact on the target audience than advertising that is flexibile and artistic. D. The nature of advertising requires that everyone involved in the promotional planning process understand the creative strategy. E. The users of creative advertising must avoid using big ideas and unique selling propositions in their advertising campaigns.

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25. Which of the following statements about creative strategy and its execution is true? A. A good creative strategy and execution guarantees a brand will exceed its sales objectives. B. A good creative strategy never fails in reviving a declining brand. C. Ads that are highly creative may not increase sales of a brand. D. Companies have no trouble coming up with creative advertising that differentiates their brands from the competition. E. Good creative strategy cannot help a struggling brand regain its former prominence.

26. Ads are often called _____ A. animatics. B. heuristics. C. creative. D. art infusions. E. mnemonics.

27. The people who develop ads and commercials are known as _____ A. mnemonics. B. animatics. C. copy makers. D. creative types. E. media planners.

28. Which of the following statements is true according to the Hirschman study of creative people in advertising? A. They view ads as promotional tools whose primary purpose is to communicate favorable impressions to the marketplace. B. They are more risk-averse than brand managers. C. They prefer making conservative commercials. D. They believe a commercial should be evaluated in terms of whether it fulfills the client's marketing and communication objectives. E. They want to maximize the impact of the advertising message.

29. A study by Elizabeth Hirschman that examined the perceptions of individuals involved in the creation and production of television commercials found that A. product managers view advertising from an aesthetic perspective. B. account executives view advertising as a promotional tool whose primary purpose is to communicate favorable impressions about a brand. C. art directors and copywriters are more risk-averse than brand managers. D. brand managers prefer creative commercials that take risks. E. art directors and copywriters evaluate advertising on the basis of how well it fulfills predefined communications objectives.

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30. Based on the findings of the study conducted by Elizabeth Hirschman, which of the following individuals is most likely to be risk-averse and prefer commercials that focus on the product rather than creative impact? A. brand managers B. art directors C. copywriters D. commercial directors E. illustrators

31. Which of the following statements supports the reason why a marketer might want to emphasize creativity in the development of an advertising campaign? A. Creative advertisements can avoid novelty in terms of divergence. B. Creative advertising can break through the clutter and make an impression on buyers. C. Creative advertisements always favor divergence over relevance. D. Creative advertising is effective even if it is irrelevant to the target audience. E. Creative advertising helps in winning awards, which always leads to an increase in sales.

32. _____ is the ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communication problems. A. Brand stretching B. Brand parity C. Visual merchandising D. Product differentiation E. Advertising creativity

33. Which of the following best defines fluency? A. the ability to detect problems associated with the creative strategies B. the extent to which an ad contains elements that are novel and different C. the ability to generate a large number of ideas around a creative idea D. the degree to which various elements of the ad are valuable to the customer E. the ability to select the appropriate target market for a particular product or service

34. Who among the following was responsible for identifying the major factors that could account for the ways divergence can be achieved in advertising? A. Leo Burnett B. Robert Smith C. Rosser Reeves D. David Ogilvy E. Sigmund Freud

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35. Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain different ideas or switch from one perspective to another? A. elaboration B. synthesis C. flexibility D. relevance E. artistic value

36. Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated, or sophisticated? A. originality B. flexibility C. elaboration D. artistic value E. synthesis

37. With respect to the five factors identified by Robert Smith and his colleagues that account for the ways divergence can be achieved in advertising, the factor that deals with ads that contain attractive shapes and colors is referred to as A. synthesis. B. illumination. C. originality. D. artistic value. E. flexibility.

38. Which of the following is a major determinant of creativity that reflects the degree to which various elements of an ad are meaningful, useful, or valuable to the consumer? A. divergence B. delusion C. relevance D. illumination E. risk aversion

39. According to Robert Smith, the two ways in which relevance can be achieved are A. ad-to-brand relevance and brand-to-ad relevance. B. ad-to-producer relevance and brand-to producer relevance. C. ad-to-producer relevance and brand-to-consumer relevance. D. ad-to-consumer relevance and brand-to-producer relevance. E. ad-to-consumer relevance and brand-to-consumer relevance.

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40. Pluto Inc., a cosmetics company, hired a well-known movie star to appear in its advertisements. The company hoped that using a celebrity would capture the attention and interest of consumers. In this scenario, the ad illustrates the application of A. ad-to-consumer relevance. B. brand-to-consumer relevance. C. brand-to-producer relevance. D. inherent drama strategy. E. bait-and-switch advertising strategy.

41. The "Got Milk?" campaign, which has been running for nearly two decades, was developed to achieve _______________, or the ability to generate a variety of messages around a creative idea. A. artistic value B. divergence C. fluency D. synthesis E. originality

42. Which of the following statements about the relevance of ads is true? A. Brand-to-consumer relevance refers to situations in which the ad contains execution elements that are meaningful to consumers. B. Ad-to-consumer relevance refers to situations in which the advertised brand of a product or service is of personal interest to consumers. C. Brand-to-consumer relevance could be achieved through making use of celebrities with whom consumers identify. D. Relevance reflects the degree to which an advertisement provides information or an image that is pertinent to the brand. E. Relevance is best defined as the extent to which an ad contains elements that are novel, different, or unusual.

43. According to the universal advertising standards developed by the D'Arcy Masius Benton & Bowles agency, a creative advertising message is built around A. the growth-share matrix. B. a trojan horse business technique. C. a power idea or a creative core. D. the bait-and-switch concept. E. the nondivergence determinant of creativity.

44. According to D'Arcy Masius Benton & Bowles's universal advertising standards, which of the following is true of a power idea? A. It must always use inherent drama while portraying the advertisement. B. It must always have reference to the final execution. C. It must avoid being described in simple words or phrases. D. It must revolve around the clinching benefit. E. It must avoid centering the ad on consumer benefits.

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45. The job of the creative team is challenging because A. advertisers and clients typically opt for mundane ad formulas. B. every marketing situation is unique. C. of the primacy effect in advertising. D. of the recency effect in broadcast advertising. E. advertising campaigns are generally considered expendable.

46. The rationalists of creative advertising argue that A. all award-winning creative campaigns definitely lead to sales. B. the only purpose of advertising is to make an emotional connection with customers. C. advertising must sell the product or service. D. all commercials must contain an element of inherent drama. E. advertising should break through the clutter by focusing on logos and products.

47. The proponents of creative advertising argue that A. the more information in the ad, the more effective the ad is. B. the only purpose of advertising is to sell the product. C. advertising should be designed to make consumers buy products that they do not want or need. D. advertising should be designed to create an emotional bond between consumers and the brand or company. E. advertising should break through the clutter by focusing on logos and products.

48. The proponents of creative advertisements are also called "_____" A. suits. B. heuristics. C. poets. D. mnemonics. E. illustrators.

49. The rationalists of creative advertisements are also called "_____" A. operators. B. suits. C. mnemonics. D. heuristics. E. poets.

50. Advertising creative personnel tend to be A. more concrete and formalized than intuitive when solving a problem. B. highly conventional in their approach. C. more intuitive than logical. D. highly structured and organized individuals. E. no different from people with business executive backgrounds.

08-8 . McGraw-Hill Education.

51. According to James Webb Young, the production of creative advertising ideas A. is a random process that cannot be taught. B. must avoid bolting a brand to a consumer's clinching benefit. C. must be primarily consumer-generated. D. is a definitive process that can be learned and controlled. E. has as many different routes as there are different forms of creativity.

52. The five steps in the creative process as designed by James Webb Young include A. preparation, brainstorming, growth, reality check, and verification. B. immersion, testing, illumination, creation, and verification. C. immersion, digestion, incubation, illumination, and verification. D. preparation, incubation, immersion, illumination, and reality check. E. immersion, brainstorming, incubation, creation, and reality check.

53. According to the work of sociologist Graham Wallas, the four-step approach to the creative process includes A. preparation, incubation, illumination, and verification. B. immersion, brainstorming, creation, and reality check. C. preparation, illumination, creation, and verification. D. preparation, immersion, creation, and verification. E. immersion, incubation, illumination, and creation.

54. According to the creative process outlined by Graham Wallas, which of the following stages deals with getting away from the problem and letting ideas develop? A. incubation B. illumination C. verification D. preparation E. dramatization

55. According to the creative process outlined by Graham Wallas, which of the following stages deals with gathering background information needed to solve the problem through research and study? A. dramatization B. verification C. preparation D. incubation E. illumination

08-9 . McGraw-Hill Education.

56. According to the creative process outlined by Graham Wallas, which of the following stages deals with seeing the light or solution? A. verification B. incubation C. dramatization D. preparation E. illumination

57. Models of the creative process do not say much about how this information will be synthesized and used by creatives because A. this part of the process is unique to the individual. B. the processes described are more applicable to organizations. C. financial considerations are considered more important than the creative process. D. the models are in disagreement as to the final part of the process. E. creatives don't agree that creativity is a process.

58. The _____ step of Young's creative process model deals with taking the information, working it over, and wrestling with it in the mind. A. reality B. incubation C. digestion D. verification E. immersion

59. The _____ stage of Young's creative process model is also called the reality stage. A. incubation B. illumination C. verification D. digestion E. preparation

60. According to the creative process outlined by Graham Wallas, which of the following stages deals with refining and polishing the idea and seeing if it is an appropriate solution? A. dramatization B. illumination C. verification D. incubation E. preparation

08-10 . McGraw-Hill Education.

61. According to Young's and Graham Wallas's versions of the stages in the creative process, the first step involves which of the following? A. incubation B. verification C. illumination D. preparation E. perception

62. According to Young's version of the stages in the creative process, which of the following is considered the final step? A. incubation B. dramatization C. illumination D. reality E. digestion

63. According to Young's model of the creative process, the _____ step deals with gathering raw material and information through background research and getting absorbed in the problem. A. problem detection B. illumination C. immersion D. reality E. incubation

64. The _____ step of Young's creative process model deals with putting the problems out of one's conscious mind and turning the information over to the subconscious to do the work. A. problem detection B. illumination C. immersion D. reality E. incubation

65. The founders of Wieden + Kennedy, best known for its excellent creative work for companies such as Nike and ESPN, believe a key element in the agency's success is a steadfast belief in __________________, and prioritizes creative work above the client–agency relationship. A. problem detection B. taking risks C. immersion D. formulas E. incubation

08-11 . McGraw-Hill Education.

66. An idea develops during the _____ step of Young's creative process model. A. reality B. illumination C. verification D. originality E. immersion

67. The _____ step of Young's creative process model deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. A. immersion B. incubation C. digestion D. preparation E. verification

68. CL Inc., a manufacturer of maternity clothes for businesswomen, wishes to launch a new advertising campaign. In order to obtain a better idea about the clothes worn by pregnant women, the creative team visits obstetricians' offices and maternity shops at the mall to gain some information. These visits are most likely a part of the _____ step of the creative process as outlined by Graham Wallas. A. preparation B. verification C. revision D. illumination E. incubation

69. Leon is the creative director for an agency that has just been hired by a manufacturer of golfing equipment to create a new advertising campaign for the company's titanium clubs. Before developing any creative ideas, Leon reads some golfing magazines and spends time talking to friends and co-workers who play golf. These activities are part of the _____ step of the creative process outlined by Graham Wallas. A. preparation B. incubation C. illumination D. verification E. revision

70. Emma has been hired to promote a membership-only genealogical website, which provides demographic information on over one billion people. She has gathered all the relevant environmental information and has studied the project closely. Meanwhile, she is also assigned another project. She decides to work on the new project and put the genealogical project completely out of her conscious mind, so that ideas can materialize in the meanwhile. Emma is in the _____ step of the creative process outlined by Graham Wallas. A. preparation B. revision C. incubation D. illumination E. verification

08-12 . McGraw-Hill Education.

71. For weeks, Amy had been trying to come up with a creative approach to advertise light bulbs. One morning, a great idea for a creative light bulb advertising campaign just seemed to pop into her head. She picked up a note pad and wrote down her thoughts. In terms of the creative process outlined by Graham Wallas, Amy experienced the _____ step. A. immersion B. verification C. revision D. illumination E. incubation

72. Why are models of the creative process valuable to those working in the creative area of advertising? A. The models enable the client to see what he or she is paying for. B. The models provide an organized approach to an advertising problem. C. The models provide an unstructured approach to an advertising problem. D. The models are usually developed based on the primacy effect. E. The models create heuristics needed to determine whether or not an ad will accomplish its goals.

73. The last step in the creative process models developed by James Webb Young and Graham Wallas is A. resolution. B. illumination. C. verification. D. market evaluation. E. confirmation.

74. _____ is a process that involves conducting research and gathering all relevant information about a client's product or service, brand, and consumers in the target audience. A. Media planning B. Copywriting C. Account planning D. Storyboarding E. Production scheduling

75. When Julianna uses books, periodicals, trade publications, research studies, and ads from her client's competitors to assist in the preparation, incubation, and illumination stages, she is using __________________________. A. general preplanning input B. copywriting C. account planning D. storyboarding E. production scheduling

08-13 . McGraw-Hill Education.

76. Account planning plays an important role during creative strategy development by A. making sure the client knows the agency has the final say in deciding the strategy. B. driving the process from the customers' point of view. C. confirming the compliance of all advertisements with local, state, and FTC regulations. D. determining whether the account should be accepted. E. forecasting demand for the product category.

77. Which of the following statements about account planning is true? A. Account planners conduct only quantitative research. B. Account planners work with the client as well as other agency personnel. C. Account planners conduct only qualitative research. D. With account planning, the agency takes a permanent leadership role in the development of creative strategy. E. The knowledge gained during account planning can only be used during the planning period because of its proprietary nature.

78. Tiffany is the creative director of an ad agency. The agency has just been hired to develop a promotional campaign for a company that produces exercise videos for women. As part of her preparation for developing a creative strategy, Tiffany reviews some studies conducted on the overall fitness and exercise market, as well as a report on the changing roles of women in society. This information is part of A. general preplanning input. B. focus group studies. C. problem detection studies. D. illumination studies. E. ethnographic research input.

79. Jonathan is a creative director at Williams & Greene Inc., an advertising agency. He spends an hour every morning reading publications like Advertising Age, The Wall Street Journal, and Adweek to gain a better understanding of what is happening in the world of marketing and advertising. These sources can be characterized as A. general preplanning input. B. focus group studies. C. verification research. D. brainstorming. E. problem detection research.

80. Which of the following best assist an organization in the preparation, incubation, and illumination stages of the creative process? A. portfolio tests B. message communication studies C. product-specific preplanning inputs D. viewer reaction profiles E. bait-and-switch techniques

08-14 . McGraw-Hill Education.

81. Lifestyle research, attitude studies, and perceptual mapping are examples of A. general preplanning inputs. B. product/service-specific preplanning inputs. C. verification studies. D. revision studies. E. demographic studies for B2B clients.

82. Richard participated in a study conducted by an advertising agency. During his interview, he was asked to gauge the services provided by a regional airline on the basis of his experiences and what others had told him. The interviewer asked Richard specific questions about the food, the seating arrangements, the ease with which he entered and exited the plane, and the service provided by the flight attendants. The advertising agency used the research data to develop the creative strategy. In this scenario, Richard provided the agency with A. product-specific preplanning inputs. B. switch marketing inputs. C. secondary internal data. D. secondary external data. E. buzz marketing research.

83. _____ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficulties they encounter when using a product or service. A. Bait-and-switch modeling B. Market positioning C. Perceptual mapping D. Problem detection E. Market profiling

84. Douglas took a survey on dill pickles. He was asked questions about what he liked and disliked about dill pickles, when and where he usually ate the pickles, and to list and rate all the brands of dill pickles that he could recall. He was asked his opinion on packaging and on the characteristic taste of the pickles, and what he disliked about all these aspects. The survey was conducted by an ad agency to help develop a creative strategy for dill pickles. If there were several people surveyed besides Douglas, we can assume he was participating in a(n) _____ study. A. incomplete comparison B. general preplanning input C. perceptual mapping D. problem detection E. market profiling

85. Psychographic studies are used by advertising agencies to A. coordinate the work between the client and the agency personnel such as the creative team and media specialists. B. provide creative personnel with a better understanding of general consumer trends. C. determine how to allocate the advertising budget for the campaign. D. understand specific problems clients have previously encountered while advertising various products and services. E. determine the number of creative personnel required to carry out the advertising campaign conveniently and effortlessly.

08-15 . McGraw-Hill Education.

86. Leslie, creative director for Visionary Ad Agency, is observing a focus group for four-wheel-drive SUVs. Before developing the creative brief, Leslie also conducts attitude studies, positioning studies, and lifestyle research studies. In this scenario, Leslie is gathering _____ A. general preplanning input. B. vendor lock-in data. C. product-specific preplanning input. D. channel stuffing reports. E. secondary internal data.

87. _____ is a research method whereby around 10 to 12 consumers from the target market are led through a discussion regarding a particular topic. A. Regression analysis B. Focus group C. Guided search D. Market mapping E. Out-group study

88. Which of the following statements about focus groups is true? A. Focus groups are a qualitative research technique. B. Focus groups avoid discussions on types of ad appeals to be used. C. Focus groups involve observing consumers in their natural environment. D. Focus groups are ineffective in evaluating the viability of different creative approaches. E. Focus groups involve observing the natural habits of a particular group of consumers without their knowledge.

89. In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of A. quantitative research techniques. B. qualitative research techniques. C. problem detection studies. D. conjectural research. E. secondary internal research.

90. Which of the following is a similarity between focus group studies and ethnographic research? A. Both are qualitative research techniques. B. Both are research techniques conducted without the consumer's knowledge. C. Both involve observing consumers in their natural environment. D. Both are very easy to administer. E. Both techniques cost a negligible amount of money.

08-16 . McGraw-Hill Education.

91. _____ research involves anthropologists or other types of trained researchers observing consumers in their natural environments. A. Neuromarketing B. Out-group C. Questionnaire D. Focus group E. Ethnographic

92. Daniel and Ronald were social researchers who monitored websites, lurked in chat rooms, and hung out in cyber cafés and observed how Internet users act. The users they observed considered the Internet a tool to augment traditional forms of communication. Daniel and Ronald conducted _____ research. A. e-marketing B. ethnographic C. neuromarketing D. focus group E. out-group

93. Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often those situations arise, then asking the consumers to rate the list in order of importance and asking which brands are associated with the items on the list. She is using an approach called _____________________________ A. problem detection. B. ethnographic. C. focus groups. D. storyboarding. E. crowdsourcing.

94. Which of the following is a limitation of focus group studies? A. In these studies, strong personalities can often wield undue influence. B. These studies cost more than ethnographic research. C. These studies are more difficult to administer than ethnographic research. D. These studies do not offer the benefits of qualitative research. E. In these studies, consumers are observed in their natural environment.

95. Which of the following is a limitation of ethnographic research? A. These studies are generally considered inapplicable to everyday situations. B. In these studies, strong personalities can often wield undue influence. C. In these studies, participants never recognize their behavior patterns and motivations. D. These studies cost more to conduct than focus group studies. E. These studies avoid observing consumers in their natural environment.

08-17 . McGraw-Hill Education.

96. Which of the following differentiates an ethnographic study from a focus group study? A. Ethnographic research is a quantitative research technique, whereas focus group studies are qualitative. B. Ethnographic research is difficult to administer, whereas focus group studies are easy to administer. C. Ethnographic research studies are inexpensive, whereas conducting focus group studies requires a huge investment. D. Focus group studies involve observing consumers in their natural environment, whereas ethnographic research involves observing consumers in controlled settings. E. Focus group studies are quantitative research techniques, whereas ethnographic research is qualitative.

97. The verification and revision stage of the creative process evaluates ideas generated during the _____ stage and gives them final expression. A. preparation B. dramatization C. illumination D. incubation E. digestion

98. Techniques such as message communication studies and portfolio tests are studies conducted during the _____ stage of the creative process. A. illumination B. incubation C. preparation D. digestion E. verification

99. At what stage of the creative process are various ideas evaluated and refined before actually being used? A. preparation B. incubation C. illumination D. verification E. verdict

100. At what stage of the creative process would consumers in the target audience be asked to evaluate storyboards and animatics? A. preparation B. incubation C. verification D. illumination E. verdict

08-18 . McGraw-Hill Education.

101. A(n) ____ is a series of drawings used to present the visual plan or layout of a commercial along with a description of the audio for each scene. A. animatic B. mnemonic C. storyboard D. heuristic E. trailer

102. At the _____ stage of the creative process, the creative team attempts to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. A. incubation B. dramatization C. verification D. preparation E. digestion

103. To make a creative layout of a commercial more realistic, a(n) _____ may be produced by making a videotape of the storyboard along with an audio soundtrack. A. animatic B. heuristic C. mnemonic D. copy platform E. snipe

104. The Visionaries, an advertising agency in Boston, is testing a creative idea for a new commercial before moving ahead with the production. To make the test more realistic, it wants to test both the visual layout of the commercial as well as the audio of the message. In which of the following forms should the commercial be tested? A. storyboard B. animatic C. snipe D. mnemonic E. heuristic

105. Advertising campaign themes A. create a foundation for the incubation process of creative ad development. B. set the direction of all of the individual ads that make up the campaign. C. are typically designed by the client and implemented by the agency. D. are usually used for ads that run in only one type of media vehicle. E. are usually developed with the intention of being used for a short period of time.

08-19 . McGraw-Hill Education.

106. Which of the following stages of the creative process includes a highly formal and extensive pretesting of the ad before a final decision on the ad is made? A. incubation B. illumination C. preparation D. verification E. digestion

107. Which of the four pillars in Y&R Group's BrandAsset Valuator is associated with Brand Strength? A. esteem B. knowledge C. relevance D. verification E. digestion

108. Work plan is another name given to the _____ A. campaign theme. B. creative brief. C. advertising message. D. creative channel. E. account planning process.

109. In an advertising agency, who among the following is usually responsible for preparing the creative brief? A. account manager B. media buying director C. art director D. illustrator E. media planner

110. Which of the following client representatives ultimately approves the creative brief? A. art director B. financial manager C. auditor D. brand manager E. media planner

08-20 . McGraw-Hill Education.

111. Which of the following is one of the critical components of the creative brief? A. formulation of the training program for the creative team B. calculation of the advertising budget C. management of the media buying operations D. development of the major selling idea E. management of one or more client groups

112. The part of the Tacori jewelry creative brief that specifies that communications will support a specific product's goal of becoming 50 percent of Tacori's business by establishing it as a more accessible, fashion jewelry line would appear in the _________________ section of the creative brief. A. problem or issue B. advertising and communications objectives C. target audience D. major selling idea or key benefits E. creative strategy statement

113. John O'Toole describes the _____ as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." A. ad paradox B. epiphany C. heuristic D. big idea E. mnemonic

114. Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee shops and she is given the task of coming up with a "big idea." With reference to the above scenario, "big ideas" A. are impossible to develop as they are not applicable to retail chains. B. are only needed in advertising for consumer services. C. are typically not the bases for effective advertising campaigns. D. are only effective in business-to-business advertising. E. could become the bases of creative and successful advertising campaigns.

115. Bubble Inc., a chewing gum manufacturer, specifically targets children in its advertisements. In its latest advertisement, the company indicates that Bubble is the only chewing gum that lets you blow "massive" bubbles that won't stick to your face. This statement represents the brand's A. unique selling proposition. B. surrogate advertising strategy. C. unique selling language. D. intent scale translation. E. incomplete comparison.

08-21 . McGraw-Hill Education.

116. Which of the following is true of the concept of the unique selling proposition (USP)? A. USP usually mirrors the concept of bait-and-switch advertising. B. The concept states that a product's attribute claim must be excluded from advertising. C. The concept of USP is applicable only for B2B advertising. D. USP must be emphasized through repetitive advertising. E. The concept of USP must be used only for C2C advertising.

117. Which of the following statements is true of image advertising? A. It is used most often when there are significant functional or performance differences among brands. B. It is often used when competing brands are difficult to differentiate on a functional or performance basis. C. Advertisers often use it when their products or services offer a unique attribute or benefit to consumers. D. It is most commonly used for business-to-business products. E. It concentrates on those functional features of a product that are unique and cannot be imitated by competitors.

118. Fly High Airlines, an Australian airline, rebranded itself by using a kangaroo wearing a hat in its logo. Since the kangaroo is a significant cultural symbol in Australia, the company hoped that associating itself with such a national icon would enhance its popularity. Subsequently, the company also launched an ad campaign for the Save the Kangaroo Foundation. In this scenario, Fly High Airlines was using A. bait-and-switch advertising. B. image advertising. C. buzz marketing. D. trojan horse advertising. E. guerilla marketing.

119. Bensons Inc., a retail store in Houston, launches an ad campaign featuring the interiors of its stores. The stores are shown to be lit by crystal chandeliers and feature several salespeople wearing tail-coats. The ads also contain the slogan "Be treated like royalty, while you shop in comfort." The development of a strong, memorable "royal" identity by Bensons is an example of: A. guerilla advertising. B. image advertising. C. drama advertising. D. bait-and-switch advertising. E. refutational appeal.

120. Who among the following popularized the idea of brand image in his book Confessions of an Advertising Man? A. John O' Toole B. Leo Burnett C. Sigmund Freud D. David Ogilvy E. Rosser Reeves

08-22 . McGraw-Hill Education.

121. When an advertiser uses an ad that emphasizes psychological associations and attempts to wrap the consumer's perceptions into a tight concept or symbol, what type of advertising approach is being used? A. bait-and-switch advertising B. image advertising C. guerilla advertising D. visual merchandizing E. refutational appeal

122. Leo Burnett, founder of the Leo Burnett agency in Chicago, said _____ "is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals." A. image advertising B. inherent drama C. refutational appeal D. snob appeal E. primacy appeal

123. An approach to finding a major selling idea that uses consumer benefits as a foundation, with an emphasis on presenting these benefits in a theatrical way, is the _____ approach. A. card stacking B. buzz C. inherent drama D. testimonial E. bait-and-switch

124. An ad for a medication that helps people undergoing chemotherapy feel more energetic shows a grandfather sorrowfully wishing he could participate in his grandson's birthday party. Subsequently, the scene switches to the birthday party and shows the grandfather feeling energetic and vibrant after taking the medication. This ad is an example of _____ A. bait-and-switch advertising. B. a snob appeal. C. the inherent drama approach. D. the WOM approach. E. a buzz appeal.

125. Jack Trout and Al Ries introduced _____ as the basis for advertising strategy and creative development in the early 1970s. A. inherent drama B. positioning C. neuromarketing D. buzz marketing E. creative brief

08-23 . McGraw-Hill Education.

126. Jack Trout and Al Ries originally described _____ as the image consumers had of the brand in relation to competing brands in the product or service category. A. brandjacking B. gladvertising C. channel stuffing D. pricing E. positioning

127. According to Advertising Age, experts in creative advertising don't write books or espouse theories. They see advertising as A. an inherent drama working to offset the reality of social issues. B. an uplifting social force, as a way to inspire and entertain. C. the replacement for the 20th-century salesperson. D. publicity created through unique selling propositions. E. a cultural force redefining societal needs and wants.

128. With the growth of integrated marketing communications, advertisers are being challenged to think beyond traditional mass media and develop creative advertising that A. offsets the weaknesses associated with storyboard ad design. B. provides opportunities for effective government oversight. C. centralizes American consumer values in a global marketplace. D. engages consumers and enters into a dialogue with them. E. minimizes the risk of offending technology-savvy consumers.

129. Which of the following is one of the four best-known approaches for developing a major selling idea? A. using a unique selling proposition B. creating a brand image C. finding the inherent drama D. engaging in a dialogue E. positioning

130. When BMW communicates that its car is "the ultimate driving machine," which transcends and helps differentiate its entire product line, it is using the concept of _________________ as a basis for advertising strategy. A. positioning B. inherent drama C. image D. sustainable competitive advantage E. unique selling proposition

08-24 . McGraw-Hill Education.

Chapter 08 Test Bank Key 1. Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention. TRUE At one extreme are people who argue that advertising is creative only if it sells the product. At the other end of the continuum are those who judge the creativity of an ad in terms of its artistic or aesthetic value and originality. They contend creative ads can break through the competitive clutter, grab the consumer's attention, and have some impact. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

2. Divergence refers to the extent to which the various elements of an ad are meaningful, useful, or valuable to the consumer. FALSE Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

3. Ads for products such as fashionable clothing, jewelry, and liquor often provide specific product information rather than relying on visual images to deliver their message. FALSE Ads for many products such as fashionable clothing, jewelry, cosmetics, and liquor often rely on visual images to deliver their message rather than providing specific product information. However, these images are important to consumers in forming impressions and attitudes toward these brands and deciding whether to select one brand over another. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-25 . McGraw-Hill Education.

4. Many creative people follow proven formulas when creating ads because they are safe. TRUE Many creative people follow proven formulas when creating ads because they are safe. Clients often feel uncomfortable with advertising that is too different. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

5. The "suits" argue that the most important thing good advertising does is make an emotional connection with consumers. FALSE The "suits" or "rationalists" argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

6. Creativity is not the exclusive domain of those who work in the creative department of ad agencies. TRUE Creativity is not the exclusive domain of those who work in the creative department of ad agencies. Integrated marketing communications requires creative thinking from everyone involved in the planning and execution of IMC programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

7. According to Young's model of the creative process, the stage of digestion involves the process of gathering material and information through research. FALSE Young's model of the creative process contains five steps. The stage of digestion involves taking the information gathered in the previous stage, working it over, and wrestling with it in the mind. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-26 . McGraw-Hill Education.

8. According to Young's model of the creative process, studying the idea to see if it still looks good then shaping the idea to practical usefulness occurs in the last stage of verification. TRUE Studying the idea to see if it still looks good or solves the problem and then shaping the idea to practical usefulness is part of the reality or verification stage of Young's creative process model. This is the last stage of the process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

9. Observations made on trends, developments, and happenings in the marketplace are part of general preplanning input. TRUE Some useful general preplanning input concerns trends, developments, and happenings in the marketplace. Information is available from a variety of sources, including local, state, and federal governments, secondary research suppliers, and various industry trade associations, as well as advertising and media organizations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

10. Focus group interviews bring creative people and others involved in creative strategy development into contact with customers. TRUE Focus group interviews bring the creative people and others involved in creative strategy development into contact with the customers. Listening to a focus group gives copywriters, art directors, and other creative specialists a better sense of who the target audience is, who the creatives need to write, design, or direct to in creating an advertising message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-27 . McGraw-Hill Education.

11. Generally, creative people are not open to research or information that could help them understand the client's target market better. FALSE Generally, creative people are open to any research or information that will help them understand the client's target market better and assist in generating creative ideas. The advertising industry is recognizing the importance of using research to guide the creative process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

12. Viewer reaction profiles are usually used in the incubation stage of the creative process. FALSE The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. Techniques used at this stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

13. Viewer reaction profiles are usually used in the incubation stage of the creative process. FALSE The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. Techniques used at this stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-28 . McGraw-Hill Education.

14. Advertisement campaign plans are long term in nature. FALSE Advertising campaign plans are short term in nature and, like marketing and IMC plans, are done on an annual basis. However, the campaign themes are usually developed with the intention of being used for a longer time period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

15. In large agencies, an individual from the research department is likely to prepare the creative brief. TRUE The account representative or manager assigned to the account usually prepares the creative brief. In larger agencies, an individual from research or the strategic account planning department may write it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

16. Those who judge the creativity of an ad in terms of its aesthetic value contend that creative ads can break through the competitive clutter and grab the consumer's attention. TRUE At one extreme are people who argue that advertising is creative only if it sells the product. At the other end of the continuum are those who judge the creativity of an ad in terms of its artistic or aesthetic value and originality. They contend creative ads can break through the competitive clutter, grab the consumer's attention, and have some impact. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

17. Slogans are a key element of a brand's identity, as they can enhance a brand's image, aid in its recognition and recall, and help differentiate it in the minds of consumers. TRUE An advertising slogan should serve as a summation line that succinctly expresses the company or brand's positioning and the message it is trying to deliver to the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

08-29 . McGraw-Hill Education.

18.The unique selling proposition (USP) must be one that the competition either cannot or does not offer. TRUE The unique selling proposition (USP) must be one that the competition either cannot or does not offer. It must be unique either in the brand or in the claim. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

19. Positioning is not preferred by a firm that has multiple brands competing in the same market. FALSE Positioning is often the basis of a firm's creative strategy when it has multiple brands competing in the same market. The company creates separate identities for each of the brands by positioning them differently and targeting a different group of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

20. The challenge of developing creative advertising that captures the attention of consumers has become greater with the spread of new media. TRUE The challenge of developing creative advertising that captures the attention of consumers and impacts them has become even greater with the proliferation of new media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

08-30 . McGraw-Hill Education.

21. With respect to advertising messages, which of the following best defines creative strategy? A. It involves determining what the advertising message will say or communicate. B. It involves determining how much the advertising campaign will cost. C. It involves determining the number of creative personnel required for the advertising campaign. D. It deals with optimizing the budget for online advertising campaigns. E. It deals with avoiding factors that lead to divergence in advertising creativity. One of the most important components of an integrated marketing communications program is the advertising message. Creative strategy involves determining what the advertising message will say or communicate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: The Role of Advertising

22. Which of the following is true of creative tactics in relation to advertising messages? A. They deal with avoiding the creation of animatics for testing a commercial. B. They involve determining how much the advertising campaign will cost. C. They involve determining how the message strategy will be executed. D. They deal with avoiding the factors which lead to divergence in advertising creativity. E. They involve determining what the advertising message will say or communicate. One of the most important components of an integrated marketing communications program is the advertising message. Creative tactics involve determining how the message strategy will be executed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

23. Which of the following creativity combinations is the least effective, as it relates to sales uplift relative to average effectiveness? A. flexibility and artistic value B. flexibility and synthesis C. originality and synthesis D. elaboration and artistic value E. originality and elaboration Reinartz and Saffert's analysis of more than 400 German television ad campaigns across nine different consumer packaged-goods categories, which examined the impact of creativity on actual sales figures for the products, indicated that the creativity combination of flexibility and artistic value was the least effective, resulting in 99 point lower sales than average ad effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-31 . McGraw-Hill Education.

24. Which of the following statements is true of the use of creativity in an advertising campaign? A. Because most advertising is unique, creativity is not enough to break through the clutter. B. Creative advertising always has a positive impact on sales. C. Creative advertising that lacks flexibility and artistic value may have a greater impact on the target audience than advertising that is flexibile and artistic. D. The nature of advertising requires that everyone involved in the promotional planning process understand the creative strategy. E. The users of creative advertising must avoid using big ideas and unique selling propositions in their advertising campaigns. As creative strategy is often so crucial to the success of the firm's IMC effort, everyone involved in the promotional process should understand the creative strategy and tactics that underlie the development of advertising campaigns and messages, as well as the creative options available to the advertiser. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

25. Which of the following statements about creative strategy and its execution is true? A. A good creative strategy and execution guarantees a brand will exceed its sales objectives. B. A good creative strategy never fails in reviving a declining brand. C. Ads that are highly creative may not increase sales of a brand. D. Companies have no trouble coming up with creative advertising that differentiates their brands from the competition. E. Good creative strategy cannot help a struggling brand regain its former prominence. Many companies have solid marketing and promotional plans and spend substantial amounts of money on advertising, yet have difficulty coming up with a creative campaign that will differentiate them from their competitors. However, just because an ad or commercial is creative or popular does not mean it will increase sales or revive a declining brand. Many ads have won awards for creativity but failed to increase sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

26. Ads are often called _____ A. animatics. B. heuristics. C. creative. D. art infusions. E. mnemonics. Creativity is probably one of the most commonly used terms in advertising. Ads are often called creative. The people who develop ads and commercials are known as creative types. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

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McGraw-Hill Education.

27. The people who develop ads and commercials are known as _____ A. mnemonics. B. animatics. C. copy makers. D. creative types. E. media planners. Creativity is probably one of the most commonly used terms in advertising. Ads are often called creative. The people who develop ads and commercials are known as creative types. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

28. Which of the following statements is true according to the Hirschman study of creative people in advertising? A. They view ads as promotional tools whose primary purpose is to communicate favorable impressions to the marketplace. B. They are more risk-averse than brand managers. C. They prefer making conservative commercials. D. They believe a commercial should be evaluated in terms of whether it fulfills the client's marketing and communication objectives. E. They want to maximize the impact of the advertising message. In her interviews, Hirschman also found that brand managers were much more risk-averse and wanted a more conservative commercial than the creative people, who wanted to maximize the impact of the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

29. A study by Elizabeth Hirschman that examined the perceptions of individuals involved in the creation and production of television commercials found that A. product managers view advertising from an aesthetic perspective. B. account executives view advertising as a promotional tool whose primary purpose is to communicate favorable impressions about a brand. C. art directors and copywriters are more risk-averse than brand managers. D. brand managers prefer creative commercials that take risks. E. art directors and copywriters evaluate advertising on the basis of how well it fulfills predefined communications objectives. Elizabeth Hirschman found that product managers and account executives view ads as promotional tools whose primary purpose is to communicate favorable impressions to the marketplace. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-33 . McGraw-Hill Education.

30. Based on the findings of the study conducted by Elizabeth Hirschman, which of the following individuals is most likely to be risk-averse and prefer commercials that focus on the product rather than creative impact? A. brand managers B. art directors C. copywriters D. commercial directors E. Illustrators In her interviews, Hirschman also found that brand managers were much more risk-averse and wanted a more conservative commercial than the creative people, who wanted to maximize the impact of the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

31. Which of the following statements supports the reason why a marketer might want to emphasize creativity in the development of an advertising campaign? A. Creative advertisements can avoid novelty in terms of divergence. B. Creative advertising can break through the clutter and make an impression on buyers. C. Creative advertisements always favor divergence over relevance. D. Creative advertising is effective even if it is irrelevant to the target audience. E. Creative advertising helps in winning awards, which always leads to an increase in sales. What constitutes creativity in advertising is that which breaks through the clutter and makes an impression on the target audience. An ad often must be unique and entertaining. TV commercials and print ads that are well designed and executed and generate emotional responses can create positive feelings that are transferred to the product or service being advertised. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

32. _____ is the ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communication problems. A. Brand stretching B. Brand parity C. Visual merchandising D. Product differentiation E. Advertising creativity Advertising creativity is the ability to generate fresh, unique, and appropriate or relevant ideas that can be used as solutions to communication problems. The two central determinants of creativity are often viewed in terms of divergence and relevance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-34 . McGraw-Hill Education.

33. Which of the following best defines fluency? A. the ability to detect problems associated with the creative strategies B. the extent to which an ad contains elements that are novel and different C. the ability to generate a large number of ideas around a creative idea D. the degree to which various elements of the ad are valuable to the customer E. the ability to select the appropriate target market for a particular product or service Fluency refers to the ability to generate a large number of ideas around a creative idea. In some cases the focus of the creative strategy may be to achieve fluency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

34. Who among the following was responsible for identifying the major factors that could account for the ways divergence can be achieved in advertising? A. Leo Burnett B. Robert Smith C. Rosser Reeves D. David Ogilvy E. Sigmund Freud Robert Smith and his colleagues identified five major factors that could account for the ways divergence can be achieved in advertising. Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

35. Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain different ideas or switch from one perspective to another? A. elaboration B. synthesis C. flexibility D. relevance E. artistic value Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Flexibility refers to ads that contain different ideas or switch from one perspective to another. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

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36. Which of the following is one of the five major factors identified by Robert Smith that refers to ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated, or sophisticated? A. originality B. flexibility C. elaboration D. artistic value E. Synthesis Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Elaboration refers to ads that contain unexpected details or finish and extend basic ideas so they become more intricate, complicated, or sophisticated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

37. With respect to the five factors identified by Robert Smith and his colleagues that account for the ways divergence can be achieved in advertising, the factor that deals with ads that contain attractive shapes and colors is referred to as A. synthesis. B. illumination. C. originality. D. artistic value. E. flexibility. Divergence refers to the extent to which an ad contains elements that are novel, different, or unusual. Robert Smith and his colleagues have identified five major factors that could account for the ways divergence can be achieved in advertising. Artistic value refers to ads that contain artistic verbal impressions or attractive shapes and colors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

38. Which of the following is a major determinant of creativity that reflects the degree to which various elements of an ad are meaningful, useful, or valuable to the consumer? A. divergence B. delusion C. relevance D. illumination E. risk aversion The two major determinants of creativity are often viewed in terms of divergence and relevance. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-36 . McGraw-Hill Education.

39. According to Robert Smith, the two ways in which relevance can be achieved are A. ad-to-brand relevance and brand-to-ad relevance. B. ad-to-producer relevance and brand-to producer relevance. C. ad-to-producer relevance and brand-to-consumer relevance. D. ad-to-consumer relevance and brand-to-producer relevance. E. ad-to-consumer relevance and brand-to-consumer relevance. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. Smith et al. suggest that relevance can be achieved in two ways. They are ad-to-consumer relevance and brand-to-consumer relevance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

40. Pluto Inc., a cosmetics company, hired a well-known movie star to appear in its advertisements. The company hoped that using a celebrity would capture the attention and interest of consumers. In this scenario, the ad illustrates the application of A. ad-to-consumer relevance. B. brand-to-consumer relevance. C. brand-to-producer relevance. D. inherent drama strategy. E. bait-and-switch advertising strategy. The above scenario is an example of ad-to-consumer relevance. Ad-to-consumer relevance refers to situations where the ad contains execution elements that are meaningful to consumers. For example, advertisers may use celebrities whom consumers identify with, music that they like, or visual images and other execution techniques that capture their interest and attention. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

41. The "Got Milk?" campaign, which has been running for nearly two decades, was developed to achieve _______________, or the ability to generate a variety of messages around a creative idea. A. artistic value B. divergence C. fluency D. synthesis E. Originality The California Milk Processor Board sought fluency, or the ability to generate a variety of messages around a creative idea. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

08-37 . McGraw-Hill Education.

42. Which of the following statements about the relevance of ads is true? A. Brand-to-consumer relevance refers to situations in which the ad contains execution elements that are meaningful to consumers. B. Ad-to-consumer relevance refers to situations in which the advertised brand of a product or service is of personal interest to consumers. C. Brand-to-consumer relevance could be achieved through making use of celebrities with whom consumers identify. D. Relevance reflects the degree to which an advertisement provides information or an image that is pertinent to the brand. E. Relevance is best defined as the extent to which an ad contains elements that are novel, different, or unusual. Relevance reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer. Relevance or appropriateness can also be viewed in terms of the degree to which an advertisement provides information or an image that is pertinent to the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

43. According to the universal advertising standards developed by the D'Arcy Masius Benton & Bowles agency, a creative advertising message is built around A. the growth-share matrix. B. a trojan horse business technique. C. a power idea or a creative core. D. the bait-and-switch concept. E. the nondivergence determinant of creativity. The D'Arcy Masius Benton & Bowles agency views a creative advertising message as one that is built around a core or power idea and uses excellent design and execution to communicate information that is relevant to the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Advertising Appeals

44. According to D'Arcy Masius Benton & Bowles's universal advertising standards, which of the following is true of a power idea? A. B. C. D. E.

It must always use inherent drama while portraying the advertisement. It must always have reference to the final execution. It must avoid being described in simple words or phrases. It must revolve around the clinching benefit. It must avoid centering the ad on consumer benefits.

The ideal power idea should be describable in a simple word, phrase, or sentence without reference to any final execution, be likely to attract the prospect's attention, revolve around the clinching benefit, allow you to brand the advertising, and make it easy for the prospect to vividly experience the client's product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

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McGraw-Hill Education.

45. The job of the creative team is challenging because A. advertisers and clients typically opt for mundane ad formulas. B. every marketing situation is unique. C. of the primacy effect in advertising. D. of the recency effect in broadcast advertising. E. advertising campaigns are generally considered expendable. The job of the creative team is challenging because every marketing situation is different and each campaign or advertisement may require a different creative approach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

46. The rationalists of creative advertising argue that A. all award-winning creative campaigns definitely lead to sales. B. the only purpose of advertising is to make an emotional connection with customers. C. advertising must sell the product or service. D. all commercials must contain an element of inherent drama. E. advertising should break through the clutter by focusing on logos and products. The "suits" or "rationalists" argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

47. The proponents of creative advertising argue that A. the more information in the ad, the more effective the ad is. B. the only purpose of advertising is to sell the product. C. advertising should be designed to make consumers buy products that they do not want or need. D. advertising should be designed to create an emotional bond between consumers and the brand or company. E. advertising should break through the clutter by focusing on logos and products. The "poets" or proponents of creativity argue that advertising has to build an emotional bond between consumers and brands or companies that goes beyond product advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

08-39 . McGraw-Hill Education.

48. The proponents of creative advertisements are also called "_____" A. suits. B. heuristics. C. poets. D. mnemonics. E. illustrators. The proponents of creative advertisements are also called poets. They argue that advertising has to build an emotional bond between consumers and brands or companies that goes beyond product advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

49. The rationalists of creative advertisements are also called "_____" A. operators. B. suits. C. mnemonics. D. heuristics. E. poets. The rationalists of creative advertisements are also called suits. They argue that advertising must sell the product or service, and that the more selling points or information in an ad, the better its chance of moving the consumer to purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

50. Advertising creative personnel tend to be A. more concrete and formalized than intuitive when solving a problem. B. highly conventional in their approach. C. more intuitive than logical. D. highly structured and organized individuals. E. no different from people with business executive backgrounds. The educational background of creative personnel is often in nonbusiness areas such as art, literature, music, humanities, or journalism, so their interests and perspectives tend to differ from those of managers with a business education or background. Creative people tend to be more abstract and less structured, organized, or conventional in their approach to a problem, relying on intuition more often than logic. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: Strategic Marketing Planning

08-40 . McGraw-Hill Education.

51. According to James Webb Young, the production of creative advertising ideas A. is a random process that cannot be taught. B. must avoid bolting a brand to a consumer's clinching benefit. C. must be primarily consumer-generated. D. is a definitive process that can be learned and controlled. E. has as many different routes as there are different forms of creativity. James Webb Young said, "The production of ideas is just as definite a process as the production of Fords; the production of ideas, too, runs an assembly line; in this production the mind follows an operative technique which can be learned and controlled; and that its effective use is just as much a matter of practice in the technique as is the effective use of any tool." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

52. The five steps in the creative process as designed by James Webb Young include A. preparation, brainstorming, growth, reality check, and verification. B. immersion, testing, illumination, creation, and verification. C. immersion, digestion, incubation, illumination, and verification. D. preparation, incubation, immersion, illumination, and reality check. E. immersion, brainstorming, incubation, creation, and reality check. Young's model of the creative process contains five steps. They are immersion, digestion, incubation, illumination, and verification. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

53. According to the work of sociologist Graham Wallas, the four-step approach to the creative process includes A. preparation, incubation, illumination, and verification. B. immersion, brainstorming, creation, and reality check. C. preparation, illumination, creation, and verification. D. preparation, immersion, creation, and verification. E. immersion, incubation, illumination, and creation. Young's process of creativity is similar to a four-step approach outlined much earlier by English sociologist Graham Wallas in his classic book The Art of Thought that includes preparation, incubation, illumination, and verification. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-41 . McGraw-Hill Education.

54. According to the creative process outlined by Graham Wallas, which of the following stages deals with getting away from the problem and letting ideas develop? A. incubation B. illumination C. verification D. preparation E. Dramatization With respect to the creative process outlined by Graham Wallas, the incubation stage deals with getting away from the problem and letting ideas develop. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

55. According to the creative process outlined by Graham Wallas, which of the following stages deals with gathering background information needed to solve the problem through research and study? A. dramatization B. verification C. preparation D. incubation E. Illumination With respect to the creative process outlined by Graham Wallas, the preparation stage deals with gathering background information needed to solve the problem through research and study. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

56. According to the creative process outlined by Graham Wallas, which of the following stages deals with seeing the light or solution? A. verification B. incubation C. dramatization D. preparation E. Illumination With respect to the creative process outlined by Graham Wallas, the illumination stage deals with seeing the light or solution. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-42 . McGraw-Hill Education.

57. Models of the creative process do not say much about how this information will be synthesized and used by creatives because A. this part of the process is unique to the individual. B. the processes described are more applicable to organizations. C. financial considerations are considered more important than the creative process. D. the models are in disagreement as to the final part of the process. E. creatives don't agree that creativity is a process. These models do not say much about how this information will be synthesized and used by the creative specialist because this part of the process is unique to the individual. In many ways, it’s what sets apart the great creative minds and strategists in advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

58. The _____ step of Young's creative process model deals with taking the information, working it over, and wrestling with it in the mind. A. reality B. incubation C. digestion D. verification E. Immersion The digestion step of Young's creative process model deals with taking the information, working it over, and wrestling with it in the mind. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

59. The _____ stage of Young's creative process model is also called the reality stage. A. incubation B. illumination C. verification D. digestion E. Preparation The reality or verification stage involves studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-43 . McGraw-Hill Education.

60. According to the creative process outlined by Graham Wallas, which of the following stages deals with refining and polishing the idea and seeing if it is an appropriate solution? A. dramatization B. illumination C. verification D. incubation E. Preparation With respect to the creative process outlined by Graham Wallas, the verification stage deals with refining and polishing the idea and seeing if it is an appropriate solution. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

61. According to Young's and Graham Wallas's versions of the stages in the creative process, the first step involves which of the following? A. incubation B. verification C. illumination D. preparation E. Perception With respect to Young's and Graham Wallas's versions of the stages in the creative process, preparation or gathering of background information is the first step in the creative process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

62. According to Young's version of the stages in the creative process, which of the following is considered the final step? A. incubation B. dramatization C. illumination D. reality E. Digestion With respect to Young's version of the stages in the creative process, reality or verification is considered the final step in the creative process. Verification deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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McGraw-Hill Education.

63. According to Young's model of the creative process, the _____ step deals with gathering raw material and information through background research and getting absorbed in the problem. A. problem detection B. illumination C. immersion D. reality E. Incubation Young's model of the creative process contains five steps. The first step, immersion, deals with gathering raw material and information through background research and immersing yourself in the problem. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

64. The _____ step of Young's creative process model deals with putting the problems out of one's conscious mind and turning the information over to the subconscious to do the work. A. problem detection B. illumination C. immersion D. reality E. Incubation Young's model of the creative process contains five steps. The incubation stage deals with putting the problems out of your conscious mind and turning the information over to the subconscious to do the work. It is about getting away and letting ideas develop. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

65. The founders of Wieden + Kennedy, best known for its excellent creative work for companies such as Nike and ESPN, believe a key element in the agency's success is a steadfast belief in __________________, and prioritizes creative work above the client–agency relationship. A. problem detection B. taking risks C. immersion D. formulas E. incubation Wieden + Kennedy takes risks when most agencies and their clients are becoming more conservative. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-01 Describe the role of creative strategy in advertising. Topic: The Strategic Marketing Process

08-45 . McGraw-Hill Education.

66. An idea develops during the _____ step of Young's creative process model. A. reality B. illumination C. verification D. originality E. Immersion The illumination stage is about seeing the light or the solution. The birth of an idea—the "Eureka! I have it!" phenomenon—occurs during the illumination stage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

67. The _____ step of Young's creative process model deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. A. immersion B. incubation C. digestion D. preparation E. Verification The verification step deals with studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

68. CL Inc., a manufacturer of maternity clothes for businesswomen, wishes to launch a new advertising campaign. In order to obtain a better idea about the clothes worn by pregnant women, the creative team visits obstetricians' offices and maternity shops at the mall to gain some information. These visits are most likely a part of the _____ step of the creative process as outlined by Graham Wallas. A. preparation B. verification C. revision D. illumination E. Incubation The above scenario is an example of the preparation step of the creative process outlined by Graham Wallas. The preparation step includes gathering of the background information needed to solve the problem through research and study. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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McGraw-Hill Education.

69. Leon is the creative director for an agency that has just been hired by a manufacturer of golfing equipment to create a new advertising campaign for the company's titanium clubs. Before developing any creative ideas, Leon reads some golfing magazines and spends time talking to friends and co-workers who play golf. These activities are part of the _____ step of the creative process outlined by Graham Wallas. A. preparation B. incubation C. illumination D. verification E. Revision The above scenario is an example of the preparation step of the creative process outlined by Graham Wallas. The preparation step includes gathering of the background information needed to solve the problem through research and study. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

70. Emma has been hired to promote a membership-only genealogical website, which provides demographic information on over one billion people. She has gathered all the relevant environmental information and has studied the project closely. Meanwhile, she is also assigned another project. She decides to work on the new project and put the genealogical project completely out of her conscious mind, so that ideas can materialize in the meanwhile. Emma is in the _____ step of the creative process outlined by Graham Wallas. A. preparation B. revision C. incubation D. illumination E. Verification The above scenario is an example of the incubation step of the creative process outlined by Graham Wallas. The incubation process deals with putting the problems out of your conscious mind and turning the information over to the subconscious to do the work. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-47 . McGraw-Hill Education.

71. For weeks, Amy had been trying to come up with a creative approach to advertise light bulbs. One morning, a great idea for a creative light bulb advertising campaign just seemed to pop into her head. She picked up a note pad and wrote down her thoughts. In terms of the creative process outlined by Graham Wallas, Amy experienced the _____ step. A. B. C. D. E.

immersion verification revision illumination incubation

The above scenario is an example of the illumination step of the creative process outlined by Graham Wallas. The illumination step deals with the birth of an idea—the "Eureka! I have it!" phenomenon. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

72. Why are models of the creative process valuable to those working in the creative area of advertising? A. The models enable the client to see what he or she is paying for. B. The models provide an organized approach to an advertising problem. C. The models provide an unstructured approach to an advertising problem. D. The models are usually developed based on the primacy effect. E. The models create heuristics needed to determine whether or not an ad will accomplish its goals. Models of the creative process are valuable to those working in the creative area of advertising, since they offer an organized way to approach an advertising problem. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

73. The last step in the creative process models developed by James Webb Young and Graham Wallas is A. resolution. B. illumination. C. verification. D. market evaluation. E. confirmation. The last step in the creative process is verification. Verification deals with refining and polishing the idea and seeing if it is an appropriate solution. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-48 . McGraw-Hill Education.

74. _____ is a process that involves conducting research and gathering all relevant information about a client's product or service, brand, and consumers in the target audience. A. Media planning B. Copywriting C. Account planning D. Storyboarding E. Production scheduling Account planning is a process that involves conducting research and gathering all relevant information about a client's product or service, brand, and consumers in the target audience. These days many agencies make use of account planning to facilitate the creative process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

75. When Julianna uses books, periodicals, trade publications, research studies, and ads from her client's competitors to assist in the preparation, incubation, and illumination stages, she is using __________________________. A. general preplanning input B. copywriting C. account planning D. storyboarding E. production scheduling General preplanning input comes from a variety of sources, and helps advertising creative people learn about the client's business and who the client is trying to reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Steps in an Advertising Campaign

76. Account planning plays an important role during creative strategy development by A. making sure the client knows the agency has the final say in deciding the strategy. B. driving the process from the customers' point of view. C. confirming the compliance of all advertisements with local, state, and FTC regulations. D. determining whether the account should be accepted. E. forecasting demand for the product category. Account planning plays an important role during creative strategy development by driving the process from the customers' point of view. Planners will work with the client as well as other agency personnel, such as the creative team and media specialists. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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77. Which of the following statements about account planning is true? A. Account planners conduct only quantitative research. B. Account planners work with the client as well as other agency personnel. C. Account planners conduct only qualitative research. D. With account planning, the agency takes a permanent leadership role in the development of creative strategy. E. The knowledge gained during account planning can only be used during the planning period because of its proprietary nature. Account planners work with the client as well as other agency personnel, such as the creative team and media specialists. They discuss how the knowledge and information they have gathered can be used in the development of the creative strategy as well as other aspects of the advertising campaign. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

78. Tiffany is the creative director of an ad agency. The agency has just been hired to develop a promotional campaign for a company that produces exercise videos for women. As part of her preparation for developing a creative strategy, Tiffany reviews some studies conducted on the overall fitness and exercise market, as well as a report on the changing roles of women in society. This information is part of A. general preplanning input. B. focus group studies. C. problem detection studies. D. illumination studies. E. ethnographic research input. The above scenario speaks about information which is part of general preplanning input. General preplanning input can include books, periodicals, trade publications, scholarly journals, pictures, and clipping services, which gather and organize magazine and newspaper articles on the product, the market, and the competition, including the latter's ads. This input can also come from research studies conducted by the client, the agency, the media, or other sources. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-50 . McGraw-Hill Education.

79. Jonathan is a creative director at Williams & Greene Inc., an advertising agency. He spends an hour every morning reading publications like Advertising Age, The Wall Street Journal, and Adweek to gain a better understanding of what is happening in the world of marketing and advertising. These sources can be characterized as A. general preplanning input. B. focus group studies. C. verification research. D. brainstorming. E. problem detection research. The above scenario is an example of general preplanning input. General preplanning input can include books, periodicals, trade publications, scholarly journals, pictures, and clipping services, which gather and organize magazine and newspaper articles on the product, the market, and the competition, including the latter's ads. This input can also come from research studies conducted by the client, the agency, the media, or other sources. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

80. Which of the following best assist an organization in the preparation, incubation, and illumination stages of the creative process? A. portfolio tests B. message communication studies C. product-specific preplanning inputs D. viewer reaction profiles E. bait-and-switch techniques To assist in the preparation, incubation, and illumination stages, many agencies provide creative people with both general and product-specific preplanning input. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-51 . McGraw-Hill Education.

81. Lifestyle research, attitude studies, and perceptual mapping are examples of A. general preplanning inputs. B. product/service-specific preplanning inputs. C. verification studies. D. revision studies. E. demographic studies for B2B clients. Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product-specific preplanning input. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

82. Richard participated in a study conducted by an advertising agency. During his interview, he was asked to gauge the services provided by a regional airline on the basis of his experiences and what others had told him. The interviewer asked Richard specific questions about the food, the seating arrangements, the ease with which he entered and exited the plane, and the service provided by the flight attendants. The advertising agency used the research data to develop the creative strategy. In this scenario, Richard provided the agency with A. product-specific preplanning inputs. B. switch marketing inputs. C. secondary internal data. D. secondary external data. E. buzz marketing research. The above scenario is an example of product-specific preplanning input. Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product specific preplanning input. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-52 . McGraw-Hill Education.

83. _____ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficulties they encounter when using a product or service. A. Bait-and-switch modeling B. Market positioning C. Perceptual mapping D. Problem detection E. Market profiling The problem detection research technique involves asking consumers familiar with a product (or service) to generate an exhaustive list of things that bother them or problems they encounter when using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

84. Douglas took a survey on dill pickles. He was asked questions about what he liked and disliked about dill pickles, when and where he usually ate the pickles, and to list and rate all the brands of dill pickles that he could recall. He was asked his opinion on packaging and on the characteristic taste of the pickles, and what he disliked about all these aspects. The survey was conducted by an ad agency to help develop a creative strategy for dill pickles. If there were several people surveyed besides Douglas, we can assume he was participating in a(n) _____ study. A. incomplete comparison B. general preplanning input C. perceptual mapping D. problem detection E. market profiling The above scenario is an example of problem detection study. Problem detection research technique involves asking consumers familiar with a product (or service) to generate an exhaustive list of things that bother them or problems they encounter when using it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-53 . McGraw-Hill Education.

85. Psychographic studies are used by advertising agencies to A. coordinate the work between the client and the agency personnel such as the creative team and media specialists. B. provide creative personnel with a better understanding of general consumer trends. C. determine how to allocate the advertising budget for the campaign. D. understand specific problems clients have previously encountered while advertising various products and services. E. determine the number of creative personnel required to carry out the advertising campaign conveniently and effortlessly. Some agencies conduct psychographic studies annually and construct detailed psychographic or lifestyle profiles of product or service users. The information obtained from these is used to construct a psychographic profile of the target audiences for whom they are developing ads, as well as to gain insight into general consumer trends. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

86. Leslie, creative director for Visionary Ad Agency, is observing a focus group for four-wheel-drive SUVs. Before developing the creative brief, Leslie also conducts attitude studies, positioning studies, and lifestyle research studies. In this scenario, Leslie is gathering _____ A. general preplanning input. B. vendor lock-in data. C. product-specific preplanning input. D. channel stuffing reports. E. secondary internal data. In the above scenario Leslie is gathering product-specific preplanning input. Quantitative and qualitative consumer research such as attitude studies, market structure, and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product-specific preplanning input. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-54 . McGraw-Hill Education.

87. _____ is a research method whereby around 10 to 12 consumers from the target market are led through a discussion regarding a particular topic. A. Regression analysis B. Focus group C. Guided search D. Market mapping E. Out-group study Focus groups are a research method whereby consumers (usually 10 to 12 people) from the target market are led through a discussion regarding a particular topic. Focus groups give insight into why and how consumers use a product or service, what is important to them in choosing a particular brand, what they like and don't like about various products or services, and any special needs they might have that aren't being satisfied. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

88. Which of the following statements about focus groups is true? A. Focus groups are a qualitative research technique. B. Focus groups avoid discussions on types of ad appeals to be used. C. Focus groups involve observing consumers in their natural environment. D. Focus groups are ineffective in evaluating the viability of different creative approaches. E. Focus groups involve observing the natural habits of a particular group of consumers without their knowledge. In addition to the various quantitative research studies, qualitative research techniques such as in-depth interviews or focus groups can provide the creative team with valuable insight in the early stages of the creative process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-55 . McGraw-Hill Education.

89. In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of A. quantitative research techniques. B. qualitative research techniques. C. problem detection studies. D. conjectural research. E. secondary internal research. In-depth interviews with consumers, focus groups, and observational studies of how consumers conduct their daily lives as consumers are all examples of qualitative research techniques. Qualitative research techniques such as in-depth interviews or focus groups can provide the creative team with valuable insight at the early stages of the creative process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

90. Which of the following is a similarity between focus group studies and ethnographic research? A. Both are qualitative research techniques. B. Both are research techniques conducted without the consumer's knowledge. C. Both involve observing consumers in their natural environment. D. Both are very easy to administer. E. Both techniques cost a negligible amount of money. Both focus group and ethnographic research are qualitative research techniques. Focus groups are a research method whereby consumers (usually 10 to 12 people) from the target market are led through a discussion regarding a particular topic. Ethnographic research involves observing consumers in their natural environment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

91. _____ research involves anthropologists or other types of trained researchers observing consumers in their natural environments. A. Neuromarketing B. Out-group C. Questionnaire D. Focus group E. Ethnographic One form of qualitative input that has become popular among advertising agencies is ethnographic research, which involves observing consumers in their natural environment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-56 . McGraw-Hill Education.

92. Daniel and Ronald were social researchers who monitored websites, lurked in chat rooms, and hung out in cyber cafés and observed how Internet users act. The users they observed considered the Internet a tool to augment traditional forms of communication. Daniel and Ronald conducted _____ research. A. e-marketing B. ethnographic C. neuromarketing D. focus group E. out-group The above scenario is an example of ethnographic research. One form of qualitative input that has become popular among advertising agencies is ethnographic research, which involves observing consumers in their natural environment. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

93. Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often those situations arise, then asking the consumers to rate the list in order of importance and asking which brands are associated with the items on the list. She is using an approach called _____________________________ A. problem detection. B. ethnographic. C. focus groups. D. storyboarding. E. crowdsourcing. Problem detection is a process for finding ideas around which creative strategies could be based. A problem detection study can provide valuable input for product improvements, reformulations, or new products. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-57 . McGraw-Hill Education.

94. Which of the following is a limitation of focus group studies? A. In these studies, strong personalities can often wield undue influence. B. These studies cost more than ethnographic research. C. These studies are more difficult to administer than ethnographic research. D. These studies do not offer the benefits of qualitative research. E. In these studies, consumers are observed in their natural environment. Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

95. Which of the following is a limitation of ethnographic research? A. These studies are generally considered inapplicable to everyday situations. B. In these studies, strong personalities can often wield undue influence. C. In these studies, participants never recognize their behavior patterns and motivations. D. These studies cost more to conduct than focus group studies. E. These studies avoid observing consumers in their natural environment. Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. However, ethnographic studies can cost more to conduct and are more difficult to administer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-58 . McGraw-Hill Education.

96. Which of the following differentiates an ethnographic study from a focus group study? A. Ethnographic research is a quantitative research technique, whereas focus group studies are qualitative. B. Ethnographic research is difficult to administer, whereas focus group studies are easy to administer. C. Ethnographic research studies are inexpensive, whereas conducting focus group studies requires a huge investment. D. Focus group studies involve observing consumers in their natural environment, whereas ethnographic research involves observing consumers in controlled settings. E. Focus group studies are quantitative research techniques, whereas ethnographic research is qualitative. Many marketing and agency researchers prefer ethnographic research over the use of focus groups, as the latter technique has a number of limitations. Strong personalities can often wield undue influence in focus groups, and participants often will not admit, or may not even recognize, their behavior patterns and motivations. However, ethnographic studies can cost more to conduct and are more difficult to administer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

97. The verification and revision stage of the creative process evaluates ideas generated during the _____ stage and gives them final expression. A. preparation B. dramatization C. illumination D. incubation E. Digestion The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

08-59 . McGraw-Hill Education.

98. Techniques such as message communication studies and portfolio tests are studies conducted during the _____ stage of the creative process. A. illumination B. incubation C. preparation D. digestion E. Verification Techniques used at the verification stage include directed focus groups to evaluate creative concepts, ideas, or themes; message communication studies; portfolio tests; and evaluation measures such as viewer reaction profiles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

99. At what stage of the creative process are various ideas evaluated and refined before actually being used? A. preparation B. incubation C. illumination D. verification E. Verdict The verification and revision stage of the creative process evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

100. At what stage of the creative process would consumers in the target audience be asked to evaluate storyboards and animatics? A. preparation B. incubation C. verification D. illumination E. Verdict At the verification stage of the creative process, members of the target audience may be asked to evaluate rough creative layouts and to indicate what meaning they get from the ad, what they think of its execution, or how they react to a slogan or theme. The creative team can gain insight into how a TV commercial might communicate its message by having members of the target market evaluate the ad in storyboard form. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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101. A(n) ____ is a series of drawings used to present the visual plan or layout of a commercial along with a description of the audio for each scene. A. animatic B. mnemonic C. storyboard D. heuristic E. Trailer A storyboard is a series of drawings used to present the visual plan or layout of a proposed commercial. It contains a series of sketches of key frames or scenes along with the copy or audio portion for each scene. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

102. At the _____ stage of the creative process, the creative team attempts to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. A. incubation B. dramatization C. verification D. preparation E. Digestion At the verification stage of the creative process, the creative team is attempting to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

103. To make a creative layout of a commercial more realistic, a(n) _____ may be produced by making a videotape of the storyboard along with an audio soundtrack. A. animatic B. heuristic C. mnemonic D. copy platform E. Snipe To make the creative layout more realistic and easier to evaluate, the agency may produce an animatic, a videotape of the storyboard along with an audio soundtrack. Storyboards and animatics are useful for research purposes as well as for presenting the creative idea to other agency personnel or to the client for discussion and approval. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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104. The Visionaries, an advertising agency in Boston, is testing a creative idea for a new commercial before moving ahead with the production. To make the test more realistic, it wants to test both the visual layout of the commercial as well as the audio of the message. In which of the following forms should the commercial be tested? A. storyboard B. animatic C. snipe D. mnemonic E. Heuristic In the above scenario, the commercial should be tested in the animatic form. Testing a commercial in storyboard form can be difficult because storyboards are too abstract for many consumers to understand. To make the creative layout more realistic and easier to evaluate, the agency may produce an animatic, a videotape of the storyboard along with an audio soundtrack. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

105. Advertising campaign themes A. create a foundation for the incubation process of creative ad development. B. set the direction of all of the individual ads that make up the campaign. C. are typically designed by the client and implemented by the agency. D. are usually used for ads that run in only one type of media vehicle. E. are usually developed with the intention of being used for a short period of time. The advertising campaign sets the tone for the individual ads and other forms of marketing communications that will be used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

106. Which of the following stages of the creative process includes a highly formal and extensive pretesting of the ad before a final decision on the ad is made? A. incubation B. illumination C. preparation D. verification E. Digestion At the verification stage of the creative process, the creative team is attempting to find the best creative approach or execution style before moving ahead with the campaign themes and going into actual production of the ad. The verification/revision process may include more formal, extensive pretesting of the ad before a final decision is made. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

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107. Which of the four pillars in Y&R Group's BrandAsset Valuator is associated with Brand Strength? A. esteem B. knowledge C. relevance D. verification E. Digestion Relevance and Energized Experimentation are the two pillars associated with brand strength in the BrandAsset Valuator. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 08-02 Identify inputs to the creative process. Topic: The Strategic Marketing Process

108. Work plan is another name given to the _____ A. campaign theme. B. creative brief. C. advertising message. D. creative channel. E. account planning process. The written creative brief specifies the basic elements of the creative strategy. Different agencies may call this document a creative platform or work plan, creative blueprint, or creative contract. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

109. In an advertising agency, who among the following is usually responsible for preparing the creative brief? A. account manager B. media buying director C. art director D. illustrator E. media planner The account representative or manager assigned to the account usually prepares the creative brief. In larger agencies, an individual from research or the strategic account planning department may write it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

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110. Which of the following client representatives ultimately approves the creative brief? A. art director B. financial manager C. auditor D. brand manager E. media planner The written creative brief specifies the basic elements of the creative strategy. Different agencies may call this document a creative platform or work plan, creative blueprint, or creative contract. The account representative or manager assigned to the account usually prepares the creative brief. The advertising manager and/or the marketing and brand managers from the client side ultimately approve the creative brief. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

111. Which of the following is one of the critical components of the creative brief? A. formulation of the training program for the creative team B. calculation of the advertising budget C. management of the media buying operations D. development of the major selling idea E. management of one or more client groups Two critical components of the brief are the development of the major selling idea and creative strategy development. These two steps are often the responsibility of the creative team or specialist and form the basis of the advertising campaign theme. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

112. The part of the Tacori jewelry creative brief that specifies that communications will support a specific product's goal of becoming 50 percent of Tacori's business by establishing it as a more accessible, fashion jewelry line would appear in the _________________ section of the creative brief. A. problem or issue B. advertising and communications objectives C. target audience D. major selling idea or key benefits E. creative strategy statement The scenario presents an objective for the Tacori creative brief. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 08-03 Describe the development of creative strategy. Topic: The Steps in an Advertising Campaign

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113. John O'Toole describes the _____ as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." A. ad paradox B. epiphany C. heuristic D. big idea E. Mnemonic Well-known adman John O'Toole describes the big idea as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

114. Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee shops and she is given the task of coming up with a "big idea." With reference to the above scenario, "big ideas" A. are impossible to develop as they are not applicable to retail chains. B. are only needed in advertising for consumer services. C. are typically not the bases for effective advertising campaigns. D. are only effective in business-to-business advertising. E. could become the bases of creative and successful advertising campaigns. In the above scenario, we can tell that Leslie's big ideas could become the basis of very creative and successful advertising campaigns. Well-known ad executive John O'Toole describes the big idea as "that flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." While really great ideas in advertising are difficult to come by, there are many big ideas that became the basis of very creative, successful advertising campaigns. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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115. Bubble Inc., a chewing gum manufacturer, specifically targets children in its advertisements. In its latest advertisement, the company indicates that Bubble is the only chewing gum that lets you blow "massive" bubbles that won't stick to your face. This statement represents the brand's A. unique selling proposition. B. surrogate advertising strategy. C. unique selling language. D. intent scale translation. E. incomplete comparison. In the given scenario, the statement represents the gum's unique selling proposition. Three characteristics of unique selling propositions are: 1) each advertisement must make a proposition to the consumer, 2) it must be unique either in the brand or in the claim, and 3) the proposition must be strong enough to move the mass millions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

116. Which of the following is true of the concept of the unique selling proposition (USP)? A. USP usually mirrors the concept of bait-and-switch advertising. B. The concept states that a product's attribute claim must be excluded from advertising. C. The concept of USP is applicable only for B2B advertising. D. USP must be emphasized through repetitive advertising. E. The concept of USP must be used only for C2C advertising. The concept of the unique selling proposition (USP) was developed by Rosser Reeves, former chair of the Ted Bates agency, and is described in his influential book Reality in Advertising. Reeves said the attribute claim or benefit that forms the basis of the USP should dominate the ad and be emphasized through repetitive advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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117. Which of the following statements is true of image advertising? A. It is used most often when there are significant functional or performance differences among brands. B. It is often used when competing brands are difficult to differentiate on a functional or performance basis. C. Advertisers often use it when their products or services offer a unique attribute or benefit to consumers. D. It is most commonly used for business-to-business products. E. It concentrates on those functional features of a product that are unique and cannot be imitated by competitors. In many product and service categories, competing brands are so similar that it is very difficult to find or create a unique attribute or benefit to use as the major selling idea. Many of the packaged-goods products that account for most of the advertising dollars spent in the United States are difficult to differentiate on a functional or performance basis. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. David Ogilvy argued that the image or personality of the brand is particularly important when brands are similar. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

118. Fly High Airlines, an Australian airline, rebranded itself by using a kangaroo wearing a hat in its logo. Since the kangaroo is a significant cultural symbol in Australia, the company hoped that associating itself with such a national icon would enhance its popularity. Subsequently, the company also launched an ad campaign for the Save the Kangaroo Foundation. In this scenario, Fly High Airlines was using A. bait-and-switch advertising. B. image advertising. C. buzz marketing. D. trojan horse advertising. E. guerilla marketing. The above scenario is an example of image advertising. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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119. Bensons Inc., a retail store in Houston, launches an ad campaign featuring the interiors of its stores. The stores are shown to be lit by crystal chandeliers and feature several salespeople wearing tail-coats. The ads also contain the slogan "Be treated like royalty, while you shop in comfort." The development of a strong, memorable "royal" identity by Bensons is an example of: A. guerilla advertising. B. image advertising. C. drama advertising. D. bait-and-switch advertising. E. refutational appeal. The above scenario is an example of image advertising. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising. The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

120. Who among the following popularized the idea of brand image in his book Confessions of an Advertising Man? A. John O' Toole B. Leo Burnett C. Sigmund Freud D. David Ogilvy E. Rosser Reeves David Ogilvy popularized the idea of brand image in his famous book Confessions of an Advertising Man. Ogilvy said that with image advertising, "every advertisement should be thought of as a contribution to the complex symbol which is the brand image." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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121. When an advertiser uses an ad that emphasizes psychological associations and attempts to wrap the consumer's perceptions into a tight concept or symbol, what type of advertising approach is being used? A. bait-and-switch advertising B. image advertising C. guerilla advertising D. visual merchandizing E. refutational appeal The key to successful image advertising is developing an image that will appeal to product users. This is often done by associating a brand with certain symbols or artifacts that have cultural meaning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

122. Leo Burnett, founder of the Leo Burnett agency in Chicago, said _____ "is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals." A. image advertising B. inherent drama C. refutational appeal D. snob appeal E. primacy appeal Leo Burnett, founder of the Leo Burnett agency in Chicago, said inherent drama "is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

123. An approach to finding a major selling idea that uses consumer benefits as a foundation, with an emphasis on presenting these benefits in a theatrical way, is the _____ approach. A. B. C. D. E.

card stacking buzz inherent drama testimonial bait-and-switch

An approach to determining the major selling idea is finding the inherent drama or characteristic of the product that makes the consumer purchase it. Such advertising is based on a foundation of consumer benefits with an emphasis on the dramatic element in expressing those benefits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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124. An ad for a medication that helps people undergoing chemotherapy feel more energetic shows a grandfather sorrowfully wishing he could participate in his grandson's birthday party. Subsequently, the scene switches to the birthday party and shows the grandfather feeling energetic and vibrant after taking the medication. This ad is an example of _____ A. bait-and-switch advertising. B. a snob appeal. C. the inherent drama approach. D. the WOM approach. E. a buzz appeal. The above ad is an example of the inherent drama approach. An approach to determining the major selling idea is finding the inherent drama or characteristic of the product that makes the consumer purchase it. Such advertising is based on a foundation of consumer benefits with an emphasis on the dramatic element in expressing those benefits. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

125. Jack Trout and Al Ries introduced _____ as the basis for advertising strategy and creative development in the early 1970s. A. inherent drama B. positioning C. neuromarketing D. buzz marketing E. creative brief The concept of positioning as a basis for advertising strategy was introduced by Jack Trout and Al Ries in the early 1970s and has become a popular basis of creative development. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

126. Jack Trout and Al Ries originally described _____ as the image consumers had of the brand in relation to competing brands in the product or service category. A. brandjacking B. gladvertising C. channel stuffing D. pricing E. Positioning Jack Trout and Al Ries originally described positioning as the image consumers had of the brand in relation to competing brands in the product or service category, but the concept has been expanded beyond direct competitive positioning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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127. According to Advertising Age, experts in creative advertising don't write books or espouse theories. They see advertising as A. an inherent drama working to offset the reality of social issues. B. an uplifting social force, as a way to inspire and entertain. C. the replacement for the 20th-century salesperson. D. publicity created through unique selling propositions. E. a cultural force redefining societal needs and wants. In describing today's creative leaders, Anthony Vagnoni of writes: The modern creative kings don't write books, rarely give interviews or lay out their theories on advertising. They've endorsed no set of rules, professed no simple maxims like Mr. Ogilvy's famous "When you don't have anything to say, sing it." If pronouncements and books are out the window, what's replaced them is a conscious desire to lift the intelligence level of advertising. Today's leaders see advertising as an uplifting social force, as a way to inspire and entertain. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

128. With the growth of integrated marketing communications, advertisers are being challenged to think beyond traditional mass media and develop creative advertising that A. offsets the weaknesses associated with storyboard ad design. B. provides opportunities for effective government oversight. C. centralizes American consumer values in a global marketplace. D. engages consumers and enters into a dialogue with them. E. minimizes the risk of offending technology-savvy consumers. Advertisers are facing major challenges in their search for the big idea in the new world of integrated marketing communications. Most marketers and their agencies recognize that they must come up with big ideas that can be used across a variety of media and can engage consumers and enter into a dialogue with them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

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129. Which of the following is one of the four best-known approaches for developing a major selling idea? A. using a unique selling proposition B. creating a brand image C. finding the inherent drama D. engaging in a dialogue E. Positioning Advertisers are facing major challenges in their search for the big idea in the new world of integrated marketing communications. Most marketers and their agencies recognize that they must come up with big ideas that can be used across a variety of media and can engage consumers and enter into a dialogue with them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

130. When BMW communicates that its car is "the ultimate driving machine," which transcends and helps differentiate its entire product line, it is using the concept of _________________ as a basis for advertising strategy. A. positioning B. inherent drama C. image D. sustainable competitive advantage E. unique selling proposition Positioning is when advertising is used to establish or position the product or service in a particular place in the consumer's mind. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign. Topic: The Steps in an Advertising Campaign

Chapter 08 Test Bank 01/11/2017 16:37:13 Summary Category-# of Questions AACSB: Analytical Thinking-111 AACSB: Reflective Thinking-19 Accessibility: Keyboard Navigation-130 Blooms: Apply-21 Blooms: Remember-76 Blooms: Understand-33 Difficulty: 1 Easy-76 Difficulty: 2 Medium-37 Difficulty: 3 Hard-17 Learning Objective: 08-01 Describe the role of creative strategy in advertising.-37 Learning Objective: 08-02 Identify inputs to the creative process.-62 Learning Objective: 08-03 Describe the development of creative strategy.-10 Learning Objective: 08-04 Examine approaches to developing the major selling ideas that are used as the basis for an advertising campaign.-21 Topic: Advertising Appeals-25 Topic: Strategic Marketing Planning-10 Topic: The Role of Advertising-1 Topic: The Steps in an Advertising Campaign-32

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Topic: The Strategic Marketing Process-62

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Chapter 09 Test Bank Student: ___________________________________________________________________________ 1. The objective of an ad with a rational appeal is to persuade the target audience to buy the brand because it is the best available or does a better job of meeting consumers' needs. True False

2. Price appeal ads are often used by national advertisers during recessionary times. True False

3. The main point of an ad with a product/service popularity appeal is the price gain a consumer can benefit from by using the brand. True False

4. A transformational advertisement must connect the audience with the advertisement in such a way that the experience of the product/service is independent of the experience generated by the advertisement. True False

5. Teasers are especially popular among automotive advertisers for introducing a new model or announcing significant changes in a vehicle. True False

6. Ads for industrial and other business-to-business products generally use straight-sell messages in print ads. True False

7. Endorsers promote a company or its products or services based only on their personal experiences with the product. True False

8. Slice-of-life advertisements usually use real-life people, not actors, to make the ads more credible to the audience. True False

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9. Image executions rely heavily on visual elements such as photography, color, tonality, and design. True False

10. The purpose of the dramatization technique is to present scientific/technical information or laboratory studies to support the advertising claim. True False

11. The common techniques used to write direct headlines include using questions, provocations, how-to statements, and challenges. True False

12. While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. True False

13. The layout of a print ad determines the content of the message required to convince the target audience. True False

14. A master recording of a music track is not as expensive as the rights to use the musical composition of the track. True False

15. Only 20 percent of readers go beyond an ad's headline and read the body copy. True False

16. The Joint Policy Committee on Broadcast Relations has proposed a new compensation system that will base the pay for commercial actors on gross ratings points. True False

17. The evaluation process of creative outputs is usually subjective; the advertising or brand manager relies on qualitative considerations for evaluation. True False

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18. Experts suggest that advertisements targeted to older consumers should use actors who are older than the targeted audience, as that makes the message seem more credible. True False

19. The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. True False

20. It has been suggested that advertising targeted to older consumers should use models who are 10 years older than the average age of the target audience, since most people feel older than their chronological age. True False

21. An international denim brand asks its advertising agency to create a campaign to instill an emotional connection to the brand in young people all over the world. The agency is asked to focus on the adventure-seeking nature of the youth. In the given scenario, the brand is trying to come up with a(n) _____ A. advertising appeal. B. primacy appeal. C. brand identity. D. brand parity. E. business plan.

22. A(n) _____ refers to the approach used in an advertisement to elicit some consumer response or to influence the feelings of consumers toward a product, service, or cause. A. brand dilution B. brand parity C. business plan D. advertising appeal E. advertising character

23. A(n) _____ is something that moves people, speaks to their wants or needs, and excites their interest. A. recency sequence B. advertising stock C. advertising appeal D. creative sequence E. creative review

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24. A(n) _____ refers to the manner in which an advertising idea is turned into a message and presented to consumers. A. advertising appeal B. creative execution style C. rational appeal D. emotional appeal E. creative sequence

25. An ad for Sylio, a prescription medicine for people with scoliosis, uses a visual representation of the drug's action and effect on the human body. The ad states that the drug is made with natural active ingredients, and that side effects, if any, are all minor and short term. The ad is an example of a(n)

A. primacy appeal. B. recency appeal. C. emotional appeal. D. rational appeal. E. fear appeal.

26. An ad for Red Bull that focuses on the dominant traits of the product—its ingredients—and the benefits they provide (e.g., enhanced performance, endurance, and concentration) is using a ________________ appeal.

A. feature B. recency C. favorable price D. popularity E. fear

27. An ad for TaylorMade M1 and M2 drivers notes its drivers are played by more professional golfers on tour than any other brand. TaylorMade is using a ________________ appeal. A. feature B. recency C. favorable price D. popularity E. fear

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28. Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as _____ appeals. A. informational B. emotional C. fear D. creative E. noncognitive

29. Purchase motives such as convenience, comfort, economy, and performance are used as a basis for generating _____ appeals through advertising. A. creative B. emotional C. imaginary D. rational E. traditional

30. The content in an advertisement that emphasizes facts, learning, and the logic of persuasion makes use of a(n) _____ appeal. A. emotional B. informational C. transformational D. subliminal E. irrational

31. Which of the following statements is true of informational advertising appeals? A. Benefits that serve as the basis of these appeals are constant across product categories. B. They work well for products but not for services. C. Attributes that form the basis of these appeals vary from one product or service category to another. D. Features, benefits, or attributes that serve as a basis for these appeals generally do not vary among different market segments. E. They usually influence feelings, images, beliefs, and meanings about a product or service.

32. An ad for Calloway Resorts stresses the different recreational activities available to visitors. It also explains the various facilities that guests can use while staying at the resort. This is an example of a(n) _____ appeal. A. news B. favorable price C. feature D. popularity E. emotional

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33. An ad featuring actor/singer Victoria Justice for the "Body by Milk" integrated marketing campaign talks about how milk can help teens look their best. It leverages the _____________ base for emotional appeals. A. recognition B. self-esteem C. security D. nostalgia E. excitement

34. Which of the following statements is true of feature appeals? A. They present attributes that can be the basis of rational purchase decisions. B. They are used mainly for low-involvement products. C. They can be used for advertising a product but not a service. D. They are used primarily for nontechnical products.

E. They point out the number of consumers who have switched to a particular brand.

35. To announce sales, special offers, or discount rates, retailers often use a(n) _____ appeal. A. feature B. product popularity C. favorable price D. competitive advantage E. emotional

36. A personal computer manufacturer has developed a significant technological breakthrough that will make its computers easier for novices to use. The computer manufacturer would do best to use a(n) _____ appeal to announce the breakthrough. A. favorable price B. emotional C. news D. product popularity E. competitive advantage

37. Aleve Inc., a pharmaceutical company, launches an ad that claims, "Taking one pill from Aleve is as effective as taking three pills from any other company." This ad campaign is using a(n) _____ appeal. A. emotional B. competitive advantage C. news D. favorable price E. product popularity

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38. A campaign run by the manufacturers of Glad garbage bags informs viewers that Glad garbage bags are twice as thick as those made by Crash Bin Bags, the leading garbage bag brand in the market. In this scenario, Glad is using a(n) _____ appeal. A. emotional B. competitive advantage C. product popularity D. favorable price E. news

39. The ad for F.N. Inc., an investment bank, states that the company is "Ranked #1 by magazine." In this scenario, the ad is using a(n) _____ appeal. A. emotional B. competitive advantage C. product feature D. favorable price E. product popularity

40. Advertisements that focus on the dominant attributes or characteristics of a product or service are making use of _____ appeals. A. feature B. news C. price D. product popularity E. competitive advantage

41. A _____ appeal is used when the advertiser makes either a direct or an indirect comparison to another brand and usually claims superiority on one or more attributes. A. feature B. popularity C. competitive advantage D. favorable price E. news

42. An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) _____ appeal. A. feature B. favorable price C. news D. product popularity E. emotional

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43. An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) _____ appeal. A. feature B. favorable price C. news D. product popularity E. emotional

44. A software development company runs an advertising campaign for one of its products emphasizing that it is the most preferred financial software brand. The ad also states, "Thousands of customers have switched over to our software." The company is making use of a(n) _____ appeal. A. emotional B. news C. product popularity D. product feature E. favorable price

45. A "Love Has No Labels" public service advertising campaign that was sponsored by the Ad Council filmed a live event where skeleton images embraced behind a large x-ray screen, then the people walked out from behind the screen. The people who embraced represented different pairings of gender, race, sexual orientation, religion, ability, and age. This video used a(n) _____________________ appeal to get viewers to look at their expectations and implicit bias. A. emotional B. news C. product popularity D. product feature E. favorable price

46. Advertising appeals that relate to consumers' social and/or psychological needs for purchasing a product or service are known as _____ appeals. A. informational B. rational C. product popularity D. emotional E. product feature

47. Which of the following statements explains why marketers use emotional appeals? A. The positive feelings created by advertising can have a favorable effect on consumers' evaluations of a brand. B. Emotional appeals focus on the consumer's practical, functional, or utilitarian need for a product or service. C. Emotional appeals tend to be informative, and help advertisers convince consumers that their product or service satisfies their needs. D. Emotional appeals persuade the target audience to buy the brand because it is the best available. E. Emotional appeals are easy to execute and cost less, even though they are less effective than rational appeals.

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48. Advertisers create emotional advertising appeals by using A. comparative advertisements. B. product feature appeals. C. transformational advertising. D. news appeals. E. popularity appeals.

49. Advertisements that portray people experiencing an arousing, upbeat, and/or exciting benefit or outcome from using a product or service are relying on A. informational appeals. B. rational appeals. C. mood transfers. D. emotional integrations. E. outcome integrations.

50. Which of the following is a vital component of ads that use emotional integration to market a product? A. fear B. news C. popularity D. humor E. price

51. Advertisements that create feelings, meanings, images, or beliefs about a product or service that can be activated when consumers use it are known as _____ ads. A. rational B. transformational C. consumer-generated D. reminder E. informational

52. _____ advertising attempts to make the experience of using a product or service richer, warmer, or more exciting. A. Informational B. Teaser C. Transformational D. Reminder E. Rational

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53. Transformational advertising can differentiate a product or a service by A. convincing a consumer of its leadership position in the market. B. making the consumption experience more meaningful and enjoyable. C. helping the consumption experience last longer. D. showing performance superiority of one brand over another. E. focusing on a consumer's functional or utilitarian need for the product or service.

54. Manten is a popular brand of hiking boots. Its advertisements emphasize the experience of conquering unfamiliar terrain in the wild. They portray vivid, captivating visuals of cliffs, rivers, and jungles. The campaign is also accompanied by a popular jingle that reflects the qualities of freedom, wilderness, and adventure that the company values. This approach is most likely an example of _____ advertising. A. rational B. transformational C. consumer-generated D. teaser E. informational

55. Which of the following is true of image advertisements? A. They are transformational in nature. B. They are designed to transfer the image of a company to its brand. C. They are typically utilized in radio advertisements. D. They are not suitable for print media. E. They typically utilize emotional integration.

56. _____ is designed to give a company or brand a unique association or personality and is often transformational in nature. A. Rational advertising B. Image advertising C. Reminder advertising D. Teaser advertising E. Consumer-generated advertising

57. Rational and emotional advertising appeals A. represent two distinctive approaches which should never be combined because they divide the focus of consumers' attention. B. are essentially the same. C. can be used together in advertisements. D. are used together only for low-involvement products. E. can be combined only for products and not for services.

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58. The "Find Your Beach" campaign for Corona Extra makes the experience of drinking the beer more enjoyable and connects the experience of the advertisement so tightly with the experience of drinking the beer that consumers cannot remember the brand without recalling the experience generated by the advertisement, which makes it a ____________________ ad. A. product benefit B. rational C. transformational D. reminder E. teaser

59. Well-known brands and market leaders often run ads that do not use any specific types of appeals, but focus primarily on keeping their brand name visible to consumers. This type of advertising is known as _____ advertising. A. teaser B. reminder C. rational D. transformational E. consumer-generated

60. A chocolate manufacturer advertises heavily during Christmas with an ad that shows only a picture of red, green, and silver wrapped chocolates. The advertiser's aim is to create top-of-mind awareness among consumers. In this scenario, the chocolate manufacturer is using _____ advertising.

A. transformational B. reminder C. rational D. consumer-generated E. teaser

61. Under Armour used ____________ ads to create interest and excitement around a new product introduction for its Armour39 performance monitoring system. It wanted to create some suspense and mystery for the new product.

A. transformational B. reminder C. rational D. consumer-generated E. teaser

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62. Which of the following is true of reminder advertising? A. It generally uses a transformational approach to advertising. B. It is used to create top-of-mind awareness among consumers. C. It is not applicable for generic consumer products. D. It is also known as emotional advertising. E. It attempts to assign a personality to the brand.

63. _____ advertising is sometimes used to create curiosity and build interest and excitement in a new product or brand by talking about it but not showing it. A. Reminder B. Teaser C. Rational D. Consumer-generated E. Informational

64. Jim's Taco launched an advertising campaign for its new Guacamole taco by running anonymous full-page ads featuring basketball stars issuing mysterious challenges to one another. The ads were attempting to build curiosity without showing the product. This is an example of _____ advertising. A. transformational B. reminder C. rational D. consumer-generated E. teaser

65. When Frito-Lay sponsored its "Crash the Super Bowl" creative competition and ran an ad that was entirely conceived and produced by amateurs, rather than advertising professionals, it was an example of __________________ A. transformational advertising. B. reminder advertising. C. rational advertising. D. user-generated content. E. teaser advertising.

66. When Platinum Motors Inc. was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of _____ advertising. A. reminder B. transformational C. teaser D. emotional E. consumer-generated

09-12 . McGraw-Hill Education.

67. Which of the following statements is true of teaser advertisements? A. They depend on emotional bonding to generate publicity. B. They do not work well when used for a short period of time. C. Marketers should avoid rational appeals while creating them. D. They focus on the transformational appeal of a product. E. Marketers must be careful not to use them too long.

68. The argument by famous advertising man David Ogilvy that "what you say in advertising is more important than how you say it" suggests that A. advertising appeal is more important than the way it is executed. B. advertising execution is more important than the appeal. C. advertising appeals and executions are equally important. D. advertising execution is more important than message content. E. a product is more important than its creative appeal.

69. An advertising execution technique that relies on a straightforward presentation of information about a product or service is called a(n) A. factual message. B. demonstration. C. testimonial. D. dramatization. E. animation of key benefits approach.

70. Straight-sell message executions are commonly used with _____ advertising appeals. A. informational B. emotional C. transformational D. teaser E. humor

71. A print ad for flood insurance lists 20 reasons why every homeowner should have flood insurance. This is an example of _____ advertising.

A. straight-sell B. transformational C. testimonial D. teaser E. comparative

09-13 . McGraw-Hill Education.

72. When an ad for the American Indian College Fund used the headline, "I Will Keep 286,000 People from Losing Their Sacred Land" to generate curiosity among magazine readers and encourage them to read the copy below for an explanation, it was an example of a(n) ___________________ headline.

A. direct B. transformational C. testimonial D. teaser E. indirect

73. The ad for an investment company opens with the statement, "You can't plan for tomorrow if you don't know where your money is today," and continues with relevant information about investment and its benefits. This ad is an example of _____ advertising. A. straight-sell B. transformational C. testimonial D. teaser E. comparative

74. When an advertiser cites technical information, such as the results of laboratory studies, in an advertisement, a(n) _____ style of execution is being used. A. dramatization B. slice-of-life C. scientific evidence D. testimonial E. animation

75. In an ad for Pluto's superior sun protection moisturizer, a dermatologist's report states, "A year of incidental sun equals baking for a week at the beach!" This is an example of a(n) _____ style of execution. A. dramatization B. slice-of-life C. technical evidence D. testimonial E. animation

76. An ad for a brand of tea states that according to laboratory research, "A serving of tea has more antioxidants than a serving of carrots or broccoli." Which type of ad execution is being used in this example? A. dramatization B. testimonial C. scientific evidence D. slice-of-life E. comparison

09-14 . McGraw-Hill Education.

77. Which of the following is an advertising execution approach designed to illustrate key advantages of a product by showing it in actual use? A. comparison B. demonstration C. scientific evidence D. straight sell

E. animation

78. An ad for a van shows how easily a small boy and his grandfather can get in and out of the vehicle. It also emphasizes the positioning of handles at appropriate places that make transit easier for older people. Which ad execution technique is being used in this ad? A. comparison B. demonstration C. scientific evidence D. straight sell E. testimonial

79. Subway Restaurant's "Five-dollar foot-long" catchy song, or _____________, has been an integral part of one of the most effective promotional campaigns ever developed in the fast-food industry. A. jingle B. script C. storyboard D. layout E. animatic

80. When a person speaks on behalf of a product or service based on his or her personal use of and experiences with it, a(n) _____ execution is being used. A. dramatization B. slice-of-life C. animation D. demonstration E. testimonial

09-15 . McGraw-Hill Education.

81. Rick Edgars, a famous sports personality, appears in Venus Inc.'s ads in which he notes how the company's golf clubs have helped him win several major championships. He also states that in his experience, the clubs have a "perfect swing." Which of the following types of advertising execution is illustrated in this scenario? A. slice of life B. testimonial C. demonstration D. scientific evidence E. dramatization

82. In a television ad, actor and noted animal lover Betty White praised Frontline, a flea and tick treatment, for the way it protects her dogs and cats. Which of the following types of advertising execution has been illustrated in this scenario?

A. comparisons B. slice of life C. humor D. testimonial E. demonstration

83. Airlines sometimes use _______________ when they begin offering service to new cities or opening new routes as a way of informing consumers as well as generating media interest that can result in publicity for them.

A. comparisons B. slice of life C. humor D. testimonial E. news

84. A professional race car driver appears in an ad advocating a particular motor oil brand. This is an example of a(n) A. comparison. B. endorsement. C. demonstration. D. straight sell. E. slice of life.

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85. A widely used advertising execution style for packaged products, which attempts to portray situations consumers might face while using them in their daily activities, is known as _____ execution. A. endorsement B. slice-of-life C. emotional D. dramatization E. demonstration

86. A Bright laundry detergent ad showed a baseball team-manager removing stains from two dozen uniforms by throwing them in a washer and adding Bright detergent. Which of the following advertising execution styles has been illustrated in this scenario? A. dramatization B. slice of life

C. humorous D. testimonial E. emotional

87. An ad for a vacation resort in Virginia begins by stating that the resort has "Dozens of sporting diversions for the entire family." Under that statement, it reads, "Translation: guilt-free golf." Which execution style is seen in this ad? A. endorsement B. slice of life

C. reminder D. testimonial E. demonstration

88. Which of the following statements is true of the use of slice-of-life executions? A. Slice-of-life executions are very inefficient in business-to-business advertising. B. To be effective, a slice-of-life execution should avoid mimicking real life because its primary purpose is to rise above the clutter. C. Slice-of-life executions work well only for consumer products with perceived homogenous qualities. D. Many advertisers like slice-of-life executions because they feel they are an effective way to present a situation to which consumers can relate. E. Slice-of-life or problem/solution execution approaches are limited to the advertising of services.

09-17 . McGraw-Hill Education.

89. An advertising execution technique used by business-to-business marketers depicting the negative consequences of making incorrect purchase decisions is referred to as A. a problem-solution execution. B. slice-of-death advertising. C. slice-of-life advertising. D. a response-stimuli execution. E. informational advertising.

90. An ad for Novell solutions targeting businesspeople used the headline, "ERP: Sound made by CIO when people see data they shouldn't." The actor playing the executive in the ad has a distressed, almost fearful look on his face. Which of the following execution techniques has been used in this ad? A. problem-solution execution B. slice-of-death advertising C. slice-of-life advertising D. reminder execution E. informational advertising

91. An advertising execution technique that is particularly popular for creating commercials targeted at children is A. slice of life. B. demonstration. C. testimonial. D. scientific evidence. E. animation.

92. Which of the following is true of cartoon animation? A. It is synonymous with slice-of-life advertising. B. It is also known as endorsement advertisement. C. It is popular for commercials targeted at children. D. It involves a problem-solution approach. E. It portrays the conflict that people face in their daily lives.

93. Colonel Sanders from KFC's ads is an example of advertising that uses a _____ in its execution technique. A. testimonial B. demonstration C. fantasy D. personality symbol E. behavioral appeal

09-18 . McGraw-Hill Education.

94. When Alcon's Opti-Free multi-purpose disinfecting solution for contact lens care treatment notes the product is the number one doctor-recommended brand because its performance is driven by science, it is using _________________ as an execution approach. A. testimonial B. scientific/technical evidence C. fantasy D. personality symbol E. comparison

95. _____ are used in the execution of ads that involve creating a central character that can deliver the advertising message and with whom the product or service can be identified. A. Demonstrations B. Testimonials C. Personality symbols D. Fantasies E. Slices-of-life situations

96. Marlboro used a cowboy to advertise its cigarettes for a number of years. "The Marlboro Man" became a central character through which the company delivered its advertising message. This is an example of A. testimonial advertising execution technique. B. demonstration advertising execution technique. C. use of personality symbols in the execution of ads. D. use of testimonials in the execution of ads. E. use of ambassadors in the execution of ads.

97. _____ is an advertising execution technique often used for emotional appeals. It offers viewers a form of mental escape and/or an opportunity to envision themselves in a certain situation. A. Imagery B. Demonstration C. Slice of life D. Animation E. Comparative advertising

98. Timber Co. sells all-weather gear. For its advertising campaign, the company develops an imaginary place called Timber City, which is a Utopian setting of extraordinary landscapes and crystal-clear lakes. Which of the following execution styles is illustrated in Timber's ads? A. imagery B. demonstration C. slice of life D. animation E. comparison

09-19 . McGraw-Hill Education.

99. Dramatization is particularly well suited for _____ advertising. A. television B. newspaper C. radio D. magazine E. direct mail

100. Which of the following is used to execute an ad wherein excitement and suspense are used to tell a short story with a product as the star of the ad? A. slice of life

B. animation C. dramatization D. testimonial E. imagery

101. The state of Colorado runs an ad which shows an obviously scared third grader getting ready to go on stage for his first public stage appearance. He is dressed as a carrot. The ad tells the reader that being a third grader is much more stressful than we remember and causes us to feel great sympathy for the child dressed in the ridiculous costume. The tag line at the end of the ad reads, "Your kids need a carefree Colorado vacation as much as you do." This is an example of a A. dramatization technique. B. testimonial technique. C. fear technique. D. personality symbol technique. E. scientific evidence technique.

102. An ad for a new hatchback shows four college students hunting for a parking place in a large, crowded parking lot. When they finally find a spot and park the car, they discover that they can't open the doors to get out. One of them opens the hatchback and the commercial ends with them exiting the car through the hatchback. This commercial uses A. dramatization with a humorous appeal. B. animation with the intent of creating a personality brand. C. slice-of-life with a fear appeal. D. demonstration with an emotional appeal. E. straight-sell with a humorous appeal.

103. Which of the following is a basic component of a print advertisement? A. deadline B. testimonial C. trademarks D. animations E. layout

09-20 . McGraw-Hill Education.

104. _____ are words in the leading position of a print advertisement that are likely to be read first. A. Headlines B. Body copies C. Subheads D. Layouts E. Primary copies

105. Research has shown that the first thing people look at in a print ad is the A. illustration. B. visual. C. body copy. D. subhead. E. headline.

106. Many advertising experts consider the most important part of a print ad to be the A. headline. B. subhead. C. layout. D. body copy. E. needledrop.

107. Headlines that are very straightforward and informative in the message they are presenting are known as _____ headlines. A. direct B. indirect C. secondary D. visual E. rational

108. When an advertiser has something important or new to announce to a target audience, a(n) _____ headline will be used. A. direct B. indirect C. secondary D. visual E. affective

09-21 . McGraw-Hill Education.

109. The headline in an advertisement reads, "Introducing Pluto's Washable Crayons for the youngest artist in your gallery." This is an example of a(n) _____ headline. A. direct B. indirect C. tertiary D. secondary E. rational

110. Steve Oakes found that increased congruity between _____________ and advertising with respect to variables like mood, genre, score, image, and tempo contributes to communication effectiveness of an advertisement by enhancing recall, brand attitude, affective response, and purchase intention. A. headlines B. music C. slogans D. scripts E. layouts

111. Which of the following statements describes a potential problem associated with indirect headlines in print ads? A. They generate curiosity in readers, which takes attention away from the message. B. They may not be provocative enough to direct a reader's attention to the rest of the message. C. They avoid the use of questions or provocations. D. They avoid the use of how-to statements. E. They are often treated as subheads.

112. A print ad for Apple Cider Vinegar Diet used the headline, "Maybe Eve was on to something." This is an example of a(n) A. direct headline. B. indirect headline. C. subhead. D. jingle. E. noise.

113. _____________ have the highest click-through rate of the online advertising formats. A. Video ads B. Leaderboard display ads C. Billboard display ads D. Half-page ads E. Pop-up ads

09-22 . McGraw-Hill Education.

114. Underneath the headline, "Fully Loaded," in an ad for Brett shotguns was written: "Our most comprehensive line of autoloading shotguns ever." This second statement was printed in a typeface larger than the body copy but smaller than the headline. The second statement in the ad is an example of a(n) A. story line. B. subhead. C. jingle. D. indirect headline. E. noise.

115. Peter Minnium of the Internet Advertising Bureau notes that digital advertising is trifurcating into three types of advertising—___________________ ads—and their use varies based on the goals and/or objectives the marketer is trying to achieve all along the purchase funnel. A. emotional, teaser, and transformational B. reminder, teaser, and informational C. emotional, informational, and transformational D. emotional, transformational, and commerce E. concept, content, and commerce

116. _____________________ is a type of paid placement designed to fit seamlessly into the content that surrounds it. The design, content, and writing style of this ad format mirrors the nonpaid content around it, giving the user the impression that it really belongs. A. Digital advertising B. Native advertising C. Video advertising D. Interactive advertising E. Display advertising

117. What is the main portion of text in a print ad called? A. story line B. subhead C. body copy D. illustration E. storyboard

118. The _____ is considered the heart of a print ad but is often difficult to get readers to attend to. A. headline B. subhead C. body copy D. visual E. logo

09-23 . McGraw-Hill Education.

119. When deciding on the visual portion of a print ad, an advertiser must determine A. the identification marks to be included. B. the requirement for a needledrop. C. the content in the body copy. D. the length of the ad copy. E. the headline of the copy.

120. The physical arrangement of the various parts of an ad, including headlines, subheads, illustrations, body copy, and identifying marks, is known as a(n) A. narration. B. visual. C. body copy. D. artwork. E. layout.

121. A copywriter can determine how much space he or she has to work with and how much copy to write after seeing a print advertisement's A. trademarks. B. artwork. C. body copy. D. layout. E. illustration.

122. The audio portion of a commercial is often presented through the use of a(n) A. layout. B. voiceover. C. illustration. D. headline. E. storyboard.

123. _____ is an occupational term in the advertising and music industries that refers to prefabricated, multipurpose music that is often used as the background audio portion of a commercial. A. Jingle B. Voiceover C. Needledrop D. Stock photo E. Beat music

09-24 . McGraw-Hill Education.

124. The use of an actor's voice for reading poetry in a series of automobile commercials is an example of a A. needledrop. B. talking jingle. C. voiceover. D. tagline. E. subtextual message.

125. _____ are catchy songs about a product or service that usually carry the advertising theme and a simple message. A. Headlines B. Taglines C. Voiceovers D. Jingles E. Needledrops

126. The written version of a television commercial that provides a detailed description of its video and audio content is known as a A. layout. B. jingle. C. voiceover. D. script. E. storyboard.

127. Once a script for a television commercial has been conceived, a writer and an art director collaborate to produce a _____, a series of drawings used to present the visual plan or layout of the commercial. A. transparency board B. storyboard C. visual layout D. layout synopsis E. thumbnail sketch

128. During which stage of commercial production process do activities such as editing, recording of sound effects, audio/video mixing, and agency approval occur? A. preproduction B. production C. postproduction D. preparation E. incubation

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129. Which of the following is a common criticism of TV commercials? A. The creative execution tends to overshadow the advertiser's message. B. They usually have a horizontal layout. C. They are highly unpredictable and difficult to interpret. D. They fail to effectively include needledrops and jingles. E. They overemphasize the brand name and product selling points.

130. Which of the following questions should be used as a criterion when evaluating creative output? A. Does the creative approach create a segmentation base? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Does the creative approach support a market aggregation strategy? E. Does the creative approach use a dramatic execution style?

131. Which of the following is a question that should be used when evaluating creative output? A. Is the creative approach appropriate for the media environment in which it is likely to be seen? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Does the creative approach communicate a clear and convincing message to the customer? E. Is the creative approach appropriate for the target audience?

132. Aflac had to modify the commercials using its iconic duck character after several research studies showed that many consumers were not exactly sure what Aflac insurance was. Consumers indicated that the advertising didn’t explain what supplemental insurance is and what Aflac does. Which basic criteria for evaluating creative approaches was not met? A. Does the creative execution keep from overwhelming the message? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Is the creative approach consistent with the brand’s marketing and advertising objectives? E. Does the creative approach use a dramatic execution style?

09-26 . McGraw-Hill Education.

Chapter 09 Test Bank Key

1. The objective of an ad with a rational appeal is to persuade the target audience to buy the brand because it is the best available or does a better job of meeting consumers' needs. TRUE The content of ads with rational appeal emphasizes facts, learning, and the logic of persuasion. Their objective is to persuade the target audience to buy the brand because it is the best available or does a better job of meeting consumers' needs.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

2. Price appeal ads are often used by national advertisers during recessionary times. TRUE A favorable price appeal makes the price offer the dominant point of the message. Price appeal advertising is used most often by retailers to announce sales, special offers, or low everyday prices. Price appeal ads are often used by national advertisers during recessionary times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

3. The main point of an ad with a product/service popularity appeal is the price gain a consumer can benefit from by using the brand. FALSE Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. The main point of this advertising appeal is that the wide use of the brand proves its quality or value and other customers should consider using it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-27 . McGraw-Hill Education.

4. A transformational advertisement must connect the audience with the advertisement in such a way that the experience of the product/service is independent of the experience generated by the advertisement. FALSE A transformation advertisement must connect the experience of the advertisement so tightly with the experience of using the brand that consumers cannot remember the brand without recalling the experience generated by the advertisement. They create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

5. Teasers are especially popular among automotive advertisers for introducing a new model or announcing significant changes in a vehicle. TRUE Advertisers introducing a new product often use teasers or mystery advertisements, which are designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. They are especially popular among automotive advertisers for introducing new models or announcing significant changes in a vehicle. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

6. Ads for industrial and other business-to-business products generally use straight-sell messages in print ads. TRUE Straight-sell or factual messages rely on a straightforward presentation of information concerning the product or service. Ads for high-involvement consumer products as well as industrial and other business-to-business products generally use this format. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-28 . McGraw-Hill Education.

7. Endorsers promote a company or its products or services based only on their personal experiences with the product. FALSE When endorsers promote a company or its products or services, the message is not necessarily based on their personal experiences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

8. Slice-of-life advertisements usually use real-life people, not actors, to make the ads more credible to the audience. FALSE Since the success of slice-of-life ads often depends on how well the actors come across and execute their roles, professional actors are often used to achieve credibility and to ensure that the commercial is of high quality. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

9. Image executions rely heavily on visual elements such as photography, color, tonality, and design. TRUE Image executions rely heavily on visual elements such as photography, color, tonality, and design to communicate the desired image to the consumer. Marketers who rely on image executions have to be sure that the usage or user imagery with which they associate their brand evokes the right feelings and reactions from the target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-29 . McGraw-Hill Education.

10. The purpose of the dramatization technique is to present scientific/technical information or laboratory studies to support the advertising claim. FALSE The dramatization technique focuses on telling a short story with the product or service as the star. The purpose of using drama is to draw the viewers into the action it portrays by making them experience the concerns and feelings of the characters. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

11. The common techniques used to write direct headlines include using questions, provocations, how-to statements, and challenges. FALSE Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. Indirect headlines are not straightforward about identifying the product or service or getting to the point. Techniques for writing indirect headlines include using questions, provocations, how-to statements, and challenges. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Appeals

12. While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. TRUE The main text portion of a print ad is referred to as the body copy (or sometimes just copy). While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Appeals

09-30 . McGraw-Hill Education.

13. The layout of a print ad determines the content of the message required to convince the target audience. FALSE A layout is the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations, and any identifying marks. The layout helps the copywriter determine how much space he or she has to work with and how much copy should be written. The content is determined by the marketing objectives and the strategies adopted to achieve them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

14. A master recording of a music track is not as expensive as the rights to use the musical composition of the track. FALSE The musical composition includes the music notes and the words, while the master recording includes the voice(s) of the original artist. The latter is usually much more expensive to buy, so advertisers will often negotiate for the rights to use the music and have it performed by someone with a similar voice. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

15. Only 20 percent of readers go beyond an ad's headline and read the body copy. TRUE Only 20 percent of readers go beyond the headline and read the body copy. So, in addition to attracting attention, the headline must give the reader a good reason to read the copy portion of the ad, which contains more detailed and persuasive information about the product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-31 . McGraw-Hill Education.

16. The Joint Policy Committee on Broadcast Relations has proposed a new compensation system that will base the pay for commercial actors on gross ratings points. TRUE The Joint Policy Committee on Broadcast Relations, an advertising industry group that represents advertisers and agencies in bargaining with talent unions, has proposed a new compensation system that will base pay for commercial actors on gross ratings points that are calculated by determining the size of the audience the spot reaches as well as the number of times it is run. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

17. The evaluation process of creative outputs is usually subjective; the advertising or brand manager relies on qualitative considerations for evaluation. TRUE The client may want a rough layout storyboard or animatic pretested to get quantitative information to assist in the evaluation. However, the evaluation process is usually more subjective; the advertising or brand manager relies on qualitative considerations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

18. Experts suggest that advertisements targeted to older consumers should use actors who are older than the targeted audience, as that makes the message seem more credible. FALSE It has been suggested that advertising targeted to older consumers should use models who are 10 years younger than the average age of the target audience, since most people feel younger than their chronological age. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

09-32 . McGraw-Hill Education.

19. The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. TRUE The ultimate responsibility for determining whether an ad deceives or offends the target audience lies with the client. It is the job of the advertising or brand manager to evaluate the approach suggested by the creative specialists against company standards. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

20. It has been suggested that advertising targeted to older consumers should use models who are 10 years older than the average age of the target audience, since most people feel older than their chronological age. FALSE It has been suggested that advertising targeted to older consumers should use models who are 10 years younger than the average age of the target audience, since most people feel younger than their chronological age. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

21. An international denim brand asks its advertising agency to create a campaign to instill an emotional connection to the brand in young people all over the world. The agency is asked to focus on the adventure-seeking nature of the youth. In the given scenario, the brand is trying to come up with a(n) _____ A. advertising appeal. B. primacy appeal. C. brand identity. D. brand parity. E. business plan. The above scenario is an illustration of an advertising appeal. An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-33 . McGraw-Hill Education.

22. A(n) _____ refers to the approach used in an advertisement to elicit some consumer response or to influence the feelings of consumers toward a product, service, or cause. A. brand dilution B. brand parity C. business plan D. advertising appeal E. advertising character An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

23. A(n) _____ is something that moves people, speaks to their wants or needs, and excites their interest. A. recency sequence B. advertising stock C. advertising appeal D. creative sequence E. creative review An advertising appeal refers to an approach used to attract the attention of consumers and/or to influence their feelings toward a product, service, or cause. An advertising appeal can also be viewed as something that moves people, speaks to their wants or needs, and excites their interest. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

24. A(n) _____ refers to the manner in which an advertising idea is turned into a message and presented to consumers. A. advertising appeal B. creative execution style C. rational appeal D. emotional appeal E. creative sequence A creative execution style is the way a particular appeal is turned into an advertising message presented to the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-34 . McGraw-Hill Education.

25. An ad for Sylio, a prescription medicine for people with scoliosis, uses a visual representation of the drug's action and effect on the human body. The ad states that the drug is made with natural active ingredients, and that side effects, if any, are all minor and short term. The ad is an example of a(n) A. primacy appeal. B. recency appeal. C. emotional appeal. D. rational appeal. E. fear appeal. The above scenario is an example of a rational appeal. Informational/rational appeals focus on the consumer's practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

26. An ad for Red Bull that focuses on the dominant traits of the product—its ingredients—and the benefits they provide (e.g., enhanced performance, endurance, and concentration) is using a ________________ appeal. A. feature B. recency C. favorable price D. popularity E. Fear The above scenario is an example of a feature appeal. Ads that use a feature appeal focus on the dominant traits of the product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-35 . McGraw-Hill Education.

27. An ad for TaylorMade M1 and M2 drivers notes its drivers are played by more professional golfers on tour than any other brand. TaylorMade is using a ________________ appeal. A. feature B. recency C. favorable price D. popularity E. fear The above scenario is an example of a product/service popularity appeal, which stresses the popularity of a product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

28. Advertising appeals that focus on functional or utilitarian needs and emphasize product features and benefits are known as _____ appeals. A. informational B. emotional C. fear D. creative E. noncognitive Informational/rational appeals focus on a consumer's practical, functional, or utilitarian need for a product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-36 . McGraw-Hill Education.

29. Purchase motives such as convenience, comfort, economy, and performance are used as a basis for generating _____ appeals through advertising. A. creative B. emotional C. imaginary D. rational E. traditional Many rational motives can be used as the basis for advertising appeals, including comfort, convenience, economy, health, and sensory benefits such as touch, taste, and smell. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

30. The content in an advertisement that emphasizes facts, learning, and the logic of persuasion makes use of a(n) _____ appeal. A. emotional B. informational C. transformational D. subliminal E. irrational Informational/rational appeals focus on a consumer's practical, functional, or utilitarian need for a product or service and emphasize features of a product or service and/or the benefits or reasons for owning or using a particular brand. The content of these messages emphasizes facts, learning, and the logic of persuasion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-37 . McGraw-Hill Education.

31. Which of the following statements is true of informational advertising appeals? A. Benefits that serve as the basis of these appeals are constant across product categories. B. They work well for products but not for services. C. Attributes that form the basis of these appeals vary from one product or service category to another. D. Features, benefits, or attributes that serve as a basis for these appeals generally do not vary among different market segments. E. They usually influence feelings, images, beliefs, and meanings about a product or service. Features, benefits, or evaluative criteria that are important to consumers and can serve as the basis of an informational/rational appeal vary from one product or service category to another as well as among various market segments. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

32. An ad for Calloway Resorts stresses the different recreational activities available to visitors. It also explains the various facilities that guests can use while staying at the resort. This is an example of a(n) _____ appeal. A. news B. favorable price C. feature D. popularity E. emotional The above scenario is an example of a feature appeal. Ads that use a feature appeal focus on the dominant traits of the product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

33. An ad featuring actor/singer Victoria Justice for the "Body by Milk" integrated marketing campaign talks about how milk can help teens look their best. It leverages the _____________ base for emotional appeals. A. recognition B. self-esteem C. security D. nostalgia E. excitement The above scenario uses an emotional appeal that is based on self-esteem and pride. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-38 . McGraw-Hill Education.

34. Which of the following statements is true of feature appeals? A. They present attributes that can be the basis of rational purchase decisions. B. They are used mainly for low-involvement products. C. They can be used for advertising a product but not a service. D. They are used primarily for nontechnical products. E. They point out the number of consumers who have switched to a particular brand. Ads using feature appeals tend to be highly informative and present the customer with a number of important product attributes or features that will lead to favorable attitudes and can be used as the basis for a rational purchase decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

35. To announce sales, special offers, or discount rates, retailers often use a(n) _____ appeal. A. feature B. product popularity C. favorable price D. competitive advantage E. emotional A favorable price appeal makes the price offer the dominant point of the message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

36. A personal computer manufacturer has developed a significant technological breakthrough that will make its computers easier for novices to use. The computer manufacturer would do best to use a(n) _____ appeal to announce the breakthrough. A. favorable price B. emotional C. news D. product popularity E. competitive advantage In the above scenario, a news appeal is illustrated. News appeals are those in which some type of news or announcement about a product, service, or company dominates an ad. This type of appeal can be used for a new product or service or to inform consumers of significant modifications or improvements. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-39 . McGraw-Hill Education.

37. Aleve Inc., a pharmaceutical company, launches an ad that claims, "Taking one pill from Aleve is as effective as taking three pills from any other company." This ad campaign is using a(n) _____ appeal. A. emotional B. competitive advantage C. news D. favorable price E. product popularity The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, the advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

38. A campaign run by the manufacturers of Glad garbage bags informs viewers that Glad garbage bags are twice as thick as those made by Crash Bin Bags, the leading garbage bag brand in the market. In this scenario, Glad is using a(n) _____ appeal. A. emotional B. competitive advantage C. product popularity D. favorable price E. news The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-40 . McGraw-Hill Education.

39. The ad for F.N. Inc., an investment bank, states that the company is "Ranked #1 by magazine." In this scenario, the ad is using a(n) _____ appeal. A. emotional B. competitive advantage C. product feature D. favorable price E. product popularity The above scenario is an illustration of a competitive advantage appeal. When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

40. Advertisements that focus on the dominant attributes or characteristics of a product or service are making use of _____ appeals. A. feature B. news C. price D. product popularity E. competitive advantage Ads that use a feature appeal focus on the dominant traits of a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

41. A _____ appeal is used when the advertiser makes either a direct or an indirect comparison to another brand and usually claims superiority on one or more attributes. A. feature B. popularity C. competitive advantage D. favorable price E. news When a competitive advantage appeal is used, an advertiser makes either a direct or an indirect comparison to another brand (or brands) and usually claims superiority on one or more attributes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-41 . McGraw-Hill Education.

42. An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) _____ appeal. A. feature B. favorable price C. news D. product popularity E. emotional In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

43. An automobile manufacturer runs an advertisement proclaiming that one of its luxury cars has been the best-selling model in the United States for two straight years. This is an example of an ad using a(n) _____ appeal. A. feature B. favorable price C. news D. product popularity E. emotional In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-42 . McGraw-Hill Education.

44. A software development company runs an advertising campaign for one of its products emphasizing that it is the most preferred financial software brand. The ad also states, "Thousands of customers have switched over to our software." The company is making use of a(n) _____ appeal. A. emotional B. news C. product popularity D. product feature E. favorable price In the above scenario, a product popularity appeal has been used. Product/service popularity appeals stress the popularity of a product or service by pointing out the number of consumers who use the brand, the number who have switched to it, the number of experts who recommend it, or its leadership position in the market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

45. A "Love Has No Labels" public service advertising campaign that was sponsored by the Ad Council filmed a live event where skeleton images embraced behind a large x-ray screen, then the people walked out from behind the screen. The people who embraced represented different pairings of gender, race, sexual orientation, religion, ability, and age. This video used a(n) _____________________ appeal to get viewers to look at their expectations and implicit bias. A. emotional B. news C. product popularity D. product feature E. favorable price In the above scenario, an emotional appeal has been used. The ads were designed to get viewers to look at their expectations and implicit bias. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-43 . McGraw-Hill Education.

46. Advertising appeals that relate to consumers' social and/or psychological needs for purchasing a product or service are known as _____ appeals. A. informational B. rational C. product popularity D. emotional E. product feature Emotional appeals relate to customers' social and/or psychological needs for purchasing a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

47. Which of the following statements explains why marketers use emotional appeals? A. The positive feelings created by advertising can have a favorable effect on consumers' evaluations of a brand. B. Emotional appeals focus on the consumer's practical, functional, or utilitarian need for a product or service. C. Emotional appeals tend to be informative, and help advertisers convince consumers that their product or service satisfies their needs. D. Emotional appeals persuade the target audience to buy the brand because it is the best available. E. Emotional appeals are easy to execute and cost less, even though they are less effective than rational appeals. Research shows that positive mood states and feelings created by advertising can have a favorable effect on consumers' evaluations of a brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

48. Advertisers create emotional advertising appeals by using A. comparative advertisements. B. product feature appeals. C. transformational advertising. D. news appeals. E. popularity appeals. One reason for using emotional appeals is to influence consumers' interpretations of their product usage experience. One way of doing this is through what is known as transformational advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-44 . McGraw-Hill Education.

49. Advertisements that portray people experiencing an arousing, upbeat, and/or exciting benefit or outcome from using a product or service are relying on A. informational appeals. B. rational appeals. C. mood transfers. D. emotional integrations. E. outcome integrations. Commercials often rely on the concept of emotional integration, whereby they portray the characters in an ad as experiencing an emotional benefit or outcome from using a product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

50. Which of the following is a vital component of ads that use emotional integration to market a product? A. fear B. news C. popularity D. humor E. price Commercials often rely on the concept of emotional integration, whereby they portray the characters in an ad as experiencing an emotional benefit or outcome from using a product or service. Ads using humor, sex, and other appeals that are very entertaining, arousing, upbeat, and/or exciting can affect the emotions of consumers and put them in a favorable frame of mind. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-45 . McGraw-Hill Education.

51. Advertisements that create feelings, meanings, images, or beliefs about a product or service that can be activated when consumers use it are known as _____ ads. A. rational B. transformational C. consumer-generated D. reminder E. informational Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

52. _____ advertising attempts to make the experience of using a product or service richer, warmer, or more exciting. A. Informational B. Teaser C. Transformational D. Reminder E. Rational Transformational ads make the experience of using a product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

53. Transformational advertising can differentiate a product or a service by A. convincing a consumer of its leadership position in the market. B. making the consumption experience more meaningful and enjoyable. C. helping the consumption experience last longer. D. showing performance superiority of one brand over another. E. focusing on a consumer's functional or utilitarian need for the product or service. Transformational ads make the experience of using a product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-46 . McGraw-Hill Education.

54. Manten is a popular brand of hiking boots. Its advertisements emphasize the experience of conquering unfamiliar terrain in the wild. They portray vivid, captivating visuals of cliffs, rivers, and jungles. The campaign is also accompanied by a popular jingle that reflects the qualities of freedom, wilderness, and adventure that the company values. This approach is most likely an example of _____ advertising. A. rational B. transformational C. consumer-generated D. teaser E. informational The above scenario is an example of transformational advertising. Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

55. Which of the following is true of image advertisements? A. They are transformational in nature. B. They are designed to transfer the image of a company to its brand. C. They are typically utilized in radio advertisements. D. They are not suitable for print media. E. They typically utilize emotional integration. Image advertising, which is designed to give a company or brand a unique association or personality, is often transformational in nature. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-47 . McGraw-Hill Education.

56. _____ is designed to give a company or brand a unique association or personality and is often transformational in nature. A. Rational advertising B. Image advertising C. Reminder advertising D. Teaser advertising E. Consumer-generated advertising Image advertising is designed to give a company or brand a unique association or personality and is often transformational in nature. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

57. Rational and emotional advertising appeals A. represent two distinctive approaches which should never be combined because they divide the focus of consumers' attention. B. are essentially the same. C. can be used together in advertisements. D. are used together only for low-involvement products. E. can be combined only for products and not for services. Consumer purchase decisions are often made on the basis of both emotional and rational motives, and attention must be given to both elements in developing effective advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-48 . McGraw-Hill Education.

58. The "Find Your Beach" campaign for Corona Extra makes the experience of drinking the beer more enjoyable and connects the experience of the advertisement so tightly with the experience of drinking the beer that consumers cannot remember the brand without recalling the experience generated by the advertisement, which makes it a ____________________ ad. A. product benefit B. rational C. transformational D. reminder E. teaser Transformational ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use it, transforming their interpretation of the usage experience. A transformational ad has two characteristics: It must make the experience of using the product richer, warmer, more exciting, and/or more enjoyable than that obtained solely from an objective description of the advertised brand. It must connect the experience of the advertisement so tightly with the experience of using the brand that consumers cannot remember the brand without recalling the experience generated by the advertisement. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

59. Well-known brands and market leaders often run ads that do not use any specific types of appeals, but focus primarily on keeping their brand name visible to consumers. This type of advertising is known as _____ advertising. A. teaser B. reminder C. rational D. transformational E. consumer-generated Not every ad fits neatly into the categories of rational or emotional appeals. For example, ads for some brands can be classified as reminder advertising, which has the objective of building brand awareness and/or keeping the brand name in front of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-49 . McGraw-Hill Education.

60. A chocolate manufacturer advertises heavily during Christmas with an ad that shows only a picture of red, green, and silver wrapped chocolates. The advertiser's aim is to create top-of-mind awareness among consumers. In this scenario, the chocolate manufacturer is using _____ advertising. A. transformational B. reminder C. rational D. consumer-generated E. teaser In the above scenario, the manufacturer is using reminder advertising. Well-known brands and market leaders often use reminder advertising to maintain top-of-mind awareness among consumers in their target markets. For example, marketers of candy products often increase their media budgets and run reminder advertising around Halloween, Valentine's Day, Christmas, and Easter. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

61. Under Armour used ____________ ads to create interest and excitement around a new product introduction for its Armour39 performance monitoring system. It wanted to create some suspense and mystery for the new product. A. transformational B. reminder C. rational D. consumer-generated E. teaser In the above scenario, Under Armour used teaser ads as part of its prelaunch campaign. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-50 . McGraw-Hill Education.

62. Which of the following is true of reminder advertising? A. It generally uses a transformational approach to advertising. B. It is used to create top-of-mind awareness among consumers. C. It is not applicable for generic consumer products. D. It is also known as emotional advertising. E. It attempts to assign a personality to the brand. Well-known brands and market leaders often use reminder advertising to maintain top-of-mind awareness among consumers in their target markets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

63. _____ advertising is sometimes used to create curiosity and build interest and excitement in a new product or brand by talking about it but not showing it. A. Reminder B. Teaser C. Rational D. Consumer-generated E. Informational Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-51 . McGraw-Hill Education.

64. Jim's Taco launched an advertising campaign for its new Guacamole taco by running anonymous full-page ads featuring basketball stars issuing mysterious challenges to one another. The ads were attempting to build curiosity without showing the product. This is an example of _____ advertising. A. transformational B. reminder C. rational D. consumer-generated E. teaser The above scenario is an example of teaser advertising. Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

65. When Frito-Lay sponsored its "Crash the Super Bowl" creative competition and ran an ad that was entirely conceived and produced by amateurs, rather than advertising professionals, it was an example of __________________ A. transformational advertising. B. reminder advertising. C. rational advertising. D. user-generated content. E. teaser advertising. User-generated content (UGC) is ads created by consumers rather than by the company or its agency. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-52 . McGraw-Hill Education.

66. When Platinum Motors Inc. was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of _____ advertising. A. reminder B. transformational C. teaser D. emotional E. consumer-generated The above scenario is an example of teaser advertising. Advertisers introducing a new product often use teaser advertising, which is designed to build curiosity, interest, and/or excitement about a product or brand by talking about it but not actually showing it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

67. Which of the following statements is true of teaser advertisements? A. They depend on emotional bonding to generate publicity. B. They do not work well when used for a short period of time. C. Marketers should avoid rational appeals while creating them. D. They focus on the transformational appeal of a product. E. Marketers must be careful not to use them too long. Teaser campaigns can generate interest in a new product, but advertisers must be careful not to extend them too long or they will lose their effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-53 . McGraw-Hill Education.

68. The argument by famous advertising man David Ogilvy that "what you say in advertising is more important than how you say it" suggests that A. advertising appeal is more important than the way it is executed. B. advertising execution is more important than the appeal. C. advertising appeals and executions are equally important. D. advertising execution is more important than message content. E. a product is more important than its creative appeal. In his famous book on the advertising industry, Madison Avenue, Martin Mayer notes William Bernbach's reply to David Ogilvy's rule for copywriters that "what you say in advertising is more important than how you say it." Bernbach replied, "Execution can become content, it can be just as important as what you say." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

69. An advertising execution technique that relies on a straightforward presentation of information about a product or service is called a(n) A. factual message. B. demonstration. C. testimonial. D. dramatization. E. animation of key benefits approach. One of the most basic types of creative executions is the straight sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-54 . McGraw-Hill Education.

70. Straight-sell message executions are commonly used with _____ advertising appeals. A. informational B. emotional C. transformational D. teaser E. humor The straight-sell or factual message type of execution is often used with informational/rational appeals, where the focus of the message is the product or service and its specific attributes and/or benefits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

71. A print ad for flood insurance lists 20 reasons why every homeowner should have flood insurance. This is an example of _____ advertising. A. straight-sell B. transformational C. testimonial D. teaser E. comparative One of the most basic types of creative executions is the straight-sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-55 . McGraw-Hill Education.

72. When an ad for the American Indian College Fund used the headline, "I Will Keep 286,000 People from Losing Their Sacred Land" to generate curiosity among magazine readers and encourage them to read the copy below for an explanation, it was an example of a(n) ___________________ headline. A. direct B. transformational C. testimonial D. teaser E. indirect Indirect headlines are not straightforward about identifying the product or service or getting to the point. They are often more effective at attracting readers' attention and interest because they provoke curiosity and lure readers into the body copy to learn an answer or get an explanation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

73. The ad for an investment company opens with the statement, "You can't plan for tomorrow if you don't know where your money is today," and continues with relevant information about investment and its benefits. This ad is an example of _____ advertising. A. straight-sell B. transformational C. testimonial D. teaser E. comparative One of the most basic types of creative executions is the straight-sell or factual message. This type of ad relies on a straightforward presentation of information concerning the product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-56 . McGraw-Hill Education.

74. When an advertiser cites technical information, such as the results of laboratory studies, in an advertisement, a(n) _____ style of execution is being used. A. dramatization B. slice-of-life C. scientific evidence D. testimonial E. animation In the scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

75. In an ad for Pluto's superior sun protection moisturizer, a dermatologist's report states, "A year of incidental sun equals baking for a week at the beach!" This is an example of a(n) _____ style of execution. A. dramatization B. slice-of-life C. technical evidence D. testimonial E. animation The above scenario is an illustration of a technical evidence execution. In case of scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-57 . McGraw-Hill Education.

76. An ad for a brand of tea states that according to laboratory research, "A serving of tea has more antioxidants than a serving of carrots or broccoli." Which type of ad execution is being used in this example? A. dramatization B. testimonial C. scientific evidence D. slice-of-life E. comparison The above scenario is an illustration of a scientific evidence execution. In case of scientific/technical style of execution, advertisers often cite technical information, results of scientific or laboratory studies, or endorsements by scientific bodies or agencies to support their advertising claims. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

77. Which of the following is an advertising execution approach designed to illustrate key advantages of a product by showing it in actual use? A. comparison B. demonstration C. scientific evidence D. straight sell E. animation Demonstration advertising is designed to illustrate the key advantages of a product/service by showing it in actual use or in some staged situation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-58 . McGraw-Hill Education.

78. An ad for a van shows how easily a small boy and his grandfather can get in and out of the vehicle. It also emphasizes the positioning of handles at appropriate places that make transit easier for older people. Which ad execution technique is being used in this ad? A. comparison B. demonstration C. scientific evidence D. straight sell E. testimonial The above scenario is an illustration of a demonstration execution technique. Demonstration advertising is designed to illustrate the key advantages of a product/service by showing it in actual use or in some staged situation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

79. Subway Restaurant's "Five-dollar foot-long" catchy song, or _____________, has been an integral part of one of the most effective promotional campaigns ever developed in the fast-food industry. A. jingle B. script C. storyboard D. layout E. animatic Jingles are catchy songs that usually carry the message/theme for a campaign. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-59 . McGraw-Hill Education.

80. When a person speaks on behalf of a product or service based on his or her personal use of and experiences with it, a(n) _____ execution is being used. A. dramatization B. slice-of-life C. animation D. demonstration E. testimonial Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

81. Rick Edgars, a famous sports personality, appears in Venus Inc.'s ads in which he notes how the company's golf clubs have helped him win several major championships. He also states that in his experience, the clubs have a "perfect swing." Which of the following types of advertising execution is illustrated in this scenario? A. slice of life B. testimonial C. demonstration D. scientific evidence E. Dramatization The above scenario is an illustration of a testimonial advertising execution. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-60 . McGraw-Hill Education.

82. In a television ad, actor and noted animal lover Betty White praised Frontline, a flea and tick treatment, for the way it protects her dogs and cats. Which of the following types of advertising execution has been illustrated in this scenario? A. comparisons B. slice of life C. humor D. testimonial E. Demonstration The above scenario is an illustration of a testimonial advertising execution. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

83. Airlines sometimes use _______________ when they begin offering service to new cities or opening new routes as a way of informing consumers as well as generating media interest that can result in publicity for them. A. comparisons B. slice of life C. humor D. testimonial E. News News appeals are those in which some type of news or announcement about the product, service, or company dominates the ad. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-01 Compare the different types of appeals used in advertising. Topic: Advertising Appeals

09-61 . McGraw-Hill Education.

84. A professional race car driver appears in an ad advocating a particular motor oil brand. This is an example of a(n) A. comparison. B. endorsement. C. demonstration. D. straight sell. E. slice of life. The above scenario features an endorsement. Many advertisers prefer to have their messages presented by way of a testimonial, where a person praises a product or service on the basis of his or her personal experience with it. A related execution technique is the endorsement, where a well-known or respected individual such as a celebrity or expert in a product or service area speaks on behalf of the company or the brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

85. A widely used advertising execution style for packaged products, which attempts to portray situations consumers might face while using them in their daily activities, is known as _____ execution. A. endorsement B. slice-of-life C. emotional D. dramatization E. demonstration A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-62 . McGraw-Hill Education.

86. A Bright laundry detergent ad showed a baseball team-manager removing stains from two dozen uniforms by throwing them in a washer and adding Bright detergent. Which of the following advertising execution styles has been illustrated in this scenario? A. dramatization B. slice of life C. humorous D. testimonial E. emotional The above scenario is an illustration of a slice-of-life advertisement. A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. The ad then shows how the advertiser's product or service can resolve the problem. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

87. An ad for a vacation resort in Virginia begins by stating that the resort has "Dozens of sporting diversions for the entire family." Under that statement, it reads, "Translation: guilt-free golf." Which execution style is seen in this ad? A. endorsement B. slice of life C. reminder D. testimonial E. demonstration The above scenario is an illustration of a slice-of-life advertisement. A widely used advertising format, particularly for packaged-goods products, is the slice-of-life execution, which is generally based on a problem/solution approach. This type of ad portrays a problem or conflict that consumers might face in their daily lives. The ad then shows how the advertiser's product or service can resolve the problem. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-63 . McGraw-Hill Education.

88. Which of the following statements is true of the use of slice-of-life executions? A. Slice-of-life executions are very inefficient in business-to-business advertising. B. To be effective, a slice-of-life execution should avoid mimicking real life because its primary purpose is to rise above the clutter. C. Slice-of-life executions work well only for consumer products with perceived homogenous qualities. D. Many advertisers like slice-of-life executions because they feel they are an effective way to present a situation to which consumers can relate. E. Slice-of-life or problem/solution execution approaches are limited to the advertising of services. Many advertisers prefer slice-of-life advertising execution because they believe it is effective at presenting a situation to which most consumers can relate and at registering the product feature or benefit that helps sell the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

89. An advertising execution technique used by business-to-business marketers depicting the negative consequences of making incorrect purchase decisions is referred to as A. a problem-solution execution. B. slice-of-death advertising. C. slice-of-life advertising. D. a response-stimuli execution. E. informational advertising. Slice-of-death execution style is used in conjunction with a fear appeal, as the focus is on the negative consequences that result when businesspeople make the wrong decision in choosing a supplier or service provider. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-64 . McGraw-Hill Education.

90. An ad for Novell solutions targeting businesspeople used the headline, "ERP: Sound made by CIO when people see data they shouldn't." The actor playing the executive in the ad has a distressed, almost fearful look on his face. Which of the following execution techniques has been used in this ad? A. problem-solution execution B. slice-of-death advertising C. slice-of-life advertising D. reminder execution E. informational advertising The above scenario is an illustration of a slice-of-death advertisement. Slice-of-death execution style is used in conjunction with a fear appeal, as the focus is on the negative consequences that result when businesspeople make the wrong decision in choosing a supplier or service provider. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

91. An advertising execution technique that is particularly popular for creating commercials targeted at children is A. slice of life. B. demonstration. C. testimonial. D. scientific evidence. E. animation. Cartoon animation is especially popular for commercials targeted at children. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-65 . McGraw-Hill Education.

92. Which of the following is true of cartoon animation? A. It is synonymous with slice-of-life advertising. B. It is also known as endorsement advertisement. C. It is popular for commercials targeted at children. D. It involves a problem-solution approach. E. It portrays the conflict that people face in their daily lives. An advertising execution approach that has become popular in recent years is animation. With this technique, animated scenes are drawn by artists or created on the computer, and cartoons, puppets, or other types of fictional characters may be used. Cartoon animation is especially popular for commercials targeted at children. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

93. Colonel Sanders from KFC's ads is an example of advertising that uses a _____ in its execution technique. A. testimonial B. demonstration C. fantasy D. personality symbol E. behavioral appeal Some advertising executions involve developing a central character or personality symbol that can deliver the advertising message with which the product or service can be identified. Personality figures can also be built around animated characters and animals. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

94. When Alcon's Opti-Free multi-purpose disinfecting solution for contact lens care treatment notes the product is the number one doctor-recommended brand because its performance is driven by science, it is using _________________ as an execution approach. A. testimonial B. scientific/technical evidence C. fantasy D. personality symbol E. comparison Scientific/technical evidence is presented in the ad to support performance or efficacy claims. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-66 . McGraw-Hill Education.

95. _____ are used in the execution of ads that involve creating a central character that can deliver the advertising message and with whom the product or service can be identified. A. Demonstrations B. Testimonials C. Personality symbols D. Fantasies E. Slices-of-life situations Some advertising executions involve developing a central character or personality symbol that can deliver the advertising message and with which the product or service can be identified. Personality figures can also be built around animated characters and animals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

96. Marlboro used a cowboy to advertise its cigarettes for a number of years. "The Marlboro Man" became a central character through which the company delivered its advertising message. This is an example of A. testimonial advertising execution technique. B. demonstration advertising execution technique. C. use of personality symbols in the execution of ads. D. use of testimonials in the execution of ads. E. use of ambassadors in the execution of ads. Advertising execution involves developing a central character or personality symbol that can deliver the advertising message and with which the product or service can be identified. Personality figures can also be built around animated characters and animals. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-67 . McGraw-Hill Education.

97. _____ is an advertising execution technique often used for emotional appeals. It offers viewers a form of mental escape and/or an opportunity to envision themselves in a certain situation. A. Imagery B. Demonstration C. Slice of life D. Animation E. Comparative advertising Imagery ads are the basis for emotional appeals that are used to advertise products or services where differentiation based on physical characteristics is difficult, such as soft drinks, liquor, designer clothing, and cosmetics. An imagery execution is used when the goal is to encourage consumers to associate the brand with the symbols, characters, and/or situation shown in the ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

98. Timber Co. sells all-weather gear. For its advertising campaign, the company develops an imaginary place called Timber City, which is a Utopian setting of extraordinary landscapes and crystal-clear lakes. Which of the following execution styles is illustrated in Timber's ads? A. imagery B. demonstration C. slice of life D. animation E. comparison In the above scenario, an imagery execution has been used. An imagery execution is used when the goal is to encourage consumers to associate the brand with the symbols, characters, and/or situation shown in the ad. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-68 . McGraw-Hill Education.

99. Dramatization is particularly well suited for _____ advertising. A. television B. newspaper C. radio D. magazine E. direct mail An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with the product or service as the star. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

100. Which of the following is used to execute an ad wherein excitement and suspense are used to tell a short story with a product as the star of the ad? A. slice of life B. animation C. dramatization D. testimonial E. imagery An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with the product or service as the star. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-69 . McGraw-Hill Education.

101. The state of Colorado runs an ad which shows an obviously scared third grader getting ready to go on stage for his first public stage appearance. He is dressed as a carrot. The ad tells the reader that being a third grader is much more stressful than we remember and causes us to feel great sympathy for the child dressed in the ridiculous costume. The tag line at the end of the ad reads, "Your kids need a carefree Colorado vacation as much as you do." This is an example of a A. dramatization technique. B. testimonial technique. C. fear technique. D. personality symbol technique. E. scientific evidence technique. The above scenario features a dramatization execution technique. An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with the product or service as the star. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

102. An ad for a new hatchback shows four college students hunting for a parking place in a large, crowded parking lot. When they finally find a spot and park the car, they discover that they can't open the doors to get out. One of them opens the hatchback and the commercial ends with them exiting the car through the hatchback. This commercial uses A. dramatization with a humorous appeal. B. animation with the intent of creating a personality brand. C. slice-of-life with a fear appeal. D. demonstration with an emotional appeal. E. straight-sell with a humorous appeal. The above scenario features a dramatization execution technique that contains a humor quotient. An execution technique particularly well suited to television is dramatization, where the focus is on telling a short story with a product or service as the star. Humorous ads add an element of hilarity in the ad. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications. Topic: Advertising Appeals

09-70 . McGraw-Hill Education.

103. Which of the following is a basic component of a print advertisement? A. deadline B. testimonial C. trademarks D. animations E. layout The basic components of a print ad are the headline, the body copy, the visual or illustrations, and the layout (the way they all fit together). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

104. _____ are words in the leading position of a print advertisement that are likely to be read first. A. Headlines B. Body copies C. Subheads D. Layouts E. Primary copies The headline is the words in the leading position of the ad—the words that will be read first or are positioned to draw the most attention. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

105. Research has shown that the first thing people look at in a print ad is the A. illustration. B. visual. C. body copy. D. subhead. E. headline. Research has shown the headline is generally the first thing people look at in a print ad, followed by the illustration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-71 . McGraw-Hill Education.

106. Many advertising experts consider the most important part of a print ad to be the A. headline. B. subhead. C. layout. D. body copy. E. needledrop. Most advertising people consider the headline the most important part of a print ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

107. Headlines that are very straightforward and informative in the message they are presenting are known as _____ headlines. A. direct B. indirect C. secondary D. visual E. rational Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

108. When an advertiser has something important or new to announce to a target audience, a(n) _____ headline will be used. A. direct B. indirect C. secondary D. visual E. affective Common types of direct headlines include those offering a specific benefit, making a promise, or announcing a reason the reader should be interested in the product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-72 . McGraw-Hill Education.

109. The headline in an advertisement reads, "Introducing Pluto's Washable Crayons for the youngest artist in your gallery." This is an example of a(n) _____ headline. A. direct B. indirect C. tertiary D. secondary E. rational Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. Common types of direct headlines include those offering a specific benefit, making a promise, or announcing a reason the reader should be interested in the product or service. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

110. Steve Oakes found that increased congruity between _____________ and advertising with respect to variables like mood, genre, score, image, and tempo contributes to communication effectiveness of an advertisement by enhancing recall, brand attitude, affective response, and purchase intention. A. headlines B. music C. slogans D. scripts E. layouts Steve Oakes conducted a review and analysis of research on consumers' cognitive and affective responses to music in advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-73 . McGraw-Hill Education.

111. Which of the following statements describes a potential problem associated with indirect headlines in print ads? A. They generate curiosity in readers, which takes attention away from the message. B. They may not be provocative enough to direct a reader's attention to the rest of the message. C. They avoid the use of questions or provocations. D. They avoid the use of how-to statements. E. They are often treated as subheads. Indirect headlines rely on their ability to generate curiosity or intrigue so as to motivate readers to become involved with the ad and read the body copy to find out the point of the message. This can be risky if the headline is not provocative enough to get the readers' interest. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

112. A print ad for Apple Cider Vinegar Diet used the headline, "Maybe Eve was on to something." This is an example of a(n) A. direct headline. B. indirect headline. C. subhead. D. jingle. E. noise. The above scenario is an example of an indirect headline. Indirect headlines are not straightforward about identifying the product or service or getting to the point. But they are often more effective at attracting readers' attention and interest because they provoke curiosity and lure readers into the body copy to learn an answer or get an explanation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

113. _____________ have the highest click-through rate of the online advertising formats. A. Video ads B. Leaderboard display ads C. Billboard display ads D. Half-page ads E. Pop-up ads Video ads have the highest average click-through rate (1.84 percent) of all digital ad formats but the CTR is still very low. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-74 . McGraw-Hill Education.

114. Underneath the headline, "Fully Loaded," in an ad for Brett shotguns was written: "Our most comprehensive line of autoloading shotguns ever." This second statement was printed in a typeface larger than the body copy but smaller than the headline. The second statement in the ad is an example of a(n) A. story line. B. subhead. C. jingle. D. indirect headline. E. noise. In the above scenario, the second statement is an example of a subhead. While many ads have only one headline, it is also common to see print ads containing the main head and one or more secondary heads, or subheads. Subheads are usually smaller than the main headline but larger than the body copy. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

115. Peter Minnium of the Internet Advertising Bureau notes that digital advertising is trifurcating into three types of advertising—___________________ ads—and their use varies based on the goals and/or objectives the marketer is trying to achieve all along the purchase funnel. A. emotional, teaser, and transformational B. reminder, teaser, and informational C. emotional, informational, and transformational D. emotional, transformational, and commerce E. concept, content, and commerce Peter Minnium of the Internet Advertising Bureau notes that digital advertising is trifurcating into three types of advertising—concept, content, and commerce ads—and their use varies based on the goals and/or objectives the marketer is trying to achieve all along the purchase funnel. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-75 . McGraw-Hill Education.

116. _____________________ is a type of paid placement designed to fit seamlessly into the content that surrounds it. The design, content, and writing style of this ad format mirrors the nonpaid content around it, giving the user the impression that it really belongs. A. Digital advertising B. Native advertising C. Video advertising D. Interactive advertising E. Display advertising Native advertising is a type of paid placement designed to fit seamlessly into the content that surrounds it. The design, content, and writing style of a native ad mirrors the nonpaid content around it, giving the user the impression that it really belongs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

117. What is the main portion of text in a print ad called? A. story line B. subhead C. body copy D. illustration E. storyboard The main text portion of a print ad is referred to as the body copy (or sometimes just copy). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

118. The _____ is considered the heart of a print ad but is often difficult to get readers to attend to. A. headline B. subhead C. body copy D. visual E. logo While the body copy is usually the heart of the advertising message, getting the target audience to read it is often difficult. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-76 . McGraw-Hill Education.

119. When deciding on the visual portion of a print ad, an advertiser must determine A. the identification marks to be included. B. the requirement for a needledrop. C. the content in the body copy. D. the length of the ad copy. E. the headline of the copy. Many decisions have to be made regarding the visual portion of the ad, which refers to the identification marks that should be included, such as brand name, company or trade name, trademarks, and logos. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

120. The physical arrangement of the various parts of an ad, including headlines, subheads, illustrations, body copy, and identifying marks, is known as a(n) A. narration. B. visual. C. body copy. D. artwork. E. layout. A layout is the physical arrangement of the various parts of the ad, including the headline, subheads, body copy, illustrations, and any identifying marks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-77 . McGraw-Hill Education.

121. A copywriter can determine how much space he or she has to work with and how much copy to write after seeing a print advertisement's A. trademarks. B. artwork. C. body copy. D. layout. E. illustration. The layout of a print ad helps a copywriter determine how much space he or she has to work with and how much copy should be written. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

122. The audio portion of a commercial is often presented through the use of a(n) A. layout. B. voiceover. C. illustration. D. headline. E. storyboard. A common method for presenting the audio portion of a commercial is through a voiceover, where the message is delivered or action on the screen is narrated or described by an announcer who is not visible. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

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123. _____ is an occupational term in the advertising and music industries that refers to prefabricated, multipurpose music that is often used as the background audio portion of a commercial. A. Jingle B. Voiceover C. Needledrop D. Stock photo E. Beat music Needledrop is an occupational term common to advertising agencies and the music industry. It refers to music that is prefabricated, multipurpose, and highly conventional. It is, in that sense, the musical equivalent of stock photos, clip art, or canned copy. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

124. The use of an actor's voice for reading poetry in a series of automobile commercials is an example of a A. needledrop. B. talking jingle. C. voiceover. D. tagline. E. subtextual message. In the above scenario, a voiceover is used to deliver the message. A common method for presenting the audio portion of a commercial is through a voiceover, where the message is delivered or action on the screen is narrated or described by an announcer who is not visible. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

09-79 . McGraw-Hill Education.

125. _____ are catchy songs about a product or service that usually carry the advertising theme and a simple message. A. Headlines B. Taglines C. Voiceovers D. Jingles E. Needledrops One important musical element in both TV and radio commercials is jingles, catchy songs about a product or service that usually carry the advertising theme and a simple message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

126. The written version of a television commercial that provides a detailed description of its video and audio content is known as a A. layout. B. jingle. C. voiceover. D. script. E. storyboard. The various elements of a TV commercial are brought together in a script, a written version of a commercial that provides a detailed description of its video and audio content. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

127. Once a script for a television commercial has been conceived, a writer and an art director collaborate to produce a _____, a series of drawings used to present the visual plan or layout of the commercial. A. transparency board B. storyboard C. visual layout D. layout synopsis E. thumbnail sketch Once the basic script has been conceived, the writer and art director get together to produce a storyboard, a series of drawings used to present the visual plan or layout of a proposed commercial. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

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128. During which stage of commercial production process do activities such as editing, recording of sound effects, audio/video mixing, and agency approval occur? A. preproduction B. production C. postproduction D. preparation E. incubation The postproduction stage includes activities and work that occurs after a commercial has been filmed and recorded. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising. Topic: Advertising Media

129. Which of the following is a common criticism of TV commercials? A. The creative execution tends to overshadow the advertiser's message. B. They usually have a horizontal layout. C. They are highly unpredictable and difficult to interpret. D. They fail to effectively include needledrops and jingles. E. They overemphasize the brand name and product selling points. A common criticism of TV commercials is that so much emphasis is placed on creative execution that an advertiser's message gets overshadowed. Many creative, entertaining commercials have failed to register the brand name and/or selling points effectively. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Advertising Media

130. Which of the following questions should be used as a criterion when evaluating creative output? A. Does the creative approach create a segmentation base? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Does the creative approach support a market aggregation strategy? E. Does the creative approach use a dramatic execution style? While evaluating creative output, marketers have to consider whether an ad is truthful, as well as whether it might offend consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

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131. Which of the following is a question that should be used when evaluating creative output? A. Is the creative approach appropriate for the media environment in which it is likely to be seen? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Does the creative approach communicate a clear and convincing message to the customer? E. Is the creative approach appropriate for the target audience? While evaluating creative output, marketers should not aim to be consistent with competitors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

132. Aflac had to modify the commercials using its iconic duck character after several research studies showed that many consumers were not exactly sure what Aflac insurance was. Consumers indicated that the advertising didn’t explain what supplemental insurance is and what Aflac does. Which basic criteria for evaluating creative approaches was not met? A. Does the creative execution keep from overwhelming the message? B. Is the creative approach consistent with that used by the competition? C. Is the ad truthful and tasteful? D. Is the creative approach consistent with the brand’s marketing and advertising objectives? E. Does the creative approach use a dramatic execution style? While evaluating creative output, marketers have to consider whether an ad is truthful, as well as whether it might offend consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work. Topic: Role of the Marketing Manager

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Chapter 09 Test Bank 01/11/2017 16:37:19 Summary Category-# of Questions AACSB: Analytical Thinking-84 AACSB: Reflective Thinking-48 Accessibility: Keyboard Navigation-132 Blooms: Analyze-1 Blooms: Apply-46 Blooms: Remember-66 Blooms: Understand-19 Difficulty: 1 Easy-67 Difficulty: 2 Medium-21 Difficulty: 3 Hard-44 Learning Objective: 09-01 Compare the different types of appeals used in advertising.-53 Learning Objective: 09-02 Identify creative execution styles and their most appropriate applications.-38 Learning Objective: 09-03 Compare tactics for the creation of print ads and TV commercials as well as online advertising.-34 Learning Objective: 09-04 Discuss guidelines for clients to evaluate creative work.-8 Topic: Advertising Appeals-92 Topic: Advertising Media-33 Topic: Role of the Marketing Manager-7

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Chapter 10 Test Bank Student: ___________________________________________________________________________ 1. Media strategies refer to the available delivery systems, which include broadcast and print media, outdoor advertising, and other support media. True False

2. The lack of audience information is a greater problem for big advertisers/markets than it is for small advertisers/markets. True False

3. The situation analysis precedes the marketing and creative strategy plan in the media plan development process. True False

4. Decisions on whether sole sponsorship or shared sponsorship is ideal are made during the media use decisions stage of developing a media plan. True False

5. An index number over 100 means that the use of the product is proportionately greater in that segment than in one that is average. True False

6. There is a strong correlation between social engagement and higher tune-in rates. True False

7. Availability of new media and the rising costs of media are internal factors that influence media decisions. True False

8. Market analysis is the first step in the promotional planning process. True False

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9. The survey of buying power index is conducted for every major metropolitan market in the United States. True False

10. The brand development index (BDI) uses information regarding the product category in the numerator to understand the potential for development of the total product category. True False

11. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. True False

12. Media objectives are ends in themselves. True False

13. The flighting method of scheduling ensures that a regular and continuous pattern is developed without gaps or nonadvertising periods. True False

14. One of the advantages of the continuity method of scheduling is low costs. True False

15. One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. True False

16. Instead of using minimum frequency, marketers should maximize reach based on average frequency to purchase GRPs. True False

17. Pass-along estimates are very subjective and using them to estimate reach is speculative. True False

18. The cost-effectiveness of advertisements in newspapers is measured based on the cost per ratings point. True False

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19. The more the number of readers per copy of a magazine, the higher the pass-along rate. True False

20. Radio advertisements have better flexibility than magazine advertisements. True False

21. One of the advantages of direct-mail advertising is that it is clutter-free.

True False

22. One of the advantages of television advertising is the low cost per exposure.

True False

23. The potential for deception is high in digital/interactive media. True False

24. The primary objective of _____ is to develop a framework that will deliver a message to the target audience in the most efficient, cost-effective manner possible. A. media planning B. market segmentation C. target marketing D. organizational planning E. a communication hierarchy

25. _____ is the series of decisions involved in delivering a promotional message to the prospective purchasers and/or users of a product or brand. A. Market segmentation B. Media planning C. Product differentiation D. Brand positioning E. Target diversification

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26. A media plan is a guide for A. development of creative objectives. B. media selection. C. sales forecasting. D. marketing research activities. E. media studies.

27. _____ are plans of action designed to obtain specific media objectives. A. Media goals B. Media services C. Media strategies D. Media vehicles E. Media designs

28. A _____ is the general category of available delivery systems, which includes broadcast media, print media, direct marketing, outdoor advertising, and other support media. A. transit B. reach C. conduit D. medium E. niche

29. Flair, a women's magazine, features an ad for Elvira watches. Flair, being a specific carrier within a medium category, is known as a

A. conduit. B. mobile channel. C. distribution channel. D. transit channel. E. media vehicle.

30. Chef's Delight is a television show hosted by Kevin Bacon. If the show is a specific carrier of messages within the television medium, it is referred to as a

A. media frequency. B. media segment. C. media vehicle. D. media strategy. E. media symbol.

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31. Which of the following is an example of a media vehicle? A. a television set B. a fashion magazine C. direct marketing D. newspaper advertising E. an outdoor billboard

32. _____ is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. A. Contact B. Reach C. Viewer number D. Coverage E. Exposure

33. _____ refers to the potential audience that might receive a message through a media vehicle. A. Frequency B. Reach C. Viewer number D. Coverage E. Exposure

34. _____ is the number of times a receiver is exposed to a media vehicle in a given time period. A. Potency B. Reach C. Coverage D. Frequency E. Audience contact

35. A _____ determines the best way to get an advertiser's message to the market. A. distribution plan B. coverage plan C. frequency level D. media plan E. reach strategy

36. Which of the following factors reduces the effectiveness of a media plan? A. information overload B. product life cycle differences C. market segmentation D. time pressures E. audience diversity

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37. Media planners measured listenership of Volatile Heat FM during the months of February, July, and October to set the advertising rates. These audience measures conducted at specific time periods are known as A. sweeps periods. B. GRP flighting periods. C. frequency estimates. D. availabilities. E. upgraded media scheduling.

38. The first step in developing a media plan is to A. create a media plan committee. B. set the media objectives. C. determine the reach, frequency, and coverage of all available media. D. select broad media classes. E. develop advertising campaigns.

39. In a market analysis, the _____ is considered a good indicator of the potential of the market. It is derived by dividing the percentage of users in a demographic segment by the percentage of population in the same segment and then multiplying the quotient by 100. A. cost per media (CPM) B. quantitative advantage C. index number D. average frequency E. relative reach

40. An index number of 100 means that the A. use of a product is proportionately greater than average in a segment. B. market segment being analyzed is average. C. use of a product is proportionately less than average in a segment. D. probability of wasted coverage is 100 percent. E. probability of success in the market is 100 percent.

41. Which of the following is considered an internal factor that may influence the determination of media strategy? A. the size of the media budget B. competitive factors C. changes in technology D. the development of new media E. the rising costs of media

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42. Which of the following is considered an external factor that may influence the determination of media strategy? A. administrative capabilities B. the rising costs of media C. size of the media budget D. delegation of agency tasks E. organization of an agency

43. The market potential in a given metropolitan area relative to the United States as a whole can be determined by using the A. Nielsen rating index. B. BAR/LNA. C. brand development index (BDI). D. category development index (CDI). E. survey of buying power index.

44. When used in combination with other market information, the survey of buying power index helps a marketer determine A. the geographic areas to target. B. demographic characteristics of the target population. C. lifestyle characteristics of the target population. D. consumer behavior. E. psychographic characteristics of the target population.

45. Which of the following sources of information should be used by a media buyer wishing to acquire statistical information for a specific metropolitan market? A. Simmons Market Research Bureau B. Mediamark Research Inc. C. survey of buying power index D. BAR/LNA E. Standard Rates and Data Service

46. The rate of product usage in a geographical area can be calculated through the use of A. gross rating points. B. reach and frequency. C. brand development index. D. benchmark designated index. E. category development index.

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47. Regal Foods Corp., a packaged foods manufacturer, wishes to determine the percentage of Umber coffee sold in a geographic area as compared to the percentage of the total population in this market. The most appropriate index to use would be the A. survey of buying power index. B. brand development index. C. category development index. D. Dow Jones sustainability index. E. consumer price index.

48. To determine the potential for sales of coffee, as opposed to a specific brand, in a particular market area, a company should use the A. brand development index. B. category development index. C. survey of buying power index. D. Dow Jones sustainability index. E. consumer price index.

49. The category development index is similar to the brand development index (BDI) except that it A. uses information about a product category. B. categorizes consumers according to their demographic characteristics. C. is concerned with companies and not with products. D. is tied to an economic index. E. categorizes consumers according to their psychographic characteristics.

50. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and low CDI. Which of the following information can be deduced from this data?

A. good sales potential for both product and brand B. low market share for product but good market potential C. good market to advertise in but requires sales decline monitoring D. product category has high potential and brand is performing well E. poor market for advertising and potential for loss

51. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and high CDI. Which of the following is likely to be true of the product class and the product?

A. high market share and good market potential B. low market share and good market potential C. high market share with required monitoring for sales decline D. low market share and poor market potential E. high market share but not a good market to advertise in

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52. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and low CDI. Which of the following is likely to be true of the product class and the product?

A. high market share and good market potential B. low market share and good market potential C. high market share with required monitoring for sales decline D. low market share and poor market potential E. high market share but not a good market to advertise in

53. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and high CDI. Which of the following information can be deduced from this data?

A. high market share; good market potential B. low market share; good market potential C. high market share; monitoring required for sales decline D. low market share; poor market potential E. high market share; not a good market to advertise in

54. Which of the following situations offers an advertiser the least attractive marketing opportunity? A. high brand development index (BDI) and high category development index (CDI) B. high brand development index (BDI) and low category development index (CDI) C. low brand development index (BDI) and high category development index (CDI) D. low brand development index (BDI) and low category development index (CDI) E. high survey of buying power index and high brand development index (BDI)

55. Helios Inc. has a low market share for its Achilles range of running shoes in the South Atlantic region. Which of the following indices reflects the information provided in the scenario? A. low brand development index (BDI) B. high brand development index (BDI) C. low category development index (CDI) D. high category development index (CDI) E. high survey of buying power index (BPI)

56. A company's goal to reach 50 percent of the target audience at least three times over a period of one year in order to create awareness is an example of a(n) A. media objective. B. needledrop. C. medium integration. D. corporate vision. E. advertising vision.

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57. Fabian wants to create awareness in the target market by creating a positive brand image through mood and creativity. This is an example of a(n) A. media objective. B. needledrop. C. medium integration. D. corporate vision. E. advertising vision.

58. When the range of a media exceeds the targeted audience, the excess is referred to as A. frequency surplus. B. flighting. C. waste coverage. D. geographical excess. E. oversaturation.

59. If media coverage reaches people who are not sought as buyers and are not potential users, then it is referred to as A. rate differentials. B. pass-along audience problems. C. excess frequency. D. waste coverage. E. weighted exposure.

60. Which of the following would most likely result in waste coverage? A. an ad for custom-build concession food trailers appearing in a trade journal B. a B2B ad appearing in a general fashion magazine C. a commercial for a soda drink appearing on a music channel D. a sports shoes commercial aired during a live telecast of a basketball match E. an ad for an organic fertilizer in a farm publication magazine

61. Which of the following statements is true of the media mix? A. It is not possible to use only one medium or vehicle to deliver a message. B. The characteristics of a product help in determining the combination of media that should be used. C. Individual preferences have no effect on the combination of media to be used to deliver a message. D. Advertisers use the media mix to maintain uniformity across all advertising media. E. By employing a media mix, advertisers can lower the versatility to their media strategies resulting a in high amount of clutter.

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62. Which of the following positions in a company is likely to be responsible for determining which target markets should receive the most media emphasis? A. research manager B. account executive C. brand manager D. media planner E. market research analyst

63. Hot sauce usage in the United States is generally concentrated in the region spanning west from Louisiana to New Mexico and north to the Arkansas-Missouri border. A producer of hot sauce would use this information to schedule by using

A. flighting. B. continuity. C. geographical weighting. D. intermittent frequency. E. pulsing.

64. When the most effective media exposes people who are not sought, waste coverage is still justified because A. it best supports a flighting media schedule. B. the cost of the waste coverage is exceeded by the value gained from their use. C. it allows for more specific targeting of a market segment. D. the media enables repetition which is an effective method for pioneering advertising. E. it supports a market aggregation strategy.

65. The primary objective of _____ is to time promotional efforts of a company so that they will coincide with the highest potential buying times. A. sweeps period B. scheduling C. waste coverage D. frequency estimation E. sales forecasting

66. Which of the following techniques is most suitable for scheduling seasonal products such as Mother's Day cards and Valentine's Day candy? A. weighted ratings B. oscillating C. flighting D. pulsing E. continuity

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67. In a(n) _____ scheduling method, a regular pattern of advertising is developed without gaps or nonadvertising periods on an ongoing basis without regard for seasonality. A. flighting B. oscillating C. pulsing D. continuity E. weighted ratings

68. In the beer industry, advertising continues throughout the year but may increase at holiday periods such as Memorial Day, Labor Day, or the Fourth of July. The industry uses a(n) _____________________ schedule. A. flighting B. oscillating C. pulsing D. continuity E. weighted ratings

69. Television commercials for Halo laundry detergent are aired several times a day, on various cable networks, throughout the year. Advertisers of Halo believe that this will serve as a constant reminder of the brand to the consumers. Media planners of Halo are likely to be using a(n) _____ scheduling method. A. pulsing B. continuity C. flighting D. oscillating E. weighted ratings

70. Television commercials for Burton snow skis are run heavily between October and April; much less in May, August, and September; and not at all in June or July. Burton is using a(n) _____ scheduling method. A. pulsing B. continuity C. flighting D. oscillating E. weighted ratings

71. Which of the following media scheduling strategies would most likely be used by a marketer of dishwashing detergent? A. ratings B. share C. flighting D. pulsing E. continuity

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72. For which of the following products is an advertiser most likely to use continuity scheduling? A. swimming pool chemicals B. flea collars C. cake mixes D. wood burning stoves E. tickets to professional basketball games

73. _____ is a scheduling method that employs a less regular schedule with intermittent periods of advertising and nonadvertising. A. Weighting B. Continuity C. Pulsing D. Flighting E. Circulation

74. Warm Weave Inc., a manufacturer of woolen garments, spends heavily on advertising during the months of December, January, and February. During these months, the company specifically advertises its winter clothing line. Warm Weave is most likely to be using a(n) _____ scheduling method. A. continuity B. weighting C. flighting D. circulation E. oscillating

75. For which of the following products is an advertiser most likely to use a flighting schedule? A. cake mixes B. shampoo C. newspaper subscriptions D. snow tires E. candles

76. When a product's advertising schedule involves constant advertising with heavier efforts being made at certain times, a(n) _____ schedule is being employed. A. intermittent B. continuity C. flighting D. weighting E. pulsing

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77. Manufacturers of recreation vehicles advertise throughout the year but typically advertise heavily in June and September. Which of the following scheduling methods does this pattern represent? A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing

78. Patron's Paradise, an amusement park, advertises itself as a vacation spot throughout the year, but it advertises heavily during the summer months and during the Christmas season when more people are likely to take a vacation. This is an example of _____ scheduling. A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing

79. Which of the following statements describes an advantage inherent in the flighting method of scheduling? A. With flighting, there is no danger of wearout. B. Flighting creates cost efficiency by using advertising only during purchasing periods. C. Flighting helps in continuous advertising which in turn creates refutational appeal. D. Flighting enables retention of promotional messages by alternating periods of high and low advertising weight. E. Flighting serves as a constant reminder to consumers.

80. Which of the following statements is true of the flighting scheduling method? A. It results in a lack of awareness of promotional messages during nonscheduled times. B. It prohibits inclusion of more than one medium or media vehicle for advertising. C. It usually results in high costs and overexposure. D. It has a decreased likelihood of wearout. E. It follows a continuous pattern of advertising without gaps or nonadvertising periods.

81. Which of the following statements is true of the continuity scheduling method? A. It serves as a constant reminder to consumers. B. It is a cost-efficient method of scheduling advertising. C. It allows unlimited media allocation. D. It is a combination of flighting and pulsing scheduling methods. E. It results in a lack of interest of promotional messages during nonscheduled times.

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82. New brands or products need a very high level of reach A. in order to minimize the waste coverage. B. to make all potential buyers aware of the new entry. C. because they have an associated problem of overexposure. D. since they have low brand and category development indices. E. to facilitate continuity scheduling.

83. Juno Inc., a confectionery company, introduces a new line of peanut brittle. The company wants to make all its potential customers aware of its new product. The company should concentrate on A. maximizing frequency. B. maximizing reach. C. maximizing coverage. D. using maximum continuity. E. using a pulsing push strategy.

84. Which of the following statements is true about advertising reach? A. Reach refers to the number of times a viewer is exposed to an ad. B. Reach of a media vehicle can be defined as the "opportunities to see" an ad. C. Frequency level expressed in a media plan overstates the actual level of reach to an ad. D. The actual exposure to an ad is referred to as reach of a media vehicle. E. Reach is of trivial importance at later stages of the adoption hierarchy.

85. Whizz soda aired its TV commercial during the season premiere of Detective Drake. Subsequently, it also aired the commercial during the following program, which was a reality show. A certain percentage of people viewed both programs and were exposed to the ad twice. This overlap is referred to as

A. duplicated reach. B. facsimile promotion. C. advertising replication. D. duplicated frequency. E. flighting.

86. If an ad is placed on two TV shows, the total number of people exposed only once is referred to as _____ A. coverage. B. unduplicated reach. C. duplicated reach. D. frequency. E. program rating.

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87. The overlap that occurs when the same people see an ad twice is referred as A. coverage. B. unduplicated reach. C. duplicated reach. D. frequency. E. program rating.

88. Unduplicated reach indicates A. buying intentions. B. the extent of consumer awareness. C. the amount of waste coverage. D. an estimate of frequency. E. potential new exposures.

89. Duplicated reach A. indicates potential new exposures. B. reduces waste coverage. C. reinforces immediate purchasing behavior. D. provides an estimate of frequency. E. lowers consumer awareness.

90. Most viewers of the sitcom Blonde Dream also watch Euphony, a music-based reality show, which is broadcast immediately after Blonde Dream. An ad for Savor chocolates placed during both of these shows would most likely result in

A. unduplicated reach. B. average coverage. C. increased sweeps periods. D. duplicated reach. E. high cost per thousand.

91. A measure of potential reach in the broadcast industry that is expressed as a percentage is the TV, or radio, _____ A. sweeps periods. B. frequency. C. index numbers. D. duplicated reach. E. program rating.

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92. Gross ratings points (GRPs) can be calculated by A. multiplying reach times frequency of exposure. B. dividing reach times frequency by costs. C. multiplying cost per thousand (CPM) times average frequency. D. dividing average frequency by costs. E. adding reach and frequency and dividing by cost per thousand (CPM).

93. Overexposure, or ___________________, is when media coverage exceeds the targeted audience. A. geographic coverage B. partial market coverage C. pulsing coverage D. waste coverage E. full market coverage

94. _____ is a summary measure that combines a program rating and the average number of times a home is reached during this period. A. Brand development index B. Program rating C. Category development index D. Target ratings points E. Gross ratings points

95. _____ are based on the total audience a media schedule may reach using a duplicated reach estimate. A. Gross rating points (GRPs) B. Target rating points (TRPs) C. Total target rating points (TTRPs) D. Sweeps periods E. Coverage frequencies

96. _____ refers to the number of persons in the primary target audience whom a media buy will reach and the number of times those persons will be reached. A. Target ratings points B. Gross ratings points C. Target frequencies D. Effective target reach E. Total market coverage

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97. Which of the following statements best explains a difference between target ratings points (TRPs) and gross rating points (GRPs)? A. TRPs calculations use average frequency figures, whereas GRPs calculations do not. B. TRPs calculations do not include waste coverage, whereas GRPs calculations do. C. TRPs calculations use a duplicated reach estimate, whereas GRPs calculations do not. D. TRPs are used when selecting broadcast media, and GRPs are used for selecting print media. E. TRPs are used to indicate the total market coverage ratio, whereas GRPs are used to indicate primary market coverage ratio.

98. The concept of _____ is based on the assumption that one exposure to an ad may not be enough to convey a desired message. A. average frequency B. average reach C. effective reach D. GRP E. effective frequency

99. Effective reach refers to the A. percentage of people in the primary target audience a media buy reaches effectively. B. percentage of people who see and respond to an ad through purchase action. C. percentage of people in the target audience who can recall an ad after being exposed to the ad once. D. percentage of a media vehicle's audience reached at each effectual frequency increment. E. number of times an ad appears in prime-time television.

100. Which of the following statements is true of the effects of reach and frequency of a media vehicle? A. Fewer than eight exposures is considered insufficient reach. B. More than 10 exposures are considered to be effective reach in most circumstances. C. The central goal of productive media planning should be to enhance frequency rather than reach. D. Evidence suggests that an exposure rate of one within a purchase cycle is an effective level. E. Frequency response principles or generalizations vary by medium.

101. _____ is a figure used by advertisers that represents the medial number of times the target audience reached by a media schedule is exposed to a media vehicle over a specified period. A. Effective reach B. Unduplicated reach C. Average reach D. Average frequency E. Effective frequency

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102. Which of the following statements is true of marketing factors important in determining frequency levels as recommended by Joseph Ostrow? A. The higher the brand share, the higher the frequency level required. B. The higher the loyalty, the higher the frequency level required. C. Higher frequency levels are required when competitive noise is absent. D. The ability of a target group to learn and to retain messages has a direct effect on frequency. E. Products used daily or more often need to be replaced quickly, so a lower level of frequency is desired.

103. Which of the following is an example of a marketing factor that has been shown to be important in determining advertising frequency levels? A. message uniqueness B. clutter C. purchase and usage cycles D. media scheduling E. message complexity

104. Which of the following is a creative factor that is used in determining frequency levels? A. message variation B. target group C. clutter D. attentiveness E. scheduling

105. Recency planning focuses on A. continuous scheduling over a one week period. B. frequency rather than reach. C. short interval reach at maximum frequency levels. D. more targeting to gain exposure to reach as many potential consumers as possible. E. a four-week planning period for reach.

106. Non-seasonal products, like laundry detergents or toiletries, are likely to use a _________________________ pattern of advertising. A. flighting B. continuity C. pulsing D. direct E. indirect

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107. _____ of a medium or media vehicle is the actual total cost required to place an advertising message. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)

108. _____ refers to the relationship between the price paid for advertising time or space and the size of the audience delivered. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)

109. _____ refers to the relationship between the price paid for advertising time and the size of the audience delivered and is also used to compare media vehicles. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM)

110. Computation of cost breakdowns on the basis of cost per thousand people reached is typically seen in the _____ industry. A. interactive media B. radio C. magazine D. television E. newspaper

111. The primary objective of _______________ is to time promotional efforts so that they will coincide with the highest potential buying times. A. scheduling B. reach C. frequency D. mood E. budgeting

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112. Which of the following parameters does the formula for the computation of cost per thousand (CPM) take into account? A. cost of ad space B. program rating C. cost of commercial time D. daily inch rate E. cost of 1 unit of time

113. In media planning, the cost of ad space divided by circulation and multiplied by 1,000 is the formula used to calculate A. index number. B. cost per thousand. C. absolute cost. D. category development index. E. brand development index.

114. Which of the following parameters does the formula for the computation of cost per ratings point (CPRP) take into account? A. circulation B. cost per repetition C. cost per thousand D. cost of ad space E. cost of commercial time

115. In media planning, the cost of the commercial time divided by the program rating is the formula used to calculate A. cost per thousand. B. brand index number. C. category development index. D. gross rating point. E. cost per point.

116. For newspapers, the cost-efficiency formula for determining the relative cost of the media is based on

A. the pass-along rate. B. gross rating points. C. column inches. D. the daily inch rate. E. absolute reach.

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117. Which of the following media utilize cost per ratings point to compare cost figures? A. magazine B. transit C. newspaper D. billboard E. television

118. In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide A. costs per point. B. costs per CRPs. C. gross rating points. D. costs per thousand. E. costs per circulation.

119. Which of the following is a drawback of the cost per thousand system? A. It fails to standardize relative costing procedures. B. It does not provide a comparison of media. C. It may overestimate or underestimate the actual cost-effectiveness. D. It does not include the TCPM system. E. It fails to include the brand development index.

120. _____ calculates the cost per thousand based on the target audience rather than the overall audience. A. BDI B. CDI C. Target CPM D. Target market segmentation E. Target buying power index

121. A marketer of running shoes wants to use a cost-effective method to reach its potential buyers with minimum waste coverage. The marketer should use a medium that A. has coverage of the overall audience. B. reaches more potential receivers even though it has a high cost per thousand. C. has a low cost per thousand. D. has high absolute and low relative costs for advertising and promoting the product. E. has a high pass-along rate.

122. Which of the following is true of TCPM? A. It calculates CPMs based on the target audience. B. It calculates longevity of magazine circulations. C. It calculates BDIs based on overall audience. D. It calculates CPMs based on the overall audience. E. It calculates the cost of using one unit of time.

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123. Advertisers include _____ in the readers per copy figures to estimate the number of people who read a magazine without buying it. A. pass-along rates B. cost per point C. frequency estimates D. gross ratings points E. average frequency index

124. Which of the following factors leads to an underestimation of actual reach? A. changes in daily inch rates B. cost per page variations C. pass-along rates D. ineffective CPP estimations E. variations in the TCPM

125. The pass-along rate refers to the A. newspaper advertising rate charged to manufacturers by retailers placing ads for them. B. television advertising rate charged to national advertisers. C. number of persons to whom a magazine copy has been given and who have read it. D. magazine advertising rate for throw-away publications. E. percentage of people who skip over an ad while reading a publication.

126. The major problem with the use of readers per copy figures is A. determining pass-along rates. B. determining the time spent reading a magazine. C. calculating cost estimates efficiently. D. determining an efficient way to estimate the effects of sweeps periods. E. calculating costs per ratings point.

127. Which of the following is an advantage associated with newspaper advertising? A. longer life B. short lead time for placing ads C. high reproduction quality D. wide reader exposure E. lack of clutter

128. Which of the following is a disadvantage associated with radio advertising? A. high production costs B. low audience segmentation C. high clutter D. low frequency E. low flexibility

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129. Which of the following is an advantage associated with direct mail advertising? A. low selectivity B. high repetition C. low cost per exposure D. low level of clutter E. opportunities for repeat exposures

130. When trying to attain mass coverage of the entire U.S. market, which of the following forms of advertising would be most effective? A. transit B. television C. newspaper D. outdoor E. magazine

131. Which of the following media is described as having few valid measurement techniques, a flexible message platform, and a direct selling potential? A. television B. interactive media C. radio D. direct mail E. newspapers

132. Vera was looking for an advertising medium that was location specific and had high repetition so she could raise awareness of her new apothecary in the local market. What medium offers these advantages? A. television B. interactive media C. outdoor D. direct mail E. newspapers

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Chapter 10 Test Bank Key 1. Media strategies refer to the available delivery systems, which include broadcast and print media, outdoor advertising, and other support media. FALSE Media strategies are specific plans of action designed to attain the media objectives. The medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct marketing, outdoor advertising, and other support media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 3 Hard Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

2. The lack of audience information is a greater problem for big advertisers/markets than it is for small advertisers/markets. FALSE The lack of information is a greater problem for small advertisers, or smaller markets, which may not be able to afford to purchase the information they require. As a result, their decisions are based on limited or out-of-date data that were provided by the media themselves or no data at all. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

3. The situation analysis precedes the marketing and creative strategy plan in the media plan development process. TRUE The purpose of a situation analysis is to understand the marketing problems. Once this is accomplished, a marketing strategy plan is created to solve one or more of the marketing problems. This is followed by formulating a creative strategy plan that determines what to communicate through advertisements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

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4. Decisions on whether sole sponsorship or shared sponsorship is ideal are made during the media use decisions stage of developing a media plan. TRUE Specific details such as the kind of sponsorship (sole, shared, participating, or other) are determined later during the stage of media use decisions. Other decisions made at this stage include the levels of reach and frequency required, on which days and months the commercial will appear, and the placement of spots. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

5. An index number over 100 means that the use of the product is proportionately greater in that segment than in one that is average. TRUE The index number is considered a good indicator of the potential of the market. An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

6. There is a strong correlation between social engagement and higher tune-in rates. TRUE Social media usage takes time away from some people that they might otherwise use to watch TV. But, it can also drive others to watch. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Advertising Media

7. Availability of new media and the rising costs of media are internal factors that influence media decisions. FALSE Internal factors may involve the size of the media budget, managerial and administrative capabilities, or the organization of the agency. External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Advertising Media

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8. Market analysis is the first step in the promotional planning process. TRUE Market analysis is the first stop in the promotional planning process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

9. The survey of buying power index is conducted for every major metropolitan market in the United States. TRUE The survey of buying power index is conducted for every major metropolitan market in the United States and is based on a number of factors, including population, effective buying income, and total retail sales in the area. Each of these factors is individually weighted to drive a buying power index that charts the potential of a particular metro area, county, or city relative to the United States as a whole. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

10. The brand development index (BDI) uses information regarding the product category in the numerator to understand the potential for development of the total product category. FALSE The BDI compares the percentage of the brand's total U.S. sales in a given market area with the percentage of the total population in the market to determine the sales potential for that brand in that market area. The category development index (CDI) is computed in the same manner as the BDI, except it uses information regarding the product category (as opposed to the brand) in the numerator. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

11. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. TRUE The media objectives are not ends in themselves. Rather, they are designed to lead to the attainment of communications and marketing objectives. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-03 Describe the purpose of media objectives. Topic: Advertising Media

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12. Media objectives are ends in themselves. FALSE The media objectives are not ends in themselves. Rather, they are designed to lead to the attainment of communications and marketing objectives. Media objectives are the goals for the media program and should be limited to those that can be accomplished through media strategies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-03 Describe the purpose of media objectives. Topic: Advertising Media

13. The flighting method of scheduling ensures that a regular and continuous pattern is developed without gaps or nonadvertising periods. FALSE Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

14. One of the advantages of the continuity method of scheduling is low costs. FALSE Since the continuity method employs a regular (continuous) pattern without gaps or nonadvertising periods, the costs involved are high. Another possible drawback is the possibility of overexposure. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

15. One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. TRUE One exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

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16. Instead of using minimum frequency, marketers should maximize reach based on average frequency to purchase GRPs. FALSE Instead of using average frequency, the marketer should decide what minimum frequency goal is needed to reach the advertising objectives effectively and then maximize reach at that frequency level to purchase GRPs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

17. Pass-along estimates are very subjective and using them to estimate reach is speculative. TRUE While research is conducted to determine pass-alongs, pass-along estimates are subjective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

18. The cost-effectiveness of advertisements in newspapers is measured based on the cost per ratings point. FALSE For newspapers, cost-effectiveness is based on the daily inch rate, which is the cost per column inch of the paper. Like magazines, newspapers now use the cost-per-thousand formula discussed earlier to determine relative costs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

19. The more the number of readers per copy of a magazine, the higher the pass-along rate. TRUE Magazine advertising space sellers want to use the number of readers per copy as the true circulation. This would include a pass-along rate, estimating the number of people who read the magazine without buying it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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20. Radio advertisements have better flexibility than magazine advertisements. TRUE Radio advertisements have better flexibility than magazine advertisements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

21. One of the advantages of direct-mail advertising is that it is clutter-free. FALSE One of the drawbacks of direct-mail advertisements is clutter. It also involves high costs per contact. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

22. One of the advantages of television advertising is the low cost per exposure. TRUE One of the advantages of television advertising is the low cost per exposure. However, it does have a high absolute cost and higher production costs compared to other forms of media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

23. The potential for deception is high in digital/interactive media. TRUE The potential for deception is high in digital/interactive media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

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24. The primary objective of _____ is to develop a framework that will deliver a message to the target audience in the most efficient, cost-effective manner possible. A. media planning B. market segmentation C. target marketing D. organizational planning E. a communication hierarchy The primary objective of a media plan is to develop a framework that will deliver a message to the target audience in the most efficient, cost-effective manner possible—that will communicate what a product, brand, and/or service can do. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

25. _____ is the series of decisions involved in delivering a promotional message to the prospective purchasers and/or users of a product or brand. A. Market segmentation B. Media planning C. Product differentiation D. Brand positioning E. Target diversification Media planning is the series of decisions involved in delivering a promotional message to the prospective purchasers and/or users of a product or brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

26. A media plan is a guide for A. development of creative objectives. B. media selection. C. sales forecasting. D. marketing research activities. E. media studies. A media plan is a guide for media selection. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

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27. _____ are plans of action designed to obtain specific media objectives. A. Media goals B. Media services C. Media strategies D. Media vehicles E. Media designs A media plan is a guide for media selection. It requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

28. A _____ is the general category of available delivery systems, which includes broadcast media, print media, direct marketing, outdoor advertising, and other support media. A. transit B. reach C. conduit D. medium E. niche A medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct marketing, outdoor advertising, and other support media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

29. Flair, a women's magazine, features an ad for Elvira watches. Flair, being a specific carrier within a medium category, is known as a A. conduit. B. mobile channel. C. distribution channel. D. transit channel. E. media vehicle. The above scenario is an example of a media vehicle. A media vehicle is a specific carrier within a medium category. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

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30. Chef's Delight is a television show hosted by Kevin Bacon. If the show is a specific carrier of messages within the television medium, it is referred to as a A. media frequency. B. media segment. C. media vehicle. D. media strategy. E. media symbol. The above scenario is an example of a media vehicle. A media vehicle is a specific carrier within a medium category. For example, Vanity Fair and In Style are print vehicles; and 60 Minutes are broadcast vehicles. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

31. Which of the following is an example of a media vehicle? A. a television set B. a fashion magazine C. direct marketing D. newspaper advertising E. an outdoor billboard A fashion magazine is a type of media vehicle. A media vehicle is a specific carrier within a medium category. For example, and are print vehicles; and are broadcast vehicles. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

32. _____ is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. A. Contact B. Reach C. Viewer number D. Coverage E. Exposure Reach is a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

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33. _____ refers to the potential audience that might receive a message through a media vehicle. A. Frequency B. Reach C. Viewer number D. Coverage E. Exposure Coverage refers to the potential audience that might receive a message through a media vehicle. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

34. _____ is the number of times a receiver is exposed to a media vehicle in a given time period. A. Potency B. Reach C. Coverage D. Frequency E. Audience contact Frequency refers to the number of times a receiver is exposed to a media vehicle in a specified period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

35. A _____ determines the best way to get an advertiser's message to the market. A. distribution plan B. coverage plan C. frequency level D. media plan E. reach strategy A media plan determines the best way to get an advertiser's message to the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

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36. Which of the following factors reduces the effectiveness of a media plan? A. information overload B. product life cycle differences C. market segmentation D. time pressures E. audience diversity A number of problems contribute to the difficulty of establishing a media plan and reduce its effectiveness. These problems include insufficient information, inconsistent terminologies, time pressures, and difficulty measuring effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

37. Media planners measured listenership of Volatile Heat FM during the months of February, July, and October to set the advertising rates. These audience measures conducted at specific time periods are known as A. sweeps periods. B. GRP flighting periods. C. frequency estimates. D. availabilities. E. upgraded media scheduling. The above scenario is an example of sweeps periods. There are problems with some measures of audience size in other media as well. The timing of measurements is also a problem; some audience measures are taken only at specific times of a year. For example, sweeps periods in February, May, July, and November are used for measuring TV audiences and setting advertising rates. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-01 Define the key terminology in media planning. Topic: Advertising Media

38. The first step in developing a media plan is to A. create a media plan committee. B. set the media objectives. C. determine the reach, frequency, and coverage of all available media. D. select broad media classes. E. develop advertising campaigns. The first step in developing a media plan is to set the media objectives. The purpose of setting media objectives is to translate marketing objectives and strategies into goals that media can accomplish. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Advertising Media

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39. In a market analysis, the _____ is considered a good indicator of the potential of the market. It is derived by dividing the percentage of users in a demographic segment by the percentage of population in the same segment and then multiplying the quotient by 100. A. cost per media (CPM) B. quantitative advantage C. index number D. average frequency E. relative reach An index number is considered a good indicator of the potential of the market. This number is derived from the formula: Index = (Percentage of users in a demographic segment/Percentage of population in the same segment)  100. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

40. An index number of 100 means that the A. use of a product is proportionately greater than average in a segment. B. market segment being analyzed is average. C. use of a product is proportionately less than average in a segment. D. probability of wasted coverage is 100 percent. E. probability of success in the market is 100 percent. An index number over 100 means use of a product is proportionately greater in that segment than in one that is average (100) or less than 100. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

41. Which of the following is considered an internal factor that may influence the determination of media strategy? A. the size of the media budget B. competitive factors C. changes in technology D. the development of new media E. the rising costs of media Internal factors may involve the size of the media budget, managerial and administrative capabilities, or the organization of the agency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Advertising Media

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42. Which of the following is considered an external factor that may influence the determination of media strategy? A. administrative capabilities B. the rising costs of media C. size of the media budget D. delegation of agency tasks E. organization of an agency External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Advertising Media

43. The market potential in a given metropolitan area relative to the United States as a whole can be determined by using the A. Nielsen rating index. B. BAR/LNA. C. brand development index (BDI). D. category development index (CDI). E. survey of buying power index. The survey of buying power index is conducted for every major metropolitan market in the United States. Each of these factors is individually weighted to drive a buying power index that charts the potential of a particular metro area, county, or city relative to the United States as a whole. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

44. When used in combination with other market information, the survey of buying power index helps a marketer determine\ A. the geographic areas to target. B. demographic characteristics of the target population. C. lifestyle characteristics of the target population. D. consumer behavior. E. psychographic characteristics of the target population. When used in combination with other market information, the survey of buying power index helps a marketer determine which geographic areas to target. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

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45. Which of the following sources of information should be used by a media buyer wishing to acquire statistical information for a specific metropolitan market? A. Simmons Market Research Bureau B. Mediamark Research Inc. C. survey of buying power index D. BAR/LNA E. Standard Rates and Data Service The survey of buying power index is conducted for every major metropolitan market in the United States and is based on a number of factors, including population, effective buying income, and total retail sales in the area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

46. The rate of product usage in a geographical area can be calculated through the use of A. gross rating points. B. reach and frequency. C. brand development index. D. benchmark designated index. E. category development index. The brand development index (BDI) helps marketers factor the rate of product usage by geographic area into the decision process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

47. Regal Foods Corp., a packaged foods manufacturer, wishes to determine the percentage of Umber coffee sold in a geographic area as compared to the percentage of the total population in this market. The most appropriate index to use would be the A. survey of buying power index. B. brand development index. C. category development index. D. Dow Jones sustainability index. E. consumer price index. In the above scenario, a brand development index (BDI) should be used. The BDI helps marketers factor the rate of product usage by geographic area into the decision process. The BDI compares the percentage of a brand's total U.S. sales in a given market area with the percentage of the total population in the market to determine the sales potential for that brand in that market area. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

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48. To determine the potential for sales of coffee, as opposed to a specific brand, in a particular market area, a company should use the A. brand development index. B. category development index. C. survey of buying power index. D. Dow Jones sustainability index. E. consumer price index. In the above scenario, the category development index (CDI) should be used. The CDI is computed in the same manner as the brand development index (BDI), except it uses information regarding the product category (as opposed to the brand) in the numerator. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

49. The category development index is similar to the brand development index (BDI) except that it A. uses information about a product category. B. categorizes consumers according to their demographic characteristics. C. is concerned with companies and not with products. D. is tied to an economic index. E. categorizes consumers according to their psychographic characteristics. The category development index (CDI) is computed in the same manner as the brand development index (BDI), except it uses information regarding a product category (as opposed to a brand). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

50. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and low CDI. Which of the following information can be deduced from this data? A. good sales potential for both product and brand B. low market share for product but good market potential C. good market to advertise in but requires sales decline monitoring D. product category has high potential and brand is performing well E. poor market for advertising and potential for loss High BDI and low CDI indicate that a particular product category is not selling well, but a brand is; probably a good market to advertise in but should be monitored for declining sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

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51. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: high BDI and high CDI. Which of the following is likely to be true of the product class and the product? A. high market share and good market potential B. low market share and good market potential C. high market share with required monitoring for sales decline D. low market share and poor market potential E. high market share but not a good market to advertise in High BDI and high CDI represent good sales potential for both the product category and the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

52. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and low CDI. Which of the following is likely to be true of the product class and the product? A. high market share and good market potential B. low market share and good market potential C. high market share with required monitoring for sales decline D. low market share and poor market potential E. high market share but not a good market to advertise in Low BDI and low CDI indicate that both the product category and the brand are doing poorly; not likely to be a good place for advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

53. After calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: low BDI and high CDI. Which of the following information can be deduced from this data? A. high market share; good market potential B. low market share; good market potential C. high market share; monitoring required for sales decline D. low market share; poor market potential E. high market share; not a good market to advertise in Low BDI and high CDI indicate that the product category shows high potential but the brand is not doing well; the reasons should be determined. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

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54. Which of the following situations offers an advertiser the least attractive marketing opportunity? A. high brand development index (BDI) and high category development index (CDI) B. high brand development index (BDI) and low category development index (CDI) C. low brand development index (BDI) and high category development index (CDI) D. low brand development index (BDI) and low category development index (CDI) E. high survey of buying power index and high brand development index (BDI) Low BDI and low CDI indicate that both the product category and the brand are doing poorly; not likely to be a good place for advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

55. Helios Inc. has a low market share for its Achilles range of running shoes in the South Atlantic region. Which of the following indices reflects the information provided in the scenario? A. low brand development index (BDI) B. high brand development index (BDI) C. low category development index (CDI) D. high category development index (CDI) E. high survey of buying power index (BPI) The above scenario is an illustration of a low brand development index (BDI). A low BDI indicates a low market share of a brand in a given market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 10-02 Explain how to develop a media plan. Topic: Target Markets

56. A company's goal to reach 50 percent of the target audience at least three times over a period of one year in order to create awareness is an example of a(n) A. media objective. B. needledrop. C. medium integration. D. corporate vision. E. advertising vision. Media objectives are the goals for a media program and should be limited to those that can be accomplished through media strategies. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-03 Describe the purpose of media objectives. Topic: Target Markets

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57. Fabian wants to create awareness in the target market by creating a positive brand image through mood and creativity. This is an example of a(n) A. media objective. B. needledrop. C. medium integration. D. corporate vision. E. advertising vision. Media objectives are the goals for a media program and should be limited to those that can be accomplished through media strategies. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-03 Describe the purpose of media objectives. Topic: Advertising Media

58. When the range of a media exceeds the targeted audience, the excess is referred to as A. frequency surplus. B. flighting. C. waste coverage. D. geographical excess. E. oversaturation. A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

59. If media coverage reaches people who are not sought as buyers and are not potential users, then it is referred to as A. rate differentials. B. pass-along audience problems. C. excess frequency. D. waste coverage. E. weighted exposure. A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

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60. Which of the following would most likely result in waste coverage? A. an ad for custom-build concession food trailers appearing in a trade journal B. a B2B ad appearing in a general fashion magazine C. a commercial for a soda drink appearing on a music channel D. a sports shoes commercial aired during a live telecast of a basketball match E. an ad for an organic fertilizer in a farm publication magazine A business-to-business (B2B) ad appearing in a general fashion magazine will most likely result in waste coverage. A marketer is faced with a problem of overexposure (also called waste coverage), in which the media coverage exceeds the targeted audience. If media coverage reaches people who are not sought as buyers and are not potential users, then it is wasted. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

61. Which of the following statements is true of the media mix? A. It is not possible to use only one medium or vehicle to deliver a message. B. The characteristics of a product help in determining the combination of media that should be used. C. Individual preferences have no effect on the combination of media to be used to deliver a message. D. Advertisers use the media mix to maintain uniformity across all advertising media. E. By employing a media mix, advertisers can lower the versatility to their media strategies resulting a in high amount of clutter. The objectives sought, the characteristics of a product or service, the size of the budget, and individual preferences are just some of the factors that determine what combination of media will be used. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

62. Which of the following positions in a company is likely to be responsible for determining which target markets should receive the most media emphasis? A. research manager B. account executive C. brand manager D. media planner E. market research analyst A media planner determines which target markets should receive the most media emphasis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

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63. Hot sauce usage in the United States is generally concentrated in the region spanning west from Louisiana to New Mexico and north to the Arkansas-Missouri border. A producer of hot sauce would use this information to schedule by using A. flighting. B. continuity. C. geographical weighting. D. intermittent frequency. E. pulsing. The information available in the above scenario will enable the producer of hot sauce to use geographical weighting. The objective of weighting certain geographic areas more than others makes sense, and the strategy of exerting more promotional efforts and dollars in those areas follows naturally. The timing of when the advertising is run is not relevant to the location factors present in the question. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

64. When the most effective media exposes people who are not sought, waste coverage is still justified because A. it best supports a flighting media schedule. B. the cost of the waste coverage is exceeded by the value gained from their use. C. it allows for more specific targeting of a market segment. D. the media enables repetition which is an effective method for pioneering advertising. E. it supports a market aggregation strategy. Sometimes one has to live with less coverage than desired; other times, the most effective media expose people not sought. In this instance, waste coverage is justified because the media employed are likely to be the most effective means of delivery available and the cost of the waste coverage is exceeded by the value gained from their use. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Target Markets

65. The primary objective of _____ is to time promotional efforts of a company so that they will coincide with the highest potential buying times. A. sweeps period B. scheduling C. waste coverage D. frequency estimation E. sales forecasting The primary objective of scheduling is to time promotional efforts so that they will coincide with the highest potential buying times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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66. Which of the following techniques is most suitable for scheduling seasonal products such as Mother's Day cards and Valentine's Day candy? A. weighted ratings B. oscillating C. flighting D. pulsing E. continuity Flighting would be most suitable for scheduling seasonal products such as Mother's Day cards and Valentine's candy. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

67. In a(n) _____ scheduling method, a regular pattern of advertising is developed without gaps or nonadvertising periods on an ongoing basis without regard for seasonality. A. flighting B. oscillating C. pulsing D. continuity E. weighted ratings Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

68. In the beer industry, advertising continues throughout the year but may increase at holiday periods such as Memorial Day, Labor Day, or the Fourth of July. The industry uses a(n) _____________________ schedule. A. flighting B. oscillating C. pulsing D. continuity E. weighted ratings Pulsing combines continuity and flighting methods so continuity is maintained, but promotional efforts are stepped up at certain times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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69. Television commercials for Halo laundry detergent are aired several times a day, on various cable networks, throughout the year. Advertisers of Halo believe that this will serve as a constant reminder of the brand to the consumers. Media planners of Halo are likely to be using a(n) _____ scheduling method. A. pulsing B. continuity C. flighting D. oscillating E. weighted ratings The above scenario is an example of the continuity scheduling method. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

70. Television commercials for Burton snow skis are run heavily between October and April; much less in May, August, and September; and not at all in June or July. Burton is using a(n) _____ scheduling method. A. pulsing B. continuity C. flighting D. oscillating E. weighted ratings Flighting has intermittent periods of advertising and nonadvertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

71. Which of the following media scheduling strategies would most likely be used by a marketer of dishwashing detergent? A. ratings B. share C. flighting D. pulsing E. continuity A marketer of dishwashing detergent is most likely to use continuity scheduling method. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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72. For which of the following products is an advertiser most likely to use continuity scheduling? A. swimming pool chemicals B. flea collars C. cake mixes D. wood burning stoves E. tickets to professional basketball games An advertiser is most likely to use continuity scheduling for cake mixes. Continuity refers to a continuous pattern of advertising, which may mean every day, every week, or every month. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

73. _____ is a scheduling method that employs a less regular schedule with intermittent periods of advertising and nonadvertising. A. Weighting B. Continuity C. Pulsing D. Flighting E. Circulation Flighting employs a less regular schedule with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

74. Warm Weave Inc., a manufacturer of woolen garments, spends heavily on advertising during the months of December, January, and February. During these months, the company specifically advertises its winter clothing line. Warm Weave is most likely to be using a(n) _____ scheduling method. A. continuity B. weighting C. flighting D. circulation E. oscillating The above scenario is an example of the flighting scheduling method. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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75. For which of the following products is an advertiser most likely to use a flighting schedule? A. cake mixes B. shampoo C. newspaper subscriptions D. snow tires E. candles An advertiser is most likely to use a flighting schedule for snow tires. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

76. When a product's advertising schedule involves constant advertising with heavier efforts being made at certain times, a(n) _____ schedule is being employed. A. intermittent B. continuity C. flighting D. weighting E. pulsing Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

77. Manufacturers of recreation vehicles advertise throughout the year but typically advertise heavily in June and September. Which of the following scheduling methods does this pattern represent? A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing The above scenario is an illustration of the pulsing scheduling method. Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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78. Patron's Paradise, an amusement park, advertises itself as a vacation spot throughout the year, but it advertises heavily during the summer months and during the Christmas season when more people are likely to take a vacation. This is an example of _____ scheduling. A. flighting B. geographical weighting C. continuity D. oscillating E. pulsing The above scenario is an illustration of the pulsing scheduling method. Pulsing is actually a combination of continuity and flighting scheduling methods. In a pulsing strategy, continuity is maintained, but at certain times promotional efforts are stepped up. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

79. Which of the following statements describes an advantage inherent in the flighting method of scheduling? A. With flighting, there is no danger of wearout. B. Flighting creates cost efficiency by using advertising only during purchasing periods. C. Flighting helps in continuous advertising which in turn creates refutational appeal. D. Flighting enables retention of promotional messages by alternating periods of high and low advertising weight. E. Flighting serves as a constant reminder to consumers. An advantage of flighting is that it creates cost efficiency by using advertising only during purchasing periods. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

80. Which of the following statements is true of the flighting scheduling method? A. It results in a lack of awareness of promotional messages during nonscheduled times. B. It prohibits inclusion of more than one medium or media vehicle for advertising. C. It usually results in high costs and overexposure. D. It has a decreased likelihood of wearout. E. It follows a continuous pattern of advertising without gaps or nonadvertising periods. Flighting employs a less regular schedule, with intermittent periods of advertising and nonadvertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. A disadvantage associated with flighting is that it results in a lack of awareness, interest, retention of promotional message during nonscheduled times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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81. Which of the following statements is true of the continuity scheduling method? A. It serves as a constant reminder to consumers. B. It is a cost-efficient method of scheduling advertising. C. It allows unlimited media allocation. D. It is a combination of flighting and pulsing scheduling methods. E. It results in a lack of interest of promotional messages during nonscheduled times. An advantage of the continuity scheduling method is that it serves as a constant reminder to consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

82. New brands or products need a very high level of reach A. in order to minimize the waste coverage. B. to make all potential buyers aware of the new entry. C. because they have an associated problem of overexposure. D. since they have low brand and category development indices. E. to facilitate continuity scheduling. New brands or products need a very high level of reach, since the objective is to make all potential buyers aware of the new entry. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

83. Juno Inc., a confectionery company, introduces a new line of peanut brittle. The company wants to make all its potential customers aware of its new product. The company should concentrate on A. maximizing frequency. B. maximizing reach. C. maximizing coverage. D. using maximum continuity. E. using a pulsing push strategy. In the above scenario, the company should concentrate on maximizing its reach. New brands or products need a very high level of reach, since the objective is to make all potential buyers aware of the new entry. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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84. Which of the following statements is true about advertising reach? A. Reach refers to the number of times a viewer is exposed to an ad. B. Reach of a media vehicle can be defined as the "opportunities to see" an ad. C. Frequency level expressed in a media plan overstates the actual level of reach to an ad. D. The actual exposure to an ad is referred to as reach of a media vehicle. E. Reach is of trivial importance at later stages of the adoption hierarchy. Frequency level expressed in a media plan overstates the actual level of exposure to an ad. This overstatement has led some media buyers to refer to the reach of a media vehicle as "opportunities to see" an ad rather than actual exposure to it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

85. Whizz soda aired its TV commercial during the season premiere of Detective Drake. Subsequently, it also aired the commercial during the following program, which was a reality show. A certain percentage of people viewed both programs and were exposed to the ad twice. This overlap is referred to as

A. duplicated reach. B. facsimile promotion. C. advertising replication. D. duplicated frequency. E. flighting. The above scenario is an example of duplicated reach. If an ad is placed on two TV shows, the total number of people exposed once is unduplicated reach. Some people will see the ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

86. If an ad is placed on two TV shows, the total number of people exposed only once is referred to as _____ A. coverage. B. unduplicated reach. C. duplicated reach. D. frequency. E. program rating. If an ad is placed on two TV shows, the total number of people exposed only once is referred to as unduplicated reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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87. The overlap that occurs when the same people see an ad twice is referred as A. coverage. B. unduplicated reach. C. duplicated reach. D. frequency. E. program rating. Some people will see an ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

88. Unduplicated reach indicates A. buying intentions. B. the extent of consumer awareness. C. the amount of waste coverage. D. an estimate of frequency. E. potential new exposures. Unduplicated reach indicates potential new exposures, while duplicated reach provides an estimate of frequency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

89. Duplicated reach A. indicates potential new exposures. B. reduces waste coverage. C. reinforces immediate purchasing behavior. D. provides an estimate of frequency. E. lowers consumer awareness. Unduplicated reach indicates potential new exposures, while duplicated reach provides an estimate of frequency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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90. Most viewers of the sitcom Blonde Dream also watch Euphony, a music-based reality show, which is broadcast immediately after Blonde Dream. An ad for Savor chocolates placed during both of these shows would most likely result in

A. unduplicated reach. B. average coverage. C. increased sweeps periods. D. duplicated reach. E. high cost per thousand. The above scenario is an example of duplicated reach. If an ad is placed on two TV shows, the total number of people exposed once is unduplicated reach. Some people will see the ad twice. The reach of two TV shows includes a number of people who are reached by both shows. This overlap is referred to as duplicated reach. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

91. A measure of potential reach in the broadcast industry that is expressed as a percentage is the TV, or radio, _____ A. sweeps periods. B. frequency. C. index numbers. D. duplicated reach. E. program rating. A measure of potential reach in the broadcast industry is the TV (or radio) program rating. This number is expressed as a percentage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

92. Gross ratings points (GRPs) can be calculated by A. multiplying reach times frequency of exposure. B. dividing reach times frequency by costs. C. multiplying cost per thousand (CPM) times average frequency. D. dividing average frequency by costs. E. adding reach and frequency and dividing by cost per thousand (CPM). A summary measure that combines a program rating and the average number of times a home is reached during this period (frequency of exposure) is a commonly used reference point known as gross ratings points (GRPs). GRP = Reach  Frequency AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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93. Overexposure, or ___________________, is when media coverage exceeds the targeted audience. A. geographic coverage B. partial market coverage C. pulsing coverage D. waste coverage E. full market coverage If media coverage reaches people who are not sought as buyers and are not potential users, it is wasted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

94. _____ is a summary measure that combines a program rating and the average number of times a home is reached during this period. A. Brand development index B. Program rating C. Category development index D. Target ratings points E. Gross ratings points A summary measure that combines a program rating and the average number of times a home is reached during this period (frequency of exposure) is a commonly used reference point known as gross ratings points (GRPs). GRP = Reach  Frequency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

95. _____ are based on the total audience a media schedule may reach using a duplicated reach estimate. A. Gross rating points (GRPs) B. Target rating points (TRPs) C. Total target rating points (TTRPs) D. Sweeps periods E. Coverage frequencies Gross rating points (GRPs) are based on the total audience a media schedule may reach using a duplicated reach estimate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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96. _____ refers to the number of persons in the primary target audience whom a media buy will reach and the number of times those persons will be reached. A. Target ratings points B. Gross ratings points C. Target frequencies D. Effective target reach E. Total market coverage Target ratings points (TRPs) refer to the number of people in the primary target audience a media buy will reach—and the number of times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

97. Which of the following statements best explains a difference between target ratings points (TRPs) and gross rating points (GRPs)? A. TRPs calculations use average frequency figures, whereas GRPs calculations do not. B. TRPs calculations do not include waste coverage, whereas GRPs calculations do. C. TRPs calculations use a duplicated reach estimate, whereas GRPs calculations do not. D. TRPs are used when selecting broadcast media, and GRPs are used for selecting print media. E. TRPs are used to indicate the total market coverage ratio, whereas GRPs are used to indicate primary market coverage ratio. Unlike gross rating points (GRPs), target ratings points (TRPs) do not include waste coverage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

98. The concept of _____ is based on the assumption that one exposure to an ad may not be enough to convey a desired message. A. average frequency B. average reach C. effective reach D. GRP E. effective frequency Effective reach represents the percentage of a vehicle's audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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99. Effective reach refers to the A. percentage of people in the primary target audience a media buy reaches effectively. B. percentage of people who see and respond to an ad through purchase action. C. percentage of people in the target audience who can recall an ad after being exposed to the ad once. D. percentage of a media vehicle's audience reached at each effectual frequency increment. E. number of times an ad appears in prime-time television. Effective reach represents the percentage of a vehicle's audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey a desired message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

100. Which of the following statements is true of the effects of reach and frequency of a media vehicle? A. Fewer than eight exposures is considered insufficient reach. B. More than 10 exposures are considered to be effective reach in most circumstances. C. The central goal of productive media planning should be to enhance frequency rather than reach. D. Evidence suggests that an exposure rate of one within a purchase cycle is an effective level. E. Frequency response principles or generalizations vary by medium. Since one exposure is usually ineffective, the central goal of productive media planning should be to enhance frequency rather than reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

101. _____ is a figure used by advertisers that represents the medial number of times the target audience reached by a media schedule is exposed to a media vehicle over a specified period. A. Effective reach B. Unduplicated reach C. Average reach D. Average frequency E. Effective frequency Advertisers use a figure that they call average frequency, or the average number of times the target audience reached by a media schedule is exposed to a vehicle over a specified period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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102. Which of the following statements is true of marketing factors important in determining frequency levels as recommended by Joseph Ostrow? A. The higher the brand share, the higher the frequency level required. B. The higher the loyalty, the higher the frequency level required. C. Higher frequency levels are required when competitive noise is absent. D. The ability of a target group to learn and to retain messages has a direct effect on frequency. E. Products used daily or more often need to be replaced quickly, so a lower level of frequency is desired. The ability of a target group to learn and to retain messages has a direct effect on frequency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

103. Which of the following is an example of a marketing factor that has been shown to be important in determining advertising frequency levels? A. message uniqueness B. clutter C. purchase and usage cycles D. media scheduling E. message complexity Shorter purchasing cycles require higher frequency levels to maintain top-of-mind awareness. Products used daily or more often need to be replaced quickly, so a higher level of frequency is desired. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

104. Which of the following is a creative factor that is used in determining frequency levels? A. message variation B. target group C. clutter D. attentiveness E. scheduling Message variation: A single message requires less frequency; a variety of messages requires more. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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105. Recency planning focuses on A. continuous scheduling over a one week period. B. frequency rather than reach. C. short interval reach at maximum frequency levels. D. more targeting to gain exposure to reach as many potential consumers as possible. E. a four-week planning period for reach. Rather than focusing on a four-week planning period for reach, recency planning calls for a continuous schedule over a one-week period, and less targeting to gain exposure to reach as many potential consumers as possible. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

106. Non-seasonal products, like laundry detergents or toiletries, are likely to use a _________________________ pattern of advertising. A. flighting B. continuity C. pulsing D. direct E. indirect Continuity scheduling is often used for non-seasonal products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

107. _____ of a medium or media vehicle is the actual total cost required to place an advertising message. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM) The absolute cost of a medium or vehicle is the actual total cost required to place a message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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108. _____ refers to the relationship between the price paid for advertising time or space and the size of the audience delivered. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM) Relative cost refers to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

109. _____ refers to the relationship between the price paid for advertising time and the size of the audience delivered and is also used to compare media vehicles. A. Net contribution margin B. Net cost C. Absolute cost D. Relative cost E. Cost per media (CPM) Relative cost refers to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

110. Computation of cost breakdowns on the basis of cost per thousand people reached is typically seen in the _____ industry. A. interactive media B. radio C. magazine D. television E. newspaper For years the magazine industry has provided cost breakdowns on the basis of cost per thousand people reached. The formula for this computation is: cost per thousand (CPM) = (Cost of ad space (absolute cost)/Circulation)  1,000. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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111. The primary objective of _______________ is to time promotional efforts so that they will coincide with the highest potential buying times. A. scheduling B. reach C. frequency D. mood E. budgeting Scheduling helps keep advertising in front of consumers and times promotional efforts so they conicide with the highest potential buying times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

112. Which of the following parameters does the formula for the computation of cost per thousand (CPM) take into account? A. cost of ad space B. program rating C. cost of commercial time D. daily inch rate E. cost of 1 unit of time For years the magazine industry has provided cost breakdowns on the basis of cost per thousand people reached. The formula for this computation is: cost per thousand (CPM) = (Cost of ad space (absolute cost)/Circulation)  1,000. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

113. In media planning, the cost of ad space divided by circulation and multiplied by 1,000 is the formula used to calculate A. index number. B. cost per thousand. C. absolute cost. D. category development index. E. brand development index. The formula for computation of cost per thousand (CPM) = (Cost of ad space/circulation)  1,000. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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114. Which of the following parameters does the formula for the computation of cost per ratings point (CPRP) take into account? A. circulation B. cost per repetition C. cost per thousand D. cost of ad space E. cost of commercial time The broadcast media provide a different comparative cost figure, referred to as cost per ratings point or cost per point (CPP), based on the following formula: CPRP = Cost of commercial time/program rating. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

115. In media planning, the cost of the commercial time divided by the program rating is the formula used to calculate A. cost per thousand. B. brand index number. C. category development index. D. gross rating point. E. cost per point. The broadcast media provide a different comparative cost figure, referred to as cost per ratings point (CPRP) or cost per point (CPP), based on the following formula: CPRP/CPP = Cost of commercial time/program rating. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

116. For newspapers, the cost-efficiency formula for determining the relative cost of the media is based on A. the pass-along rate. B. gross rating points. C. column inches. D. the daily inch rate. E. absolute reach. For newspapers, cost-effectiveness is based on the daily inch rate, which is the cost per column inch of the paper. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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117. Which of the following media utilize cost per ratings point to compare cost figures? A. magazine B. transit C. newspaper D. billboard E. television The broadcast media provide a comparative cost figure, referred to as cost per ratings point or cost per point (CPP). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

118. In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide A. costs per point. B. costs per CRPs. C. gross rating points. D. costs per thousand. E. costs per circulation. In an attempt to standardize relative costing procedures, the broadcast and newspaper media have begun to provide costs per thousand, using the following formulas: Television: [(Cost of 1 unit of time  1,000)/program rating]; Newspapers: [(Cost of ad space  1,000)/Circulation]. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

119. Which of the following is a drawback of the cost per thousand system? A. It fails to standardize relative costing procedures. B. It does not provide a comparison of media. C. It may overestimate or underestimate the actual cost-effectiveness. D. It does not include the TCPM system. E. It fails to include the brand development index. The cost per thousand may overestimate or underestimate the actual cost-effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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120. _____ calculates the cost per thousand based on the target audience rather than the overall audience. A. BDI B. CDI C. Target CPM D. Target market segmentation E. Target buying power index A medium with a much higher cost per thousand may be a wiser buy if it is reaching more potential receivers. (Most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience.) AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

121. A marketer of running shoes wants to use a cost-effective method to reach its potential buyers with minimum waste coverage. The marketer should use a medium that A. has coverage of the overall audience. B. reaches more potential receivers even though it has a high cost per thousand. C. has a low cost per thousand. D. has high absolute and low relative costs for advertising and promoting the product. E. has a high pass-along rate. In the above scenario, the marketer should use a medium that reaches more potential receivers even though it has a high cost per thousand. Marketers must use the potential reach to the target market—the destination sought—rather than the overall circulation figure. A medium with a much higher cost per thousand may be a wiser buy if it is reaching more potential receivers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

122. Which of the following is true of TCPM? A. It calculates CPMs based on the target audience. B. It calculates longevity of magazine circulations. C. It calculates BDIs based on overall audience. D. It calculates CPMs based on the overall audience. E. It calculates the cost of using one unit of time. Most media buyers rely on target CPM, or TCPM, which calculates CPMs based on the target audience, not the overall audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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123. Advertisers include _____ in the readers per copy figures to estimate the number of people who read a magazine without buying it. A. pass-along rates B. cost per point C. frequency estimates D. gross ratings points E. average frequency index Pass-along rate estimates the number of people who read a magazine without buying it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

124. Which of the following factors leads to an underestimation of actual reach? A. changes in daily inch rates B. cost per page variations C. pass-along rates D. ineffective CPP estimations E. variations in the TCPM CPM may also underestimate cost efficiency. Magazine advertising space sellers have argued for years that because more than one person may read an issue, the actual reach is underestimated. They want to use the number of readers per copy as the true circulation. This would include a pass-along rate, estimating the number of people who read the magazine without buying it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

125. The pass-along rate refers to the A. newspaper advertising rate charged to manufacturers by retailers placing ads for them. B. television advertising rate charged to national advertisers. C. number of persons to whom a magazine copy has been given and who have read it. D. magazine advertising rate for throw-away publications. E. percentage of people who skip over an ad while reading a publication. Pass-along rate estimates the number of people who read a magazine without buying it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

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126. The major problem with the use of readers per copy figures is A. determining pass-along rates. B. determining the time spent reading a magazine. C. calculating cost estimates efficiently. D. determining an efficient way to estimate the effects of sweeps periods. E. calculating costs per ratings point. While the number of readers per copy makes intuitive sense, it has the potential to be extremely inaccurate. The actual number of times a magazine changes hands (pass-along rate) is difficult to determine. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-04 Describe how to develop and implement media strategies. Topic: Advertising Media

127. Which of the following is an advantage associated with newspaper advertising? A. longer life B. short lead time for placing ads C. high reproduction quality D. wide reader exposure E. lack of clutter An advantage associated with newspaper advertising is short lead time for placing ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

128. Which of the following is a disadvantage associated with radio advertising? A. high production costs B. low audience segmentation C. high clutter D. low frequency E. low flexibility A disadvantage associated with radio advertising is the potential for high clutter. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

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129. Which of the following is an advantage associated with direct mail advertising? A. low selectivity B. high repetition C. low cost per exposure D. low level of clutter E. opportunities for repeat exposures An advantage associated with direct mail advertising is that it provides opportunities for repeat exposures. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

130. When trying to attain mass coverage of the entire U.S. market, which of the following forms of advertising would be most effective? A. transit B. television C. newspaper D. outdoor E. magazine Both television and newspaper could be used to maximize reach but usage of television would lead to mass coverage unlike the newspaper which could reach the local audience in a cost-effective manner. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

131. Which of the following media is described as having few valid measurement techniques, a flexible message platform, and a direct selling potential? A. television B. interactive media C. radio D. direct mail E. newspapers Interactive media has few valid measurement techniques, a flexible message platform, and a direct selling potential. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

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132. Vera was looking for an advertising medium that was location specific and had high repetition so she could raise awareness of her new apothecary in the local market. What medium offers these advantages? A. television B. interactive media C. outdoor D. direct mail E. newspapers Outdoor is location specific and offers high repetition. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 10-05 Compare the characteristics of various media. Topic: Advertising Media

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Chapter 10 Test Bank 01/11/2017 16:37:25 Summary Category-# of Questions AACSB: Analytical Thinking-108 AACSB: Reflective Thinking-24 Accessibility: Keyboard Navigation-132 Blooms: Apply-25 Blooms: Remember-75 Blooms: Understand-32 Difficulty: 1 Easy-73 Difficulty: 2 Medium-36 Difficulty: 3 Hard-23 Learning Objective: 10-01 Define the key terminology in media planning.-18 Learning Objective: 10-02 Explain how to develop a media plan.-24 Learning Objective: 10-03 Describe the purpose of media objectives.-4 Learning Objective: 10-04 Describe how to develop and implement media strategies.-76 Learning Objective: 10-05 Compare the characteristics of various media.-10 Topic: Advertising Media-105 Topic: Target Markets-27

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Chapter 11 Test Bank Student: ___________________________________________________________________________ 1. The interaction of sight and sound in TV commercials offers creative flexibility. True False

2. Due to its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. True False

3. Advertisers who are seeking a very specific, often small, target audience find the coverage of TV to be more cost effective as the coverage extends beyond their market. True False

4. Increased penetration of DVRs has led to increased zapping of commercials. True False

5. When a network assembles a series of affiliated local TV stations, the networks share the advertising revenue they receive during these time periods with the affiliates. True False

6. In network advertising, the advertiser has to deal with only one party or media representative to air a commercial nationwide. True False

7. Scatter market is a buying period that occurs before the TV season begins. True False

8. Spot advertising is more easily acquired by national advertisers than local ones. True False

9. The first-run syndication market does not include shows that did not make it as network shows. True False

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10. Ratings points can be used by advertisers as measures for audience size and commercial rates. True False

11. Audience share is always higher than the program rating unless all the households have their sets turned on. True False

12. Designated market areas (DMAs), in practice, are usually overlapping. True False

13. Nielsen's current C3 ratings track individual ads and specific time slots. True False

14. Zero-TV households are homes that have stopped paying for cable and satellite TV service and do not even use an antenna to get free signals over the airways. True False

15. Radio has evolved into a primarily local advertising medium. True False

16. Radio boasts the broadest mass reach among all media. True False

17. Radio commercials are expensive to produce. True False

18. Radio often provides advertisers with a very receptive environment for their advertising messages. True False

19. An advantage of radio as a medium for advertising is its low level of audience fragmentation; the percentage of the market tuned to any particular station is usually high. True False

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20. The size of the radio listening audience is roughly equivalent across dayparts, so advertising rates are the same throughout the day. True False

21. The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. True False

22. The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. True False

23. All stations strictly adhere to rate cards and the rates published in SRDS. True False

24. RADAR measurements are based on information collected throughout the year by means of diary interviews. True False

25. Nielsen-owned RADAR National Network Ratings uses measurements from a probability sample of 200,000 respondents age 12 and older who live in telephone households. True False

26. Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it A. has a low absolute cost. B. has the ability to reach large audiences in a relatively cost-efficient manner. C. has a high level of geographic selectivity. D. is very easy to develop creative television advertising. E. has the power to eliminate the problem of commercial advertising clutter.

27. TV is a popular medium among companies selling mass-consumption products because of A. its capacity to reach a precisely defined market segment. B. its capacity to eliminate the problem of commercial clutter. C. its ability to reinforce radio messages through adjacency techniques. D. its ability to reach large audiences in a cost-efficient manner. E. its ability to prevent the zipping and zapping effects.

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28. Which of the following is true of television as an advertising medium? A. Television advertising is highly expensive and typically not cost efficient. B. Television has often been criticized for being a nonselective medium. C. Television as an advertising medium is typically not intrusive. D. Television advertising is considered to be highly inflexible. E. Television offers a greater range of geographic selectivity.

29. Which of the following factors makes it difficult for small-size advertisers to use television as part of their media mix? A. the failure of TV programs to reach their intended target markets B. the lack of knowledge among small ad agencies on how to produce TV commercials C. the high costs of producing and airing television commercials D. the limited creative options available through television E. the lack of captivity and attention that TV advertising provides

30. An art gallery in a small town is hosting an "outsider artist" sale and wishes to invite people from the area to attend and buy the pieces made by artists based in the nearby locality. However, the television station also reaches viewers in northwest Georgia and northeast Alabama, resulting in a lack of A. clutter control. B. noise filters. C. audience measures. D. geographic selectivity. E. zipping capabilities.

31. Which of the following statements about the length of television commercials is true? A. Commercials have become longer as the demand for broadcast time has dwindled. B. Commercial length is increasing and 60-second spots are typically considered the norm. C. Commercials became shorter because advertisers turned to shorter spots as a way of controlling their media costs. D. Commercial length is increasing as the cost of ad space decreases. E. The number of 60-second commercials has declined due to the networks' desire to sell more ads and restrict clutter.

32. Which of the following statements about commercial length is true? A. Fifteen-second spots are the most common commercial length. B. Increasing media costs have resulted in advertisers preferring shorter commercials. C. Most advertisers believe shorter commercials cannot deliver a message as effectively as longer commercials. D. Fifteen-second spots typically sell for about the same amount as 30-second spots. E. Most 15-second commercials are being converted to 5-second commercials that are known as split commercials.

33. An advertiser bought a 15-second spot during prime time, but realized that there was very low recall for the advertisement. This could be due to: A. the presence of commercial clutter. B. the lack of demographic selectivity of television. C. the low reach of television. D. the inherent deficiencies of television as a communication medium. E. message source alienation.

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34. Which of the following is an inherent disadvantage of television advertising? A. fleeting nature of messages B. lack of cost efficiency C. lack of flexibility D. limited captivity E. limited coverage

35. _____ refers to the practice of fast-forwarding through commercials on prerecorded programs. A. Zipping B. Zapping C. Multiplexing D. Narrowcasting E. Zooming

36. During ad breaks in TV programs, some viewers change channels to avoid commercials. This practice is known as A. multiplexing. B. zapping. C. narrowcasting. D. time shifting. E. zipping.

37. Rick likes to watch two television programs that air at the same time on different channels. He simultaneously watches both programs by switching channels during commercial breaks. In this scenario, Rick is engaging in A. narrowcasting. B. zooming. C. multiplexing. D. zipping. E. zapping.

38. Donna gets impatient during long commercial breaks, so she often records shows and fast-forwards through the commercials when she watches them later. Donna engages in A. pulsing. B. zooming. C. encoding. D. zipping. E. zapping.

39. Which of the following is true about zapping? A. Zapping occurs only with radio stations. B. Zapping occurs when viewers fast-forward through commercials as they play back a previously recorded program. C. Zapping has reduced due to the introduction of remote controls for television sets. D. Zapping has also been fueled by the 24-hour continuous-format programming on cable channels. E. Zapping is synonymous with zipping.

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40. Advertisers can prevent consumers from zapping commercials by A. introducing "commercial-free" programming. B. producing commercials that are meaningful. C. utilizing 60-second commercials. D. introducing the concept of zipping. E. opting for local advertising.

41. _____ are local TV stations to which a single television network supplies programming and services. A. Syndicates B. Adjacencies C. Full-run spots D. Affiliates E. Zappers

42. A network supplies programming and services to a series of local TV stations, or _____, which contract to preempt time during specified hours for programming provided by the networks and carry national advertising within their programming. A. satellite networks B. interconnects C. affiliates D. station reps E. regional networks

43. Which of the following is an advantage of network advertising? A. It simplifies the purchase process. B. It enables advertisers to reach local and regional markets. C. It reduces the cost of prime-time advertising. D. It enables advertisers to target concentrated markets. E. It reduces the extent of advertising clutter.

44. Which of the following statements about network advertising is true? A. Using network advertising significantly complicates the purchase of television media time for national advertisers. B. Network advertising is cheaper and more selective than local advertising. C. The high cost of network time can be a drawback to advertisers with limited media budgets. D. National advertisers have to negotiate with both the network and local affiliates when they want to make a media buy. E. Network advertising is less effective than spot advertising for mass consumption products.

45. The buying period that takes place before the TV season begins and where networks sell much of their commercial time is referred to as the A. scatter market. B. regional market. C. off-network market. D. spot market. E. up-front market.

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46. In order to obtain advertising time on Master Quiz, a popular TV show, Bedazzle Cosmetics bought a commercial spot before the new season of Master Quiz began. With respect to the given scenario, Bedazzle Cosmetics bought the commercial space during the _____ market. A. up-front B. continual C. scatter D. zipping E. spot

47. John Inc., a manufacturing firm, failed to purchase airtime before the season premiere of a popular national television show. However, the company was able to purchase 15-second spots at a higher than average price. In this scenario, John Inc. is likely to have purchased airtime in the A. up-front market. B. scatter market. C. spot market. D. local market. E. rep market.

48. The buying period for television advertising time that runs throughout the television season is known as the _____ market. A. up-front B. spot C. scatter D. interconnected E. local

49. _____ refers to commercials on local television stations for which the advertisers negotiate directly with the individual stations. A. Network advertising B. Spot advertising C. Regional advertising D. Syndicated advertising E. Rep advertising

50. Which of the following is true of national spot advertising? A. It deals only with airtime sold to banks and commercial institutions. B. It is a type of nonnetwork advertising. C. It deals only with airtime sold to auto dealers. D. It is highly inflexible. E. It is synonymous with local advertising.

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51. _____ are individuals who act as salespersons for a number of local stations and represent them in their dealings with national advertisers. A. Station managers B. Affiliates C. Negotiators D. Station reps E. Sponsors

52. Which of the following statements describes a problem encountered by national advertisers when using spot advertising? A. Spot advertising prevents national advertisers from adjusting to local market conditions. B. Spot advertising cannot be used as part of the advertiser's cooperative advertising programs. C. Spot advertising is typically more expensive than nonnetwork advertising. D. Spot advertising is usually characterized by significant variations in pricing and discount policies. E. Spot advertising provides advertisers with limited coverage in geographic markets in which they do business.

53. Which of the following statements about spot advertising is true? A. It is subject to less commercial clutter than network advertising. B. It is used only by national advertisers. C. It is generally more expensive than network advertising. D. It is used only by local advertisers. E. It offers the national advertiser flexibility in adjusting to local market conditions.

54. Spot advertising is A. mostly confined to station breaks between programs on network-originated shows. B. used only by local advertisers. C. subject to less clutter than network advertising. D. easier to buy than advertising on national networks. E. airtime sold to local firms such as retailers, restaurants, banks, and auto dealers.

55. _____ are shows that are sold or distributed on a station-by-station, market-by-market basis. A. Interconnects B. Adjacencies C. Affiliate programs D. Participation programs E. Syndicated programs

56. _____ are reruns of network shows that are bought by individual stations to broadcast. A. Off-network syndications B. Sponsorships C. First-run syndications D. Network spots E. Local syndications

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57. Prison, a popular television show, is purchased by three individual stations and re-run in different parts of the country. This system of purchasing and airing network shows is known as A. off-network syndication. B. shortwave syndication. C. first-run syndication. D. network syndication. E. beam syndication.

58. Which of the following statements about off-network syndication is true? A. Off-network syndication shows are an important source of quality programming for local stations. B. Off-network syndication shows are an insignificant source of revenue to the studios that produce them. C. Off-network syndication shows are usually low-budget, low-quality programs. D. The FCC prime-time access rule forbids independent stations from carrying off-network syndicated shows between 7:00 and 8:00 P.M. E. Off-network syndication refers to shows produced specifically for the syndication market.

59. Shows such as Judge Jenny and Tonight's Entertainment are produced specifically for the syndication market. This is referred to as A. off-network syndication. B. first-run syndication. C. special-purpose syndication. D. spot syndication. E. affiliate syndication.

60. _____ refers to shows produced specifically for the syndication market. A. Off-network syndication B. Up-front syndication C. Special-purpose syndication D. First-run syndication E. Rerun syndication

61. The arrangement under which syndicated programs are offered free or at a reduced rate to local stations but with some advertising time presold to national advertisers is known as A. off-network syndication. B. first-run syndication. C. barter syndication. D. sponsorship. E. participation.

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62. Barter syndication is also called A. advertiser-supported syndication. B. station-sponsored syndication. C. up-market syndication. D. first-run programming. E. presold programming.

63. Which of the following statements is true about syndication? A. Syndicated programs are of limited value to advertisers since they reach a limited number of viewers. B. First-run syndication is the only form of syndicated programming. C. Syndication has become a major business that generates revenue comparable to the major networks. D. National advertisers rarely use syndicated programs. E. Syndicated programs are attractive to national advertisers since they contain a lower level of advertising clutter.

64. Under a _____ arrangement, national advertisers can participate in the syndication market with the convenience of a network-type media buy, while local stations get free programming as well as some advertising time to sell to local or spot advertisers. A. sponsorship B. participation C. barter syndication D. local syndication E. spot syndication

65. A disadvantage associated with the use of syndicated shows for advertising is A. that syndicates do not supply as much research information as the networks do. B. their negative effect on zipping and zapping. C. their popularity is limited to gen Xers. D. that syndicates are not popular in rural areas and among the older generation. E. their lack of popularity when compared to network shows in certain dayparts, such as daytime, early prime time, and late fringe.

66. Which of the following is a disadvantage of syndication? A. Syndicated shows are often aired during an undesirable time period. B. Syndicated shows offer no advantages to national advertisers. C. Syndicated shows are often more expensive than network shows. D. Syndicated shows reach a limited audience and generate limited ad revenue. E. Syndicated shows do not benefit local television stations.

67. Advertisers have little control over the placement of their commercials within a program when they advertise using a(n) _____ arrangement. A. sponsorship B. participation C. daypart D. exclusivity E. run-of-station

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68. In the early days of television, the production and content of most television programs was the responsibility of A. the networks. B. the local affiliate. C. corporations that sponsored the shows. D. independent production companies. E. the syndicates.

69. With _____, advertisers assume responsibility for the production and usually the content of the program as well as the advertising that appears within it. A. participations B. sponsorships C. adjacencies D. syndications E. countertrades

70. Companies prefer sponsorship arrangements for buying advertising time because: A. it allows companies to capitalize on the image of a high-quality program. B. it gives the advertiser less control over the placement and the length of its commercials. C. it is relatively inexpensive. D. sponsoring a show enables the advertiser to run more commercials per hour since time regulations do not apply. E. it broadens advertising reach, saves money, and reaches a more aggregated market when compared to buying national spots.

71. A consortium of nine major advertisers recently joined Television Production Partners, a new venture that develops movies, specials, and limited-run series for television. The members will choose the programs they want to be involved with, take responsibility for production, and take a portion of the commercial spots during these shows. The nine advertisers are using a(n) _____ type of advertising arrangement. A. sponsorship B. participation C. adjacency D. off-network syndication E. countertrade

72. Which of the following is defined as the television time period available to local stations right before or after network programming? A. adjacencies B. participations C. sponsorships D. affiliates E. sweeps

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73. _____ are the various time periods or segments into which a broadcast day is divided. A. Adjacencies B. Pulse days C. Spots D. Dayparts E. Spot beams

74. Morning, daytime, prime time, and late fringe are all examples of A. television dayparts. B. types of spot beaming. C. types of network syndication. D. run-of-station spots. E. up-front markets.

75. Typically, most network television advertising time is sold as A. sponsorships. B. participations. C. adjacencies. D. spot announcements. E. affiliated offerings.

76. Which of the following is true for participations? A. In participations, advertisers have financial responsibility for production of the program. B. Participations involve long-term commitment on the part of advertisers. C. Participations offer advertisers a lower reach than sponsorships. D. In participations, advertisers have little control over the placement of ads. E. Participations are not suitable for small advertisers with limited budgets.

77. Which television daypart has the highest rates and is dominated by national advertisers? A. daytime B. early fringe C. prime time D. late news E. late fringe

78. The television daypart that attracts the largest viewing audience is A. daytime. B. early fringe. C. early news. D. overnight. E. prime time.

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79. Most advertisers prefer buying their network advertising time as participation over sponsorships because A. they want long-term commitment to a program. B. they want greater financial responsibility for production of a program. C. they want greater flexibility than sole sponsorship permits. D. they want a greater concentrate for their advertising budget. E. they want greater control over the placement of ads.

80. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 3:00 P.M. and 5:00 P.M. from Monday through Friday is called A. prime access. B. early fringe. C. prime time. D. early news. E. late news.

81. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 5:00 P.M. and 7:00 P.M. from Monday through Saturday is called A. early fringe. B. late fringe. C. early news. D. prime access. E. prime time.

82. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 7:00 P.M. and 8:00 P.M. from Monday through Saturday is called A. overnight. B. late fringe. C. early news. D. prime access. E. early fringe.

83. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:30 P.M. and 2:00 A.M. from Monday through Friday is called A. late fringe. B. early fringe. C. late news. D. early news. E. prime access.

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84. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:00 P.M. and 11:30 P.M. from Sunday through Saturday is called A. late fringe. B. early fringe. C. prime access. D. prime time. E. late news.

85. The major reason for the decline in the viewing audiences of the four major networks is A. the widespread use of videocassette recorders. B. the growth of cable television. C. poor programming. D. the exponential growth of clutter. E. changes in cultural values, which are reducing television viewing time.

86. Which of the following is a similarity between advertising on broadcast TV and cable advertising? A. Both offer fewer segmentation opportunities. B. Both create longer buyer lead times for preparing and placing ads. C. Both offer greater reach and lower frequency opportunities with individual stations. D. Both do not enable advertisers to reach a large number of viewers with a single media buy. E. Both can be purchased on a national, regional, or local (spot) level.

87. An arrangement where a group of cable systems in a geographic area are joined together for advertising purposes is known as A. syndication. B. an interconnect. C. an adjacency. D. multiplexing. E. stunting.

88. The growth in spot cable advertising has been facilitated by the use of A. LANs. B. hyperstitials. C. interconnects. D. interstitials. E. clutter minimizers.

89. Which of the following statements concerning advertising on cable television is true? A. Cable time can only be purchased on a national level. B. Cable time can be purchased on a national, regional, or local level. C. Spot cable advertising revenues have decreased dramatically over the past five years. D. Local cable systems provide advertisers with extensive research information on demographics, lifestyles, and viewership patterns. E. Cable networks discourage the purpose of marketers to reach a large number of viewers across the country with a single media buy.

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90. Advertising on television to specialized audiences that has been made possible by cable advertising is known as _____ A. zipping. B. zapping. C. narrowcasting. D. multiplexing. E. gladvertising.

91. For advertisers, the _____ is one disadvantage of cable television as compared to network television. A. lack of penetration B. lack of flexibility C. lack of selectivity D. lack of cost-effectiveness E. limitations on the length of commercials

92. Cable networks that can transmit several channels from one network engage in A. multiplexing. B. interconnecting. C. single sourcing. D. subvertising. E. gladvertising.

93. The price for commercial time charged by a television network is largely a function of a program's A. average frequency. B. commercial clutter competence. C. audience size and composition. D. zipping and zapping effect. E. comprehensive layout.

94. The sole source of network television and local audience information in the United States is A. Arbitron Co. B. Nielson Media Research. C. Rockbridge Associates, Inc. D. Roy Morgan Research. E. Burke Research.

95. Assume the television show Master Quiz had an average national program rating of 18 during the 2017 season. This means that A. an average of 18 million households watched Master Quiz. B. 18 percent of the households watching television were tuned to Master Quiz. C. an average of 18 percent of the television households in the country were tuned to Master Quiz. D. an average of 18 million households watched Master Quiz for at least five minutes every time the program was aired. E. 18 percent of the households in the United States watched the entire program.

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96. If 60 million households watch Sports Story, a half-hour sports news program, and there are 300 million households in the United States, the national rating for Sports Story is A. 30 percent. B. 20 percent. C. 60 percent. D. 25 percent. E. 15 percent.

97. Which of the following is true of program rating? A. It is the percentage of homes in a given area where TV is being watched during a specific time period. B. It is the percentage of TV households in an area that are tuned to a specific program during a specific time period. C. It is the total number of households in the area that subscribe to cable television as opposed to network television. D. It represents a total percentage of the population that is tuned to a particular reality television program. E. It represents 1 percent of all the television households in a particular area tuned to a specific program.

98. The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a one-hour sports news program. The program rating for Sports Stories in the Boston DMA is _____ A. 35. B. 15. C. 10. D. 20. E. 30.

99. The share of a television audience indicates the A. percentage of the defined target market that is exposed to a message at least once during the relevant time period. B. percentage of households using TV in a specified time period that are tuned to a specific program. C. average number of exposures to a message received by each member of the target market. D. percentage of all households using television during a specific time period. E. number of people who responded to a televised direct-response ad.

100. There are approximately 900,000 television households in the San Diego County market. During a Sunday afternoon in October, 50 percent of the households had their television sets turned on and 200,000 were watching a football game. The approximate share of audience for the game would be A. 22. B. 44. C. 50. D. 200. E. 100.

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101. Which of the following statements is true about program ratings and share of audience measures? A. Program ratings are always higher than share of audience. B. Program rating is synonymous with share of audience. C. Share of audience is always higher than the program rating unless all of the households in a market have their set in use. D. Unlike share of audience measures, program ratings consider variations in the number of sets in use since they are based only on those households that have their sets in use. E. Program ratings are always equal to share of audience if less than 40 percent of the households are tuned in.

102. _____ is defined as 1 percent of all the television households in a particular area tuned to a specific program. A. Category development index B. A ratings point C. A cross-platform rating D. Share of audience E. Brand development index

103. The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their TV sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a sports news program. The share of audience for Sports Stories in the Boston DMA is _____ A. 32. B. 35.5. C. 26. D. 22.2. E. 20.2.

104. The designated market area (DMA) of Manhattan has approximately 2 million television households. Audience research shows that 60 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching a baseball playoff game. The program rating for the playoff game in the Manhattan DMA is _____ A. 25. B. 15. C. 30. D. 35. E. 20.

105. Which of the following is true of total audience? A. It is the total number of homes viewing any five-minute part of a telecast. B. It is the percentage of households using TV in a specified time period that are tuned to a specific program. C. It represents 1 percent of all the television households in a particular area tuned to a specific program. D. It is an electronic measuring device that incorporates the technology of the old-style audimeter. E. It is the percentage of homes in a given area where TV is being watched during a specific time period.

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106. The _____ in the United States provides local audience measurement for television. A. Nielsen Company B. RADAR C. Arbitron D. Roy Morgan Research E. Burke Research

107. Today, the Nielsen Television Index provides weekly estimates of networks and major cable viewing audiences on a national level using an electronic device that measures what is being watched and by whom. This device is called a(n) A. audimeter. B. people meter. C. electronic diary. D. streaming server. E. chronometer.

108. The Nielsen Station Index (NSI) refers to local television markets as A. areas of dominant influence. B. metropolitan rating areas (MRAs). C. designated market areas (DMAs). D. local markets. E. geodemographic areas.

109. The rating periods during which Nielsen measures viewing audiences in every television market are known as A. interconnects. B. designated market periods. C. adjacencies. D. audience shares. E. sweeps.

110. Commercial ratings data, known as "C3," includes measures of the A. number of advertisers who buy airtime during the up-front market. B. average viewership of individual ads. C. average viewership of all the national commercial minutes in a program D. number of people who are viewing a program on a DVR. E. viewership in the 56 largest local markets.

111. Which of the following companies provides commercial ratings data (also known as "C3")? A. Rockbridge Associates, Inc. B. Burke Research C. Roy Morgan Research D. Nielson Media Research E. Arbitron Co.

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112. In 2016, Nielsen began rolling out its A. commercial ratings data. B. linear TV ratings. C. designated market areas (DMAs). D. people meters. E. total audience measurement system

113. Which of the following statements about radio as an advertising medium is true? A. Almost 50 percent of all radio revenue comes from network advertising. B. Radio has evolved into a primarily local advertising medium. C. Radio advertising revenue has been steadily declining for the last 20 years. D. One of the main weaknesses of radio as an advertising medium is the high production costs. E. The high costs of radio advertising result in lower reach and frequency.

114. The relatively low cost of radio advertising time makes it an effective medium through which advertisers can build more _____ into their media schedules. A. absolute cost B. reach and frequency C. inherent drama D. audience selectivity E. spectaculars

115. Radio offers high levels of audience selectivity because of A. the wide variety of program formats offered by different stations. B. the broadcast overlap of local radio stations. C. the transmission capability of the various stations. D. its low cost. E. image transfer capabilities.

116. The audio portion of a television commercial is often implanted into the radio spot for the same product. This is known as A. positioning. B. image transfer. C. cross-beaming. D. zapping. E. zipping.

117. Advertisers use the image transfer process in radio advertising in order to A. emphasize the zapping effect. B. reinforce its television messages. C. transfer the image created by a radio commercial to the point of purchase. D. transfer the image of celebrities to the advertised brand. E. increase commercial clutter.

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118. Which of the following statements describes a limitation associated with the use of radio as an advertising medium? A. The production of radio advertising is expensive. B. The absence of clutter means radio advertising tends to be very uncreative. C. Buying space for radio advertising is more expensive than buying advertising space on television. D. The high number of stations in most markets means there is a great deal of audience fragmentation. E. Radio is unable to provide marketers with a variety of integrated marketing opportunities.

119. A major threat to conventional broadcast radio is A. the emergence of digital media. B. low-powered local radio broadcasting. C. the ability of TV ads to increase commercial clutter. D. the fact that consumers prefer to pay a subscription fee for their radio. E. the ability to zip and zap radio commercials.

120. Which daypart has the largest radio audience, and the highest rates? A. morning drive time (6:00–10:00 A.M.) B. midday (10:00 A.M.–3:00 P.M.) C. nighttime (7:00 P.M.–12:00 A.M.) D. all night (12:00–6:00 A.M.) E. lunchtime (12:00–2:00 P.M.)

121. Nielsen Audio provides ratings reports to clients in the ___________________, to which clients subscribe. A. Portable People Meter B. Nielsen Net Ratings Report C. Radio Market Report D. HUT Report E. Cross-Platform Report

122. Spot radio accounts for _______________ of radio time sold. A. 5 percent B. 10 percent C. 15 percent D. 20 percent E. 25 percent

123. _____ is defined as the estimated total number of different people who listen to a radio station for a minimum of five minutes in a quarter-hour period within a reported daypart. A. A shill B. An interconnect C. Station rep D. Cume E. An affiliate

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124. In accordance to the basic estimates in the Nielsen Audio report, person estimates refer to A. the estimated number of people listening. B. the estimated cost of a spot schedule within a particular time period. C. the estimated number of people involved in preparing the Nielsen Audio report. D. information on number of network audiences only for commercials within a program. E. the percentage of the total estimated listening audience.

125. With respect to the basic estimates in the Nielsen Audio report, rating refers to A. the percentage of total estimated listening audience. B. the percentage of listeners in the survey area population. C. the percentage people involved in preparing the Arbitron ratings report. D. the percentage of listeners who watch TV commercials for more than five minutes. E. the percentage of listeners who watch TV commercials for a minimum of five minutes.

126. With respect to the basic estimates in the Nielsen Audio report, share refers to A. the percentage people involved in preparing the Arbitron ratings report. B. the estimated number of people who watch television commercials. C. the estimated number of radio stations that run a particular commercial. D. the percentage of listeners in the survey area population. E. the percentage of the total estimated listening audience.

127. Nielsen's RADAR A. cannot be used to estimate the audience for commercials on various programs. B. is sponsored by nine of the largest advertisers in the nation. C. primarily measures TV viewership for local TV stations. D. is based on information collected by means of diary interviews. E. collects information and issues a new report every month.

128. ______________ provides estimates of network audiences for all commercials and commercials within various radio programs. A. RADAR B. HUT C. Nielsen Television Index D. People Meter E. DMA

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Chapter 11 Test Bank Key 1. The interaction of sight and sound in TV commercials offers creative flexibility. TRUE The interaction of sight and sound offers tremendous creative flexibility and makes possible dramatic, lifelike representations of products and services. TV commercials can be used to convey a mood or image for a brand as well as to develop emotional or entertaining appeals that help make a dull product appear interesting. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

2. Due to its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. TRUE Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. Companies with widespread distribution as well as availability of their products and services use TV to reach the mass market and deliver their advertising messages at a very low cost per thousand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

3. Advertisers who are seeking a very specific, often small, target audience find the coverage of TV to be more cost effective as the coverage extends beyond their market. FALSE Advertisers who are seeking a very specific, often small, target audience find the coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic selectivity can be a problem for local advertisers such as retailers, since a station bases its rates on the total market area it reaches. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

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4. Increased penetration of DVRs has led to increased zapping of commercials. FALSE Zapping refers to changing channels to avoid commercials. Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

5. When a network assembles a series of affiliated local TV stations, the networks share the advertising revenue they receive during these time periods with the affiliates. TRUE A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. The networks share the advertising revenue they receive during these time periods with the affiliates. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

6. In network advertising, the advertiser has to deal with only one party or media representative to air a commercial nationwide. TRUE A major advantage of network advertising is the simplification of the purchase process. The advertiser has to deal with only one party or media representative to air a commercial nationwide. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

7. Scatter market is a buying period that occurs before the TV season begins. FALSE Scatter market runs through the TV season. Up-front market is a buying period that occurs before the TV season begins. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-23 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

8. Spot advertising is more easily acquired by national advertisers than local ones. FALSE A major problem for national advertisers is that spot advertising can be more difficult to acquire, since the time must be purchased from a number of local stations. Moreover, there are more variations in the pricing policies and discount structure of individual stations than of the networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

9. The first-run syndication market does not include shows that did not make it as network shows. FALSE First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

10. Ratings points can be used by advertisers as measures for audience size and commercial rates. TRUE A ratings point represents 1 percent of all the television households in a particular area tuned to a specific program. Advertisers also follow ratings closely, since they are the key measure for audience size and commercial rates. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

11. Audience share is always higher than the program rating unless all the households have their sets turned on. TRUE Audience share is the percentage of households using TV in a specified time period that are tuned to a specific program. Audience share is always higher than the program rating unless all the households have their sets turned on (in which case they would be equal). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

11-24 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

12. Designated market areas (DMAs), in practice, are usually overlapping. FALSE DMAs are nonoverlapping areas used for planning, buying, and evaluating TV audiences and are generally a group of counties in which stations located in a metropolitan or central area achieve the largest audience share. Nielsen Station Index (NSI) reports information on viewing by time periods and programs and includes audience size and estimates of viewing over a range of demographic categories for each DMA. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

13. Nielsen's current C3 ratings track individual ads and specific time slots. FALSE Nielsen's current C3 ratings do not track individual ads or specific time slots, but rather offer an average viewership of all the national commercial minutes in a program. Many advertisers now pay for advertising time on network shows based on Nielsen measures of how many viewers watched commercials live and on DVR-recorded playback within three days of the airing of the show. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

14. Zero-TV households are homes that have stopped paying for cable and satellite TV service and do not even use an antenna to get free signals over the airways. TRUE Zero-TV households are homes that have stopped paying for cable and satellite TV service and do not even use an antenna to get free signals over the airways. These households may rely on the Internet to watch TV on their computers or mobile devices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

15. Radio has evolved into a primarily local advertising medium. TRUE Radio has evolved into a primarily local advertising medium. Network advertising generally accounts for less than 5 percent of radio's revenue. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-25 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

16. Radio boasts the broadest mass reach among all media. TRUE Radio boasts the broadest mass reach among all media, while simultaneously affording advertisers narrow targeting capabilities through numerous formats and networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

17. Radio commercials are expensive to produce. FALSE One of the main strengths of radio as an advertising medium is its low cost. Radio commercials are very inexpensive to produce. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

18. Radio often provides advertisers with a very receptive environment for their advertising messages. TRUE Radio often provides advertisers with a very receptive environment for their advertising messages. Studies have found that radio listeners have a unique relationship with radio as a medium. Listeners are more emotionally connected to radio stations to which they often listen. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

19. An advantage of radio as a medium for advertising is its low level of audience fragmentation; the percentage of the market tuned to any particular station is usually high. FALSE A drawback of radio as a medium for advertising is the high level of audience fragmentation due to the large number of stations. The percentage of the market tuned to any particular station is usually very small. The top-rated radio station in many major metropolitan areas with a number of AM and FM stations may attract less than 10 percent of the total listening audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-26 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

20. The size of the radio listening audience is roughly equivalent across dayparts, so advertising rates are the same throughout the day. FALSE The size of the radio listening audience varies widely across dayparts, and advertising rates follow accordingly. The highest rates (and largest radio audiences) occur during the early morning and late afternoon drive times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-05 Discuss how radio advertising time is purchased. Topic: Advertising Media

21. The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. TRUE The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. The average quarter-hour share (AQH SHR) is the percentage of the total listening audience tuned to each station. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

22. The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. TRUE The average quarter-hour rating (AQH RTG) expresses the estimated number of listeners as a percentage of the survey area population. The average quarter-hour share (AQH SHR) is the percentage of the total listening audience tuned to each station. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

23. All stations strictly adhere to rate cards and the rates published in SRDS. FALSE Many stations do not adhere strictly to rate cards and the rates published in SRDS. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

11-27 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

24. RADAR measurements are based on information collected throughout the year by means of diary interviews. TRUE RADAR measurements are based on information collected throughout the year by means of diary interviews from a probability sample of 200,000 respondents age 12 and older who live in telephone households. Respondents are instructed to record all radio listening as well as the day of the week, time of day, and location for a one-week period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

25. Nielsen-owned RADAR National Network Ratings uses measurements from a probability sample of 200,000 respondents age 12 and older who live in telephone households. TRUE RADAR measurements are based on information collected throughout the year by means of diary interviews from a probability sample of 200,000 respondents age 12 and older who live in telephone households. Respondents are instructed to record all radio listening as well as the day of the week, time of day, and location for a one-week period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

26. Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it A. has a low absolute cost. B. has the ability to reach large audiences in a relatively cost-efficient manner. C. has a high level of geographic selectivity. D. is very easy to develop creative television advertising. E. has the power to eliminate the problem of commercial advertising clutter. Marketers selling products and services that appeal to broad target audiences find that TV lets them reach mass markets, often very cost-efficiently. Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-28 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

27. TV is a popular medium among companies selling mass-consumption products because of A. its capacity to reach a precisely defined market segment. B. its capacity to eliminate the problem of commercial clutter. C. its ability to reinforce radio messages through adjacency techniques. D. its ability to reach large audiences in a cost-efficient manner. E. its ability to prevent the zipping and zapping effects. Because of its ability to reach large audiences in a cost-efficient manner, TV is a popular medium among companies selling mass-consumption products. Companies with widespread distribution and availability of their products and services use TV to reach the mass market and deliver their advertising messages at a very low cost per thousand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

28. Which of the following is true of television as an advertising medium? A. Television advertising is highly expensive and typically not cost efficient. B. Television has often been criticized for being a nonselective medium. C. Television as an advertising medium is typically not intrusive. D. Television advertising is considered to be highly inflexible. E. Television offers a greater range of geographic selectivity. Television has often been criticized for being a nonselective medium, since it is difficult to reach a precisely defined market segment through the use of TV advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

29. Which of the following factors makes it difficult for small-size advertisers to use television as part of their media mix? A. the failure of TV programs to reach their intended target markets B. the lack of knowledge among small ad agencies on how to produce TV commercials C. the high costs of producing and airing television commercials D. the limited creative options available through television E. the lack of captivity and attention that TV advertising provides The high cost of TV stems not only from the expense of buying airtime but also from the costs of producing a quality commercial. The high costs of producing and airing commercials often price small- and medium-size advertisers out of the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-29 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

30. An art gallery in a small town is hosting an "outsider artist" sale and wishes to invite people from the area to attend and buy the pieces made by artists based in the nearby locality. However, the television station also reaches viewers in northwest Georgia and northeast Alabama, resulting in a lack of A. clutter control. B. noise filters. C. audience measures. D. geographic selectivity. E. zipping capabilities. The above scenario is an example of the lack of geographic selectivity. Advertisers who are seeking a very specific, often small, target audience find the coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic selectivity can be a problem for local advertisers such as retailers, since a station bases its rates on the total market area it reaches. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

31. Which of the following statements about the length of television commercials is true? A. Commercials have become longer as the demand for broadcast time has dwindled. B. Commercial length is increasing and 60-second spots are typically considered the norm. C. Commercials became shorter because advertisers turned to shorter spots as a way of controlling their media costs. D. Commercial length is increasing as the cost of ad space decreases. E. The number of 60-second commercials has declined due to the networks' desire to sell more ads and restrict clutter. Several years ago, many advertising people predicted 15-second spots would become the dominant commercial unit. This may be due to several factors, including creative considerations, lower prices for network time, and a desire by the networks to restrict clutter. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

32. Which of the following statements about commercial length is true? A. B. C. D. E.

Fifteen-second spots are the most common commercial length. Increasing media costs have resulted in advertisers preferring shorter commercials. Most advertisers believe shorter commercials cannot deliver a message as effectively as longer commercials. Fifteen-second spots typically sell for about the same amount as 30-second spots. Most 15-second commercials are being converted to 5-second commercials that are known as split commercials.

With the average cost of a prime-time spot reaching nearly $100,000, many advertisers see shorter commercials as the only way to keep their media costs in line. A 15-second spot typically sells for half the price of a 30-second spot. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-30 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

33. An advertiser bought a 15-second spot during prime time, but realized that there was very low recall for the advertisement. This could be due to: A. the presence of commercial clutter. B. the lack of demographic selectivity of television. C. the low reach of television. D. the inherent deficiencies of television as a communication medium. E. message source alienation. The problems of fleeting messages and shorter commercials are compounded by the fact that the advertiser's message is only one of many spots and other nonprogramming material seen during a commercial break, so it may have trouble being noticed. One of advertisers' greatest concerns with TV advertising is the potential decline in effectiveness because of such clutter. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

34. Which of the following is an inherent disadvantage of television advertising? A. fleeting nature of messages B. lack of cost efficiency C. lack of flexibility D. limited captivity E. limited coverage TV commercials usually last only 30 seconds or less and leave nothing tangible for the viewer to examine or consider. Commercials have become shorter and shorter as the demand for a limited amount of broadcast time has intensified and advertisers try to get more impressions from their media budgets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

35. _____ refers to the practice of fast-forwarding through commercials on prerecorded programs. A. Zipping B. Zapping C. Multiplexing D. Narrowcasting E. Zooming Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-31 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

36. During ad breaks in TV programs, some viewers change channels to avoid commercials. This practice is known as A. multiplexing. B. zapping. C. narrowcasting. D. time shifting. E. zipping. Zapping refers to changing channels to avoid commercials. Nearly all televisions come with remote controls, which enable viewers to switch channels easily. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

37. Rick likes to watch two television programs that air at the same time on different channels. He simultaneously watches both programs by switching channels during commercial breaks. In this scenario, Rick is engaging in A. narrowcasting. B. zooming. C. multiplexing. D. zipping. E. zapping. The above scenario is an example of zapping. Zapping refers to changing channels to avoid commercials. Viewers can switch channels for a few news headlines, sports scores, or a music video and then switch back to the program. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

38. Donna gets impatient during long commercial breaks, so she often records shows and fast-forwards through the commercials when she watches them later. Donna engages in A. pulsing. B. zooming. C. encoding. D. zipping. E. zapping. The above scenario is an example of zipping. Zipping occurs when viewers fast-forward through commercials as they play back a previously recorded program. With the increased penetration of DVRs, more people are watching recorded shows and fast-forwarding through the commercials. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

11-32 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

39. Which of the following is true about zapping? A. Zapping occurs only with radio stations. B. Zapping occurs when viewers fast-forward through commercials as they play back a previously recorded program. C. Zapping has reduced due to the introduction of remote controls for television sets. D. Zapping has also been fueled by the 24-hour continuous-format programming on cable channels. E. Zapping is synonymous with zipping. Zapping refers to changing channels to avoid commercials. Nearly all televisions come with remote controls, which enable viewers to switch channels easily. Zapping has been fueled by the 24-hour continuous-format programming on cable channels such as CNN, MTV2, and ESPN. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

40. Advertisers can prevent consumers from zapping commercials by A. introducing "commercial-free" programming. B. producing commercials that are meaningful. C. utilizing 60-second commercials. D. introducing the concept of zipping. E. opting for local advertising. Some advertisers believe that producing different executions of a campaign theme is one way to maintain viewers' attention. Others think the ultimate way to zap-proof commercials is to produce creative advertising messages that will attract and hold viewers' attention. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations. Topic: Advertising Media

41. _____ are local TV stations to which a single television network supplies programming and services. A. Syndicates B. Adjacencies C. Full-run spots D. Affiliates E. Zappers A common way advertisers disseminate their messages is by purchasing airtime from a television network. A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-33 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

42. A network supplies programming and services to a series of local TV stations, or _____, which contract to preempt time during specified hours for programming provided by the networks and carry national advertising within their programming. A. satellite networks B. interconnects C. affiliates D. station reps E. regional networks A network assembles a series of affiliated local TV stations, or affiliates, to which it supplies programming and services. These affiliates, most of which are independently owned, contractually agree to preempt time during specified hours for programming provided by the networks and to carry the national advertising within the program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

43. Which of the following is an advantage of network advertising? A. It simplifies the purchase process. B. It enables advertisers to reach local and regional markets. C. It reduces the cost of prime-time advertising. D. It enables advertisers to target concentrated markets. E. It reduces the extent of advertising clutter. A major advantage of network advertising is the simplification of the purchase process. The advertiser has to deal with only one party or media representative to air a commercial nationwide. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

44. Which of the following statements about network advertising is true? A. B. C. D. E.

Using network advertising significantly complicates the purchase of television media time for national advertisers. Network advertising is cheaper and more selective than local advertising. The high cost of network time can be a drawback to advertisers with limited media budgets. National advertisers have to negotiate with both the network and local affiliates when they want to make a media buy. Network advertising is less effective than spot advertising for mass consumption products.

Network advertising truly represents a mass medium, as the advertiser can broadcast its message simultaneously throughout the country. While network advertising is an effective way to reach large audiences, the cost of advertising on prime-time shows is much higher because of the number of viewers they reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-34 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

45. The buying period that takes place before the TV season begins and where networks sell much of their commercial time is referred to as the A. scatter market. B. regional market. C. off-network market. D. spot market. E. up-front market. Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

46. In order to obtain advertising time on Master Quiz, a popular TV show, Bedazzle Cosmetics bought a commercial spot before the new season of Master Quiz began. With respect to the given scenario, Bedazzle Cosmetics bought the commercial space during the _____ market. A. B. C. D. E.

up-front continual scatter zipping spot

In the above scenario, Bedazzle Cosmetics bought the commercial space during the up-front market. Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

47. John Inc., a manufacturing firm, failed to purchase airtime before the season premiere of a popular national television show. However, the company was able to purchase 15-second spots at a higher than average price. In this scenario, John Inc. is likely to have purchased airtime in the A. up-front market. B. scatter market. C. spot market. D. local market. E. rep market. In the above scenario, John Inc. bought the commercial space during the scatter market. TV time can be purchased during the scatter market that runs through the TV season. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-35 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

48. The buying period for television advertising time that runs throughout the television season is known as the _____ market. A. up-front B. spot C. scatter D. interconnected E. local Traditionally, most prime-time commercial spots, particularly on the popular shows, are sold during the up-front market, a buying period that occurs before the TV season begins. TV time is also purchased during the scatter market that runs through the TV season. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

49. _____ refers to commercials on local television stations for which the advertisers negotiate directly with the individual stations. A. Network advertising B. Spot advertising C. Regional advertising D. Syndicated advertising E. Rep advertising Spot advertising refers to commercials shown on local TV stations, with time negotiated and purchased directly from the individual stations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

50. Which of the following is true of national spot advertising? A. It deals only with airtime sold to banks and commercial institutions. B. It is a type of nonnetwork advertising. C. It deals only with airtime sold to auto dealers. D. It is highly inflexible. E. It is synonymous with local advertising. All nonnetwork advertising done by a national advertiser is known as national spot advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-36 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

51. _____ are individuals who act as salespersons for a number of local stations and represent them in their dealings with national advertisers. A. Station managers B. Affiliates C. Negotiators D. Station reps E. Sponsors Station reps are individuals who act as sales representatives for a number of local stations in dealings with national advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

52. Which of the following statements describes a problem encountered by national advertisers when using spot advertising? A. Spot advertising prevents national advertisers from adjusting to local market conditions. B. Spot advertising cannot be used as part of the advertiser's cooperative advertising programs. C. Spot advertising is typically more expensive than nonnetwork advertising. D. Spot advertising is usually characterized by significant variations in pricing and discount policies. E. Spot advertising provides advertisers with limited coverage in geographic markets in which they do business. A major problem for national advertisers is that spot advertising can be more difficult to acquire, since the time must be purchased from a number of local stations. Moreover, there are more variations in the pricing policies and discount structure of individual stations than of the networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

53. Which of the following statements about spot advertising is true? A. It is subject to less commercial clutter than network advertising. B. It is used only by national advertisers. C. It is generally more expensive than network advertising. D. It is used only by local advertisers. E. It offers the national advertiser flexibility in adjusting to local market conditions. Spot advertising offers the national advertiser flexibility in adjusting to local market conditions. The advertiser can concentrate commercials in areas where market potential is greatest or where additional support is needed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

11-37 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

54. Spot advertising is A. mostly confined to station breaks between programs on network-originated shows. B. used only by local advertisers. C. subject to less clutter than network advertising. D. easier to buy than advertising on national networks. E. airtime sold to local firms such as retailers, restaurants, banks, and auto dealers. While spot advertising is mostly confined to station breaks between programs on network-originated shows, local stations sell time on their own programs, which consist of news, movies, syndicated shows, or locally originated programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

55. _____ are shows that are sold or distributed on a station-by-station, market-by-market basis. A. Interconnects B. Adjacencies C. Affiliate programs D. Participation programs E. Syndicated programs Syndicated programs are shows that are sold or distributed on a station-by-station, market-by-market basis. A syndicator seeks to sell its program to one station in every market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

56. _____ are reruns of network shows that are bought by individual stations to broadcast. A. Off-network syndications B. Sponsorships C. First-run syndications D. Network spots E. Local syndications Off-network syndication refers to reruns of network shows that are bought by individual stations. Off-network syndication shows are very important to local stations because they provide quality programming with an established audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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57. Prison, a popular television show, is purchased by three individual stations and re-run in different parts of the country. This system of purchasing and airing network shows is known as A. off-network syndication. B. shortwave syndication. C. first-run syndication. D. network syndication. E. beam syndication. The above scenario is an example of off-network syndication. Off-network syndication refers to reruns of network shows that are bought by individual stations. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

58. Which of the following statements about off-network syndication is true? A. Off-network syndication shows are an important source of quality programming for local stations. B. Off-network syndication shows are an insignificant source of revenue to the studios that produce them. C. Off-network syndication shows are usually low-budget, low-quality programs. D. The FCC prime-time access rule forbids independent stations from carrying off-network syndicated shows between 7:00 and 8:00 P.M. E. Off-network syndication refers to shows produced specifically for the syndication market. Off-network syndication shows are very important to local stations because they provide quality programming with an established audience. The syndication market is also very important to the studios that produce programs and sell them to the networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

59. Shows such as Judge Jenny and Tonight's Entertainment are produced specifically for the syndication market. This is referred to as A. off-network syndication. B. first-run syndication. C. special-purpose syndication. D. spot syndication. E. affiliate syndication. First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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60. _____ refers to shows produced specifically for the syndication market. A. Off-network syndication B. Up-front syndication C. Special-purpose syndication D. First-run syndication E. Rerun syndication First-run syndication refers to shows produced specifically for the syndication market. The first-run syndication market is made up of a variety of shows, including some that did not make it as network shows. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

61. The arrangement under which syndicated programs are offered free or at a reduced rate to local stations but with some advertising time presold to national advertisers is known as A. off-network syndication. B. first-run syndication. C. barter syndication. D. sponsorship. E. participation. Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show, rather than (or in addition to) cash. The commercial time from all stations carrying the show is packaged into national units and sold to national advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

62. Barter syndication is also called A. advertiser-supported syndication. B. station-sponsored syndication. C. up-market syndication. D. first-run programming. E. presold programming. Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show, rather than (or in addition to) cash. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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63. Which of the following statements is true about syndication? A. Syndicated programs are of limited value to advertisers since they reach a limited number of viewers. B. First-run syndication is the only form of syndicated programming. C. Syndication has become a major business that generates revenue comparable to the major networks. D. National advertisers rarely use syndicated programs. E. Syndicated programs are attractive to national advertisers since they contain a lower level of advertising clutter. Syndication now accounts for more than a third of the national broadcast audience and has become a very big business, generating ad revenue comparable to any of the big-four networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

64. Under a _____ arrangement, national advertisers can participate in the syndication market with the convenience of a network-type media buy, while local stations get free programming as well as some advertising time to sell to local or spot advertisers. A. sponsorship B. participation C. barter syndication D. local syndication E. spot syndication Advertiser-supported or barter syndication is the practice of selling shows to stations in return for a portion of the commercial time in the show. Barter syndication allows national advertisers to participate in the syndication market with the convenience of a network-type media buy, while local stations get free programming and can sell the remainder of the time to local or spot advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

65. A disadvantage associated with the use of syndicated shows for advertising is A. that syndicates do not supply as much research information as the networks do. B. their negative effect on zipping and zapping. C. their popularity is limited to gen Xers. D. that syndicates are not popular in rural areas and among the older generation. E. their lack of popularity when compared to network shows in certain dayparts, such as daytime, early prime time, and late fringe. Syndication has certain disadvantages. The audience for some syndicated shows is often older and more rural, and syndicators do not supply as much research information as the networks do. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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66. Which of the following is a disadvantage of syndication? A. Syndicated shows are often aired during an undesirable time period. B. Syndicated shows offer no advantages to national advertisers. C. Syndicated shows are often more expensive than network shows. D. Syndicated shows reach a limited audience and generate limited ad revenue. E. Syndicated shows do not benefit local television stations. Syndication has certain disadvantages. Syndication creates more problems for media buyers, since a syndicated show may not be seen in a particular market or may be aired during an undesirable time period. Thus, media buyers have to look at each market and check airtimes and other factors to put together a syndication schedule. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

67. Advertisers have little control over the placement of their commercials within a program when they advertise using a(n) _____ arrangement. A. sponsorship B. participation C. daypart D. exclusivity E. run-of-station The disadvantage of participations is that the advertiser has little control over the placement of ads, and there may be problems with availability. Preference is given to advertisers willing to commit to numerous spots, and the firm trying to buy single spots in more than one program may find that time is unavailable in certain shows, especially during prime time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

68. In the early days of television, the production and content of most television programs was the responsibility of A. the networks. B. the local affiliate. C. corporations that sponsored the shows. D. independent production companies. E. the syndicates. In the early days of TV, most programs were produced and sponsored by corporations and were identified by their name, for example, Texaco Star Theater and The Colgate Comedy Hour. Today most shows are produced by either the networks or independent production companies that sell them to a network. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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69. With _____, advertisers assume responsibility for the production and usually the content of the program as well as the advertising that appears within it. A. participations B. sponsorships C. adjacencies D. syndications E. countertrades Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

70. Companies prefer sponsorship arrangements for buying advertising time because: A. it allows companies to capitalize on the image of a high-quality program. B. it gives the advertiser less control over the placement and the length of its commercials. C. it is relatively inexpensive. D. sponsoring a show enables the advertiser to run more commercials per hour since time regulations do not apply. E. it broadens advertising reach, saves money, and reaches a more aggregated market when compared to buying national spots. A company might choose to sponsor a program for several reasons. Sponsorship allows the firm to capitalize on the prestige of a high-quality program, enhancing the image of the company and its products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

71. A consortium of nine major advertisers recently joined Television Production Partners, a new venture that develops movies, specials, and limited-run series for television. The members will choose the programs they want to be involved with, take responsibility for production, and take a portion of the commercial spots during these shows. The nine advertisers are using a(n) _____ type of advertising arrangement. A. sponsorship B. participation C. adjacency D. off-network syndication E. Countertrade Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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72. Which of the following is defined as the television time period available to local stations right before or after network programming? A. adjacencies B. participations C. sponsorships D. affiliates E. sweeps Spot announcements are bought from the local stations and generally appear during time periods adjacent to network programs (hence the term adjacencies), rather than within them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

73. _____ are the various time periods or segments into which a broadcast day is divided. A. Adjacencies B. Pulse days C. Spots D. Dayparts E. Spot beams TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

74. Morning, daytime, prime time, and late fringe are all examples of A. television dayparts. B. types of spot beaming. C. types of network syndication. D. run-of-station spots. E. up-front markets. Morning, daytime, prime time, and late fringe are all examples of television dayparts. Dayparts are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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75. Typically, most network television advertising time is sold as A. sponsorships. B. participations. C. adjacencies. D. spot announcements. E. affiliated offerings. Nearly 90 percent of network advertising time is sold as participations, with several advertisers buying commercial time or spots on a particular program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

76. Which of the following is true for participations? A. In participations, advertisers have financial responsibility for production of the program. B. Participations involve long-term commitment on the part of advertisers. C. Participations offer advertisers a lower reach than sponsorships. D. In participations, advertisers have little control over the placement of ads. E. Participations are not suitable for small advertisers with limited budgets. The advertiser has no long-term commitment to a program, and expenditures can be adjusted to buy whatever number of participation spots fits within the budget. This is particularly important to small advertisers with a limited budget. The disadvantage of participations is that the advertiser has little control over the placement of ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

77. Which television daypart has the highest rates and is dominated by national advertisers? A. daytime B. early fringe C. prime time D. late news E. late fringe Prime time draws the largest audiences, with 8:30 to 9 P.M. being the most watched half-hour time period and Sunday the most popular night for television. Since firms that advertise during prime time must pay premium rates, this daypart is dominated by the large national advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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78. The television daypart that attracts the largest viewing audience is A. daytime. B. early fringe. C. early news. D. overnight. E. prime time. Prime time draws the largest audiences, with 8:30 to 9 P.M. being the most watched half-hour time period and Sunday the most popular night for television. Since firms that advertise during prime time must pay premium rates, this daypart is dominated by the large national advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

79. Most advertisers prefer buying their network advertising time as participation over sponsorships because A. they want long-term commitment to a program. B. they want greater financial responsibility for production of a program. C. they want greater flexibility than sole sponsorship permits. D. they want a greater concentrate for their advertising budget. E. they want greater control over the placement of ads. Most advertisers either cannot afford the costs of sponsorship or want greater flexibility than sole sponsorship permits. Nearly 90 percent of network advertising time is sold as participations, with several advertisers buying commercial time or spots on a particular program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

80. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 3:00 P.M. and 5:00 P.M. from Monday through Friday is called A. prime access. B. early fringe. C. prime time. D. early news. E. late news. TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 3:00 P.M. and 5:00 P.M. is called early fringe. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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81. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 5:00 P.M. and 7:00 P.M. from Monday through Saturday is called A. early fringe. B. late fringe. C. early news. D. prime access. E. prime time. TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 5:00 P.M. and 7:00 P.M. from Monday through Saturday is called early news. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

82. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 7:00 P.M. and 8:00 P.M. from Monday through Saturday is called A. overnight. B. late fringe. C. early news. D. prime access. E. early fringe. TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 7:00 P.M. and 8:00 P.M. from Monday through Saturday is called prime access. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

83. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:30 P.M. and 2:00 A.M. from Monday through Friday is called A. late fringe. B. early fringe. C. late news. D. early news. E. prime access. TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 11:30 P.M. and 2:00 A.M. from Monday through Friday is called late fringe. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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84. With respect to common television dayparts for Eastern and Pacific time zones, the slot between 11:00 P.M. and 11:30 P.M. from Sunday through Saturday is called A. late fringe. B. early fringe. C. prime access. D. prime time. E. late news. TV time periods are divided into dayparts, which are specific segments of a broadcast day. The time segments that make up the programming day vary from station to station. However, with respect to the typical classification of dayparts for a weekday the slot between 11:00 P.M. and 11:30 P.M. from Sunday through Saturday is called late news. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

85. The major reason for the decline in the viewing audiences of the four major networks is A. the widespread use of videocassette recorders. B. the growth of cable television. C. poor programming. D. the exponential growth of clutter. E. changes in cultural values, which are reducing television viewing time. Much of the growth in cable audiences has come at the expense of the four major networks. Cable channels now have more of the prime-time viewing audience than the major networks. Many cable stations have become very popular among consumers, leading advertisers to reevaluate their media plans and the prices they are willing to pay for network and spot commercials on network affiliate stations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

86. Which of the following is a similarity between advertising on broadcast TV and cable advertising? A. Both offer fewer segmentation opportunities. B. Both create longer buyer lead times for preparing and placing ads. C. Both offer greater reach and lower frequency opportunities with individual stations. D. Both do not enable advertisers to reach a large number of viewers with a single media buy. E. Both can be purchased on a national, regional, or local (spot) level. Like broadcast TV, cable time can be purchased on a national, regional, or local (spot) level. Many large marketers advertise on cable networks to reach large numbers of viewers across the country with a single media buy. Regional advertising on cable is available primarily through sports and news channels that cover a certain geographic area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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87. An arrangement where a group of cable systems in a geographic area are joined together for advertising purposes is known as A. syndication. B. an interconnect. C. an adjacency. D. multiplexing. E. stunting. The growth in spot cable advertising is being facilitated by the use of interconnects, where a number of cable systems and networks in a geographic area are joined for advertising purposes. These interconnects increase the size of the audience an advertiser can reach with a spot cable buy. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

88. The growth in spot cable advertising has been facilitated by the use of A. LANs. B. hyperstitials. C. interconnects. D. interstitials. E. clutter minimizers. The growth in spot cable advertising is also being facilitated by the use of interconnects, where a number of cable systems and networks in a geographic area are joined for advertising purposes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

89. Which of the following statements concerning advertising on cable television is true? A. Cable time can only be purchased on a national level. B. Cable time can be purchased on a national, regional, or local level. C. Spot cable advertising revenues have decreased dramatically over the past five years. D. Local cable systems provide advertisers with extensive research information on demographics, lifestyles, and viewership patterns. E. Cable networks discourage the purpose of marketers to reach a large number of viewers across the country with a single media buy. Like broadcast TV, cable time can be purchased on a national, regional, or local (spot) level. Many large marketers advertise on cable networks to reach large numbers of viewers across the country with a single media buy. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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90. Advertising on television to specialized audiences that has been made possible by cable advertising is known as _____ A. zipping. B. zapping. C. narrowcasting. D. multiplexing. E. gladvertising. Cable TV has experienced tremendous growth as an advertising medium because it has some important advantages. Many advertisers have turned to cable because of the opportunities it offers for narrowcasting, or reaching very specialized markets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

91. For advertisers, the _____ is one disadvantage of cable television as compared to network television. A. lack of penetration B. lack of flexibility C. lack of selectivity D. lack of cost-effectiveness E. limitations on the length of commercials Cable still lacks total penetration, especially in some major markets. Thus, local advertisers in these markets would not be able to reach a significant number of households by advertising on local cable networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

92. Cable networks that can transmit several channels from one network engage in A. multiplexing. B. interconnecting. C. single sourcing. D. subvertising. E. gladvertising. Multiplexing is the process of transmitting multiple channels from one network. Multiplexing will be responsible for some of the growth in cable channels. The future of cable as an advertising medium will ultimately depend on the size and quality of the audiences cable stations can reach with their programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television. Topic: Advertising Media

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93. The price for commercial time charged by a television network is largely a function of a program's A. average frequency. B. commercial clutter competence. C. audience size and composition. D. zipping and zapping effect. E. comprehensive layout. One of the most important considerations in TV advertising is the size and composition of the viewing audience. Audience size and composition are also important to the network or station, since they determine the amount it can charge for commercial time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

94. The sole source of network television and local audience information in the United States is A. Arbitron Co. B. Nielson Media Research. C. Rockbridge Associates, Inc. D. Roy Morgan Research. E. Burke Research. The size and composition of television audiences are measured by ratings services. The sole source of network TV and local audience information is Nielsen Media Research. For many years local audience information was also available from the Arbitron Co., but Arbitron exited the local TV ratings business at the end of 1993 due to steep financial losses. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

95. Assume the television show Master Quiz had an average national program rating of 18 during the 2017 season. This means that A. an average of 18 million households watched Master Quiz. B. 18 percent of the households watching television were tuned to Master Quiz. C. an average of 18 percent of the television households in the country were tuned to Master Quiz. D. an average of 18 million households watched Master Quiz for at least five minutes every time the program was aired. E. 18 percent of the households in the United States watched the entire program. Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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96. If 60 million households watch Sports Story, a half-hour sports news program, and there are 300 million households in the United States, the national rating for Sports Story is A. 30 percent. B. 20 percent. C. 60 percent. D. 25 percent. E. 15 percent. In the above scenario, the national rating for Sports Story would be 20 percent. The program rating is calculated by dividing the number of households tuned to a particular show by the total number of households in the area: 60 million households are tuned to Sports Story and the total number of households in the United States is 300 million. Therefore, the national rating = 60 million/300 million = 20 percent. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

97. Which of the following is true of program rating? A. It is the percentage of homes in a given area where TV is being watched during a specific time period. B. It is the percentage of TV households in an area that are tuned to a specific program during a specific time period. C. It is the total number of households in the area that subscribe to cable television as opposed to network television. D. It represents a total percentage of the population that is tuned to a particular reality television program. E. It represents 1 percent of all the television households in a particular area tuned to a specific program. Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

98. The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a one-hour sports news program. The program rating for Sports Stories in the Boston DMA is _____ A. 35. B. 15. C. 10. D. 20. E. 30. Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. In this case program rating = 300,000/3 million = 10. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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99. The share of a television audience indicates the A. percentage of the defined target market that is exposed to a message at least once during the relevant time period. B. percentage of households using TV in a specified time period that are tuned to a specific program. C. average number of exposures to a message received by each member of the target market. D. percentage of all households using television during a specific time period. E. number of people who responded to a televised direct-response ad. The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. This figure considers variations in the number of sets in use and the total size of the potential audience, since it is based only on those households that have their sets turned on. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

100. There are approximately 900,000 television households in the San Diego County market. During a Sunday afternoon in October, 50 percent of the households had their television sets turned on and 200,000 were watching a football game. The approximate share of audience for the game would be A. 22. B. 44. C. 50. D. 200. E. 100. The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. Here, share = 200,000/50 percent of 900,000 = 44.44. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

101. Which of the following statements is true about program ratings and share of audience measures? A. Program ratings are always higher than share of audience. B. Program rating is synonymous with share of audience. C. Share of audience is always higher than the program rating unless all of the households in a market have their set in use. D. Unlike share of audience measures, program ratings consider variations in the number of sets in use since they are based only on those households that have their sets in use. E. Program ratings are always equal to share of audience if less than 40 percent of the households are tuned in. Audience share is always higher than the program rating unless all the households have their sets turned on (in which case they would be equal). Share figures are important since they reveal how well a program does with the available viewing audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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102. _____ is defined as 1 percent of all the television households in a particular area tuned to a specific program. A. B. C. D. E.

Category development index A ratings point A cross-platform rating Share of audience Brand development index

A ratings point represents 1 percent of all the television households in a particular area tuned to a specific program. On a national level, 1 ratings point represents 1,147,000 households. Ratings points are very important to the networks as well as to individual stations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

103. The designated market area (DMA) of Boston has approximately 3 million television households. Audience research shows that 45 percent of these households had their TV sets turned on during a particular Saturday evening and 300,000 households were watching Sports Stories, a sports news program. The share of audience for Sports Stories in the Boston DMA is _____ A. 32. B. 35.5. C. 26. D. 22.2. E. 20.2. The share of audience is the percentage of households using TV in a specified time period that are tuned to a specific program. Here, share = 300,000/45 percent of 3 million = 22.2. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

104. The designated market area (DMA) of Manhattan has approximately 2 million television households. Audience research shows that 60 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching a baseball playoff game. The program rating for the playoff game in the Manhattan DMA is _____ A. 25. B. 15. C. 30. D. 35. E. 20. Program rating is the percentage of TV households in an area that are tuned to a specific program during a specific time period. In this case program rating = 300,000/2 million = 15. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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105. Which of the following is true of total audience? A. It is the total number of homes viewing any five-minute part of a telecast. B. It is the percentage of households using TV in a specified time period that are tuned to a specific program. C. It represents 1 percent of all the television households in a particular area tuned to a specific program. D. It is an electronic measuring device that incorporates the technology of the old-style audimeter. E. It is the percentage of homes in a given area where TV is being watched during a specific time period. Ratings services also provide an audience statistic known as total audience, the total number of homes viewing any five-minute part of a telecast. This number can be broken down to provide audience composition figures that are based on the distribution of the audience into demographic categories. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

106. The _____ in the United States provides local audience measurement for television. A. Nielsen Company B. RADAR C. Arbitron D. Roy Morgan Research E. Burke Research Nielsen Media Research has a national TV ratings service, which provides daily and weekly estimates of the size and composition of the national viewing audiences for programs aired on the broadcast and major cable networks. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

107. Today, the Nielsen Television Index provides weekly estimates of networks and major cable viewing audiences on a national level using an electronic device that measures what is being watched and by whom. This device is called a(n) A. audimeter. B. people meter. C. electronic diary. D. streaming server. E. chronometer. The people meter is an electronic measuring device that incorporates the technology of the old-style audimeter in a system that records not only what is being watched but also by whom in 10,000 households. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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108. The Nielsen Station Index (NSI) refers to local television markets as A. areas of dominant influence. B. metropolitan rating areas (MRAs). C. designated market areas (DMAs). D. local markets. E. geodemographic areas. Nielsen Media Research's local market measurement service is called Nielsen Station Index (NSI), which measures viewing audiences in 210 local markets known as designated market areas (DMAs). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

109. The rating periods during which Nielsen measures viewing audiences in every television market are known as A. interconnects. B. designated market periods. C. adjacencies. D. audience shares. E. sweeps. Nielsen measures viewing audiences in every local television market at least four times a year during rating periods known as sweeps. Sweeps rating periods are held in November, February, May, and July. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

110. Commercial ratings data, known as "C3," includes measures of the A. number of advertisers who buy airtime during the up-front market. B. average viewership of individual ads. C. average viewership of all the national commercial minutes in a program D. number of people who are viewing a program on a DVR. E. viewership in the 56 largest local markets. In 2007 Nielsen began providing commercial ratings data, known as “C3,” which includes measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR. The new ratings did not track individual ads or specific time slots, but rather offered an average viewership of all the national commercial minutes in a program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

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111. Which of the following companies provides commercial ratings data (also known as "C3")? A. Rockbridge Associates, Inc. B. Burke Research C. Roy Morgan Research D. Nielson Media Research E. Arbitron Co. In 2007 Nielsen began providing commercial ratings data, known as “C3,” which includes measures of the average viewership of the commercials both live and up to three days after the ads are played back on a DVR. By 2014 Nielsen was also providing "C7" ratings that include viewership of programs and commercials as many as seven days after live airing of a TV show. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

112. In 2016, Nielsen began rolling out its A. commercial ratings data. B. linear TV ratings. C. designated market areas (DMAs). D. people meters. E. total audience measurement system In 2016 Nielsen began rolling out its total audience measurement system, which is a single-sourced platform that accounts for all viewing across linear TV, DVRs, video-on-demand, connected TV devices including streaming video devices and game consoles, enabled smart TVs, tablets, smartphones, and personal computers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement. Topic: Advertising Media

113. Which of the following statements about radio as an advertising medium is true? A. Almost 50 percent of all radio revenue comes from network advertising. B. Radio has evolved into a primarily local advertising medium. C. Radio advertising revenue has been steadily declining for the last 20 years. D. One of the main weaknesses of radio as an advertising medium is the high production costs. E. The high costs of radio advertising result in lower reach and frequency. Dominated by network programming and national advertisers before the growth of TV, radio has evolved into a primarily local advertising medium. Network advertising generally accounts for less than 5 percent of radio's revenue. Radio has also become a medium characterized by highly specialized programming appealing to very narrow segments of the population. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

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114. The relatively low cost of radio advertising time makes it an effective medium through which advertisers can build more _____ into their media schedules. A. absolute cost B. reach and frequency C. inherent drama D. audience selectivity E. spectaculars The low cost of radio means advertisers can build more reach and frequency into their media schedule within a certain budget. They can use different stations to broaden the reach of their messages and multiple spots to ensure adequate frequency. Advertisers can use radio as a fast and relatively inexpensive way to get their names known. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

115. Radio offers high levels of audience selectivity because of A. the wide variety of program formats offered by different stations. B. the broadcast overlap of local radio stations. C. the transmission capability of the various stations. D. its low cost. E. image transfer capabilities. A major advantage of radio is the high degree of audience selectivity available through the various program formats and geographic coverage of the numerous stations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

116. The audio portion of a television commercial is often implanted into the radio spot for the same product. This is known as A. positioning. B. image transfer. C. cross-beaming. D. zapping. E. zipping. Image transfer is a technique where the images of a TV commercial are implanted into a radio spot. The idea is that when consumers hear the radio message, they will make the connection to the TV commercial, reinforcing its video images. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

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117. Advertisers use the image transfer process in radio advertising in order to A. emphasize the zapping effect. B. reinforce its television messages. C. transfer the image created by a radio commercial to the point of purchase. D. transfer the image of celebrities to the advertised brand. E. increase commercial clutter. Radio may reinforce television messages through a technique called image transfer, where the images of a TV commercial are implanted into a radio spot. The idea is that when consumers hear the radio message, they will make the connection to the TV commercial, reinforcing its video images. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

118. Which of the following statements describes a limitation associated with the use of radio as an advertising medium? A. The production of radio advertising is expensive. B. The absence of clutter means radio advertising tends to be very uncreative. C. Buying space for radio advertising is more expensive than buying advertising space on television. D. The high number of stations in most markets means there is a great deal of audience fragmentation. E. Radio is unable to provide marketers with a variety of integrated marketing opportunities. One problem with radio is the high level of audience fragmentation due to the large number of stations. The percentage of the market tuned to any particular station is usually very small. The top-rated radio station in many major metropolitan areas with a number of AM and FM stations may attract less than 10 percent of the total listening audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

119. A major threat to conventional broadcast radio is A. the emergence of digital media. B. low-powered local radio broadcasting. C. the ability of TV ads to increase commercial clutter. D. the fact that consumers prefer to pay a subscription fee for their radio. E. the ability to zip and zap radio commercials. A major source of competition for conventional broadcast radio is the growth of digital media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations. Topic: Advertising Media

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120. Which daypart has the largest radio audience, and the highest rates? A. morning drive time (6:00–10:00 A.M.) B. midday (10:00 A.M.–3:00 P.M.) C. nighttime (7:00 P.M.–12:00 A.M.) D. all night (12:00–6:00 A.M.) E. lunchtime (12:00–2:00 P.M.) The morning and afternoon/evening drive times have the largest radio listening audiences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-05 Discuss how radio advertising time is purchased. Topic: Advertising Media

121. Nielsen Audio provides ratings reports to clients in the ___________________, to which clients subscribe. A. Portable People Meter B. Nielsen Net Ratings Report C. Radio Market Report D. HUT Report E. Cross-Platform Report Clients subscribe to the Radio Market Report. It provides estimates of people listening, ratings, and share. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 11-05 Discuss how radio advertising time is purchased. Topic: Advertising Media

122. Spot radio accounts for _______________ of radio time sold. A. 5 percent B. 10 percent C. 15 percent D. 20 percent E. 25 percent Spot radio accounts for about 20 percent of radio time sold. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-05 Discuss how radio advertising time is purchased. Topic: Advertising Media

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123. _____ is defined as the estimated total number of different people who listen to a radio station for a minimum of five minutes in a quarter-hour period within a reported daypart. A. A shill B. An interconnect C. Station rep D. Cume E. An affiliate Cume stands for "cumulative audience," the estimated total number of different people who listened to a station for at least five minutes in a quarter-hour period within a reported daypart. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

124. In accordance to the basic estimates in the Nielsen Audio report, person estimates refer to A. the estimated number of people listening. B. the estimated cost of a spot schedule within a particular time period. C. the estimated number of people involved in preparing the Nielsen Audio report. D. information on number of network audiences only for commercials within a program. E. the percentage of the total estimated listening audience. The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

125. With respect to the basic estimates in the Nielsen Audio report, rating refers to A. the percentage of total estimated listening audience. B. the percentage of listeners in the survey area population. C. the percentage people involved in preparing the Arbitron ratings report. D. the percentage of listeners who watch TV commercials for more than five minutes. E. the percentage of listeners who watch TV commercials for a minimum of five minutes. The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

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126. With respect to the basic estimates in the Nielsen Audio report, share refers to A. the percentage people involved in preparing the Arbitron ratings report. B. the estimated number of people who watch television commercials. C. the estimated number of radio stations that run a particular commercial. D. the percentage of listeners in the survey area population. E. the percentage of the total estimated listening audience. The three basic estimates in the Nielsen Audio report are: (1) person estimates—the estimated number of people listening; (2) rating—the percentage of listeners in the survey area population; and (3) share—the percentage of the total estimated listening audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

127. Nielsen's RADAR A. cannot be used to estimate the audience for commercials on various programs. B. is sponsored by nine of the largest advertisers in the nation. C. primarily measures TV viewership for local TV stations. D. is based on information collected by means of diary interviews. E. collects information and issues a new report every month. RADAR measurements are based on information collected by means of diary interviews. Respondents are instructed to record all radio listening for a one-week period. The audience estimates are time-period measurements for the various dayparts. RADAR also provides estimates of network audiences for all commercials and commercials within various programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

128. ______________ provides estimates of network audiences for all commercials and commercials within various radio programs. A. RADAR B. HUT C. Nielsen Television Index D. People Meter E. DMA RADAR provides estimates of network audiences for all commercials and commercials within various programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement. Topic: Advertising Media

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Chapter 11 Test Bank 01/11/2017 16:37:31 Summary Category-# of Questions AACSB: Analytical Thinking-115 AACSB: Reflective Thinking-13 Accessibility: Keyboard Navigation-128 Blooms: Apply-14 Blooms: Remember-68 Blooms: Understand-46 Difficulty: 1 Easy-67 Difficulty: 2 Medium-48 Difficulty: 3 Hard-13 Learning Objective: 11-01 Describe the role of television as an advertising medium and its advantages and limitations.-20 Learning Objective: 11-02 Discuss how television advertising time is purchased for network and local television as well as cable television.-56 Learning Objective: 11-03 Discuss how television viewing audiences are measured and developments in audience measurement.-25 Learning Objective: 11-04 Discuss the role of radio as an advertising medium and its advantages and limitations.-12 Learning Objective: 11-05 Discuss how radio advertising time is purchased.-4 Learning Objective: 11-06 Discuss how radio audiences are measured and developments in audience measurement.-11 Topic: Advertising Media-128

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Chapter 12 Test Bank Student: ___________________________________________________________________________ 1. Newspapers and magazines are referred to as low-involvement media. True False

2. Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. True False

3. Magazines are the most selective of all media except direct mail. True False

4. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area of interest. True False

5. Ads can use longer and more detailed copy in magazines owing to the factor of permanence that magazines offer. True False

6. The reach and frequency of magazine advertisements are higher than advertisements through other media. True False

7. Circulation fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales. True False

8. Media buyers are not too concerned about the auditing of circulation figures; they treat audited and unaudited publications equally. True False

9. The front cover of a magazine is considered editorial space and off limits to advertisers. True False

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10. Until recently, magazines focused on increasing their circulation under the assumption that higher circulation meant higher advertising rates. True False

11. One drawback of online magazines is that they do not provide advertisers with the opportunity for sponsorships. True False

12. Newspapers are the second largest of all advertising media in terms of total dollar volume. True False

13. Most weekly newspapers originate in metropolises and other large cities. True False

14. Many papers include magazine-type supplements, primarily in their Sunday editions. True False

15. Classified advertisements primarily include newspaper display advertising done by marketers of branded products or services that are sold on a national level. True False

16. Newspapers do not offer advertisers any flexibility. True False

17. Newspaper ads are unlikely to have any impact beyond the day of publication, and repeat exposure is very unlikely as well. True False

18. The retail trading zone is a market area composed of the city where the paper is published and contiguous areas similar in character to the city. True False

19. The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. True False

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20. Combination discounts are not available when the advertiser buys space in multiple newspapers, even if they are affiliated in a syndicate. True False

21. The newspaper industry's initial response to digital disruption by online alternatives was to implement digital pay plans or paywalls. True False

22. Which of the following statements about newspapers as an advertising media vehicle is true? A. Newspapers are the primary advertising medium in terms of ad revenue but not in terms of number of advertisers. B. Newspapers are primarily a local advertising medium for retail businesses but are also used by large national advertisers. C. A primary feature of newspapers is that they can survive without any advertising revenue. D. Consumers view newspapers as their primary source of entertainment. E. The popularity of newspapers as an important media vehicle to advertisers has drastically declined because of the competition from the broadcast media.

23. One of the primary advertising media in terms of both ad revenue and number of advertisers is A. broadcast television. B. radio. C. magazines. D. newspapers. E. direct mail.

24. Which of the following statements about magazines as an advertising medium is true? A. Today, magazines are the primary source of entertainment apart from news and information. B. Magazines are a highly specialized medium that reaches specific target audiences. C. There has been a decline in magazine readership because magazines offer general information. D. Magazines are not dependent on advertising revenues since they can charge higher prices for their publications. E. Magazines are the primary advertising medium in terms of advertising revenues.

25. _____ are often referred to as high-involvement media because they generally require some attention and effort on the part of the consumer to process the information that they provide. A. Newspapers and magazines B. Newspapers and television C. Magazines and radio D. Radio and television E. Radio and newspapers

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26. Newspapers and magazines are often referred to as high-involvement media because A. they have a high impact on the overall integrated marketing communication program. B. they attract high advertising revenues to support their operations. C. they are the primary sources of entertainment apart from news and information. D. they require consumers to expend some effort to process the information they provide. E. it is easy to monetize online editions of newspapers and magazines.

27. Which of the following statements about the role of magazines and newspapers as advertising media vehicles is true? A. Newspapers and magazines share similar characteristics in terms of benefits and limitations. B. Magazines and newspapers allow the presentation of detailed information that can be processed at a reader's own pace. C. Magazines and newspapers are more intrusive than the broadcast media like radio and television. D. Newspapers are a more specialized form of advertising medium than magazines. E. Both newspapers and magazines are generally considered low-involvement media.

28. More companies buy advertising _____ than in any other medium. A. in newspapers B. in magazines C. on cable television D. on radio E. on network television

29. Which of the following is true of consumer magazines? A. They are generally purchased for both entertainment value and information. B. They are typically known as niche magazines. C. They are primarily annual publications. D. They are only sold through sole distribution. E. They cannot be sold through circulation.

30. According to Standard Rate and Data Service (SRDS), magazines can be classified as A. consumer, health care, and business publications. B. regional, national, and international publications. C. agrarian, industrial, and specialized publications. D. general, specialized, and niche publications. E. affective, behavioral, and cognitive publications.

31. According to Standard Rate and Data Service's (SDRS's) classification of magazines, _____ magazines are bought by the general public for information and/or entertainment. A. niche B. consumer C. business D. national E. industrial

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32. Which of the following is true of consumer magazines? A. They are useful for reaching general consumers of services. B. They are published for a specific business or industry. C. They are sold only through circulation. D. They are also known as farm publications. E. They are not suitable for reaching a specific target market.

33. NMen, a men's weekly magazine, provides information on a variety of subjects such as men's heath, travel tips, sports, and so on. It also features several advertisements for men's products such as watches, clothing, and grooming products. NMen is likely to be an example of a A. consumer magazine. B. trade magazine. C. farm publication. D. business publication. E. niche publication.

34. Marketers of tobacco products spend most of their media budget in magazines because A. magazines specifically target consumers of tobacco products. B. they are prohibited from advertising in the broadcast media. C. magazines are a high-involvement advertising medium. D. they want to communicate customized information to magazine readers. E. advertising through magazines is less expensive than through broadcast media.

35. Velocity Inc. makes shoes for athletes. Its market research has shown that there are a large number of competitive long-distance runners in the Pacific Northwest region of the United States. These individuals would be willing to pay over $200 for a good pair of running shoes. In order to reach this market, Velocity should use A. regional editions of general-interest magazines. B. the sports section of national newspapers. C. regional editions of general sports magazines. D. regional editions of specialty magazines. E. local television.

36. _____ magazines assemble readers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. A. Trade B. General-interest C. Business D. Cultural E. Special-interest

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37. Health care publications targeted at specific streams such as dental, medical and surgical, nursing, biotechnological sciences, and hospital administration are classified as A. business publications. B. special-interest consumer magazines. C. trade magazines. D. general-interest consumer magazines. E. independent publications.

38. Farm publications are not classified with business publications because A. historically farms were not perceived as businesses. B. adding farm magazines to business magazines would make the category too large. C. farm magazines are a hybrid of consumer and business magazines. D. farming is considered a community service occupation. E. businesses do not have agricultural interests.

39. Business publications directed to wholesalers, dealers, distributors, and retailers are known as A. special-interest consumer magazines. B. craft magazines. C. general business magazines. D. trade magazines. E. networking magazines.

40. Blooms is a publication aimed at providing information to retail florists so that they can manage their stores more efficiently and profitably. This is an example of a(n) _____ publication. A. craft B. trade C. professional D. industrial E. consumer-oriented

41. Asea is a publication that provides information on world trends and technology to offshore oil and gas operations. This is an example of a(n) _____ publication. A. general business B. trade C. professional D. industrial E. consumer-oriented

42. _____ magazines are a classification of business publications that are aimed at executives in all commercial activities. A. General business B. Trade C. Professional D. Industrial E. Niche

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43. Business publications are important to advertisers because A. they are generally the only health care information providers. B. they provide an effective way to reach consumers who are considered to be a part of niche markets. C. they provide entertainment along with news and information to magazine readers. D. they provide an efficient way of reaching the specific types of individuals who constitute their target market. E. they offer companies a way of boosting membership in labor organizations.

44. Which of the following advertising media has the potential advantages of selectivity, reproduction quality, creative flexibility, and prestige? A. national newspapers B. magazines C. local radio D. billboards E. local newspapers

45. A company that manufactures paintball equipment might prefer to advertise in specialized publications rather than newspapers due to A. the wider reach of specialized publications. B. the greater audience selectivity of specialized publications. C. fewer ads and less clutter in specialized publications. D. the higher degree of pass-along readership. E. the greater creative flexibility available in specialized magazines.

46. Which of the following is a primary advantage of magazines? A. high selectivity B. low clutter level C. low lead time D. high reach E. large frequency

47. Magazines that are published for special-interest groups are targeting A. lower permanence. B. greater flexibility. C. greater selectivity. D. lower lead time. E. larger reach.

48. The New Jersey Concord is a magazine that targets the members of various law enforcement agencies in the state of New Jersey. Purely as a medium of advertisement, the magazine offers manufacturers of guns and bulletproof vests greater A. permanence. B. flexibility. C. demographic selectivity. D. geographic reach. E. reproduction.

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49. Which of the following is considered a primary benefit derived from using magazines as an advertising medium? A. higher reproduction quality B. greater reach C. lower costs D. selective binding E. creative inflexibility

50. The Suave Teen is a Canadian publication that primarily targets high school students. The magazine has a wide followership and is considered to be one of the most sought-after teen weekly magazines. In this scenario, the magazine would offer marketers greater _____ selectivity. A. demographic B. psychographic C. lifestyle D. affective E. behavioral

51. Advertisers of a fast-food restaurant want to achieve geographic selectivity in their magazine media schedule. They should do so by advertising in A. magazines that are targeted toward a particular area. B. special-interest farm publications. C. trade publications targeted at distributors and retailers. D. international editions of popular food magazines. E. general-interest business magazines.

52. Buying ad space in regional editions of national magazines A. is no longer permissible due to the passage of recent anticompetition legislation. B. can reduce an advertiser's cost per thousand for reaching desired audiences. C. diminishes the value of pass-along readership. D. creates overlapping subscription data. E. can eradicate the problem of clutter.

53. Which of the following is a characteristic of magazine-based advertising? A. greater creative flexibility B. poor reproduction quality C. limited selectivity D. lower costs E. impermanence

54. Gatefolds, bleed pages, inserts, and creative space buys are ways of increasing A. the cost efficiency of magazines. B. the geographic flexibility of magazines. C. the selectivity of magazines. D. the creative appeal of magazine ads. E. the selective binding ability of a magazine.

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55. The use of a third page that folds out to create an extra-large advertising spread in a magazine is called a(n) A. bleed page. B. printacular. C. gatefold. D. stock card fold. E. overrun fold.

56. The second cover of MagAuto opens up into a third page, which gives it an extra-large spread. In magazine advertising, this third page is referred to as a(n) A. bleed page. B. printacular. C. gatefold. D. page manipulator. E. overrun.

57. Magazine advertisements that extend to the end of a page rather than leaving a margin around the ad are called A. gatefolds. B. bleed pages. C. overscans. D. overruns. E. total page ads.

58. A magazine ad for Savor Raisins contains a swirl of dark chocolate with a top layer of raisins. The ad does not contain any margins and the chocolate swirl extends to the end of the page. This ad is an example of a(n) A. gatefold. B. bleed page. C. diecut. D. overrun. E. heavy card stock.

59. DigiSafe Inc. makes security systems for computer networks. It offers a fingerprint recognition program to its users. A magazine ad for DigiSafe products shows a lock with the words "Protected Zone" painted on it. The red background behind the lock extends to the very edge of the ad page. This ad is an example of a(n) A. gatefold. B. bleed page. C. maximum coverage ad. D. overrun. E. sticker.

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60. Ads in magazines that utilize pop-ups, heavy inserts, talking ads, or other distractions to attract readers' attention are sometimes referred to as A. multisensory ads. B. enhanced advertising pages. C. printaculars. D. fine-tuned sensory interceptors (FSIs). E. distracters.

61. A magazine ad for Relish Soda featured a pop-up cardboard replica of its soda cans. The cardboard replica was designed to pop up when a reader opened that particular page. This scenario is an illustration of a A. bleed page. B. gatefold. C. multisensory ad. D. printacular. E. run-of-page ad.

62. Critics argue that printaculars A. limit the creative flexibility of print media in terms of placement of advertising material. B. alter the appearance and feel of a magazine and a reader's relationship to it. C. are not used enough to be considered a separate advertising category. D. result in horizontal promotional conflict among advertisers. E. hinder the evaluation of the overall benefits of an advertising media.

63. Raiment Inc. manufactures sewing machines. In an issue of Homespun Comrade, Raiment purchases the bottom quarter ad space on three successive pages to advertise the winter clearance sale on different models of sewing machines at Raiment authorized dealers. Raiment is using _____ to attract readers' attention. A. gatefolds B. bleed pages C. creative space buys D. overruns E. total page ads

64. Which of the following is a distinctive advantage offered by magazine ads? A. low lead time B. greater frequency C. higher reach D. long life span E. low costs

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65. Chris O'Brian, an avid skier, takes a weeklong ski vacation every winter. To help plan his vacation, O'Brian consults all of the past issues of Scend magazine, a publication on adventure sports destinations. Which of the following advantages of magazines as an advertising medium is demonstrated in the way O'Brian uses this publication? A. services B. permanence C. prestige D. creative flexibility E. geographic selectivity

66. CL Inc. runs a series of product ads in a popular magazine. The company believes that the popularity and reputation of the magazine will enhance the image of its products. Which of the following distinct positive features of magazines is the company trying to utilize in this scenario? A. geographic selectivity B. creative flexibility C. prestige D. permanence E. costs

67. Which of the following is true of magazine advertising? A. It offers limited geographic selectivity. B. It is typically considered to lack permanence. C. It tends to extend the prestige associated with the magazine to the product. D. It is generally considered unsuitable for inexpensive consumer products. E. It is typically used only for B2B marketing.

68. Which of the following is a characteristic of magazine ads? A. They create lower customer receptivity. B. They do not offer permanence. C. They offer a potential for gaining prestige. D. They offer poor reproduction quality. E. They generally cost lower than newspaper ads.

69. Consumers are generally receptive to advertising in magazines because A. ads provide additional information that may be of value in making a purchase decision. B. ads in magazines are intrusive and cannot be ignored. C. magazines are a low-involvement advertising medium. D. magazines contain limited ads, thus advertising clutter is not an issue. E. of its very short lead time.

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70. Which of the following statements best explains the reason that consumers are more receptive to magazine advertising than to television advertising? A. Unlike television ads, magazine ads are invasive and not easy to ignore. B. Consumers become involved with magazines when they read them and are more likely to find ads acceptable or even enjoyable. C. The number of ads in magazines is much fewer than that of television, so consumers are not bothered by advertising clutter. D. More creative advertising options are available for magazines than those available for television advertising, implying that magazine ads are more interesting. E. Magazine advertising does not provide the psychographic or demographic selectivity that television advertising does.

71. Pluto Inc. prepares two magazine ads with slight regional variations. The ads are set to be launched in alternate copies of a particular issue. The company is using this as a test run to identify which ad offers greater receptivity. In this scenario, Pluto is using _____ A. ink-jet binding. B. selective binding. C. printaculars. D. split runs. E. bleed runs.

72. A(n) _____ test is a service offered by magazines where two or more versions of an ad are run in alternate copies of a particular issue of a publication. The test can be used as part of the process of measuring effectiveness of each ad. A. split-run B. overrun C. gatefold D. bleed page E. day-after-recall

73. Which of the following is true of split runs? A. They are also known as bleed pages. B. They reproduce images using mechanical printing. C. They are usually printed in alternate copies of a specific magazine. D. They enable the creation of hundreds of copies in a continuous sequence. E. They are generally considered less effective than selective binding.

74. Selective binding and ink-jet imaging make it possible for magazines to offer A. personalized advertising messages. B. high reach and frequency. C. reduced advertising rates. D. detailed advertising information. E. higher pass-along readership.

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75. _____ is a computerized production process that allows the creation of hundreds of copies of a magazine in one continuous sequence. A. Split running B. Overrunning C. Gatefolding D. Ink-jetting E. Selective binding

76. _____ is a computerized production process that enables magazines to send different editorial or advertising messages to groups of subscribers within the same issue of a publication. A. Split running B. Selective binding C. Cross-media running D. Controlled circulation E. Digital jetting

77. Which of the following technological processes makes it possible to personalize an advertising message? A. cross-boarding B. ink-jet imaging C. cross-media binding D. digital imaging E. desktop publishing

78. Which of the following is a disadvantage associated with advertising in magazines? A. lack of permanence B. lack of prestige C. absence of consumer receptivity to ads D. limited reach and frequency E. creative inflexibility

79. Which of the following is true of magazine advertising? A. It offers lower consumer receptivity and engagement. B. It offers relatively lower competition. C. It offers relatively lower reach and frequency than other media. D. It is generally considered to have a lower lead time. E. It does not offer selective binding opportunities.

80. Using multiple ads in the same issue A. is relatively less expensive than ink-jet imaging. B. is considered to be an inefficient way to build frequency. C. is referred to as the process of selective binding. D. is the most popular method for obtaining greater reach. E. is known as split running.

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81. Which of the following is a disadvantage inherent in advertising in magazines? A. creative inflexibility B. lack of demographic selectivity C. poor reproduction quality D. long lead times E. low publication prestige

82. Which of the following is one of the disadvantages associated with the use of magazines as an advertising medium? A. low receptivity to advertising by readers B. low demographic selectivity C. thin penetration of households D. reduced permanence and prestige E. inability to offer specialized services

83. The high ratio of advertising to editorial content in most magazines causes magazines to experience the problem of A. clutter. B. limited frequency. C. longer lead times. D. lower selectivity. E. low reproduction quality.

84. Which of the following statements is true about clutter in magazine advertising? A. Clutter makes it easy for an advertiser to gain readers' attention and draw them into an ad. B. Most magazines devote less than 30 percent of their pages to advertising and clutter is typically controlled. C. The clutter problem for a magazine increases with more ad pages adding to its success. D. Most magazines are not concerned about the clutter problem since there is usually no other way for advertisers to reach the market they serve. E. Magazine publishers do not attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising.

85. Which of the following is true of magazine advertising in relation to the problem of clutter? A. Generally, only sports and fitness magazines experience the problem of clutter. B. Magazine publishers do not attempt to control the clutter problem. C. It is not as serious an issue for magazines as for radio or TV. D. The problem of clutter is usually solved with split runs. E. Typically, magazine readers are less tolerant toward clutter.

86. Media buyers primarily evaluate magazines on the basis of A. the ability to offer specialized services such as selective binding, ink-jet imaging, and split runs. B. the size and space of the bleed pages. C. their ability to deliver the advertiser's message to as many people as possible in the target audience. D. their ability to provide or create a psychographic segregation. E. the pass-along readership offered.

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87. _____ is the number of magazine copies distributed to original subscribers or purchasers. A. Primary circulation B. Total circulation C. Tangential readership D. Guaranteed circulation E. Pass-along circulation

88. _____ figures represent the number of individuals who receive a magazine publication through either subscription or store purchase. A. Selective binding B. Lead time C. Circulation D. Readership E. Clutter

89. When publications fix advertising rates based on a set average circulation figure that is nearly always below the actual circulation delivered by a given issue but carries no guarantee, they are using A. ancillary circulation rates. B. a circulation verification system. C. pass-along circulation rate scale. D. a circulation rate base system. E. a rebate system.

90. Which of the following is true of the "50 percent rule"? A. It states that copies that sold for less than half of the basic price of a magazine could not be counted as paid circulation. B. It states that magazines that have a higher than 50-50 ratio between ads and content are not eligible to be counted as a paid circulation. C. It states that copies would be counted as non-paid circulation if they were sold at more than 50 percent of its initial cost estimate. D. It states that copies sold at greater than 50 percent of the value of its production cost cannot be counted as paid circulation. E. It states that magazines are considered as print ads only if they sell more than 50 percent of the total production number.

91. Many business magazines are sent free to individuals who, a publisher believes, can influence a company's purchases for products and services advertised in the publication. This activity is referred to as _____ basis. A. primary circulation B. guaranteed circulation C. pass-along circulation D. principal-circulation E. controlled-circulation

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92. Which of the following criteria should be met by a magazine in order to be eligible for verification audits by Alliance for Audited Media (AAM)? A. It must be published on a controlled-circulation basis. B. It must be a business publication. C. The publication must have 70 percent or more paid circulation. D. The publication must be a member of the Magazine Publishers of America Trade Association. E. The publication must have a digital replica edition of magazines.

93. Circulation verification services are important to media planners because A. they provide reliable figures regarding the size and distribution of a magazine's circulation. B. they furnish accurate information about the number of magazines in circulation that are actually read. C. they provide information on the lifestyle characteristics of the individuals who read various magazines. D. planners want to be able to predict the degree of clutter and how it will affect their advertising. E. planners receive advertising funding from various trade associations based on the number of magazines in circulation that were distributed.

94. During her visit to a beauty salon, Lily browsed through , a magazine dedicated to working women, while she was waiting at the reception. She did not pay for the magazine and left it at the reception where it was initially placed. This scenario is an illustration of A. primary readership. B. guaranteed readership. C. pass-along readership. D. total readership. E. principal readership.

95. Which of the following comparisons between primary in-home readers, pass-along readers, and out-of-home readers is true? A. Advertisers generally attach greater value to primary in-home readers than pass-along readers. B. Pass-along readers and out-of-home readers are more likely to read a magazine than principal readers. C. Pass-along readers should be totally discounted in evaluating magazine readership. D. Pass-along readers generally spend more time with a magazine and pick it up more often than primary in-home readers. E. Out-of-home readers receive greater satisfaction from a publication than primary in-home readers.

96. The total audience, or readership, of a magazine can be calculated by A. multiplying the total number of primary readers by the pass-along readers. B. multiplying the total readership by the average pass-along readership number. C. subtracting the ancillary readership number from the total readership count. D. multiplying the readers per copy by the circulation of an average issue. E. subtracting the pass-along readership number from the total readership count.

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97. James regularly borrows a magazine from Lily, who subscribes to it. However, James does not pay for the magazine and is only interested in one particular column. In this scenario, Lily is considered to be a(n) A. ancillary reader. B. pass-along subscriber. C. primary reader. D. secondary subscriber. E. total reader.

98. Magazine rates are primarily a function of A. selectivity. B. digital imaging. C. selective binding. D. circulation. E. pass-along readership.

99. Which of the following statements is true about the use of color in magazine advertising? A. The more the color used in an ad, the lower the advertising cost. B. Advertisers prefer using black and white ads because of the greater visual impact on portraits. C. Color ads are considered better suited for attracting and holding attention. D. Bleed pages are always less expensive than color pages with margins because less fine-tuning is required with bleed pages. E. Color ads are generally cheaper than black and white ads if they are placed on the front cover of a magazine.

100. _____ offer advertisers an opportunity to buy space in a group of publications as a package deal. A. Cross-media organizations B. Magazine networks C. Publication verification networks D. Magazine blocks E. Print networks

101. Which of the following is one of the ways magazine publishers are looking to improve their positions? A. Higher quality paper and ink B. Stronger editorial platforms C. Better circulation management D. Cross-magazine and media deals E. Database marketing

102. Which of the following is true of weekly newspapers? A. They do not focus on news and recent events. B. They typically originate in small towns or suburbs. C. They are used exclusively by national advertisers. D. They are printed on a weekly basis due to the large volume of news. E. They are also known as national newspapers.

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103. National advertisers tend to avoid weekly newspapers because of A. their poor image. B. their high absolute cost. C. their duplicate circulation with daily newspapers. D. their broad geographic focus. E. the large number of local ads they typically contain.

104. _____ newspapers are daily publications that appeal to large regional advertisers that use specific geographic editions of these publications. A. Weekly B. National C. Sunday D. Special-audience E. Bimonthly

105. Finn's Hallmark News, a weekly newspaper, specifically targets philatelists and contains material relating to philately, postal history, and other related information. In this scenario, Finn's Hallmark News is a A. trade newspaper. B. special-audience newspaper. C. demographic-oriented newspaper. D. newspaper supplement. E. regional newspaper.

106. _____ offer differentiated editorial content and are published for labor unions, professional organizations, industries, or hobbyists. A. Trade newspapers B. Newspaper supplements C. Regional newspapers D. Special-audience newspapers E. Demographic-oriented newspapers

107. Newspapers targeted at various religious groups compose a large class of A. gatefold papers. B. special-interest papers. C. syndicated newspaper supplements. D. national newspapers. E. consumer publications.

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108. Although not a category of newspapers per se, _____ are valuable to advertisers that want to use a newspaper yet get four-color reproduction quality in their ads. A. daily newspapers B. classifieds C. magazine supplements D. freestanding inserts E. special-audience newspapers

109. Which of the following statements is true about newspaper supplements? A. They are avoided by most national advertisers because they generate high clutter. B. They are generally considered unsuitable for national advertising due to their high cost. C. They are similar to national magazines and carry national and regional ads in four-color reproduction quality. D. They appeal to advertisers who are not concerned about reproduction quality and who prefer to use black and white ads. E. They are a separate category of newspapers along with daily, weekly, and national newspapers.

110. _____ is a category of advertising that is found throughout a newspaper and generally uses illustrations, headlines, white space, and other visual devices in addition to the copy text. A. Display advertising B. Classified C. Preprinted insert D. Bleed ads E. Special advertising

111. Which of the following is true of local display advertising? A. It is primarily used by supermarkets and department stores. B. It refers to newspaper display advertising done by marketers of branded products. C. It is primarily used by airlines, major retail chains, and automakers. D. It is used to market products but not services. E. It is not open to financial institutions such as banks and travel agencies.

112. Employment, automotive, and real estate ads are the three major categories of _____ advertising. A. local display B. special C. insert D. classified E. retail

113. Mars Inc. printed 1,200 brochures with the intention of distributing them using a national newspaper. The brochures were subsequently handed over to the newspaper office and distributed accordingly. This scenario depicts the use of _____ A. display advertising. B. classified advertising. C. a preprinted insert. D. a printacular. E. gatefold advertising.

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114. Which of the following is true of newspapers as an advertising medium? A. They do not enable marketers to use geographic selectivity. B. They are generally considered to have better reproductive quality than magazines. C. They offer high market penetration and coverage. D. They offer limited flexibility to advertisers. E. They typically have a long life span.

115. Which of the following is true of newspaper advertisements? A. They do not require the use of creative options. B. They are highly expensive to create. C. They can be reproduced quickly. D. They are considered inflexible during production. E. They typically offer limited selectivity.

116. Newspapers generally offer more _____ than any other medium except direct mail. A. digital imaging B. geographic selectivity C. color advertising D. permanence E. creative options

117. Which of the following statements about the geographic selectivity offered by newspapers is true? A. Newspapers offer less geographic selectivity than most other media. B. Newspapers in large cities provide very little geographic selectivity to advertisers. C. Newspapers provide little geographic selectivity to local advertisers because of their inability to adapt ad campaigns to local market conditions. D. Newspapers provide geographic selectivity by creating strong sales potential in a particular area for national advertisers. E. Newspapers offer advertisers more geographic selectivity than direct mail.

118. Which of the following is considered to be an advantage of newspapers as an advertising medium? A. They offer several valuable specialized services to advertisers. B. They offer better reproductive quality than magazines. C. They generally have a long life span. D. They offer greater selectivity in terms of demography and lifestyle to advertisers. E. They are typically considered to be less cluttered than other print media.

119. The coarse paper stock used in printing most newspapers leads to A. their limited pass-along readership. B. a lack of reader interest and involvement. C. the presence of extensive clutter. D. a lack of geographic selectivity. E. poor reproduction quality.

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120. Pluto Inc. is planning to run an ad in a weekly newspaper. Which of the following disadvantages of newspapers as an advertising medium should Pluto Inc. consider? A. lack of geographic selectivity B. lack of demographic selectivity C. high cost of reproduction D. limitations in pass-along readership E. lack of reader involvement

121. Which of the following statements about newspapers as an advertising medium is true? A. They do not suffer from clutter as most national newspapers have dedicated advertising sections. B. They do not facilitate the use of unconventional sizes and formats such as stairsteps, bookends, U-shapes, island ads, spadea ads, and half-page spreads. C. Unlike magazines, they are generally easier to reproduce. D. Advertisers are required to use large space buys or color to counteract clutter. E. Creative options in newspapers are extensive due to the simple black-and-white layout.

122. A clothing retailer would use an island ad to A. break through the clutter typically found in newspapers. B. create high reproduction quality ads. C. make a newspaper accountable for the sales generated by the ad. D. reduce overall costs of newspaper advertising. E. identify potential target markets.

123. ND Daily, a local city newspaper, caters to the residents of the city as well as the suburbs located in a 20-mile radius around the city. If the market area within the city is referred to as the city zone, the market in the suburbs whose residents trade with merchants in the city zone is referred to as the A. local zone. B. retail trading zone. C. demarcated zone. D. peripheral zone. E. special category zone.

124. National advertisers in the automotive, tobacco, and pharmaceutical fields are liable to A. retail advertising rates. B. general advertising rates. C. local advertising rates. D. flat rates. E. NNN rates.

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125. ______ apply to advertisers that conduct business or sell goods or services within the DMA. A. General advertising rates B. Flat rates C. Retail or local advertising rates D. Preferred position rates E. Combination rates

126. Which of the following is true of the standard advertising unit system? A. It is also referred to as the agate line. B. It is used to determine basic newspaper advertising rates. C. It has complicated the newspaper purchase and production process. D. It cannot be applied to regional and local newspapers. E. It includes tabloid-size papers two columns wide.

127. _____ give advertisers a discount for using several newspapers as a group. A. Preferred position rates B. Flat rates C. Local advertising rates D. General advertising rates E. Combination rates

128. When a newspaper offers no discounts for quantity or repeated space buys, it is using a(n) _____ structure. A. ROP B. inch rate C. open rate D. flat rate E. SAU rate

129. Basic rates quoted by a newspaper that call for an ad to be placed on any page or in any position desired by the paper are known as _____ rates. A. preferred position B. open C. flat D. run of paper E. combination

130. If a promoter of a boxing match wants to place an ad in the sports section of a newspaper, the promoter is likely to pay a(n) _____ rate. A. flat B. run of paper C. preferred position D. agate E. SAU

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131. After they realized that advertisers use newspapers to reach consumers within a specific geographic area and do not want to pay for readers in outlying areas, some major metropolitan newspapers eliminated _____________ and focused more on regional editions in their immediate trade area. A. gatefold B. SAU C. city zones D. combination zones E. ego circulation

132. Surveys show that the percentage of women who read a newspaper on a typical day recently declined to _____________ percent. A. 39 B. 47 C. 59 D. 67 E. 69

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Chapter 12 Test Bank 1. Newspapers and magazines are referred to as low-involvement media. FALSE The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

2. Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. TRUE The wide variety makes magazines an appealing medium to a vast number of advertisers. Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

3. Magazines are the most selective of all media except direct mail. TRUE One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Magazines are the most selective of all media except direct mail. Most magazines are published for special-interest groups. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

4. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area of interest. FALSE Geographic selectivity lets an advertiser focus ads in certain cities or regions. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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5. Ads can use longer and more detailed copy in magazines owing to the factor of permanence that magazines offer. TRUE Reading occurs at a less hurried pace and there is more opportunity to examine ads in considerable detail because of the longer life span of magazines. This means ads can use longer and more detailed copy. The permanence of magazines also means readers can be exposed to ads on multiple occasions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

6. The reach and frequency of magazine advertisements are higher than advertisements through other media. FALSE Magazines are generally not as effective as other media in offering reach and frequency. While nearly 90 percent of adults in the United States read one or more consumer magazines each month, the percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

7. Circulation fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales. TRUE Circulation fluctuates from issue to issue, particularly for magazines that rely heavily on retail or newsstand sales. Many publications base their rates on guaranteed circulation and give advertisers a rebate if the number of delivered magazines falls below the guarantee. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

8. Media buyers are not too concerned about the auditing of circulation figures; they treat audited and unaudited publications equally. FALSE Media buyers are generally skeptical about publications whose circulation figures are not audited by one of the verification services, and some companies will not advertise in unaudited publications. Circulation data, along with the auditing source, are available from SRDS or from the publication itself. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

12-25 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

9. The front cover of a magazine is considered editorial space and off limits to advertisers. TRUE Very few publishers sell advertising space on the front cover of their magazines as the American Society of Magazine Editors guidelines discourage the practice. The front cover has always been considered editorial space and off limits to advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

10. Until recently, magazines focused on increasing their circulation under the assumption that higher circulation meant higher advertising rates. TRUE For many years, magazines focused on increasing their circulation under the assumption that higher circulation meant higher advertising rates. However, publishers are now realizing that the cost of attracting and maintaining the last 10 to 15 percent of their circulation base is often greater than the additional revenue generated, since these subscribers require numerous direct-mail solicitations, premium offers, or discount subscriptions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-04 Discuss future trends and developments for magazines and how they influence their use as an advertising medium. Topic: Advertising Media

11. One drawback of online magazines is that they do not provide advertisers with the opportunity for sponsorships. FALSE Online versions of magazines offer the many advantages of the Internet to publishers as well as advertisers. They provide advertisers with the opportunity for sponsorships as well as running video and banner ads and promotions on the online versions of the magazines. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-04 Discuss future trends and developments for magazines and how they influence their use as an advertising medium. Topic: Advertising Media

12. Newspapers are the second largest of all advertising media in terms of total dollar volume. FALSE Newspapers are the largest of all advertising media in terms of total dollar volume. Newspapers are an important advertising medium to local and national advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

12-26 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

13. Most weekly newspapers originate in metropolises and other large cities. FALSE Most weekly newspapers originate in small towns or suburbs where the volume of news and advertising cannot support a daily newspaper. These papers focus primarily on news, sports, and events relevant to the local area and usually ignore national and world news, sports, and financial and business news. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

14. Many papers include magazine-type supplements, primarily in their Sunday editions. TRUE Although not a category of newspapers per se, many papers include magazine-type supplements, primarily in their Sunday editions. Sunday supplements have been part of most newspapers for many years and come in various forms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

15. Classified advertisements primarily include newspaper display advertising done by marketers of branded products or services that are sold on a national level. FALSE Classified advertisements are arranged under subheads according to the product, service, or offering being advertised. While most classified ads are just text set in small type, some newspapers also accept classified display advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

16. Newspapers do not offer advertisers any flexibility. FALSE Newspapers are flexible in terms of requirements for producing and running the ads. Newspaper ads can be written, laid out, and prepared in a matter of hours. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

12-27 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

17. Newspaper ads are unlikely to have any impact beyond the day of publication, and repeat exposure is very unlikely as well. TRUE Unlike magazines, which may be retained around the house for several weeks, a daily newspaper is generally kept less than a day. So an ad is unlikely to have any impact beyond the day of publication, and repeat exposure is very unlikely. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

18. The retail trading zone is a market area composed of the city where the paper is published and contiguous areas similar in character to the city. FALSE The retail trading zone is the market outside the city zone whose residents regularly trade with merchants within the city zone. The city zone is a market area composed of the city where the paper is published and contiguous areas similar in character to the city. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

19. The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. TRUE The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. Newspaper publishers claim the rate differential is justified as higher costs and commissions are involved, and because general advertising is less dependable than local advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

20. Combination discounts are not available when the advertiser buys space in multiple newspapers, even if they are affiliated in a syndicate. FALSE Combination discounts are available when the advertiser buys space in several newspapers owned by the publisher in a number of markets or in multiple newspapers affiliated in a syndicate or newspaper group. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

12-28 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

21. The newspaper industry's initial response to digital disruption by online alternatives was to implement digital pay plans or paywalls. FALSE Initially, newspapers tried to offer content for free and attempted to support digital editions with advertising. The implementation of pay plans or paywalls occurred after newspapers learned the ad-supported model was not sustainable with the existing cost structures. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-07 Discuss future trends and developments for newspapers and how they will influence their use as an advertising medium. Topic: Advertising Media

22. Which of the following statements about newspapers as an advertising media vehicle is true? A. Newspapers are the primary advertising medium in terms of ad revenue but not in terms of number of advertisers. B. Newspapers are primarily a local advertising medium for retail businesses but are also used by large national advertisers. C. A primary feature of newspapers is that they can survive without any advertising revenue. D. Consumers view newspapers as their primary source of entertainment. E. The popularity of newspapers as an important media vehicle to advertisers has drastically declined because of the competition from the broadcast media. Newspapers are particularly important as a local advertising medium for hundreds of thousands of retail businesses and are often used by large national advertisers as well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

23. One of the primary advertising media in terms of both ad revenue and number of advertisers is A. broadcast television. B. radio. C. magazines. D. newspapers. E. direct mail. Newspapers are still one of the primary advertising media in terms of both ad revenue and number of advertisers. They are particularly important as a local advertising medium for hundreds of thousands of retail businesses and are often used by large national advertisers as well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

12-29 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

24. Which of the following statements about magazines as an advertising medium is true? A. Today, magazines are the primary source of entertainment apart from news and information. B. Magazines are a highly specialized medium that reaches specific target audiences. C. There has been a decline in magazine readership because magazines offer general information. D. Magazines are not dependent on advertising revenues since they can charge higher prices for their publications. E. Magazines are the primary advertising medium in terms of advertising revenues. By becoming a highly specialized medium that reaches specific target audiences, the magazine industry has prospered. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

25. _____ are often referred to as high-involvement media because they generally require some attention and effort on the part of the consumer to process the information that they provide. A. Newspapers and magazines B. Newspapers and television C. Magazines and radio D. Radio and television E. Radio and newspapers The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

26. Newspapers and magazines are often referred to as high-involvement media because A. they have a high impact on the overall integrated marketing communication program. B. they attract high advertising revenues to support their operations. C. they are the primary sources of entertainment apart from news and information. D. they require consumers to expend some effort to process the information they provide. E. it is easy to monetize online editions of newspapers and magazines. The print media are not intrusive like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as high-involvement media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

12-30 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

27. Which of the following statements about the role of magazines and newspapers as advertising media vehicles is true? A. Newspapers and magazines share similar characteristics in terms of benefits and limitations. B. Magazines and newspapers allow the presentation of detailed information that can be processed at a reader's own pace. C. Magazines and newspapers are more intrusive than the broadcast media like radio and television. D. Newspapers are a more specialized form of advertising medium than magazines. E. Both newspapers and magazines are generally considered low-involvement media. The role of magazines and newspapers in an advertiser's media plan differs from that of the broadcast media because they allow the presentation of detailed information that can be processed at a reader's own pace. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

28. More companies buy advertising _____ than in any other medium. A. in newspapers B. in magazines C. on cable television D. on radio E. on network television Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

29. Which of the following is true of consumer magazines? A. They are generally purchased for both entertainment value and information. B. They are typically known as niche magazines. C. They are primarily annual publications. D. They are only sold through sole distribution. E. They cannot be sold through circulation. Consumer magazines are bought by the general public for information and/or entertainment. Magazines can also be classified by frequency; weekly, monthly, and bimonthly are the most common. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

12-31 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

30. According to Standard Rate and Data Service (SRDS), magazines can be classified as A. consumer, health care, and business publications. B. regional, national, and international publications. C. agrarian, industrial, and specialized publications. D. general, specialized, and niche publications. E. affective, behavioral, and cognitive publications. The media research company Standard Rate and Data Service (SRDS), the primary reference source on periodicals for media planners, divides magazines into three broad categories based on the audience to which they are directed: consumer (which include farm), health care, and business publications. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

31. According to Standard Rate and Data Service's (SDRS's) classification of magazines, _____ magazines are bought by the general public for information and/or entertainment. A. niche B. consumer C. business D. national E. Industrial Consumer magazines are bought by the general public for information and/or entertainment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

32. Which of the following is true of consumer magazines? A. They are useful for reaching general consumers of services. B. They are published for a specific business or industry. C. They are sold only through circulation. D. They are also known as farm publications. E. They are not suitable for reaching a specific target market. Consumer magazines are best suited to marketers interested in reaching general consumers of products and services as well as to companies trying to reach a specific target market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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33. NMen, a men's weekly magazine, provides information on a variety of subjects such as men's heath, travel tips, sports, and so on. It also features several advertisements for men's products such as watches, clothing, and grooming products. NMen is likely to be an example of a A. consumer magazine. B. trade magazine. C. farm publication. D. business publication. E. niche publication. In the above scenario, NMen is likely to be an example of a consumer magazine. Consumer magazines are best suited to marketers interested in reaching general consumers of products and services as well as to companies trying to reach a specific target market. Consumer magazines are bought by the general public for information and/or entertainment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

34. Marketers of tobacco products spend most of their media budget in magazines because A. magazines specifically target consumers of tobacco products. B. they are prohibited from advertising in the broadcast media. C. magazines are a high-involvement advertising medium. D. they want to communicate customized information to magazine readers. E. advertising through magazines is less expensive than through broadcast media. Marketers of tobacco products spend most of their media budget in magazines, since they are prohibited from advertising in the broadcast media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

35. Velocity Inc. makes shoes for athletes. Its market research has shown that there are a large number of competitive long-distance runners in the Pacific Northwest region of the United States. These individuals would be willing to pay over $200 for a good pair of running shoes. In order to reach this market, Velocity should use A. regional editions of general-interest magazines. B. the sports section of national newspapers. C. regional editions of general sports magazines. D. regional editions of specialty magazines. E. local television. In the above scenario Velocity Inc. should use regional editions of specialty magazines. Special-interest magazines assemble consumers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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36. _____ magazines assemble readers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. A. Trade B. General-interest C. Business D. Cultural E. Special-interest Special-interest magazines assemble consumers with similar lifestyles or interests and offer marketers an efficient way to reach these people with little wasted coverage or circulation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

37. Health care publications targeted at specific streams such as dental, medical and surgical, nursing, biotechnological sciences, and hospital administration are classified as A. business publications. B. special-interest consumer magazines. C. trade magazines. D. general-interest consumer magazines. E. independent publications. Health care publications are a classification of business publications that are targeted to various areas including dental, medical and surgical, nursing, biotechnological sciences, and hospital administration. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

38. Farm publications are not classified with business publications because A. historically farms were not perceived as businesses. B. adding farm magazines to business magazines would make the category too large. C. farm magazines are a hybrid of consumer and business magazines. D. farming is considered a community service occupation. E. businesses do not have agricultural interests. Farm publications are not classified with business publications because historically farms were not perceived as businesses. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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39. Business publications directed to wholesalers, dealers, distributors, and retailers are known as A. special-interest consumer magazines. B. craft magazines. C. general business magazines. D. trade magazines. E. networking magazines. Trade magazines are a classification of business publications that are targeted to wholesalers, dealers, distributors, and retailers. Business publications are important to advertisers because they provide an efficient way of reaching the specific types of individuals who constitute their target market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

40. Blooms is a publication aimed at providing information to retail florists so that they can manage their stores more efficiently and profitably. This is an example of a(n) _____ publication. A. craft B. trade C. professional D. industrial E. consumer-oriented In the above scenario, Blooms is an example of a trade publication. Trade magazines are a classification of business publications that are targeted to wholesalers, dealers, distributors, and retailers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

41. Asea is a publication that provides information on world trends and technology to offshore oil and gas operations. This is an example of a(n) _____ publication. A. general business B. trade C. professional D. industrial E. consumer-oriented In the above scenario, Asea is an example of an industrial magazine. Industrial magazines are a classification of business publications that are directed at businesspeople in various manufacturing and production industries—for example, Automotive News, Chemical Week, and Industrial Engineering. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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42. _____ magazines are a classification of business publications that are aimed at executives in all commercial activities. A. B. C. D. E.

General business Trade Professional Industrial Niche

General business magazines are a classification of business publications that are aimed at executives in all areas of business, such as Forbes, Fortune, and Bloomberg Businessweek. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

43. Business publications are important to advertisers because A. they are generally the only health care information providers. B. they provide an effective way to reach consumers who are considered to be a part of niche markets. C. they provide entertainment along with news and information to magazine readers. D. they provide an efficient way of reaching the specific types of individuals who constitute their target market. E. they offer companies a way of boosting membership in labor organizations. Business publications are important to advertisers because they provide an efficient way of reaching the specific types of individuals who constitute their target market. Much marketing occurs at the trade and business-to-business level, where one company sells its products or services directly to another. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

44. Which of the following advertising media has the potential advantages of selectivity, reproduction quality, creative flexibility, and prestige? A. national newspapers B. magazines C. local radio D. billboards E. local newspapers Strengths of magazines include their selectivity, excellent reproduction quality, creative flexibility, permanence, prestige, readers' high receptivity and involvement, and services they offer to advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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45. A company that manufactures paintball equipment might prefer to advertise in specialized publications rather than newspapers due to A. the wider reach of specialized publications. B. the greater audience selectivity of specialized publications. C. fewer ads and less clutter in specialized publications. D. the higher degree of pass-along readership. E. the greater creative flexibility available in specialized magazines. In the above scenario, the paintball manufacturer would prefer to advertise in a specialized publication due to the greater level of audience selectivity available. One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

46. Which of the following is a primary advantage of magazines? A. high selectivity B. low clutter level C. low lead time D. high reach E. large frequency One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

47. Magazines that are published for special-interest groups are targeting A. lower permanence. B. greater flexibility. C. greater selectivity. D. lower lead time. E. larger reach. One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Most magazines are published for special-interest groups. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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48. The New Jersey Concord is a magazine that targets the members of various law enforcement agencies in the state of New Jersey. Purely as a medium of advertisement, the magazine offers manufacturers of guns and bulletproof vests greater A. permanence. B. flexibility. C. demographic selectivity. D. geographic reach. E. reproduction. In the above scenario, the magazine offers greater demographic selectivity. Magazines can provide advertisers with high demographic and geographic selectivity. Demographic selectivity is the ability to reach specific demographic groups. Geographic selectivity lets an advertiser focus ads in certain cities or regions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

49. Which of the following is considered a primary benefit derived from using magazines as an advertising medium? A. higher reproduction quality B. greater reach C. lower costs D. selective binding E. creative inflexibility One of the most valued attributes of magazine advertising is the reproduction quality of the ads. Magazines are generally printed on high-quality paper stock and use printing processes that provide excellent reproduction in black and white or color. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

50. The Suave Teen is a Canadian publication that primarily targets high school students. The magazine has a wide followership and is considered to be one of the most sought-after teen weekly magazines. In this scenario, the magazine would offer marketers greater _____ selectivity. A. demographic B. psychographic C. lifestyle D. affective E. Behavioural In the above scenario, the magazine would offer marketers greater demographic selectivity. Demographic selectivity is the ability to reach specific demographic groups such as men, women, older customers, teens, kids etc. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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51. Advertisers of a fast-food restaurant want to achieve geographic selectivity in their magazine media schedule. They should do so by advertising in A. magazines that are targeted toward a particular area. B. special-interest farm publications. C. trade publications targeted at distributors and retailers. D. international editions of popular food magazines. E. general-interest business magazines. In the above scenario, advertisers of the fast-food restaurant should advertise in magazines that are targeted toward a particular area. Geographic selectivity lets an advertiser focus ads in certain cities or regions. One way to achieve geographic selectivity is by using a magazine that is targeted toward a particular area. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

52. Buying ad space in regional editions of national magazines A. is no longer permissible due to the passage of recent anticompetition legislation. B. can reduce an advertiser's cost per thousand for reaching desired audiences. C. diminishes the value of pass-along readership. D. creates overlapping subscription data. E. can eradicate the problem of clutter. The availability of regional and demographic editions can reduce the cost per thousand for reaching desired audiences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

53. Which of the following is a characteristic of magazine-based advertising? A. greater creative flexibility B. poor reproduction quality C. limited selectivity D. lower costs E. Impermanence In addition to their excellent reproduction capabilities, magazines also offer advertisers a great deal of flexibility in terms of the type, size, and placement of the advertising material. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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54. Gatefolds, bleed pages, inserts, and creative space buys are ways of increasing A. the cost efficiency of magazines. B. the geographic flexibility of magazines. C. the selectivity of magazines. D. the creative appeal of magazine ads. E. the selective binding ability of a magazine. Some magazines offer (often at extra charge) a variety of special options that can enhance the creative appeal of an ad and increase attention and readership. Examples include gatefolds, bleed pages, inserts, and creative space buys. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

55. The use of a third page that folds out to create an extra-large advertising spread in a magazine is called a(n) A. bleed page. B. printacular. C. gatefold. D. stock card fold. E. overrun fold. A gatefold enables an advertiser to make a striking presentation by using a third page that folds out and gives an ad an extra-large spread. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

56. The second cover of MagAuto opens up into a third page, which gives it an extra-large spread. In magazine advertising, this third page is referred to as a(n) A. bleed page. B. printacular. C. gatefold. D. page manipulator. E. overrun. The above scenario is an illustration of a gatefold. A gatefold enables an advertiser to make a striking presentation by using a third page that folds out and gives an ad an extra-large spread. It is often found at the inside cover of large consumer magazines or on some inside pages. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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57. Magazine advertisements that extend to the end of a page rather than leaving a margin around the ad are called A. gatefolds. B. bleed pages. C. overscans. D. overruns. E. total page ads. Bleed pages are those where an advertisement extends all the way to the end of a page, with no margin of white space around the ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

58. A magazine ad for Savor Raisins contains a swirl of dark chocolate with a top layer of raisins. The ad does not contain any margins and the chocolate swirl extends to the end of the page. This ad is an example of a(n) A. gatefold. B. bleed page. C. diecut. D. overrun. E. heavy card stock. The above scenario is an example of a bleed page. Bleed pages are those where the advertisement extends all the way to the end of the page, with no margin of white space around the ad. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

59. DigiSafe Inc. makes security systems for computer networks. It offers a fingerprint recognition program to its users. A magazine ad for DigiSafe products shows a lock with the words "Protected Zone" painted on it. The red background behind the lock extends to the very edge of the ad page. This ad is an example of a(n) A. gatefold. B. bleed page. C. maximum coverage ad. D. overrun. E. sticker. The above scenario is an example of a bleed page. Bleed pages are those where the advertisement extends all the way to the end of the page, with no margin of white space around the ad. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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60. Ads in magazines that utilize pop-ups, heavy inserts, talking ads, or other distractions to attract readers' attention are sometimes referred to as A. multisensory ads. B. enhanced advertising pages. C. printaculars. D. fine-tuned sensory interceptors (FSIs). E. distracters. There has been some backlash against various types of printaculars. Critics argue that they alter the appearance and feel of a magazine and the reader's relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

61. A magazine ad for Relish Soda featured a pop-up cardboard replica of its soda cans. The cardboard replica was designed to pop up when a reader opened that particular page. This scenario is an illustration of a A. bleed page. B. gatefold. C. multisensory ad. D. printacular. E. run-of-page ad. The above scenario is an illustration of a printacular. There has been some backlash against various types of printaculars. Critics argue that they alter the appearance and feel of a magazine and the reader's relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

62. Critics argue that printaculars A. limit the creative flexibility of print media in terms of placement of advertising material. B. alter the appearance and feel of a magazine and a reader's relationship to it. C. are not used enough to be considered a separate advertising category. D. result in horizontal promotional conflict among advertisers. E. hinder the evaluation of the overall benefits of an advertising media. Critics argue that printaculars alter the appearance and feel of a magazine and a reader's relationship to it. Advertisers do not want to run regular ads that have to compete against heavy inserts, pop-ups, talking ads, or other distractions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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63. Raiment Inc. manufactures sewing machines. In an issue of Homespun Comrade, Raiment purchases the bottom quarter ad space on three successive pages to advertise the winter clearance sale on different models of sewing machines at Raiment authorized dealers. Raiment is using _____ to attract readers' attention. A. B. C. D. E.

gatefolds bleed pages creative space buys overruns total page ads

In the above scenario, Raiment is using creative space buys to attract readers' attention. Creative space buys are offered by magazines to enhance the creative appeal of an ad and increase attention and readership. Some magazines let advertisers purchase space units in certain combinations to increase the impact of their media budget. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

64. Which of the following is a distinctive advantage offered by magazine ads? A. low lead time B. greater frequency C. higher reach D. long life span E. low costs A distinctive advantage offered by magazines is their long life span—permanence. Magazines are generally read over several days and are often kept for reference. They are retained in the home longer than any other medium and are generally referred to on several occasions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

65. Chris O'Brian, an avid skier, takes a weeklong ski vacation every winter. To help plan his vacation, O'Brian consults all of the past issues of Scend magazine, a publication on adventure sports destinations. Which of the following advantages of magazines as an advertising medium is demonstrated in the way O'Brian uses this publication? A. services B. permanence C. prestige D. creative flexibility E. geographic selectivity In the above scenario, the advantage of permanence is illustrated in the way O'Brian uses the publication. A distinctive advantage offered by magazines is their long life span—permanence. Magazines are generally read over several days and are often kept for reference. They are retained in the home longer than any other medium and are generally referred to on several occasions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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66. CL Inc. runs a series of product ads in a popular magazine. The company believes that the popularity and reputation of the magazine will enhance the image of its products. Which of the following distinct positive features of magazines is the company trying to utilize in this scenario? A. geographic selectivity B. creative flexibility C. prestige D. permanence E. Costs The above scenario is an illustration of the prestige that a magazine advertisement offers. A positive feature of magazine advertising is the prestige a product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

67. Which of the following is true of magazine advertising? A. It offers limited geographic selectivity. B. It is typically considered to lack permanence. C. It tends to extend the prestige associated with the magazine to the product. D. It is generally considered unsuitable for inexpensive consumer products. E. It is typically used only for B2B marketing. A positive feature of magazine advertising is the prestige a product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

68. Which of the following is a characteristic of magazine ads? A. They create lower customer receptivity. B. They do not offer permanence. C. They offer a potential for gaining prestige. D. They offer poor reproduction quality. E. They generally cost lower than newspaper ads. A positive feature of magazine advertising is the prestige the product or service may gain from advertising in publications with a favorable image. Companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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69. Consumers are generally receptive to advertising in magazines because A. ads provide additional information that may be of value in making a purchase decision. B. ads in magazines are intrusive and cannot be ignored. C. magazines are a low-involvement advertising medium. D. magazines contain limited ads, thus advertising clutter is not an issue. E. of its very short lead time. With the exception of newspapers, consumers are more receptive to advertising in magazines than in any other medium. Magazines are generally purchased because the information they contain interests a reader, and ads provide additional information that may be of value in making a purchase decision. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

70. Which of the following statements best explains the reason that consumers are more receptive to magazine advertising than to television advertising? A. Unlike television ads, magazine ads are invasive and not easy to ignore. B. Consumers become involved with magazines when they read them and are more likely to find ads acceptable or even enjoyable. C. The number of ads in magazines is much fewer than that of television, so consumers are not bothered by advertising clutter. D. More creative advertising options are available for magazines than those available for television advertising, implying that magazine ads are more interesting. E. Magazine advertising does not provide the psychographic or demographic selectivity that television advertising does. Consumers become involved with magazines when they read them and are also more likely to find ads acceptable, enjoyable, and even a valuable part of a publication. Magazine readers recognize that they control the rate and duration of their exposure to editorial content as well as advertisements and view ads as less disruptive to their media consumption experience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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71. Pluto Inc. prepares two magazine ads with slight regional variations. The ads are set to be launched in alternate copies of a particular issue. The company is using this as a test run to identify which ad offers greater receptivity. In this scenario, Pluto is using _____ A. ink-jet binding. B. selective binding. C. printaculars. D. split runs. E. bleed runs. In the given scenario, Pluto Inc. is using split runs. An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

72. A(n) _____ test is a service offered by magazines where two or more versions of an ad are run in alternate copies of a particular issue of a publication. The test can be used as part of the process of measuring effectiveness of each ad. A. split-run B. overrun C. gatefold D. bleed page E. day-after-recall An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

73. Which of the following is true of split runs? A. They are also known as bleed pages. B. They reproduce images using mechanical printing. C. They are usually printed in alternate copies of a specific magazine. D. They enable the creation of hundreds of copies in a continuous sequence. E. They are generally considered less effective than selective binding. An important service offered by some magazines is split runs, where two or more versions of an ad are printed in alternate copies of a particular issue of a magazine. This service is used to conduct a split-run test, which allows an advertiser to determine which ad generates the most responses or inquiries, providing some evidence as to their effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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74. Selective binding and ink-jet imaging make it possible for magazines to offer A. personalized advertising messages. B. high reach and frequency. C. reduced advertising rates. D. detailed advertising information. E. higher pass-along readership. Technological developments have made it possible for magazines to offer advertisers the opportunity to deliver personalized messages to tightly targeted audiences through selective binding and ink-jet imaging. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

75. _____ is a computerized production process that allows the creation of hundreds of copies of a magazine in one continuous sequence. A. Split running B. Overrunning C. Gatefolding D. Ink-jetting E. Selective binding Selective binding is a computerized production process that allows the creation of hundreds of copies of a magazine in one continuous sequence. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

76. _____ is a computerized production process that enables magazines to send different editorial or advertising messages to groups of subscribers within the same issue of a publication. A. Split running B. Selective binding C. Cross-media running D. Controlled circulation E. Digital jetting Selective binding is a computerized production process that allows the creation of hundreds of copies of a magazine in one continuous sequence. Selective binding enables magazines to target and address specific groups within a magazine's circulation base. The magazine publishers can then send different editorial or advertising messages to various groups of subscribers within the same issue of a publication. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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77. Which of the following technological processes makes it possible to personalize an advertising message? A. cross-boarding B. ink-jet imaging C. cross-media binding D. digital imaging E. desktop publishing Ink-jet imaging reproduces a message by projecting ink onto paper rather than using mechanical plates. This process makes it possible to personalize an advertising message. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

78. Which of the following is a disadvantage associated with advertising in magazines? A. lack of permanence B. lack of prestige C. absence of consumer receptivity to ads D. limited reach and frequency E. creative inflexibility Although the advantages offered by magazines are considerable, they have certain drawbacks too. These include the costs of advertising, their limited reach and frequency, the long lead time required in placing an ad, and the problem of clutter and heavy advertising competition. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

79. Which of the following is true of magazine advertising? A. It offers lower consumer receptivity and engagement. B. It offers relatively lower competition. C. It offers relatively lower reach and frequency than other media. D. It is generally considered to have a lower lead time. E. It does not offer selective binding opportunities. Magazines are generally not as effective as other media in offering reach and frequency. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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80. Using multiple ads in the same issue A. is relatively less expensive than ink-jet imaging. B. is considered to be an inefficient way to build frequency. C. is referred to as the process of selective binding. D. is the most popular method for obtaining greater reach. E. is known as split running. Using multiple ads in the same issue of a publication is an inefficient way to build frequency. Most advertisers try to achieve frequency by adding other magazines with similar audiences to the media schedule. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

81. Which of the following is a disadvantage inherent in advertising in magazines? A. creative inflexibility B. lack of demographic selectivity C. poor reproduction quality D. long lead times E. low publication prestige One drawback of magazines is the long lead time needed to place an ad. Most major publications have a 30- to 60-day lead time, which means space must be purchased and the ad must be prepared well in advance of the actual publication date. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

82. Which of the following is one of the disadvantages associated with the use of magazines as an advertising medium? A. low receptivity to advertising by readers B. low demographic selectivity C. thin penetration of households D. reduced permanence and prestige E. inability to offer specialized services Magazines are generally not as effective as other media in offering reach and frequency. While nearly 90 percent of adults in the United States read one or more consumer magazines each month, the percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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83. The high ratio of advertising to editorial content in most magazines causes magazines to experience the problem of A. clutter. B. limited frequency. C. longer lead times. D. lower selectivity. E. low reproduction quality. The clutter problem for magazines is something of a paradox: The more successful a magazine becomes, the more advertising pages it attracts, and this leads to greater clutter. Magazine publishers do attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

84. Which of the following statements is true about clutter in magazine advertising? A. Clutter makes it easy for an advertiser to gain readers' attention and draw them into an ad. B. Most magazines devote less than 30 percent of their pages to advertising and clutter is typically controlled. C. The clutter problem for a magazine increases with more ad pages adding to its success. D. Most magazines are not concerned about the clutter problem since there is usually no other way for advertisers to reach the market they serve. E. Magazine publishers do not attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising. The clutter problem for magazines is something of a paradox: The more successful a magazine becomes, the more advertising pages it attracts, and this leads to greater clutter. Magazine publishers do attempt to control the clutter problem by maintaining a reasonable balance of editorial pages to advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

85. Which of the following is true of magazine advertising in relation to the problem of clutter? A. Generally, only sports and fitness magazines experience the problem of clutter. B. Magazine publishers do not attempt to control the clutter problem. C. It is not as serious an issue for magazines as for radio or TV. D. The problem of clutter is usually solved with split runs. E. Typically, magazine readers are less tolerant toward clutter. Clutter is not as serious an issue for the print media as for radio or TV, since consumers tend to be more receptive and tolerant of print advertising. They can also control their exposure to a magazine ad simply by turning the page. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media. Topic: Advertising Media

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86. Media buyers primarily evaluate magazines on the basis of A. the ability to offer specialized services such as selective binding, ink-jet imaging, and split runs. B. the size and space of the bleed pages. C. their ability to deliver the advertiser's message to as many people as possible in the target audience. D. their ability to provide or create a psychographic segregation. E. the pass-along readership offered. Media buyers evaluate magazines on the basis of their ability to deliver the advertiser's message to as many people as possible in the target audience. To do this, they must consider the circulation of the publication as well as its total readership and match these figures against the audience they are attempting to reach. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

87. _____ is the number of magazine copies distributed to original subscribers or purchasers. A. Primary circulation B. Total circulation C. Tangential readership D. Guaranteed circulation E. Pass-along circulation The number of magazine copies distributed to original subscribers or purchasers is known as primary circulation and is the basis for the magazine's rate structure. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

88. _____ figures represent the number of individuals who receive a magazine publication through either subscription or store purchase. A. Selective binding B. Lead time C. Circulation D. Readership E. Clutter Circulation figures represent the number of individuals who receive a publication through either subscription or store purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

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89. When publications fix advertising rates based on a set average circulation figure that is nearly always below the actual circulation delivered by a given issue but carries no guarantee, they are using A. ancillary circulation rates. B. a circulation verification system. C. pass-along circulation rate scale. D. a circulation rate base system. E. a rebate system. Under a circulation rate base system, rates are based on a set average circulation that is nearly always below the actual circulation delivered by a given issue but carries no guarantee. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

90. Which of the following is true of the "50 percent rule"? A. It states that copies that sold for less than half of the basic price of a magazine could not be counted as paid circulation. B. It states that magazines that have a higher than 50-50 ratio between ads and content are not eligible to be counted as a paid circulation. C. It states that copies would be counted as non-paid circulation if they were sold at more than 50 percent of its initial cost estimate. D. It states that copies sold at greater than 50 percent of the value of its production cost cannot be counted as paid circulation. E. It states that magazines are considered as print ads only if they sell more than 50 percent of the total production number. The long-standing "50 percent rule" states that copies that sold for less than half of the basic price of a magazine could not be counted as paid circulation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

91. Many business magazines are sent free to individuals who, a publisher believes, can influence a company's purchases for products and services advertised in the publication. This activity is referred to as _____ basis. A. primary circulation B. guaranteed circulation C. pass-along circulation D. principal-circulation E. controlled-circulation Many magazines are published on a controlled-circulation basis, meaning copies are sent (usually free) to individuals a publisher believes can influence a company's purchases. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

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92. Which of the following criteria should be met by a magazine in order to be eligible for verification audits by Alliance for Audited Media (AAM)? A. It must be published on a controlled-circulation basis. B. It must be a business publication. C. The publication must have 70 percent or more paid circulation. D. The publication must be a member of the Magazine Publishers of America Trade Association. E. The publication must have a digital replica edition of magazines. Only publications with 70 percent or more paid circulation are eligible for verification audits by Alliance for Audited Media (AAM). In 2002 the former Audit Bureau of Circulations approved new guidelines for counting magazine circulation and sales. The changes did away with the long-standing "50 percent rule," in which copies that sold for less than half of the basic price of a magazine could not be counted as paid circulation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

93. Circulation verification services are important to media planners because A. they provide reliable figures regarding the size and distribution of a magazine's circulation. B. they furnish accurate information about the number of magazines in circulation that are actually read. C. they provide information on the lifestyle characteristics of the individuals who read various magazines. D. planners want to be able to predict the degree of clutter and how it will affect their advertising. E. planners receive advertising funding from various trade associations based on the number of magazines in circulation that were distributed. Circulation verification services provide media planners with reliable figures regarding the size and distribution of a magazine's circulation that help them evaluate its worth as a media vehicle. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

94. During her visit to a beauty salon, Lily browsed through , a magazine dedicated to working women, while she was waiting at the reception. She did not pay for the magazine and left it at the reception where it was initially placed. This scenario is an illustration of A. primary readership. B. guaranteed readership. C. pass-along readership. D. total readership. E. principal readership. The above scenario is an example of pass-along readership. Pass-along readership can occur when a primary subscriber or purchaser gives a magazine to another person or when a publication is read in doctors' waiting rooms or beauty salons, on airplanes, and so forth. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

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95. Which of the following comparisons between primary in-home readers, pass-along readers, and out-of-home readers is true? A. Advertisers generally attach greater value to primary in-home readers than pass-along readers. B. Pass-along readers and out-of-home readers are more likely to read a magazine than principal readers. C. Pass-along readers should be totally discounted in evaluating magazine readership. D. Pass-along readers generally spend more time with a magazine and pick it up more often than primary in-home readers. E. Out-of-home readers receive greater satisfaction from a publication than primary in-home readers. Advertisers generally attach greater value to a primary in-home reader than a pass-along reader or out-of-home reader, as the former generally spends more time with a publication, picks it up more often, and receives greater satisfaction from it. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

96. The total audience, or readership, of a magazine can be calculated by A. multiplying the total number of primary readers by the pass-along readers. B. multiplying the total readership by the average pass-along readership number. C. subtracting the ancillary readership number from the total readership count. D. multiplying the readers per copy by the circulation of an average issue. E. subtracting the pass-along readership number from the total readership count. The total audience, or readership, of a magazine can be calculated by multiplying the readers per copy (the total number of primary and pass-along readers) by the circulation of an average issue. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

97. James regularly borrows a magazine from Lily, who subscribes to it. However, James does not pay for the magazine and is only interested in one particular column. In this scenario, Lily is considered to be a(n) A. ancillary reader. B. pass-along subscriber. C. primary reader. D. secondary subscriber. E. total reader. In the above scenario, Lily is considered the primary reader. Pass-along readership can occur when the primary subscriber or purchaser gives a magazine to another person or when the publication is read in doctors' waiting rooms or beauty salons, on airplanes, and so forth. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines. Topic: Advertising Media

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98. Magazine rates are primarily a function of A. selectivity. B. digital imaging. C. selective binding. D. circulation. E. pass-along readership. Magazine rates are primarily a function of circulation. Other variables include the size of an ad, its position in a publication, the particular editions (geographic, demographic) chosen, any special mechanical or production requirements, and the number and frequency of insertions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

99. Which of the following statements is true about the use of color in magazine advertising? A. The more the color used in an ad, the lower the advertising cost. B. Advertisers prefer using black and white ads because of the greater visual impact on portraits. C. Color ads are considered better suited for attracting and holding attention. D. Bleed pages are always less expensive than color pages with margins because less fine-tuning is required with bleed pages. E. Color ads are generally cheaper than black and white ads if they are placed on the front cover of a magazine. Advertisers generally prefer color ads because they have greater visual impact and are superior for attracting and holding attention. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

100. _____ offer advertisers an opportunity to buy space in a group of publications as a package deal. A. Cross-media organizations B. Magazine networks C. Publication verification networks D. Magazine blocks E. Print networks Magazine networks offer advertisers an opportunity to buy space in a group of publications as a package deal. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-03 Describe how advertising space is purchased for magazines. Topic: Advertising Media

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101. Which of the following is one of the ways magazine publishers are looking to improve their positions? A. Higher quality paper and ink B. Stronger editorial platforms C. Better circulation management D. Cross-magazine and media deals E. Database marketing The ink and paper costs are increasing, so publishers are not looking to spend more money on either one. Publishers are pursuing stronger editorial platforms, better circulation management, cross-magazine and media deals, database marketing, technological advances, and electronic delivery methods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 12-04 Discuss future trends and developments for magazines and how they influence their use as an advertising medium. Topic: Advertising Media

102. Which of the following is true of weekly newspapers? A. They do not focus on news and recent events. B. They typically originate in small towns or suburbs. C. They are used exclusively by national advertisers. D. They are printed on a weekly basis due to the large volume of news. E. They are also known as national newspapers. Most weekly newspapers originate in small towns or suburbs where the volume of news and advertising cannot support a daily newspaper. These papers focus primarily on news, sports, and events relevant to a local area and usually ignore national and world news, sports, and financial and business news. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

103. National advertisers tend to avoid weekly newspapers because of A. their poor image. B. their high absolute cost. C. their duplicate circulation with daily newspapers. D. their broad geographic focus. E. the large number of local ads they typically contain. Most national advertisers avoid weekly newspapers because of their duplicate circulation with daily or Sunday papers in the large metropolitan areas and problems in contracting for and placing ads in these publications. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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104. _____ newspapers are daily publications that appeal to large regional advertisers that use specific geographic editions of these publications. A. Weekly B. National C. Sunday D. Special-audience E. Bimonthly National newspapers appeal primarily to large national advertisers and to regional advertisers that use specific geographic editions of these publications. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

105. Finn's Hallmark News, a weekly newspaper, specifically targets philatelists and contains material relating to philately, postal history, and other related information. In this scenario, Finn's Hallmark News is a A. trade newspaper. B. special-audience newspaper. C. demographic-oriented newspaper. D. newspaper supplement. E. regional newspaper. In the above scenario, is a special audience newspaper. A variety of papers offer specialized editorial content and are published for particular groups, including labor unions, professional organizations, industries, and hobbyists. These are known as special-audience newspapers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

106. _____ offer differentiated editorial content and are published for labor unions, professional organizations, industries, or hobbyists. A. Trade newspapers B. Newspaper supplements C. Regional newspapers D. Special-audience newspapers E. Demographic-oriented newspapers A variety of papers offer specialized editorial content and are published for particular groups, including labor unions, professional organizations, industries, and hobbyists. These are known as special-audience newspapers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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107. Newspapers targeted at various religious groups compose a large class of A. gatefold papers. B. special-interest papers. C. syndicated newspaper supplements. D. national newspapers. E. consumer publications. Newspapers targeted at various religious groups compose a large class of special-interest papers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

108. Although not a category of newspapers per se, _____ are valuable to advertisers that want to use a newspaper yet get four-color reproduction quality in their ads. A. daily newspapers B. classifieds C. magazine supplements D. freestanding inserts E. special-audience newspapers Although not a category of newspapers per se, many papers include magazine-type supplements, primarily in their Sunday editions. Supplements are valuable to advertisers that want to use the newspaper yet get four-color reproduction quality in their ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

109. Which of the following statements is true about newspaper supplements? A. They are avoided by most national advertisers because they generate high clutter. B. They are generally considered unsuitable for national advertising due to their high cost. C. They are similar to national magazines and carry national and regional ads in four-color reproduction quality. D. They appeal to advertisers who are not concerned about reproduction quality and who prefer to use black and white ads. E. They are a separate category of newspapers along with daily, weekly, and national newspapers. Newspaper supplements are similar to national magazines and carry both national and regional advertising. Supplements are valuable to advertisers that want to use the newspaper yet get four-color reproduction quality in their ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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110. _____ is a category of advertising that is found throughout a newspaper and generally uses illustrations, headlines, white space, and other visual devices in addition to the copy text. A. Display advertising B. Classified C. Preprinted insert D. Bleed ads E. Special advertising Display advertising is found throughout a newspaper and generally uses illustrations, headlines, white space, and other visual devices in addition to the copy text. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

111. Which of the following is true of local display advertising? A. It is primarily used by supermarkets and department stores. B. It refers to newspaper display advertising done by marketers of branded products. C. It is primarily used by airlines, major retail chains, and automakers. D. It is used to market products but not services. E. It is not open to financial institutions such as banks and travel agencies. Local advertising refers to ads placed by local organizations, businesses, and individuals who want to communicate with consumers in the market area served by the newspaper. Supermarkets and department stores are among the leading local display advertisers, along with numerous other retailers and service operations such as banks and travel agents. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

112. Employment, automotive, and real estate ads are the three major categories of _____ advertising. A. local display B. special C. insert D. classified E. Retail Employment, real estate, and automotive are the three major categories of classified advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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113. Mars Inc. printed 1,200 brochures with the intention of distributing them using a national newspaper. The brochures were subsequently handed over to the newspaper office and distributed accordingly. This scenario depicts the use of _____ A. display advertising. B. classified advertising. C. a preprinted insert. D. a printacular. E. gatefold advertising. The above scenario depicts the use of a preprinted insert. Preprinted inserts are a type of advertising distributed through newspapers. These ads do not appear in the paper itself; they are printed by an advertiser and then taken to the newspaper to be inserted before delivery. Many retailers use inserts such as circulars, catalogs, or brochures in specific circulation zones to reach shoppers in their particular trade areas. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

114. Which of the following is true of newspapers as an advertising medium? A. They do not enable marketers to use geographic selectivity. B. They are generally considered to have better reproductive quality than magazines. C. They offer high market penetration and coverage. D. They offer limited flexibility to advertisers. E. They typically have a long life span. One of the primary advantages of newspapers is the high market coverage or penetration they offer an advertiser. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

115. Which of the following is true of newspaper advertisements? A. They do not require the use of creative options. B. They are highly expensive to create. C. They can be reproduced quickly. D. They are considered inflexible during production. E. They typically offer limited selectivity. One advantage of newspapers is the flexibility they offer advertisers. First, they are flexible in terms of requirements for producing and running the ads. Newspaper ads can be written, laid out, and prepared in a matter of hours. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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116. Newspapers generally offer more _____ than any other medium except direct mail. A. digital imaging B. geographic selectivity C. color advertising D. permanence E. creative options Newspapers generally offer advertisers more geographic or territorial selectivity than any other medium except direct mail. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

117. Which of the following statements about the geographic selectivity offered by newspapers is true? A. Newspapers offer less geographic selectivity than most other media. B. Newspapers in large cities provide very little geographic selectivity to advertisers. C. Newspapers provide little geographic selectivity to local advertisers because of their inability to adapt ad campaigns to local market conditions. D. Newspapers provide geographic selectivity by creating strong sales potential in a particular area for national advertisers. E. Newspapers offer advertisers more geographic selectivity than direct mail. National advertisers take advantage of the geographic selectivity of newspapers to concentrate their advertising in specific areas they can't reach with other media or to take advantage of strong sales potential in a particular area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

118. Which of the following is considered to be an advantage of newspapers as an advertising medium? A. They offer several valuable specialized services to advertisers. B. They offer better reproductive quality than magazines. C. They generally have a long life span. D. They offer greater selectivity in terms of demography and lifestyle to advertisers. E. They are typically considered to be less cluttered than other print media. The special services newspapers offer can be valuable to advertisers. For example, many newspapers offer merchandising services and programs to manufacturers that make the trade aware of ads being run for a company's product and help convince local retailers they should stock, display, and promote the item. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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119. The coarse paper stock used in printing most newspapers leads to A. their limited pass-along readership. B. a lack of reader interest and involvement. C. the presence of extensive clutter. D. a lack of geographic selectivity. E. poor reproduction quality. One of the greatest limitations of newspapers as an advertising medium is their poor reproduction quality. The coarse paper stock used for newspapers, the absence of color, and the lack of time papers have available to achieve high-quality reproduction limit the quality of most newspaper ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

120. Pluto Inc. is planning to run an ad in a weekly newspaper. Which of the following disadvantages of newspapers as an advertising medium should Pluto Inc. consider? A. lack of geographic selectivity B. lack of demographic selectivity C. high cost of reproduction D. limitations in pass-along readership E. lack of reader involvement In the above scenario, Pluto Inc. should consider the lack of demographic selectivity. While newspapers can offer advertisers geographic selectivity, they are not a selective medium in terms of demographics or lifestyle characteristics. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

121. Which of the following statements about newspapers as an advertising medium is true? A. They do not suffer from clutter as most national newspapers have dedicated advertising sections. B. They do not facilitate the use of unconventional sizes and formats such as stairsteps, bookends, U-shapes, island ads, spadea ads, and half-page spreads. C. Unlike magazines, they are generally easier to reproduce. D. Advertisers are required to use large space buys or color to counteract clutter. E. Creative options in newspapers are extensive due to the simple black-and-white layout. The creative options in newspapers are limited by the fact that most ads are black and white. Thus, it can be difficult for a newspaper advertiser to break through the clutter without using costly measures such as large space buys or color. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

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122. A clothing retailer would use an island ad to A. break through the clutter typically found in newspapers. B. create high reproduction quality ads. C. make a newspaper accountable for the sales generated by the ad. D. reduce overall costs of newspaper advertising. E. identify potential target markets. A clothing retailer would use an island ad to break through clutter found in newspapers. Many newspapers are now offering advertisers the opportunity to use innovative shape-based ads that utilize unconventional sizes and formats such as stairsteps, bookends, U-shapes, island ads, spadea ads, and half-page spreads in order to break through the clutter. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

123. ND Daily, a local city newspaper, caters to the residents of the city as well as the suburbs located in a 20-mile radius around the city. If the market area within the city is referred to as the city zone, the market in the suburbs whose residents trade with merchants in the city zone is referred to as the A. local zone. B. retail trading zone. C. demarcated zone. D. peripheral zone. E. special category zone. This scenario is an illustration of a retail trading zone. The retail trading zone is the market outside the city zone whose residents regularly trade with merchants within the city zone. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers. Topic: Advertising Media

124. National advertisers in the automotive, tobacco, and pharmaceutical fields are liable to A. retail advertising rates. B. general advertising rates. C. local advertising rates. D. flat rates. E. NNN rates. General advertising rates apply to display advertisers outside the newspaper's designated market area (DMA) and to any classification deemed by the publisher to be "general" in nature. This includes ads run by national advertisers such as automotive, tobacco, packaged-goods, and pharmaceutical companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

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125. ______ apply to advertisers that conduct business or sell goods or services within the DMA. A. General advertising rates B. Flat rates C. Retail or local advertising rates D. Preferred position rates E. Combination rates Retail or local advertising rates apply to advertisers that conduct business or sell goods or services within the DMA. The rates paid by general advertisers are, on average, 75 percent higher than those paid by local advertisers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

126. Which of the following is true of the standard advertising unit system? A. It is also referred to as the agate line. B. It is used to determine basic newspaper advertising rates. C. It has complicated the newspaper purchase and production process. D. It cannot be applied to regional and local newspapers. E. It includes tabloid-size papers two columns wide. While the column inch and standard advertising unit (SAU) are used to determine basic newspaper advertising rates, the media planner must consider other options and factors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

127. _____ give advertisers a discount for using several newspapers as a group. A. Preferred position rates B. Flat rates C. Local advertising rates D. General advertising rates E. Combination rates Advertisers can buy newspaper space based on combination rates, where they get a discount for using several newspapers as a group. Typically, a combination rate occurs when a publisher owns both a morning and an evening newspaper in a market and offers a reduced single rate for running the same ad in both newspapers, generally within a 24-hour period. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

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128. When a newspaper offers no discounts for quantity or repeated space buys, it is using a(n) _____ structure. A. ROP B. inch rate C. open rate D. flat rate E. SAU rate Many newspapers charge flat rates, which means they offer no discount for quantity or repeated space buys. Others have an open rate structure, which means various discounts are available. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

129. Basic rates quoted by a newspaper that call for an ad to be placed on any page or in any position desired by the paper are known as _____ rates. A. preferred position B. open C. flat D. run of paper E. Combination The basic rates quoted by a newspaper are run of paper (ROP), which means the paper can place an ad on any page or in any position it desires. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

130. If a promoter of a boxing match wants to place an ad in the sports section of a newspaper, the promoter is likely to pay a(n) _____ rate. A. flat B. run of paper C. preferred position D. agate E. SAU In the above scenario, the promoter is likely to pay a preferred position. While most newspapers try to place an ad in a requested position, an advertiser can ensure a specific section and/or position on a page by paying a higher preferred position rate. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined. Topic: Advertising Media

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131. After they realized that advertisers use newspapers to reach consumers within a specific geographic area and do not want to pay for readers in outlying areas, some major metropolitan newspapers eliminated _____________ and focused more on regional editions in their immediate trade area. A. gatefold B. SAU C. city zones D. combination zones E. ego circulation Eliminating ego circulation is when a publisher focuses more on a given trade area to reduce the amount of wasted circulation for advertisers who just want to hit the local market. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 12-07 Discuss future trends and developments for newspapers and how they will influence their use as an advertising medium. Topic: Advertising Media

132. Surveys show that the percentage of women who read a newspaper on a typical day recently declined to _____________ percent. A. 39 B. 47 C. 59 D. 67 E. 69 Surveys show that the percentage of women who read a newspaper on a typical day declined from 67 percent in 1981 to 39 percent recently. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 12-07 Discuss future trends and developments for newspapers and how they will influence their use as an advertising medium. Topic: Advertising Media

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Chapter 12 Test Bank 01/11/2017 16:37:37 Summary Category-# of Questions AACSB: Analytical Thinking-110 AACSB: Reflective Thinking-22 Accessibility: Keyboard Navigation-132 Blooms: Apply-23 Blooms: Remember-64 Blooms: Understand-45 Difficulty: 1 Easy-62 Difficulty: 2 Medium-47 Difficulty: 3 Hard-23 Learning Objective: 12-01 Compare magazines and newspapers in terms of their value as advertising media.-70 Learning Objective: 12-02 Discuss magazine circulation and readership and audience information and research for magazines.-14 Learning Objective: 12-03 Describe how advertising space is purchased for magazines.-6 Learning Objective: 12-04 Discuss future trends and developments for magazines and how they influence their use as an advertising medium.-3 Learning Objective: 12-05 Describe the newspaper audience and audience information and research for newspapers.-29 Learning Objective: 12-06 Discuss how advertising space is purchased for newspapers and rates are determined.-10 Learning Objective: 12-07 Discuss future trends and developments for newspapers and how they will influence their use as an advertising medium.-3 Topic: Advertising Media-132

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Chapter 13 Test Bank Student: ___________________________________________________________________________ 1. Support media cannot be used as a sole medium for advertising. True False

2. Support media are also known as measured media because they are easy to measure. True False

3. Hybrids of traditional and nontraditional support media are used by traditional media to update their offerings for a new media environment. True False

4. Out-of-home advertising is one of the newest methods of advertising that has grown with the development of new technology. True False

5. One of the major disadvantages of outdoor advertising is its lack of persuasiveness. True False

6. Ambient advertising often uses digital technology to send its messages. True False

7. Aerial advertising is very expensive in terms of absolute costs, especially when employed to reach specific target markets. True False

8. The costs of mobile billboards depend on the area and the mobile board company's fees. True False

9. Mobile billboard ads enjoy high levels of recall and readership, leading to increased sales. True False

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10. Shopping cart signage is a type of in-store media. True False

11. The increase in the number of women in the work force has led to the increased popularity of transit media. True False

12. One of the disadvantages of transit cards is that they can be depressing and intrusive. True False

13. Advertising specialties are always distributed free of charge to the recipients. True False

14. The average CPM of outdoor ads is greater than that of radio and magazines ads. True False

15. Nelson receives a pen and a calendar free of charge from a store where he makes regular purchases. The calendar and the pen could be classified as advertising specialties. True False

16. Promotional products marketing is employed only by large companies. True False

17. Most forms of specialty advertising remain with a potential customer for a long time, providing a high level of retention. True False

18. Because of the high frequency of exposures, outdoor advertising may lead to a quick wearout. True False

19. A disadvantage of transit advertising is its inability to provide exposure to a large number of people. True False

20. A disadvantage of miscellaneous support media is its high relative and absolute cost. True False

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21. A store in Kentucky that offers a 20 percent discount to shoppers with the store's name tattooed in a visible location on the body is using nontraditional support media. True False

22. Ads placed on the backs of envelopes that contain airplane tickets and on banners pulled by planes that are flown over sports arenas are examples of A. support media. B. direct-response media. C. indirect communications. D. advertising accessories. E. category ads.

23. _____ media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce their messages. A. Advertising B. Direct response C. Traditional D. Sales promotion E. Support

24. Media used to reinforce communications messages that may have been received from other forms of advertising are called A. support media. B. source media. C. indirect communications. D. accessory advertising. E. category ads.

25. Another name for alternative media is A. functional communications. B. nontraditional media. C. measured media. D. above-the-line media. E. nonstructured communications.

26. Support media can be broadly categorized into A. outdoor media and transit media. B. nontraditional media and below-the-line support media. C. outdoor media and in-store media. D. traditional support media and nontraditional support media. E. aerial media and ambient media.

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27. _____ media include billboards, street furniture, alternative media, transit, as well as specific forms of radio. A. Radio advertising B. Aerial advertising C. Buzz advertising D. Multilevel advertising E. Out-of-home advertising

28. The _____ categorizes billboards, street furniture, alternative media, transit, and specific forms of radio as out-of-home advertising. A. Traffic Audit Bureau (TAB) B. Outdoor Advertising Association of America (OAAA) C. Competitive outdoor media report D. American Public Transportation Association (APTA) E. Point of Purchase Advertising Institute

29. Of all out-of-home media, _____ advertising enjoys the highest outdoor billings. A. transit B. blimp C. airport D. billboard E. in-store

30. Which of the following is true of outdoor advertising? A. Outdoor advertising is the newest form of advertising that emerged with the onset of technology. B. Messages communicated through outdoor advertising are often dissuasive. C. Outdoor advertising has plunged with the increasing number of women in the work force. D. Outdoor advertising is the only form of advertising that is independent of national legislation. E. Outdoor advertising is a pervasive form of communication for residents of urban and suburban areas.

31. Which of the following pieces of federal legislation resulted in the ban of interstate billboard advertising? A. Fair Packaging and Labeling Act (1966) B. Wheeler-Lea Act (1938) C. Highway Beautification Act of 1965 D. National Environmental Policy Act (1969) E. Consumer Product Safety Act (1972)

32. A major reason for the continued success of outdoor advertising is A. its ability to communicate complex messages. B. its low cost. C. its ability to eliminate waste coverage. D. its ability to remain innovative through technology. E. its ability to provide extremely accurate measures of the medium's reach.

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33. Skywriting is a form of A. billboard advertising. B. transit advertising. C. digital advertising. D. blimp advertising. E. aerial advertising.

34. Video advertising, digital billboards, and ambient advertising are forms of A. aerial advertising. B. television advertising. C. magazine advertising. D. digital out-of-home media. E. digital network advertising.

35. Cosmetics company Street Smart Inc. uses skywriting over local beaches to promote its range of beauty products for women. In this scenario, Street Smart is using A. guerrilla marketing. B. aerial advertising. C. specialty advertising. D. viral marketing. E. network advertising.

36. During a basketball game, Brendon sees an advertisement for "Swift" running shoes in a huge digital screen at Citygate Sports Arena. This is an example of A. aerial advertising. B. specialty advertising. C. video advertising networks. D. network advertising. E. digital mobile billboards.

37. Santander Bank did a neighborhood takeover in Boston, Massachusetts, which included advertising on bus shelters and kiosks. These are examples of A. street furniture. B. billboards. C. video advertising networks. D. network advertising. E. digital mobile billboards.

38. Britney visits a mall and notices an advertisement for Auburn Beauty shampoo on a large LCD screen. This is an example of a(n) A. digital billboard. B. advertising specialty. C. aerial advertisement. D. mnemonic. E. mobile billboard.

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39. _____ include(s) smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items. A. Mobile billboards B. Ambient advertising C. Transit advertising D. Aerial advertising E. Digital billboards

40. During a college football match, a giant blimp with the slogan, "Entreat Sandwiches—A treat for your taste buds" is on display for the spectators. This is an example of A. transit advertising. B. mobile advertising. C. digital advertising. D. aerial advertising. E. specialty advertising.

41. During the opening ceremony of a national skateboarding league at Harmon Beach, California, a hot air balloon with an advertisement for Fizzy soda is spotted by the spectators. This is an example of A. aerial advertising. B. transit advertising. C. mobile advertising. D. digital advertising. E. specialty advertising.

42. Which of the following statements about aerial advertising is true? A. It is expensive in absolute terms. B. It can be used to reach specific target markets. C. It is seldom used by local advertisers. D. It is illegal at sporting events. E. It is generally used inside stores and small supermarkets.

43. Jimmy's, a grocery store, advertises its products by painting its name, logo, and abstract images of its products on the sides of its delivery vehicles. This is an example of A. transit advertising. B. mobile billboard advertising. C. buzz advertising. D. digital advertising. E. in-store advertising.

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44. Ads on small hoardings that are mounted on trailers and driven around or parked in the geographic areas being targeted are known as A. aerial ads. B. mobile billboards. C. advertising specialties. D. ambient ads. E. pop-ups.

45. The cost of mobile billboards depends on A. the number of clicks. B. the number of recalls. C. sales of the product advertised. D. the geographic area advertised in. E. the speed of the billboard.

46. A City of Boston public transit bus was painted to look like a large loaf of Galaxy Bread. This is an example of A. bulletin advertising. B. a mobile billboard. C. free-form advertising. D. a printacular. E. aerial advertising.

47. While shopping at a local retail store, Jenna sees an ad for Aileen sunscreen lotion on the back of her shopping cart. This is an example of A. aerial advertising. B. transit advertising. C. a mobile billboard. D. in-store media. E. interactive media.

48. _____ is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. A. Aerial advertising B. Transit advertising C. In-store advertising D. Specialty advertising E. Promotional products marketing

49. While commuting by a local bus, Trevor notices an ad for "Tantalize Sandwiches" above his seat. This is an example of A. transit advertising. B. an out-office media outlet. C. aerial advertising. D. a mobile billboard. E. specialty advertising.

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50. A research study concluded that approximately two-thirds of all consumers' purchase decisions are made while shopping. Given this fact, which of the following media should be most effective in influencing consumer decisions? A. nationally televised ads B. in-store media C. local newspaper coupon supplements D. parking meter advertisements E. billboards

51. While driving, Janice notices an animated, electronic billboard ad for Zesty Soda on top of a passing taxicab. This is an example of A. specialty advertising. B. stationary advertising. C. transit advertising. D. aerial advertising. E. free-form advertising.

52. An ad in a subway for a local Mexican restaurant is an example of A. a sales promotion. B. specialty advertising. C. transit advertising. D. aerial advertising. E. free-form advertising.

53. There has been a renewed interest in transit advertising over the last few years due to A. the increased number of women in the work force. B. the development of Internet advertising. C. the ban on billboard advertisements for cigarettes. D. an increase in the number of consumers who are over 60. E. a change in entertainment venues.

54. Kevin sees an ad for Crixus Car Rental on a luggage trolley at the airport. The ad is an example of A. a sales promotion. B. stationary advertising. C. transit advertising. D. aerial advertising. E. free-form advertising.

55. While traveling on a commuter bus, Lauren notices an ad for Flare deodorant above her seat. This is an example of a(n) _____ used in transit advertising. A. outside poster B. aerial banner C. spectacular D. inside card E. terminal poster

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56. Advertisements for restaurants, TVs, radio stations, or other products and services placed above the seats and luggage areas in commuter buses are known as A. aerial ads. B. in-store ads. C. terminal posters. D. inside cards. E. mobile ads.

57. While walking on the street, Carlos sees an animated electronic billboard in Spanish for Amado home appliances on top of a taxicab. This is an example of a(n) A. terminal transit poster. B. inside card. C. outside poster. D. interactive billboard. E. aerial ad.

58. _____ are a form of transit advertising that appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. A. Inside cards B. Aerial ads C. Specialty ads D. Terminal posters E. Outside posters

59. A cab service company uses a global positioning satellite (GPS) system to customize the advertising messages shown on top of its taxicabs. This is an example of technology-driven _____ advertising. A. specialty B. transit C. aerial D. network E. broadcast

60. Floor displays, island showcases, electronic signs, and other forms of advertising that appear in train or subway stations and airline terminals are all forms of A. transit advertising. B. aerial advertising. C. buzz marketing. D. branded entertainment. E. above-the-line advertising.

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61. Which of the following is an advantage of outdoor advertising? A. ability to communicate complex messages B. low cost C. elimination of waste coverage D. geographic flexibility E. limited exposure

62. Which of the following is an advantage of outdoor advertising? A. no waste coverage B. ease of measurement of audience size C. wide coverage of local markets D. low costs E. slow wearout

63. Outdoor advertising would best be suited for a company whose communication objective is to A. attain brand awareness. B. explain a complex product advantage. C. create an attitude change. D. stimulate product trial for a new gadget. E. expand exposure time of its advertising messages.

64. Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency? A. outdoor advertising B. specialty advertising C. print media D. in-store advertising E. in-flight advertising

65. Which of the following is a disadvantage of transit advertising? A. low frequency of exposure B. high relative costs C. varying mood of the audience D. limited exposure time to an ad E. immediate results

66. Which of the following is an advantage of indoor transit advertising? A. long length of exposure B. elimination of waste coverage C. no copyright limitations D. accurate measurement of audience mood E. selectivity based on audience lifestyle

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67. Fervor Inc., a leading women's clothing line, has printed its company name and logo on ballpoint pens, calendars, and key rings. As part of its promotional strategy, customers of Fervor are offered these items as complimentary gifts. These items are referred to as A. ambient products. B. premiums. C. advertising specialties. D. company benefits. E. support media products.

68. As a part of its corporate strategy Helios Inc., an automaker, offers business gifts such as key chains, planners, and T-shirts to its customers for their patronage. In this scenario, Helios is using _____ A. buzz marketing. B. guerrilla marketing. C. viral marketing. D. promotional products marketing. E. above-the-line media marketing.

69. Ether Inc., an electronics manufacturer, offers T-shirts with the company's logo on them free of charge to its customers. Ether believes that this will help promote the company's products and attract more customers. This is an example of A. in-store advertising. B. specialty advertising. C. public relations enhancement. D. guerrilla marketing. E. product placement.

70. _____ is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products that are distributed free. A. Buzz marketing B. Specialty advertising C. Synchro marketing D. Guerrilla marketing E. Direct-response advertising

71. Products such as free pens, calendars, and coffee mugs featuring a company's name and used as promotional tools are referred to as A. premiums. B. advertising specialties. C. sales promotions. D. heuristics. E. mnemonics.

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72. Ourea Inc., a financial consulting company, distributes free stationery items like ballpoint pens, notepads, and file covers with the company logo to its customers. These items are known as A. advertising specialties. B. product placements. C. premiums. D. heuristics. E. mnemonics.

73. Which of the following support media should be employed if the objective is to achieve high levels of retention and make the communication a frequent reminder of a company's name and message? A. mobile billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages

74. Cumulus Corp. wants to generate goodwill among its customers. It aims at gaining a favorable impression that can positively impact its sales and revenues. Which of the following forms of support media can help Cumulus attain its desired outcome? A. multilevel marketing B. movie theater advertising C. promotional products marketing D. aerial advertising E. guerrilla marketing

75. Which of the following is a disadvantage of promotional products marketing? A. low level of frequency B. lack of audience selectivity C. lack of feedback channels D. lack of flexibility E. possibility of market saturation

76. Which of the following is an advantage of promotional products marketing? A. shorter lead time as compared to other media B. wider audience reach C. elimination of market saturation D. consistent portrayal of strong company image E. high recall of advertiser's name and message

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77. Which of the following statements is true of measurement in promotional products marketing? A. Reach and frequency are as easy to measure with promotional products marketing as with print advertising. B. Response to direct-mail advertising that includes promotional products marketing is typically used as a measure of all support media. C. Q-score is used as a measurement tool for promotional products marketing. D. Companies that use promotional products marketing are not interested in sales; they only want to create goodwill. E. There is no established ongoing audience measurement system for promotional products marketing.

78. _____ advertising is considered a directional medium because it points consumers toward where their purchases can be made rather than creating awareness or demand for products or services. A. Specialty B. Yellow Pages C. Ambient D. Transit E. Aerial

79. Woodlot Inc. is a furniture manufacturing company that has recently started its operations. It employs promotional strategies to create brand awareness and stimulate demand for its products. Since the company is still in its inception, it also wants to use a support medium that can point consumers in the direction in which they can purchase furniture for their household. Which of the following support media is best suited to Woodlot's purpose? A. specialty advertising B. Yellow Pages advertising C. aerial advertising D. movie theater advertising E. transit advertising

80. Which of the following support media should be employed if a consumer has already been provided with information about services offered by a company and now requires a directional medium? A. mobile billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages

81. Yellow Pages advertising is referred to as a directional medium. This means that Yellow Pages ads A. direct buyers to where a product can be purchased. B. direct buyers to other ads in the IMC program. C. direct consumers through the response hierarchy. D. are used to geographically segment buyers. E. are a form of direct-response advertising.

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82. Yellow Pages advertising has witnessed a decline because A. consumers consider it an unethical marketing practice. B. it lacks credibility and dependability. C. it fails to stimulate demand for an advertiser's products or services. D. consumers have turned to search and online directories to seek information. E. it does not create any awareness for an advertiser's products and services.

83. Which of the following statements is true of movie theater advertising? A. Absolute and relative costs per exposure are quite high in movie theater advertising. B. Movie theater ads offer low emotional attachment to moviegoers. C. Movie theater advertising does not provide demographic segmentation. D. Advertising in movie theaters offers lack of clutter as the number of ads is limited. E. CPM in movie theater advertising is lower than that of any other media.

84. Butterfly Wings Inc., a manufacturer of soft toys and greeting cards, planned to advertise its Valentine's Day merchandise in movie theaters. Based on the audience profile, one week prior to St. Valentine's Day, the company began screening its commercial before the start of two movies titled and . Since both movies were romantic dramas, Butterfly Wings' commercial evoked a positive response in moviegoers. In this scenario, which of the following advantages of movie theater advertising did the marketer exploit? A. lack of advertising clutter B. lower absolute costs C. demographic segmentation D. lower relative costs E. advertising proximity

85. Which of the following is true of movie theater advertising? A. It promotes a company's goodwill. B. It has the ability to target specific demographic segments. C. Its CPM is lower than that of any other medium. D. It has an inherent problem of clutter. E. It charges a premium for its advertisements.

86. Which of the following is a disadvantage associated with movie theater advertising? A. lack of emotional attachment B. low audience exposure C. possible irritation to audience D. extensive clutter E. limited segmentation

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87. Which of the following statements best compares the cost per thousand (CPM) for movie theater advertising with that of other media? A. The CPM for movie theater advertising is lower than that for magazines. B. Movie ads have a lower CPM than radio ads, but higher than newspaper ads. C. When compared to other advertising media, the CPM is quite high for movie ads. D. Unlike print media, the CPM is quite low for movie ads. E. The CPM for movie theater advertising is equal to that of other forms of advertising media.

88. Technology developed by Clear Channel Outdoor Americas, which has tens of thousands of billboards across the United States, and ____________ allows for tracking the movements of drivers who pass the billboards through their mobile phones. A. Verizon B. AT&T C. Nielsen D. Brandchannel E. Flickr

89. _____ is a nontraditional form of advertising that blends marketing and recreation through television, film, music talent, and technology. A. Flighting B. Branded entertainment C. Direct response promotion D. Publicity E. Sales promotion

90. In a movie, the lead actor is shown wearing Zelus running shoes in several scenes. Marketers of Zelus are using the nontraditional support medium of A. product placement. B. specialty advertising. C. promotional products marketing. D. guerrilla marketing. E. movie theater advertising.

91. An agreement that states that Rochelle brand cosmetics would pay a fee to have its products prominently featured in 20 episodes of the soap opera Proclivity is an example of A. product placement. B. specialty advertising. C. promotional products marketing. D. guerrilla marketing. E. buzz advertising.

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92. In _____, a manufactured article is woven throughout a program or becomes the program itself. A. specialty advertising B. interactive television ads C. movie theater advertising D. product integrations E. multilevel marketing

93. Whizz Soda, a soft drink manufacturer, created a music video as part of its marketing campaign. The video featured several popular artists from the music industry. When the video was screened on satellite television, viewers could see the Whizz Soda logo prominently visible in the top left corner of the television screen. This video is an example of A. guerilla advertising. B. advertainment. C. specialty advertising. D. ambient advertising. E. publicity.

94. The creation of video and/or music content by an advertiser in an attempt to engage viewers while advertising its product is known as A. video on demand. B. digital advertising. C. product integration. D. buzz marketing. E. advertainment.

95. _____ are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. A. Videos on demand B. Digital ads C. Advertising specialties D. Mnemonics E. Advertainments

96. With reference to advertising media, _____ create(s) the strongest source association. A. product placement B. in-flight advertising C. promotional products marketing D. transit advertising E. spectaculars

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97. A company promoting its product through product placements in movies would benefit from A. potentially high exposure. B. low absolute cost. C. broadened appeal. D. lack of clutter. E. strong control upon messages.

98. Which of the following statements about product placement advertising is true? A. The product placements benefit from low potential for exposure. B. There is a strong source association between actors and the products featured through product placements. C. The major advantage associated with the use of product placement advertising is its relatively low cost. D. The recall of product placements is generally lower than that of television ads. E. Alcohol and tobacco companies are legally prohibited from using product placements.

99. Which of the following is a disadvantage associated with branded entertainment? A. high absolute cost B. low exposure number C. poor recall D. ineffective reach E. weakened brand image

100. Because advertisers have no say over how often and when their products will be shown, the lack of control is cited as a disadvantage of A. guerrilla marketing. B. specialty advertising. C. product placements. D. product linings. E. transit advertising.

101. The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations, which will eventually result in A. positive audience reactions. B. consistently high product appeal. C. extended exposure of products to the audience. D. low relative and absolute costs. E. clutter and loss of effectiveness.

102. Which of the following factors has contributed to the growth of guerrilla marketing? A. technology B. changing social attitude C. reduced government regulations D. inflation E. deflation

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103. Which of the following is the best example of place-based media? A. movie ads on popcorn bags B. televisions in classrooms C. interactive kiosks D. Internet banners E. mobile billboards

104. The strategy behind place-based media is to A. bring an advertising medium to a consumer. B. use the place element of the marketing mix to impact advertising. C. use mobile billboards. D. create a media vehicle that leads in its ability to attract and retain consumer attention. E. provide places that are free of clutter.

105. Which of the following does use digital billboards with a camera inside to recognize audience characteristics? A. Intel B. NEC C. Kraft Foods D. adidas E. Electronic Privacy Information Center

106. _____ is the primary trade association of the out-of-home advertising industry. A. Traffic Audio Bureau B. Competitive Media Reports C. Nielsen Media Research D. Experian Simmons Market Research Bureau E. Outdoor Advertising Association of America

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Chapter 13 Test Bank 1. Support media cannot be used as a sole medium for advertising. FALSE Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. It is important to remember that some of these media are not used only for support, but for some companies may be the primary or sole medium used. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 Describe the role of support media in an IMC program.

Topic: Advertising Media 2. Support media are also known as measured media because they are easy to measure. FALSE Support media are referred to by several titles, among them alternative media, below-the-line media, nonmeasured media, and nontraditional media. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 Describe the role of support media in an IMC program. Topic: Advertising Media

3.Hybrids of traditional and nontraditional support media are used by traditional media to update their offerings for a new media environment. TRUE Some traditional media have adapted to the new media environment by updating their offerings. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 Describe the role of support media in an IMC program. Topic: Advertising Media

4. Out-of-home advertising is one of the newest methods of advertising that has grown with the development of new technology. FALSE Out-of-home (OOH) advertising has probably existed since the days of cave dwellers. Both the Egyptians and the Greeks used it as early as 5,000 years ago. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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5. One of the major disadvantages of outdoor advertising is its lack of persuasiveness. FALSE Outdoor is one of the more pervasive communication forms, particularly if one lives in an urban or suburban area. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

6. Ambient advertising often uses digital technology to send its messages. TRUE Ambient advertising, which is not a purely digital out-of-home medium, often uses digital technology to send its messages. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

7. Aerial advertising is very expensive in terms of absolute costs, especially when employed to reach specific target markets. FALSE Generally, aerial media is not expensive in absolute terms and can be useful for reaching specific target markets. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

8. The costs of mobile billboards depend on the area and the mobile board company's fees. TRUE Costs of mobile billboards depend on the area and the mobile board company's fees, though even small and large organizations have found the medium affordable. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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9. Mobile billboard ads enjoy high levels of recall and readership, leading to increased sales. TRUE A number of studies have shown that mobile billboards can lead to a high number of impressions, while a study conducted by the Product Acceptance and Research Organization indicate that mobile ads lead to high levels of recall and readership, and were likely to have an impact on sales. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

10. Shopping cart signage is a type of in-store media. TRUE Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

11. The increase in the number of women in the work force has led to the increased popularity of transit media. TRUE Due in part to the increased number of women in the work force (they can be reached on their way to work more easily than at home), audience segmentation, and the fact that many people spend more time outside of the home than inside, transit continues to be a popular medium. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

12. One of the disadvantages of transit cards is that they can be depressing and intrusive. TRUE Transit cards can be controversial. For example, in the New York subway system, many of the ads for chewing gum, soup, and Smokey the Bear have given way to public service announcements about AIDS, unwanted pregnancies, rape, and infant mortality. While subway riders may agree that such issues are important, many of them complain that the ads are depressing and intrusive. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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13. Advertising specialties are always distributed free of charge to the recipients. TRUE Advertising specialties are a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products. They are subsets of promotional products. Unlike premiums, with which they are sometimes confused, these articles are always distributed free—recipients don't have to earn the specialty by making a purchase or contribution. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

14. The average CPM of outdoor ads is greater than that of radio and magazines ads. FALSE The average CPM of outdoor advertising is often one-half of radio and far less than that of TV, magazines, and newspapers. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

15. Nelson receives a pen and a calendar free of charge from a store where he makes regular purchases. The calendar and the pen could be classified as advertising specialties. TRUE Advertising specialties are always distributed free—recipients don't have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

16. Promotional products marketing is employed only by large companies. FALSE Both small and large companies can employ promotional products marketing for a variety of objectives limited only by their own creativity. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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17. Most forms of specialty advertising remain with a potential customer for a long time, providing a high level of retention. TRUE Most forms of specialty advertising are designed for retention. Key chains, calendars, and pens remain with a potential customer for a long time, providing repeat exposures to the advertising message at no additional cost. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

18. Because of the high frequency of exposures, outdoor advertising may lead to a quick wearout. TRUE Because of the high frequency of exposures, outdoor advertising may lead to a quick wearout. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

19. A disadvantage of transit advertising is its inability to provide exposure to a large number of people. FALSE While an advantage of transit advertising is the ability to provide exposure to a large number of people, this audience may have certain lifestyles and/or behavioral characteristics that are not true of the target market as a whole. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

20. A disadvantage of miscellaneous support media is its high relative and absolute cost. FALSE Because of the nontraditional nature of alternative media, many advertisers are using media not previously used for advertising, or that, in general, do not require high expenditures. As such, the absolute and relative costs are not yet that high. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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21. A store in Kentucky that offers a 20 percent discount to shoppers with the store's name tattooed in a visible location on the body is using nontraditional support media. TRUE People are allowing ads to be placed on their bodies, including their heads, necks, and thighs. This is an example of nontraditional support media. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-01 Describe the role of support media in an IMC program. Topic: Advertising Media

22. Ads placed on the backs of envelopes that contain airplane tickets and on banners pulled by planes that are flown over sports arenas are examples of A. support media. B. direct-response media. C. indirect communications. D. advertising accessories. E. category ads. Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. Ads have appeared on manhole covers, inside restroom stalls, on bus shelters, in grocery stores, on hubcaps, on cell phones, and even on people's bodies. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Topic: Advertising Media

23. _____ media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce their messages. A. Advertising B. Direct response C. Traditional D. Sales promotion E. Support Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Topic: Advertising Media

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24. Media used to reinforce communications messages that may have been received from other forms of advertising are called A. support media. B. source media. C. indirect communications. D. accessory advertising. E. category ads. Support media are used to reach those people in the target market the primary media may not have effectively reached and to reinforce, or support, their messages. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Topic: Advertising Media

25. Another name for alternative media is A. functional communications. B. nontraditional media. C. measured media. D. above-the-line media. E. nonstructured communications. Support media are referred to by several titles, among them alternative media, below-the-line media, nonmeasured media, and nontraditional media. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Topic: Advertising Media

26. Support media can be broadly categorized into A. outdoor media and transit media. B. nontraditional media and below-the-line support media. C. outdoor media and in-store media. D. traditional support media and nontraditional support media. E. aerial media and ambient media. Given the rapid emergence of a variety of new media, we can further divide support media into traditional and nontraditional support media categories. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Topic: Advertising Media

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27. _____ media include billboards, street furniture, alternative media, transit, as well as specific forms of radio. A. Radio advertising B. Aerial advertising C. Buzz advertising D. Multilevel advertising E. Out-of-home advertising Out-of-home (OOH) advertising media encompass many advertising out of home forms. The Outdoor Advertising Association of America, Inc. (OAAA) categorizes these media as out of home—including billboards, street furniture, alternative media, and transit. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

28. The _____ categorizes billboards, street furniture, alternative media, transit, and specific forms of radio as out-of-home advertising. A. Traffic Audit Bureau (TAB) B. Outdoor Advertising Association of America (OAAA) C. Competitive outdoor media report D. American Public Transportation Association (APTA) E. Point of Purchase Advertising Institute The Outdoor Advertising Association of America, Inc. (OAAA) categorizes out-of-home advertising as outdoor—including billboards, street furniture, alternative media, and transit—as well as specific forms of radio. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

29. Of all out-of-home media, _____ advertising enjoys the highest outdoor billings. A. transit B. blimp C. airport D. billboard E. in-store Billboards constitute 65 percent of the outdoor billings. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-26 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

30. Which of the following is true of outdoor advertising? A. Outdoor advertising is the newest form of advertising that emerged with the onset of technology. B. Messages communicated through outdoor advertising are often dissuasive. C. Outdoor advertising has plunged with the increasing number of women in the work force. D. Outdoor advertising is the only form of advertising that is independent of national legislation. E. Outdoor advertising is a pervasive form of communication for residents of urban and suburban areas. Outdoor advertising is certainly one of the more pervasive communication forms, particularly if a person lives in an urban or suburban area. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

31. Which of the following pieces of federal legislation resulted in the ban of interstate billboard advertising? A. Fair Packaging and Labeling Act (1966) B. Wheeler-Lea Act (1938) C. Highway Beautification Act of 1965 D. National Environmental Policy Act (1969) E. Consumer Product Safety Act (1972) Ever since Lady Bird Johnson tried to rid the interstate highways of billboard advertising during her husband's presidency with the Highway Beautification Act of 1965, there has been controversy regarding its use. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

32. A major reason for the continued success of outdoor advertising is A. its ability to communicate complex messages. B. its low cost. C. its ability to eliminate waste coverage. D. its ability to remain innovative through technology. E. its ability to provide extremely accurate measures of the medium's reach. A major reason for the continued success of outdoor advertising is its ability to remain innovative through technology. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-27 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

33. Skywriting is a form of A. billboard advertising. B. transit advertising. C. digital advertising. D. blimp advertising. E. aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to the marketer: aerial advertising. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

34. Video advertising, digital billboards, and ambient advertising are forms of A. aerial advertising. B. television advertising. C. magazine advertising. D. digital out-of-home media. E. digital network advertising. Digital outdoor media takes three forms: (1) video advertising networks, (2) digital billboards, and (3) ambient advertising. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

35. Cosmetics company Street Smart Inc. uses skywriting over local beaches to promote its range of beauty products for women. In this scenario, Street Smart is using A. guerrilla marketing. B. aerial advertising. C. specialty advertising. D. viral marketing. E. network advertising. In the above scenario, Street Smart Inc. is using aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to the marketer: aerial advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-28 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

36. During a basketball game, Brendon sees an advertisement for "Swift" running shoes in a huge digital screen at Citygate Sports Arena. This is an example of A. aerial advertising. B. specialty advertising. C. video advertising networks. D. network advertising. E. digital mobile billboards. The above scenario is an illustration of video advertising networks. Video advertising networks include digital video screens that appear in offices, stores, theaters, inside transit networks, and entertainment venues such as health clubs, sporting arenas, bars, and restaurants. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

37. Santander Bank did a neighborhood takeover in Boston, Massachusetts, which included advertising on bus shelters and kiosks. These are examples of A. street furniture. B. billboards. C. video advertising networks. D. network advertising. E. digital mobile billboards. Street furniture accounts for about $388.2 million, or 5 percent of outdoor advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

38. Britney visits a mall and notices an advertisement for Auburn Beauty shampoo on a large LCD screen. This is an example of a(n) A. digital billboard. B. advertising specialty. C. aerial advertisement. D. mnemonic. E. mobile billboard. The use of an LCD screen to advertise Auburn Beauty shampoo is an example of digital billboard advertising. Digital billboards are screens that transmit in LED (light emitting diodes) or LCD (liquid crystal display) technologies. Digital billboards include large boards found at sports and entertainment venues, retail locations (like malls), in transit locations (terminals, etc.), and at roadsides or large traffic locations. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-29 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

39. _____ include(s) smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items. A. Mobile billboards B. Ambient advertising C. Transit advertising D. Aerial advertising E. Digital billboards Ambient advertising, which is not a purely digital out-of-home medium, often uses digital technology to send its messages. These typically include smaller signs that appear in restrooms, stairs, personal vehicles, and on specialty items. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

40. During a college football match, a giant blimp with the slogan, "Entreat Sandwiches—A treat for your taste buds" is on display for the spectators. This is an example of A. transit advertising. B. mobile advertising. C. digital advertising. D. aerial advertising. E. specialty advertising. The above scenario is an example of aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to a marketer: aerial advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

41. During the opening ceremony of a national skateboarding league at Harmon Beach, California, a hot air balloon with an advertisement for Fizzy soda is spotted by the spectators. This is an example of A. aerial advertising. B. transit advertising. C. mobile advertising. D. digital advertising. E. specialty advertising. The above scenario is an illustration of aerial advertising. Airplanes pulling banners, skywriting (in letters as high as 1,200 feet), and blimps all constitute another form of outdoor advertising available to a marketer: aerial advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-30 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

42. Which of the following statements about aerial advertising is true? A. It is expensive in absolute terms. B. It can be used to reach specific target markets. C. It is seldom used by local advertisers. D. It is illegal at sporting events. E. It is generally used inside stores and small supermarkets. Generally, aerial advertising media are not expensive in absolute terms and can be useful for reaching specific target markets. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

43. Jimmy's, a grocery store, advertises its products by painting its name, logo, and abstract images of its products on the sides of its delivery vehicles. This is an example of A. transit advertising. B. mobile billboard advertising. C. buzz advertising. D. digital advertising. E. in-store advertising. In the above scenario, Jimmy's is using mobile billboard advertising. Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

44. Ads on small hoardings that are mounted on trailers and driven around or parked in the geographic areas being targeted are known as A. aerial ads. B. mobile billboards. C. advertising specialties. D. ambient ads. E. pop-ups. Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-31 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

45. The cost of mobile billboards depends on A. the number of clicks. B. the number of recalls. C. sales of the product advertised. D. the geographic area advertised in. E. the speed of the billboard. Costs of mobile billboards depend on the area and the mobile board company's fees, though even small and large organizations have found the medium affordable. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

46. A City of Boston public transit bus was painted to look like a large loaf of Galaxy Bread. This is an example of A. bulletin advertising. B. a mobile billboard. C. free-form advertising. D. a printacular. E. aerial advertising. In the above scenario, a mobile billboard medium is used by Galaxy Bread. Mobile billboards are a type of an outdoor advertising medium. Some companies paint their cars with ads; others paint trucks and vans. Still others put ads on small billboards, mount them on trailers, and drive around and/or park in the geographic areas being targeted. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

47. While shopping at a local retail store, Jenna sees an ad for Aileen sunscreen lotion on the back of her shopping cart. This is an example of A. aerial advertising. B. transit advertising. C. a mobile billboard. D. in-store media. E. interactive media. The above scenario is an illustration of in-store media. Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-32 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

48. _____ is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. A. Aerial advertising B. Transit advertising C. In-store advertising D. Specialty advertising E. Promotional products marketing Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

49. While commuting by a local bus, Trevor notices an ad for "Tantalize Sandwiches" above his seat. This is an example of A. transit advertising. B. an out-office media outlet. C. aerial advertising. D. a mobile billboard. E. specialty advertising. The above scenario is an illustration of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

50. A research study concluded that approximately two-thirds of all consumers' purchase decisions are made while shopping. Given this fact, which of the following media should be most effective in influencing consumer decisions? A. nationally televised ads B. in-store media C. local newspaper coupon supplements D. parking meter advertisements E. Billboards Advertisers use in-store media such as in-store ads, aisle displays, store leaflets, shopping cart signage, and in-store TV to reach shoppers at the place where they buy. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-33 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

51. While driving, Janice notices an animated, electronic billboard ad for Zesty Soda on top of a passing taxicab. This is an example of A. specialty advertising. B. stationary advertising. C. transit advertising. D. aerial advertising. E. free-form advertising. In the above scenario, the use of an electronic billboard is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

52. An ad in a subway for a local Mexican restaurant is an example of A. a sales promotion. B. specialty advertising. C. transit advertising. D. aerial advertising. E. free-form advertising. The above scenario is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

53. There has been a renewed interest in transit advertising over the last few years due to A. the increased number of women in the work force. B. the development of Internet advertising. C. the ban on billboard advertisements for cigarettes. D. an increase in the number of consumers who are over 60. E. a change in entertainment venues. Due in part to the increased number of women in the work force (they can be reached on their way to work more easily than at home), audience segmentation, and the fact that many people spend more time outside of the home than inside, transit continues to be a popular medium. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-34 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

54. Kevin sees an ad for Crixus Car Rental on a luggage trolley at the airport. The ad is an example of A. a sales promotion. B. stationary advertising. C. transit advertising. D. aerial advertising. E. free-form advertising. The above scenario is an example of transit advertising. Transit advertising is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, trolleys, airplanes, and subways. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

55. While traveling on a commuter bus, Lauren notices an ad for Flare deodorant above her seat. This is an example of a(n) _____ used in transit advertising. A. outside poster B. aerial banner C. spectacular D. inside card E. terminal poster In the above scenario, Lauren notices an inside card used in transit advertising. Inside cards are a form of transit advertising found in commuter buses and are placed above seats and luggage area. They can be used for advertising restaurants, TV or radio stations, or a myriad of other products and services. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

56. Advertisements for restaurants, TVs, radio stations, or other products and services placed above the seats and luggage areas in commuter buses are known as A. aerial ads. B. in-store ads. C. terminal posters. D. inside cards. E. mobile ads. Inside cards are a form of transit advertising found in commuter buses and are placed above seats and luggage area. They can be used for advertising restaurants, TV or radio stations, or a myriad of other products and services. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-35 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

57. While walking on the street, Carlos sees an animated electronic billboard in Spanish for Amado home appliances on top of a taxicab. This is an example of a(n) A. terminal transit poster. B. inside card. C. outside poster. D. interactive billboard. E. aerial ad. The above scenario is an illustration of an outside poster. Advertisers use various forms of outdoor transit posters to promote products and services. These outside posters may appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. The increasing sophistication of this medium is demonstrated by a technology, developed by Vert, Inc. (a division of Clear Channel), that transforms ads on top of taxicabs into real-time animated electronic billboards. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

58. _____ are a form of transit advertising that appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. A. Inside cards B. Aerial ads C. Specialty ads D. Terminal posters E. Outside posters Outside posters may appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

59. A cab service company uses a global positioning satellite (GPS) system to customize the advertising messages shown on top of its taxicabs. This is an example of technology-driven _____ advertising. A. specialty B. transit C. aerial D. network E. Broadcast The above scenario is an example of transit advertising. The increasing sophistication of the transit media is demonstrated by a technology, developed by Vert, Inc. (a division of Clear Channel), that transforms ads on top of taxicabs into real-time animated electronic billboards. A Web server that communicates with a global positioning satellite (GPS) is built into the taxi-top screen. The GPS determines the taxi's location and sends it to the local server, which then delivers the relevant ads for a particular area. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-36 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

60. Floor displays, island showcases, electronic signs, and other forms of advertising that appear in train or subway stations and airline terminals are all forms of A. transit advertising. B. aerial advertising. C. buzz marketing. D. branded entertainment. E. above-the-line advertising. Floor displays, island showcases, electronic signs, and other forms of advertising that appear in train or subway stations, airline terminals, and the like are all forms of transit advertising. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

61. Which of the following is an advantage of outdoor advertising? A. ability to communicate complex messages B. low cost C. elimination of waste coverage D. geographic flexibility E. limited exposure Outdoor advertising offers geographic flexibility. Outdoor ads can be placed along highways, near stores, or on mobile billboards, almost anywhere that laws permit. For local advertisers, outdoor ads can reach people in specific geographic and/or demographic areas. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

62. Which of the following is an advantage of outdoor advertising? A. no waste coverage B. ease of measurement of audience size C. wide coverage of local markets D. low costs E. slow wearout With proper placement, a broad base of exposure is possible in local markets, with both day and night presence. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

13-37 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

63. Outdoor advertising would best be suited for a company whose communication objective is to A. attain brand awareness. B. explain a complex product advantage. C. create an attitude change. D. stimulate product trial for a new gadget. E. expand exposure time of its advertising messages. Because of its impact (and the need for a simple message), outdoor advertising can lead to a high level of awareness. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

64. Which of the following support media provides advertisers with wide coverage of local markets and high levels of frequency? A. outdoor advertising B. specialty advertising C. print media D. in-store advertising E. in-flight advertising With proper placement of outdoor ads, a broad base of exposure is possible in local markets, with both day and night presence. Because purchase cycles are typically for 30-day periods, consumers are usually exposed to outdoor ads a number of times, resulting in high levels of frequency. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

65. Which of the following is a disadvantage of transit advertising? A. low frequency of exposure B. high relative costs C. varying mood of the audience D. limited exposure time to an ad E. immediate results A disadvantage associated with transit advertising is the varying mood of the audience. Sitting or standing on a crowded subway may not be conducive to reading advertising, let alone experiencing the mood the advertiser would like to create. Controversial ad messages may contribute to this less than positive feeling. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

13-38 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

66. Which of the following is an advantage of indoor transit advertising? A. long length of exposure B. elimination of waste coverage C. no copyright limitations D. accurate measurement of audience mood E. selectivity based on audience lifestyle Long length of exposure to an ad is one major advantage of indoor transit forms. The average ride on mass transit is 45 minutes, allowing for plenty of exposure time. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

67. Fervor Inc., a leading women's clothing line, has printed its company name and logo on ballpoint pens, calendars, and key rings. As part of its promotional strategy, customers of Fervor are offered these items as complimentary gifts. These items are referred to as A. ambient products. B. premiums. C. advertising specialties. D. company benefits. E. support media products. In the above scenario, Fervor Inc. is utilizing advertising specialties as a promotional tool. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. Unconventional specialties such as plant holders, wall plaques, and gloves with the advertiser's name printed on them are also used to promote a company or its product; so are glassware, trophies, awards, and vinyl products. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

68. As a part of its corporate strategy Helios Inc., an automaker, offers business gifts such as key chains, planners, and T-shirts to its customers for their patronage. In this scenario, Helios is using _____ A. buzz marketing. B. guerrilla marketing. C. viral marketing. D. promotional products marketing. E. above-the-line media marketing. The above scenario is an illustration of promotional products advertising. According to the Promotional Products Association International (PPAI), promotional products marketing is "the advertising or promotional medium or method that uses promotional products, such as ad specialties, premiums, business gifts, awards, prizes, or commemoratives." AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

13-39 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

69. Ether Inc., an electronics manufacturer, offers T-shirts with the company's logo on them free of charge to its customers. Ether believes that this will help promote the company's products and attract more customers. This is an example of A. in-store advertising. B. specialty advertising. C. public relations enhancement. D. guerrilla marketing. E. product placement. The above scenario is an example of specialty advertising. Specialty advertising is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products called advertising specialties, a subset of promotional products. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

70. _____ is a medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products that are distributed free. A. B. C. D. E.

Buzz marketing Specialty advertising Synchro marketing Guerrilla marketing Direct-response advertising

Specialty advertising has now been provided with a new definition: A medium of advertising, sales promotion, and motivational communication employing imprinted, useful, or decorative products called advertising specialties, a subset of promotional products. Unlike premiums, with which they are sometimes confused (called advertising specialties), these articles are always distributed free—recipients don't have to earn the specialty by making a purchase or contribution. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

71. Products such as free pens, calendars, and coffee mugs featuring a company's name and used as promotional tools are referred to as A. premiums. B. advertising specialties. C. sales promotions. D. heuristics. E. mnemonics. Unlike premiums, advertising specialties are always distributed free—recipients don't have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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72. Ourea Inc., a financial consulting company, distributes free stationery items like ballpoint pens, notepads, and file covers with the company logo to its customers. These items are known as A. advertising specialties. B. product placements. C. premiums. D. heuristics. E. mnemonics. The above scenario is an example of the use of advertising specialties as a promotional medium. Advertising specialties are always distributed free—recipients don't have to earn the specialty by making a purchase or contribution. There are thousands of advertising specialty items, including ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

73. Which of the following support media should be employed if the objective is to achieve high levels of retention and make the communication a frequent reminder of a company's name and message? A. mobile billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages Most forms of specialty advertising are designed for retention. Specialties lead to high recall of both the advertisers' name and message. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

74. Cumulus Corp. wants to generate goodwill among its customers. It aims at gaining a favorable impression that can positively impact its sales and revenues. Which of the following forms of support media can help Cumulus attain its desired outcome? A. multilevel marketing B. movie theater advertising C. promotional products marketing D. aerial advertising E. guerrilla marketing In the above scenario, Cumulus Corp. should use promotional products advertising. Promotional products are the only medium that generates goodwill in the receiver. Because people like to receive gifts and many of the products are functional (key chains, calendars, etc.), consumers are grateful to receive them. The products also lead to a favorable impression of the advertiser. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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75. Which of the following is a disadvantage of promotional products marketing? A. low level of frequency B. lack of audience selectivity C. lack of feedback channels D. lack of flexibility E. possibility of market saturation With so many organizations now using promotional products marketing, the marketplace may become saturated. While you can always use another ballpoint pen or scratch pad, the value to the receiver declines if replacement is too easy, and the likelihood that you will retain the item or even notice the message is reduced. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

76. Which of the following is an advantage of promotional products marketing? A. shorter lead time as compared to other media B. wider audience reach C. elimination of market saturation D. consistent portrayal of strong company image E. high recall of advertiser's name and message An advantage of promotional products marketing is that use of advertising specialties lead to high recall of both the advertiser's name and message. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

77. Which of the following statements is true of measurement in promotional products marketing? A. Reach and frequency are as easy to measure with promotional products marketing as with print advertising. B. Response to direct-mail advertising that includes promotional products marketing is typically used as a measure of all support media. C. Q-score is used as a measurement tool for promotional products marketing. D. Companies that use promotional products marketing are not interested in sales; they only want to create goodwill. E. There is no established ongoing audience measurement system for promotional products marketing. Owing to the nature of the industry, specialty advertising has no established ongoing audience measurement system. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-04 Describe how audiences for support media are measured. Topic: Advertising Media

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78. _____ advertising is considered a directional medium because it points consumers toward where their purchases can be made rather than creating awareness or demand for products or services. A. Specialty B. Yellow Pages C. Ambient D. Transit E. Aerial The Yellow Pages are often referred to as a directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

79. Woodlot Inc. is a furniture manufacturing company that has recently started its operations. It employs promotional strategies to create brand awareness and stimulate demand for its products. Since the company is still in its inception, it also wants to use a support medium that can point consumers in the direction in which they can purchase furniture for their household. Which of the following support media is best suited to Woodlot's purpose? A. specialty advertising B. Yellow Pages advertising C. aerial advertising D. movie theater advertising E. transit advertising In the above scenario, Woodlot is best served by using Yellow Pages advertising. The Yellow Pages are often referred to as a directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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80. Which of the following support media should be employed if a consumer has already been provided with information about services offered by a company and now requires a directional medium? A. mobile billboards B. product placements C. advertising specialties D. in-flight advertising E. Yellow Pages The Yellow Pages are often referred to as a directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

81. Yellow Pages advertising is referred to as a directional medium. This means that Yellow Pages ads A. direct buyers to where a product can be purchased. B. direct buyers to other ads in the IMC program. C. direct consumers through the response hierarchy. D. are used to geographically segment buyers. E. are a form of direct-response advertising. The Yellow Pages are often referred to as a directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

82. Yellow Pages advertising has witnessed a decline because A. consumers consider it an unethical marketing practice. B. it lacks credibility and dependability. C. it fails to stimulate demand for an advertiser's products or services. D. consumers have turned to search and online directories to seek information. E. it does not create any awareness for an advertiser's products and services. As younger consumers turn to search and online directories like Yelp to seek information, fewer and fewer are using the Yellow Pages either online or in print. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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83. Which of the following statements is true of movie theater advertising? A. Absolute and relative costs per exposure are quite high in movie theater advertising. B. Movie theater ads offer low emotional attachment to moviegoers. C. Movie theater advertising does not provide demographic segmentation. D. Advertising in movie theaters offers lack of clutter as the number of ads is limited. E. CPM in movie theater advertising is lower than that of any other media. Lack of clutter is an advantage offered by advertising in movie theaters. Most theaters limit the number of ads. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

84. Butterfly Wings Inc., a manufacturer of soft toys and greeting cards, planned to advertise its Valentine's Day merchandise in movie theaters. Based on the audience profile, one week prior to St. Valentine's Day, the company began screening its commercial before the start of two movies titled and . Since both movies were romantic dramas, Butterfly Wings' commercial evoked a positive response in moviegoers. In this scenario, which of the following advantages of movie theater advertising did the marketer exploit? A. lack of advertising clutter B. lower absolute costs C. demographic segmentation D. lower relative costs E. advertising proximity A key advantage of movie theater advertising is the ability to target specific demographic segments. The profile of a moviegoer is above-average in education and affluence. The movie titles and ratings enable advertisements to reach specific groups. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

85. Which of the following is true of movie theater advertising? A. It promotes a company's goodwill. B. It has the ability to target specific demographic segments. C. Its CPM is lower than that of any other medium. D. It has an inherent problem of clutter. E. It charges a premium for its advertisements. A key advantage of movie advertising is the ability to target specific demographic segments. The profile of a moviegoer is above-average in education and affluence. The movie titles and ratings enable advertisements to reach specific groups. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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86. Which of the following is a disadvantage associated with movie theater advertising? A. lack of emotional attachment B. low audience exposure C. possible irritation to audience D. extensive clutter E. limited segmentation A major disadvantage of advertising in movie theater is that many people do not wish to see advertising in these media. A number of studies suggest these ads may create a high degree of annoyance. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

87. Which of the following statements best compares the cost per thousand (CPM) for movie theater advertising with that of other media? A. The CPM for movie theater advertising is lower than that for magazines. B. Movie ads have a lower CPM than radio ads, but higher than newspaper ads. C. When compared to other advertising media, the CPM is quite high for movie ads. D. Unlike print media, the CPM is quite low for movie ads. E. The CPM for movie theater advertising is equal to that of other forms of advertising media. While the cost of advertising in local theaters has been cited as an advantage because of the low rates charged, ads exposed nationally are often as much as 20 percent higher than an equal exposure on television. CPMs also tend to be higher in movie theater advertising than in other media. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

88. Technology developed by Clear Channel Outdoor Americas, which has tens of thousands of billboards across the United States, and ____________ allows for tracking the movements of drivers who pass the billboards through their mobile phones. A. Verizon B. AT&T C. Nielsen D. Brandchannel E. Flickr Technology developed by Clear Channel Outdoor Americas, which has tens of thousands of billboards across the United States, and AT&T, allows for tracking the movements of drivers who pass the billboards through their mobile phones. The data will assist in identifying the age and gender of persons driving by, and subsequently determine if they visit a store and where. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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89. _____ is a nontraditional form of advertising that blends marketing and recreation through television, film, music talent, and technology. A. Flighting B. Branded entertainment C. Direct response promotion D. Publicity E. Sales promotion Branded entertainment is a form of advertising that blends marketing and entertainment through television, film, music talent, and technology. Essentially, the goal is to use entertainment media to gain consumers’ attention and exposure to products and/or brands. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

90. In a movie, the lead actor is shown wearing Zelus running shoes in several scenes. Marketers of Zelus are using the nontraditional support medium of A. product placement. B. specialty advertising. C. promotional products marketing. D. guerrilla marketing. E. movie theater advertising. In the above scenario Zelus is using the nontraditional support medium of product placement. Much of the logic behind product placement is that since the placement is embedded in the script or program setting, it cannot be avoided, thereby increasing exposure. It is very rare to watch a movie or TV show without being exposed to one or more placements. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

91. An agreement that states that Rochelle brand cosmetics would pay a fee to have its products prominently featured in 20 episodes of the soap opera Proclivity is an example of A. product placement. B. specialty advertising. C. promotional products marketing. D. guerrilla marketing. E. buzz advertising. In the above scenario Rochelle is using the nontraditional support medium of product placement. Much of the logic behind product placement is that since the placement is embedded in the script or program setting, it cannot be avoided, thereby increasing exposure. Product placements are not a new phenomenon as placements are known to have existed as early as the 1930s and were commonly employed via soap operas in the 1950s. It is very rare to watch a movie or TV show without being exposed to one or more placements. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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92. In _____, a manufactured article is woven throughout a program or becomes the program itself. A. B. C. D. E.

specialty advertising interactive television ads movie theater advertising product integrations multilevel marketing

In product integrations, a product is woven throughout a program or becomes the program itself. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

93. Whizz Soda, a soft drink manufacturer, created a music video as part of its marketing campaign. The video featured several popular artists from the music industry. When the video was screened on satellite television, viewers could see the Whizz Soda logo prominently visible in the top left corner of the television screen. This video is an example of A. guerilla advertising. B. advertainment. C. specialty advertising. D. ambient advertising. E. publicity. The creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising its products is known as advertainment. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

94. The creation of video and/or music content by an advertiser in an attempt to engage viewers while advertising its product is known as A. video on demand. B. digital advertising. C. product integration. D. buzz marketing. E. advertainment. The creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising its products is known as advertainment. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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95. _____ are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. A. Videos on demand B. Digital ads C. Advertising specialties D. Mnemonics E. Advertainments Videos on demand (VODs) are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators for free. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

96. With reference to advertising media, _____ create(s) the strongest source association. A. product placement B. in-flight advertising C. promotional products marketing D. transit advertising E. Spectaculars Product placements are a way to achieve branded entertainment. An advantage of branded entertainment is that when consumers see their favorite TV celebrities or movie stars using certain brands, the association may lead to a favorable product image or even to sales. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

97. A company promoting its product through product placements in movies would benefit from A. potentially high exposure. B. low absolute cost. C. broadened appeal. D. lack of clutter. E. strong control upon messages. In regard to product placements, a large number of people watch movies each year. When this is combined with the home video rental market and network and cable TV, the potential exposure for a product placed in a movie or on television is enormous. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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98. Which of the following statements about product placement advertising is true? A. The product placements benefit from low potential for exposure. B. There is a strong source association between actors and the products featured through product placements. C. The major advantage associated with the use of product placement advertising is its relatively low cost. D. The recall of product placements is generally lower than that of television ads. E. Alcohol and tobacco companies are legally prohibited from using product placements. When consumers see their favorite TV celebrities or movie stars using certain brands, the association may lead to a favorable product image or even to sales. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

99. Which of the following is a disadvantage associated with branded entertainment? A. high absolute cost B. low exposure number C. poor recall D. ineffective reach E. weakened brand image While the CPM may be very low for various forms of branded entertainment, the absolute costs may be very high, pricing some advertisers out of the market. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

100. Because advertisers have no say over how often and when their products will be shown, the lack of control is cited as a disadvantage of A. guerrilla marketing. B. specialty advertising. C. product placements. D. product linings. E. transit advertising. In many movies and television shows, an advertiser has no say over when and how often a product will be shown. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

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101. The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations, which will eventually result in A. positive audience reactions. B. consistently high product appeal. C. extended exposure of products to the audience. D. low relative and absolute costs. E. clutter and loss of effectiveness. The rapid growth of branded entertainment tie-ins has led to an overwhelming number of product placements and integrations. Like other forms of advertising, too many placements and integrations will eventually lead to clutter and loss of effectiveness. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-03 Compare the advantages and disadvantages of support media. Topic: Advertising Media

102. Which of the following factors has contributed to the growth of guerrilla marketing? A. technology B. changing social attitude C. reduced government regulations D. inflation E. Deflation Guerrilla marketers have benefited by technology in that they can be even more creative, as well as the fact that cell phones now have cameras, and through social media viewers can send pictures to others instantly. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

103. Which of the following is the best example of place-based media? A. movie ads on popcorn bags B. televisions in classrooms C. interactive kiosks D. Internet banners E. mobile billboards The idea of bringing an advertising medium to consumers wherever they may be underlies the strategy behind place-based media. TV monitors and magazine racks have appeared in classrooms, doctors' offices, and health clubs, among a variety of other locations. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

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104. The strategy behind place-based media is to A. bring an advertising medium to a consumer. B. use the place element of the marketing mix to impact advertising. C. use mobile billboards. D. create a media vehicle that leads in its ability to attract and retain consumer attention. E. provide places that are free of clutter. The idea of bringing an advertising medium to consumers wherever they may be underlies the strategy behind place-based media. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program. Topic: Advertising Media

105. Which of the following does use digital billboards with a camera inside to recognize audience characteristics? A. Intel B. NEC C. Kraft Foods D. adidas E. Electronic Privacy Information Center The Electronic Privacy Information Center claims that the technology has the potential to violate one’s civil liberties and violates the First Amendment. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-04 Describe how audiences for support media are measured. Topic: Advertising Media

106. _____ is the primary trade association of the out-of-home advertising industry. A. Traffic Audio Bureau B. Competitive Media Reports C. Nielsen Media Research D. Experian Simmons Market Research Bureau E. Outdoor Advertising Association of America The Outdoor Advertising Association of America (OAAA) is the primary trade association of the industry. It assists members with research, creative ideas, and more effective use of the medium. AACSB: Analytic Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-04 Describe how audiences for support media are measured. Topic: Advertising Media

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Chapter 13 Test Bank 01/11/2017 16:37:43 Summary Category-# of Questions AACSB: Analytic Thinking-78 AACSB: Reflective Thinking-28 Accessibility: Keyboard Navigation-106 Blooms: Apply-29 Blooms: Remember-56 Blooms: Understand-21 Difficulty: 1 Easy-56 Difficulty: 2 Medium-22 Difficulty: 3 Hard-28 Learning Objective: 13-01 Describe the role of support media in an IMC program.-4 Learning Objective: 13-02 Identify traditional and nontraditional support media in the development of an IMC program.-67 Learning Objective: 13-03 Compare the advantages and disadvantages of support media.-27 Learning Objective: 13-04 Describe how audiences for support media are measured.-3 Topic: Advertising Media-106

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Chapter 14 Test Bank Student: ___________________________________________________________________________ 1. Direct marketing is synonymous to direct-response media. True False

2. One of the major factors contributing to the success of direct marketing is that so many Americans are now "money-rich and time-poor." True False

3. It is not possible to generate a behavioral response by relying solely on direct marketing. True False

4. Direct-marketing activities are supported by the other elements of the promotional mix. True False

5. Direct marketing is a form of advertising. True False

6. Both direct marketing and advertising could support one another. True False

7. Telemarketing and direct selling are two methods of personal selling used to generate sales. True False

8. Unlike nonprofit organizations, profit-centric organizations do not use telemarketing. True False

9. Adding a promotional product to a direct mailer increases response rates. True False

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10. It is the sole objective of direct marketing to obtain a direct behavioral response. True False

11. A company can use direct marketing to build a favorable image. True False

12. When Nordstrom calls existing customers to notify them of a special gift with purchase, they are combining direct marketing with sales promotions. True False

13. The two-step approach to direct marketing essentially relies on only one medium to generate a sales response. True False

14. In the two-step approach to direct marketing, the first effort generates sales, and the second effort reduces the postpurchase dissonance. True False

15. Direct marketing is typically restricted to small companies seeking business. True False

16. Keys to the success of direct mail are the mailing list, the ability to segment markets, and the offer. True False

17. The end of Gwen's TV commercial for her Rockabilly aerobics program urges people to call immediately to place an order. This is an example of a one-step approach. True False

18. Direct mail is often called "junk mail"—the unsolicited mail you receive. True False

19. By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. True False

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20. One disadvantage associated with direct marketing is that it results in waste coverage. True False

21. The program vehicles used for direct-response TV advertising are usually very expensive. Hence, a marketer cannot afford to purchase repeat times. True False

22. Direct marketing A. is synonymous to word-of-mouth marketing. B. seeks the same objectives as personal selling strategies in an IMC plan. C. is one of the slowest growing forms of promotion in terms of dollar expenditures. D. is a valuable tool in the integrated communications program. E. cannot be combined with other forms of promotional media.

23. Unlike traditional marketing, the typical goal of direct marketing is to A. create brand image. B. generate an immediate behavioral response. C. utilize telephone communication exclusively. D. create awareness. E. convey detailed information.

24. _____ is a system of marketing by which organizations communicate without intermediaries to the target customers to generate a response or transaction. A. Sales promotion B. Word-of-mouth marketing C. Synchro marketing D. Direct marketing E. Publicity

25. The customer response to direct marketing can take the form of A. inquiries. B. product diversification. C. product segmentation. D. sales promotions. E. push promotions.

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26. _____ is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. A. Trade advertising B. Publicity C. Public relations D. Direct marketing E. Synchro marketing

27. Which of the following statements is true about direct marketing? A. Direct marketing is suitable only for consumer-to-consumer advertising. B. Direct marketing involves marketing research, segmentation, and evaluation. C. Direct marketing has the same objectives as that of other promotional-mix tools. D. Direct marketing as a promotional media is suitable only for small retailers. E. Rapid increase in dual income families in America has led to a reduction in the use of direct marketing as a promotional media.

28. Which of the following is an example of direct-response media? A. billboards B. place-based media C. the Internet D. product placement E. guerrilla media

29. _____ are the tools by which direct marketers implement the communication process. A. Directional pull strategies B. Sweepstakes C. Direct-response media D. Directional push strategies E. Direct encoders

30. Which of the following events is considered one of the major impetuses behind the growth of direct marketing? A. increase in the number of working women B. invention of the printing press C. development and expansion of the U.S. Postal Service D. development of multinational companies and international markets E. law that mandates public education

31. One of the reasons for the recent, rapid growth of direct marketing in American society is the A. fact that the United States has moved from an industrialized nation to a service nation. B. increase in the number of hours individuals spend watching television. C. nonproliferation of cellular phones. D. increased use of consumer credit cards. E. development of four-color printing presses.

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32. Which of the following statements is true about the growth of direct marketing? A. Direct marketing is being used as a promotional media tool only after the invention of the Internet. B. Typically, few purchases being made with the use of credit cards are as a result of direct marketing. C. The fast-paced and changing values and lifestyles of consumers are decreasing the effectiveness of direct marketing in urban areas. D. The rapid decrease in dual-income families has led to growth in direct marketing. E. The Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.

33. A magazine ad for pet health insurance contains both a toll-free number and a website URL in order to enable readers to obtain further information. This ad is an example of combining direct marketing with A. trade promotions. B. public relations. C. advertising. D. personal selling. E. consumer promotions.

34. A television commercial for a Vesta hairstyling appliance features a toll-free number, which customers can call for additional product information. This commercial is an example of combining direct marketing with A. public relations. B. advertising. C. personal selling. D. sales promotion. E. support media.

35. A print ad of Accelerant Corp., a courier delivery service provider, read "Call 1-800-ACCEL (toll free) to send gifts this Christmas to your loved ones anywhere in the world." Which of the following promotional media is combined with direct marketing in the print ad? A. advertising B. sales promotion C. publicity D. public relations E. personal selling

36. Joe receives print ads from Beryl Inc., a manufacturer of computer printers, marketing its ink cartridges to him as he is a regular buyer of Beryl ink cartridges. Which of the following combinations of promotional media is Beryl using? A. advertising and sales promotion B. direct marketing and advertising C. sales promotion and public relations D. direct marketing and sales promotion E. public relations and support media

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37. Britney sees an infomercial for a home fitness machine. The infomercial provides a website address that one can access for further product information. Additionally, the website contains an order form where customers can fill in their mailing address. This is an example of combining A. support media with public relations. B. sales promotion with support media. C. personal selling with direct marketing. D. advertising with personal selling. E. direct marketing with advertising.

38. The Florence County Museum called a press conference to inform the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings. During the conference, the museum representative announced that each family in Florence County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of combining direct marketing with A. trade promotions. B. public relations. C. advertising. D. personal selling. E. consumer promotion.

39. Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. In order to solicit funds to charitable organizations, it uses telemarketing to contact its high-income, upscale customers and requests them to make donations. Tristan is using a combination of A. publicity and public relations. B. direct marketing and public relations. C. direct marketing and personal selling. D. advertising and support media. E. personal selling and publicity.

40. _____ and direct selling are two methods of personal selling used to generate sales. A. Public relations B. Sales promotion C. Infomercials D. Telemarketing E. Advertising specialties

41. The two methods of personal selling used to generate sales are A. advertising and infomercials. B. sales promotion and publicity. C. telemarketing and direct selling. D. public relations and support media. E. home shopping and cross selling.

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42. Venus Airlines sends out mailers and e-mails to its customers announcing promotional airfares. Which of the following combinations of promotional media is Venus using? A. advertising and sales promotion B. advertising and direct marketing C. sales promotion and direct marketing D. sales promotion and public relations E. direct marketing and personal selling

43. Bianca receives an e-mail notifying her of the end-of-season sale at Hop & Shop, a popular retail chain. The e-mail also informs her that she is invited to enter into a sweepstakes contest. In this scenario, Hop & Shop is using a combination of A. publicity and public relations. B. advertising and personal selling. C. direct marketing with sales promotion. D. support media and advertising. E. direct marketing and personal selling.

44. Which of the following is true of telemarketing as an advertising medium? A. It is not used by for-profit organizations to screen and qualify prospects. B. It is considered an ineffective medium of direct selling by most national advertisers. C. It is typically expensive and increases advertising overheads substantially. D. It is typically used by nonprofit organizations to solicit funds. E. It is considered to be an important component of sales promotion.

45. Atkins Auto, a dealer of automobiles, sends direct-mail pieces to its prospective customers, inviting them to visit its auto showroom to test-drive new cars. Customers who respond to the direct mail by visiting the showroom are provided with thorough information about the cars. Salespersons of the company receive extensive training and assume responsibility for the selling efforts in the showroom. This is an example of combining direct marketing with A. advertising. B. personal selling. C. public relations. D. sales promotions. E. support media.

46. Amanda, a florist, is the owner of Flush Inc. She receives a mail from Pluto Corp., a manufacturer of foam products, offering a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if Amanda places an order with Pluto, she would be automatically registered to win $10,000 in a customer appreciation contest. This is an example of combining direct marketing with A. sales promotion. B. public relations. C. advertising. D. personal selling. E. support media.

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47. To encourage customers to open a mail offering them a subscription to Home Companion, a home furnishings magazine, the front of the envelope suggested that there was a gift inside. The envelope contained an attractively laminated bookmark. This is an example of combining direct marketing with A. personal selling. B. support media. C. place-based media. D. product placement. E. advertising.

48. The most common direct marketing objective that is typically expected by companies is to A. seek a behavioral response. B. reduce source derogations. C. generate goodwill. D. reduce postpurchase dissonance. E. sell a product at a higher price.

49. Which of the following is an objective of direct marketing? A. to make use of celebrity endorsements B. to maintain customer satisfaction C. to engage in social responsibility initiatives D. to make innovative products E. to increase market diversification

50. To successfully implement direct-marketing programs, a company must A. concentrate on market diversification to expand its customer base. B. conduct a competitor analysis to assess the strengths and weaknesses of its competitors. C. determine which markets to target through the use of a list or marketing database. D. use unconventional techniques such as guerrilla marketing to attract customers. E. engage in extensive bait-and-switch marketing.

51. A typical U.S. household receives an average of ___________ direct-mail pieces per week. A. 9 B. 12 C. 17 D. 19 E. 22

52. The announcer on a television commercial said, "Get your credit card and call now to order an autographed copy of the Summer Dreams DVD." This is an example of using the _____ approach of direct marketing. A. two-step B. group C. one-to-one D. one-step E. three-step

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53. In the _____ approach of direct marketing, a medium is used directly to obtain an order. A. three B. one-to-many C. indirect D. one-step E. two-step

54. All the television commercials and print ads that urge customers to pick up their phone and call a toll-free number to place an order immediately make use of the _____ approach of direct marketing. A. one-step B. two-step C. one-to-one D. indirect E. telemarketing

55. The goal of the _____ approach of direct marketing is to generate an immediate sale when an ad is shown. A. two-step B. one-step C. RFM scoring D. indirect E. all-in-one

56. The _____ approach of direct marketing involves the use of more than one medium to screen potential buyers, leading to a response. A. two-step B. switch-and-bait C. RFM scoring D. indirect E. all-in-one

57. Under the two-step approach of direct marketing, the first effort is designed to screen, or qualify, potential buyers, and the second effort A. generates the response. B. creates brand awareness. C. reduces the postpurchase dissonance. D. increases source bolsters. E. creates interest in a product.

58. Which of the following is employing a one-step approach to direct marketing? A. an infomercial for workout equipment urging viewers to phone a toll-free number to place an order immediately B. a magazine subscription service that sends an announcement of an upcoming sweepstakes C. an ad advising television viewers to watch their mailboxes for a way to earn free calling cards D. a company asking if a homeowner is interested in an estimate for a vinyl siding E. an advertisement for an adhesive bandage announcing free gifts on purchase of bandages worth $50 and above

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59. To purchase cookware, music CDs, and exercise videos advertised on television, consumers are asked to call a toll-free telephone number. Viewers are instructed to have their credit cards handy when they call to place an order. This form of direct marketing is referred to as A. outbound telemarketing. B. video texting. C. the one-step approach. D. the two-step approach. E. support marketing.

60. Erika sees an infomercial for Luster skin care products. During the infomercial, a toll-free number flashes on her television screen. She immediately picks her phone and dials the number to place an order for a body lotion and hair shampoo. This is an example of the A. party plan approach to direct marketing. B. two-step approach to direct marketing. C. one-step approach to direct marketing. D. repetitive person-to-person selling. E. nonrepetitive person-to-person selling.

61. Sophia watches a TV commercial for Missy 21, a women's magazine. The commercial asks viewers to call a toll-free number to place an order for a one-year subscription to the magazine. It also announces that the first 200 callers to place an order will receive an additional subscription of three months at no extra charge. This is an example of using the _____ approach of direct marketing. A. two-step B. outbound C. buzz D. one-step E. bulls-eye

62. In direct-marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use A. the two-step approach. B. the one-step approach. C. direct mail rather than telemarketing. D. direct-response television. E. SMRB's data on direct-marketing purchasers.

63. The two-step approach to direct marketing A. urges customers to make an immediate purchase. B. uses the first effort to screen potential buyers. C. is commonly found in direct sales. D. is typically followed by a sweepstakes contest. E. is similar to missionary selling.

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64. Creative Crew is a direct-marketing company that sells merchandise such as T-shirts, customized coffee mugs, calendars, key chains, bags, and the like. It uses telemarketing to inform prospective customers about the range of products offered by the company. Interested customers are provided with a website URL, which contains a form where they place their purchase orders. This is an example of using A. sweeps marketing. B. direct marketing in combination with support media. C. specialty advertising. D. the one-step approach to direct marketing. E. the two-step approach to direct marketing.

65. Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofabeds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofabed, the sales representative urges Jason to come over to the company's retail outlet. Bell Chime is utilizing A. a buzz approach to personal selling. B. a repetitive person-to-person selling. C. specialty advertising. D. the one-step approach to direct marketing. E. the two-step approach to direct marketing.

66. Which of the following statements is true of a direct mail? A. Direct mail is often called "treasure mail"—the solicited mail one receives. B. Direct mail has been rendered ineffective with the advent of the Internet. C. Direct mail is useful only for low-cost products. D. Direct mail is not restricted to small companies seeking business. E. Direct mail is ineffective in targeting high-income, upscale consumers.

67. Which of the following is true of direct mail? A. Direct-mail marketing has waned due to excessive use of the Internet. B. Traditional direct-mail business has experienced higher response rates from many consumers with the advent of the Internet. C. It is synonymous with personal selling. D. Keys to the success of direct mail are the mailing list. E. It depends extensively on the U.S. Postal Service.

68. Keys to the success of direct mail are the _____, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. A. mailing list B. infomercials C. TV spots D. web pages E. mail shopping network

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69. Which of the following statements is true of mailing lists? A. They lead to a lot of waste coverage. B. They have the ability to segment markets on the basis of lifestyles. C. They are used in combination with infomercials. D. They constitute a payroll database of a company's employees. E. They are typically considered to be an unethical strategy.

70. Which of the following factors has increased the effectiveness of mailing lists? A. rapid technological development and new product innovations B. social networking sites C. segmentation on the basis of geography and demographics D. limiting consumer segregation E. improved lifestyle characteristics and increased purchasing power of consumers

71. Which of the following media has lower cost and convenience that has raised concerns among traditional direct-mail marketers but at the same time created better opportunities? A. television B. radio C. Internet D. outdoor advertising E. transit advertising

72. Which of the following statements is true of the use of catalogs in the direct-marketing industry? A. One of the disadvantages of catalogs is that they can be used only in the form of traditional hard copies; they cannot be used in conjunction with the Internet. B. The number of catalogs mailed and the number of traditional catalog shoppers has increased in the recent years. C. The emotional appeal of a traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online. D. Catalogs are ineffective due to their limited segmentation characteristics. E. Catalogs are designed for stimulating an immediate purchase behavior in customers; however, they are ineffective in attracting publicity.

73. Which of the following statements is true of the use of direct mail on the Internet (e-mail) in the direct-marketing industry? A. It is less targeted than traditional direct mail. B. It does not make use of mailing lists because such lists lead to spam messages. C. It attempts to reach consumers with specific needs through targeted messages. D. It is used only by business-to-business marketers. E. It has higher cost and lower effectiveness than traditional direct mail.

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74. _____ is the electronic equivalent of junk mail— it is less targeted and is considered an unwanted e-mail. A. Add-on B. Trojan C. Mnemonic D. Spam E. Plug-in

75. The U.S. government has passed laws regulating the use of e-mail marketing because A. it results in high volumes of spam and many consumers consider it a nuisance. B. of the huge costs involved in monitoring Internet traffic. C. it violates the privacy of online users and makes unauthorized use of consumer data. D. it makes use of comparative advertising. E. it involves sharing of a company's confidential data with the consumers.

76. Which of the following statements is true of the use of broadcast media by the direct-marketing industry? A. Direct marketing in the broadcast industry does not use support advertising. B. The majority of direct-marketing broadcast advertising occurs through radio as opposed to TV. C. The use of broadcast media by the direct-marketing industry has witnessed a decline in the recent years. D. The two-step approach to direct marketing is common on the radio, particularly with local companies. E. When a toll-free number is included in a direct-response ad, it is called support advertising.

77. In _____, a product or service is offered and a sales response is solicited, through either the one- or two-step approach to direct marketing. A. direct-response advertising B. direct-support advertising C. direct-ambient advertising D. personal selling E. sales promotion

78. Direct marketing in the broadcast industry involves A. public relations and supplementary promotions. B. direct-response advertising and support advertising. C. a one-step direct-marketing approach to sales. D. add-on marketing. E. ambient advertising and aerial advertising.

79. A television commercial for an apparel brand urges viewers to call its toll-free number to place an order, immediately. The commercial announces a free gift hamper to consumers who place an order before midnight. The apparel brand is making use of A. ambient advertising. B. publicity. C. direct-response advertising. D. sales promotion. E. support advertising.

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80. A television ad for Savory Sandwich instructs its viewers to look in their mailbox for coupon offers that will save them money on their next sandwich order. This is an example of A. ambient promotion. B. support advertising. C. a one-step direct-marketing approach. D. add-on marketing. E. sweeps marketing.

81. Which of the following statements is true of infomercials? A. Infomercials are only useful for marketing trends. B. Typically infomercials only use the two-step approach to direct marketing. C. The lower costs on cable and satellite channels have led to the growth of infomercials. D. According to broadcast standards, infomercials cannot exceed 30 minutes. E. Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.

82. Which of the following statements best defines an infomercial? A. It is a tool used by marketers as a part of the publicity campaign. B. It is a form of direct mail which consists of consumer mailing lists. C. It is a strategy used in public relations to inform the public of a company's policies. D. It is a print advertisement which provides detailed information about a product. E. It is a long commercial that is designed to fit into a 30-minute or 1-hour time slot.

83. Infomercials are A. primarily designed to sell products that are classified as trends. B. always televised during off-viewing hours. C. those ads that appear only in print media. D. a part of specialty advertising. E. ads that use both one- and two-step approaches.

84. Cassandra sees a 30-minute TV show on an entertainment channel that advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This is an example of A. a sales promotion. B. personal selling. C. specialty advertising. D. buzz advertising. E. an infomercial.

85. Which of the following factors has led to a dramatic increase in home shopping? A. the development of satellite connectivity B. the nationalization of telephone networks C. the development of high-definition television D. the shift in social preferences among consumers E. the widespread use of credit cards

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86. Due to clutter and relatively high costs, the use of _____ by direct marketers does not result in returns as high as those for other forms of direct-marketing media. A. magazines and newspapers B. television and radio C. direct mail and catalogs D. telemarketing and home shopping E. TV spots and infomercials

87. Which of the following statements is true of telemarketing? A. Telemarketing exclusively uses network television for direct marketing. B. Telemarketing is employed only in a one-step system. C. Business-to-business marketers do not use telemarketing. D. Telemarketing is only used by for-profit companies. E. Telemarketing is effective for charitable organizations.

88. _____ is the personal presentation, demonstration, and sales of products to consumers in their homes. A. Home shopping B. Direct marketing C. Personal liaising D. Consultative selling E. Direct selling

89. Which of the following is a form of direct selling? A. party plans B. home shopping C. out-of-home shopping D. ambient advertising E. sales promotions

90. _____ is when a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing

91. Which of the following is true of repetitive person-to-person selling? A. It involves the sale of frequently purchased products. B. It is not a useful method for selling durables. C. It is not considered suitable for selling services. D. It involves selling products that are considered to be seasonal. E. It involves selling products through home or office parties.

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92. _____ is when a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing

93. Which of the following is true of nonrepetitive selling? A. It is not considered useful for selling products such as encyclopedias. B. It is considered to be an indirect sales technique. C. It does not involve selling products at a customer's home, unlike repetitive person-to-person selling. D. It involves selling products at a customer's workplace. E. It is synonymous with ambient selling.

94. Which of the following products is likely to be sold using a nonrepetitive person-to-person selling technique? A. detergents B. T-shirts C. dairy products D. encyclopedias E. shoes

95. __________are when a salesperson offers products or services to groups of people through home or office gatherings and demonstrations. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing

96. Advertisers can measure the relative effectiveness of a direct-marketing program quickly by using A. cost per thousand (CPM). B. the breakeven point. C. reach and frequency. D. cost per order (CPO). E. net sales.

97. Which of the following measures aids direct marketers in evaluating the relative effectiveness of an ad based on the number of calls generated? A. cost per order (CPO) B. cost per thousand (CPM) C. cost per man-hour (CPMH) D. cost per new prospect (CPNP) E. sales per database name (SDN)

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98. _____ is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth. A. Cost per thousand B. Consumer worth evaluation C. Customer lifetime value D. Customer profitability estimation E. Breakeven point

99. _____ is a measure of effectiveness used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. Breakeven Point E. Cost per Order

100. Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. breakeven point E. cost per order

101. Gina targets a $5 return per order and creates and runs an ad at a cost of $2,500. She considers the ad effective if it generates more than 500 orders. This is an example of a _______________ calculation. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. breakeven point E. cost per order

102. Which of the following is an advantage offered by direct marketing to advertisers? A. personalization of messages B. ability to create a mood C. exclusive image D. greater content support E. accuracy of lists

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103. Which of the following is a disadvantage associated with direct marketing? A. poor image B. poor selectivity C. inability to measure effectiveness D. low frequency level E. lack of segmentation

104. Direct marketing lets an advertiser A. build a credible image about a company's product by using direct mails. B. reach a large number of people and reduce or eliminate waste coverage. C. make accurate mailing lists consistently for targeting potential customers. D. create a desirable mood in consumers. E. market its products in a cost-efficient manner.

105. As postal rates increase, direct-mail advertising is replaced with A. billboards. B. e-mail. C. infomercials. D. telemarketing. E. radio advertising.

106. Unlike magazines, in direct-response advertising, ________________ is limited to the surrounding program or editorial content. A. mood creation B. profit C. image D. telemarketing E. spiffs

107. Lucia utilizes direct-response ads on TV, but they yield a lower than expected number of orders. A follow-up study of people who saw the ad revealed that they associated direct-response ads on TV with lower-priced products and low-budget ads. Which of the following disadvantages of direct marketing does the scenario highlight? A. image B. accuracy C. content support D. rising costs E. Do Not Call lists

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Chapter 14 Test Bank 1. Direct marketing is synonymous to direct-response media. FALSE Direct marketing is an aspect of total marketing—that is, it involves marketing research, segmentation, evaluation, and the like. Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

2. One of the major factors contributing to the success of direct marketing is that so many Americans are now "money-rich and time-poor." TRUE One of the major factors contributing to the success of direct marketing is that so many Americans are now "money-rich and time-poor." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

3. It is not possible to generate a behavioral response by relying solely on direct marketing. FALSE While some organizations rely on direct marketing solely to generate a behavioral response, for many others, direct marketing is an integral part of the IMC program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

4. Direct-marketing activities are supported by the other elements of the promotional mix. TRUE Direct-marketing activities support and are supported by other elements of the promotional mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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5. Direct marketing is a form of advertising. TRUE Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

6. Both direct marketing and advertising could support one another. TRUE Whether through mail, print, or TV, the direct-response offer is an ad. Sometimes the ad supports the direct-selling effort. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

7. Telemarketing and direct selling are two methods of personal selling used to generate sales. TRUE Telemarketing and direct selling are two methods of personal selling used to generate sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

8. Unlike nonprofit organizations, profit-centric organizations do not use telemarketing. FALSE Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies—particularly those in the business-to-business market—are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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9. Adding a promotional product to a direct mailer increases response rates. TRUE Adding a promotional product to a direct mailer has proven to increase response rates. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

10. It is the sole objective of direct marketing to obtain a direct behavioral response. FALSE Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

11. A company can use direct marketing to build a favorable image. TRUE Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

12. When Nordstrom calls existing customers to notify them of a special gift with purchase, they are combining direct marketing with sales promotions. TRUE In the scenario, Nordstrom is using a direct-marketing tool to inform customers of a sales promotion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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13. The two-step approach to direct marketing essentially relies on only one medium to generate a sales response. FALSE The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

14. In the two-step approach to direct marketing, the first effort generates sales, and the second effort reduces the postpurchase dissonance. FALSE The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

15. Direct marketing is typically restricted to small companies seeking business. FALSE Direct mail is not restricted to small companies seeking business. Respected large companies and organizations in the retail financial services and fund-raising sectors (among others) commonly employ this medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

16. Keys to the success of direct mail are the mailing list, the ability to segment markets, and the offer. TRUE Keys to the success of direct mail are the mailing list, which constitutes the database from which names are generated, and the ability to segment markets and, of course, the offer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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17. The end of Gwen's TV commercial for her Rockabilly aerobics program urges people to call immediately to place an order. This is an example of a one-step approach. TRUE In the one-step approach, the medium is used directly to obtain an order. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

18. Direct mail is often called "junk mail"—the unsolicited mail you receive. TRUE Direct mail is often called “junk mail”—the unsolicited mail you receive. More advertising dollars continue to be spent in direct mail than in almost any other advertising medium—an estimated $46 billion in 2014. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

19. By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. TRUE By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

20. One disadvantage associated with direct marketing is that it results in waste coverage. FALSE Direct marketing lets an advertiser reach a large number of people and reduces or eliminates waste coverage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

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21. The program vehicles used for direct-response TV advertising are usually very expensive. Hence, a marketer cannot afford to purchase repeat times. FALSE The program vehicles used for direct-response TV advertising are usually the most inexpensive available, so a marketer can afford to purchase repeat times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

22. Direct marketing A. is synonymous to word-of-mouth marketing. B. seeks the same objectives as personal selling strategies in an IMC plan. C. is one of the slowest growing forms of promotion in terms of dollar expenditures. D. is a valuable tool in the integrated communications program. E. cannot be combined with other forms of promotional media. Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

23. Unlike traditional marketing, the typical goal of direct marketing is to A. create brand image. B. generate an immediate behavioral response. C. utilize telephone communication exclusively. D. create awareness. E. convey detailed information. Companies believe that while promotional-mix tools such as advertising, sales promotion, support media, and personal selling are effective in creating brand image, conveying information, and/or creating awareness, going direct can generate an immediate behavioral response. Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

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24. _____ is a system of marketing by which organizations communicate without intermediaries to the target customers to generate a response or transaction. A. Sales promotion B. Word-of-mouth marketing C. Synchro marketing D. Direct marketing E. Publicity Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

25. The customer response to direct marketing can take the form of A. inquiries. B. product diversification. C. product segmentation. D. sales promotions. E. push promotions. Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

26. _____ is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. A. Trade advertising B. Publicity C. Public relations D. Direct marketing E. Synchro marketing The Direct Marketing Association (DMA) defines direct marketing as an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

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27. Which of the following statements is true about direct marketing? A. Direct marketing is suitable only for consumer-to-consumer advertising. B. Direct marketing involves marketing research, segmentation, and evaluation. C. Direct marketing has the same objectives as that of other promotional-mix tools. D. Direct marketing as a promotional media is suitable only for small retailers. E. Rapid increase in dual income families in America has led to a reduction in the use of direct marketing as a promotional media. Direct marketing is an aspect of total marketing—that is, it involves marketing research, segmentation, evaluation, and the like. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

28. Which of the following is an example of direct-response media? A. billboards B. place-based media C. the Internet D. product placement E. guerrilla media Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

29. _____ are the tools by which direct marketers implement the communication process. A. Directional pull strategies B. Sweepstakes C. Direct-response media D. Directional push strategies E. Direct encoders Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. These media are the tools by which direct marketers implement the communication process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

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30. Which of the following events is considered one of the major impetuses behind the growth of direct marketing? A. increase in the number of working women B. invention of the printing press C. development and expansion of the U.S. Postal Service D. development of multinational companies and international markets E. law that mandates public education The major impetus behind the growth of direct marketing may have been the development and expansion of the U.S. Postal Service, which made catalogs available to both urban and rural dwellers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

31. One of the reasons for the recent, rapid growth of direct marketing in American society is the A. fact that the United States has moved from an industrialized nation to a service nation. B. increase in the number of hours individuals spend watching television. C. nonproliferation of cellular phones. D. increased use of consumer credit cards. E. development of four-color printing presses. There are now more than 1 billion credit cards—bank, oil company, retail, and so on—in circulation in the United States. This makes it feasible for consumers to purchase both low- and high-ticket items through direct-response channels and assures sellers that they will be paid. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

32. Which of the following statements is true about the growth of direct marketing? A. Direct marketing is being used as a promotional media tool only after the invention of the Internet. B. Typically, few purchases being made with the use of credit cards are as a result of direct marketing. C. The fast-paced and changing values and lifestyles of consumers are decreasing the effectiveness of direct marketing in urban areas. D. The rapid decrease in dual-income families has led to growth in direct marketing. E. The Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets. The rapid technological advancement of the electronic media and the Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets and hence led to the growth of direct marketing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-01 Define direct marketing. Topic: Direct Marketing

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33. A magazine ad for pet health insurance contains both a toll-free number and a website URL in order to enable readers to obtain further information. This ad is an example of combining direct marketing with A. trade promotions. B. public relations. C. advertising. D. personal selling. E. consumer promotions. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

34. A television commercial for a Vesta hairstyling appliance features a toll-free number, which customers can call for additional product information. This commercial is an example of combining direct marketing with A. public relations. B. advertising. C. personal selling. D. sales promotion. E. support media. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

35. A print ad of Accelerant Corp., a courier delivery service provider, read "Call 1-800-ACCEL (toll free) to send gifts this Christmas to your loved ones anywhere in the world." Which of the following promotional media is combined with direct marketing in the print ad? A. advertising B. sales promotion C. publicity D. public relations E. personal selling The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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36. Joe receives print ads from Beryl Inc., a manufacturer of computer printers, marketing its ink cartridges to him as he is a regular buyer of Beryl ink cartridges. Which of the following combinations of promotional media is Beryl using? A. advertising and sales promotion B. direct marketing and advertising C. sales promotion and public relations D. direct marketing and sales promotion E. public relations and support media The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes an advertisement will be sent through direct mail. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

37. Britney sees an infomercial for a home fitness machine. The infomercial provides a website address that one can access for further product information. Additionally, the website contains an order form where customers can fill in their mailing address. This is an example of combining A. support media with public relations. B. sales promotion with support media. C. personal selling with direct marketing. D. advertising with personal selling. E. direct marketing with advertising. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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38. The Florence County Museum called a press conference to inform the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings. During the conference, the museum representative announced that each family in Florence County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of combining direct marketing with A. trade promotions. B. public relations. C. advertising. D. personal selling. E. consumer promotion. The above scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

39. Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. In order to solicit funds to charitable organizations, it uses telemarketing to contact its high-income, upscale customers and requests them to make donations. Tristan is using a combination of A. publicity and public relations. B. direct marketing and public relations. C. direct marketing and personal selling. D. advertising and support media. E. personal selling and publicity. . The above scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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40. _____ and direct selling are two methods of personal selling used to generate sales. A. Public relations B. Sales promotion C. Infomercials D. Telemarketing E. Advertising specialties Telemarketing and direct selling are two methods of personal selling used to generate sales. Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

41. The two methods of personal selling used to generate sales are A. advertising and infomercials. B. sales promotion and publicity. C. telemarketing and direct selling. D. public relations and support media. E. home shopping and cross selling. Telemarketing and direct selling are two methods of personal selling used to generate sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

42. Venus Airlines sends out mailers and e-mails to its customers announcing promotional airfares. Which of the following combinations of promotional media is Venus using? A. advertising and sales promotion B. advertising and direct marketing C. sales promotion and direct marketing D. sales promotion and public relations E. direct marketing and personal selling The above scenario is an example of combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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43. Bianca receives an e-mail notifying her of the end-of-season sale at Hop & Shop, a popular retail chain. The e-mail also informs her that she is invited to enter into a sweepstakes contest. In this scenario, Hop & Shop is using a combination of A. publicity and public relations. B. advertising and personal selling. C. direct marketing with sales promotion. D. support media and advertising. E. direct marketing and personal selling. The above scenario is an example of combining direct marketing with sales promotion. Hop & Shop sends e-mail announcements of special end-of-season sales and invites her to enter into a sweepstakes contest. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

44. Which of the following is true of telemarketing as an advertising medium? A. It is not used by for-profit organizations to screen and qualify prospects. B. It is considered an ineffective medium of direct selling by most national advertisers. C. It is typically expensive and increases advertising overheads substantially. D. It is typically used by nonprofit organizations to solicit funds. E. It is considered to be an important component of sales promotion. Telemarketing and direct selling are two methods of personal selling used to generate sales. Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

45. Atkins Auto, a dealer of automobiles, sends direct-mail pieces to its prospective customers, inviting them to visit its auto showroom to test-drive new cars. Customers who respond to the direct mail by visiting the showroom are provided with thorough information about the cars. Salespersons of the company receive extensive training and assume responsibility for the selling efforts in the showroom. This is an example of combining direct marketing with A. advertising. B. personal selling. C. public relations. D. sales promotions. E. support media. The above scenario is an example of combining direct marketing with personal selling. Direct-mail pieces are often used to invite prospective customers to visit auto showrooms to test-drive new cars; the salesperson then assumes responsibility for the selling effort. Automobile manufacturers and their dealers have both made effective use of this approach. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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46. Amanda, a florist, is the owner of Flush Inc. She receives a mail from Pluto Corp., a manufacturer of foam products, offering a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if Amanda places an order with Pluto, she would be automatically registered to win $10,000 in a customer appreciation contest. This is an example of combining direct marketing with A. sales promotion. B. public relations. C. advertising. D. personal selling. E. support media. The above scenario is an example of combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares. Nordstrom and other retail outlets call their existing customers to notify them of special sales promotions. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

47. To encourage customers to open a mail offering them a subscription to Home Companion, a home furnishings magazine, the front of the envelope suggested that there was a gift inside. The envelope contained an attractively laminated bookmark. This is an example of combining direct marketing with A. personal selling. B. support media. C. place-based media. D. product placement. E. advertising. The above scenario is an example of combining direct marketing with support media. Adding a promotional product to a direct mailer has proven to increase response rates. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

48. The most common direct marketing objective that is typically expected by companies is to A. seek a behavioral response. B. reduce source derogations. C. generate goodwill. D. reduce postpurchase dissonance. E. sell a product at a higher price. A direct marketer usually seeks a direct response. The objectives of direct marketing are normally behaviors—for example, test drives, votes, contributions, and/or sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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49. Which of the following is an objective of direct marketing? A. to make use of celebrity endorsements B. to maintain customer satisfaction C. to engage in social responsibility initiatives D. to make innovative products E. to increase market diversification Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

50. To successfully implement direct-marketing programs, a company must A. concentrate on market diversification to expand its customer base. B. conduct a competitor analysis to assess the strengths and weaknesses of its competitors. C. determine which markets to target through the use of a list or marketing database. D. use unconventional techniques such as guerrilla marketing to attract customers. E. engage in extensive bait-and-switch marketing. To successfully implement direct-marketing programs, companies must make a number of decisions. As in other marketing programs, they must determine (1) what the program's objectives will be, (2) which markets to target (through the use of a list or marketing database), (3) what direct-marketing strategies will be employed, and (4) how to evaluate the effectiveness of the program. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

51. A typical U.S. household receives an average of ___________ direct-mail pieces per week. A. 9 B. 12 C. 17 D. 19 E. 22 The average U.S. household receives 19 pieces of direct-mail each week. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program. Topic: Direct Marketing

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52. The announcer on a television commercial said, "Get your credit card and call now to order an autographed copy of the Summer Dreams DVD." This is an example of using the _____ approach of direct marketing. A. two-step B. group C. one-to-one D. one-step E. three-step The above scenario is an example of the one-step approach of direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

53. In the _____ approach of direct marketing, a medium is used directly to obtain an order. A. three B. one-to-many C. indirect D. one-step E. two-step In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

54. All the television commercials and print ads that urge customers to pick up their phone and call a toll-free number to place an order immediately make use of the _____ approach of direct marketing. A. B. C. D. E.

one-step two-step one-to-one indirect telemarketing

In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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55. The goal of the _____ approach of direct marketing is to generate an immediate sale when an ad is shown. A. two-step B. one-step C. RFM scoring D. indirect E. all-in-one In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

56. The _____ approach of direct marketing involves the use of more than one medium to screen potential buyers, leading to a response. A. two-step B. switch-and-bait C. RFM scoring D. indirect E. all-in-one The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

57. Under the two-step approach of direct marketing, the first effort is designed to screen, or qualify, potential buyers, and the second effort A. generates the response. B. creates brand awareness. C. reduces the postpurchase dissonance. D. increases source bolsters. E. creates interest in a product. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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58. Which of the following is employing a one-step approach to direct marketing? A. an infomercial for workout equipment urging viewers to phone a toll-free number to place an order immediately B. a magazine subscription service that sends an announcement of an upcoming sweepstakes C. an ad advising television viewers to watch their mailboxes for a way to earn free calling cards D. a company asking if a homeowner is interested in an estimate for a vinyl siding E. an advertisement for an adhesive bandage announcing free gifts on purchase of bandages worth $50 and above In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

59. To purchase cookware, music CDs, and exercise videos advertised on television, consumers are asked to call a toll-free telephone number. Viewers are instructed to have their credit cards handy when they call to place an order. This form of direct marketing is referred to as A. outbound telemarketing. B. video texting. C. the one-step approach. D. the two-step approach. E. support marketing. The above scenario is an example of the one-step approach to direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

60. Erika sees an infomercial for Luster skin care products. During the infomercial, a toll-free number flashes on her television screen. She immediately picks her phone and dials the number to place an order for a body lotion and hair shampoo. This is an example of the A. party plan approach to direct marketing. B. two-step approach to direct marketing. C. one-step approach to direct marketing. D. repetitive person-to-person selling. E. nonrepetitive person-to-person selling. The above scenario is an example of the one-step approach to direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like workout equipment, skin care products, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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61. Sophia watches a TV commercial for Missy 21, a women's magazine. The commercial asks viewers to call a toll-free number to place an order for a one-year subscription to the magazine. It also announces that the first 200 callers to place an order will receive an additional subscription of three months at no extra charge. This is an example of using the _____ approach of direct marketing. A. B. C. D. E.

two-step outbound buzz one-step bulls-eye

The above scenario is an example of the one-step approach to marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

62. In direct-marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use A. the two-step approach. B. the one-step approach. C. direct mail rather than telemarketing. D. direct-response television. E. SMRB's data on direct-marketing purchasers. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

63. The two-step approach to direct marketing A. urges customers to make an immediate purchase. B. uses the first effort to screen potential buyers. C. is commonly found in direct sales. D. is typically followed by a sweepstakes contest. E. is similar to missionary selling. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

14-38 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

64. Creative Crew is a direct-marketing company that sells merchandise such as T-shirts, customized coffee mugs, calendars, key chains, bags, and the like. It uses telemarketing to inform prospective customers about the range of products offered by the company. Interested customers are provided with a website URL, which contains a form where they place their purchase orders. This is an example of using A. sweeps marketing. B. direct marketing in combination with support media. C. specialty advertising. D. the one-step approach to direct marketing. E. the two-step approach to direct marketing. The above scenario is an example of the two-step approach to direct marketing. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

65. Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofabeds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofabed, the sales representative urges Jason to come over to the company's retail outlet. Bell Chime is utilizing A. a buzz approach to personal selling. B. a repetitive person-to-person selling. C. specialty advertising. D. the one-step approach to direct marketing. E. the two-step approach to direct marketing. The above scenario is an example of the two-step approach to direct marketing. The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response (e.g., the order). AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

66. Which of the following statements is true of a direct mail? A. Direct mail is often called "treasure mail"—the solicited mail one receives. B. Direct mail has been rendered ineffective with the advent of the Internet. C. Direct mail is useful only for low-cost products. D. Direct mail is not restricted to small companies seeking business. E. Direct mail is ineffective in targeting high-income, upscale consumers. Direct mail is not restricted to small companies seeking business. Respected large companies and organizations in the retail financial services, and fund-raising sectors (among others) commonly employ this medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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67. Which of the following is true of direct mail? A. B. C. D. E.

Direct-mail marketing has waned due to excessive use of the Internet. Traditional direct-mail business has experienced higher response rates from many consumers with the advent of the Internet. It is synonymous with personal selling. Keys to the success of direct mail are the mailing list. It depends extensively on the U.S. Postal Service.

Keys to the success of direct mail are the mailing list, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

68. Keys to the success of direct mail are the _____, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. A. B. C. D. E.

mailing list infomercials TV spots web pages mail shopping network

Keys to the success of direct mail are the mailing list, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

69. Which of the following statements is true of mailing lists? A. They lead to a lot of waste coverage. B. They have the ability to segment markets on the basis of lifestyles. C. They are used in combination with infomercials. D. They constitute a payroll database of a company's employees. E. They are typically considered to be an unethical strategy. Keys to the success of direct mail are the mailing list, which constitutes a database from which names are generated, and the ability to segment markets and, of course, an offer. Lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through zip codes), demographics, and lifestyles has led to increased effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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70. Which of the following factors has increased the effectiveness of mailing lists? A. rapid technological development and new product innovations B. social networking sites C. segmentation on the basis of geography and demographics D. limiting consumer segregation E. improved lifestyle characteristics and increased purchasing power of consumers Mailing lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through zip codes), demographics, and lifestyles has led to increased effectiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

71. Which of the following media has lower cost and convenience that has raised concerns among traditional direct-mail marketers but at the same time created better opportunities? A. television B. radio C. Internet D. outdoor advertising E. transit advertising The lower cost of e-mail and the convenience of the Internet have raised concerns among traditional direct-mail marketers. Interestingly, the Internet is both a threat and an opportunity, as Internet companies have increased their expenditures in direct mail to drive potential customers to their sites. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

72. Which of the following statements is true of the use of catalogs in the direct-marketing industry? A. One of the disadvantages of catalogs is that they can be used only in the form of traditional hard copies; they cannot be used in conjunction with the Internet. B. The number of catalogs mailed and the number of traditional catalog shoppers has increased in the recent years. C. The emotional appeal of a traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online. D. Catalogs are ineffective due to their limited segmentation characteristics. E. Catalogs are designed for stimulating an immediate purchase behavior in customers; however, they are ineffective in attracting publicity. The emotional appeal of the traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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73. Which of the following statements is true of the use of direct mail on the Internet (e-mail) in the direct-marketing industry? A. It is less targeted than traditional direct mail. B. It does not make use of mailing lists because such lists lead to spam messages. C. It attempts to reach consumers with specific needs through targeted messages. D. It is used only by business-to-business marketers. E. It has higher cost and lower effectiveness than traditional direct mail. Direct mail on the Internet (e-mail) is essentially an electronic version of regular mail. Like regular mail, it is highly targeted, relies heavily on lists, and attempts to reach consumers with specific needs through targeted messages. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

74. _____ is the electronic equivalent of junk mail— it is less targeted and is considered an unwanted e-mail. A. Add-on B. Trojan C. Mnemonic D. Spam E. Plug-in Sometimes users may also receive less targeted and unwanted e-mails. The electronic equivalent of junk mail, these messages are referred to as spam. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

75. The U.S. government has passed laws regulating the use of e-mail marketing because A. it results in high volumes of spam and many consumers consider it a nuisance. B. of the huge costs involved in monitoring Internet traffic. C. it violates the privacy of online users and makes unauthorized use of consumer data. D. it makes use of comparative advertising. E. it involves sharing of a company's confidential data with the consumers. Because of the high volumes of spam and the fact that many consumers consider it a nuisance, the U.S. government has passed laws regulating the use of e-mail marketing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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76. Which of the following statements is true of the use of broadcast media by the direct-marketing industry? A. Direct marketing in the broadcast industry does not use support advertising. B. The majority of direct-marketing broadcast advertising occurs through radio as opposed to TV. C. The use of broadcast media by the direct-marketing industry has witnessed a decline in the recent years. D. The two-step approach to direct marketing is common on the radio, particularly with local companies. E. When a toll-free number is included in a direct-response ad, it is called support advertising. It should be noted that the two-step approach is still very common on the radio, particularly with local companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

77. In _____, a product or service is offered and a sales response is solicited, through either the one- or two-step approach to direct marketing. A. B. C. D. E.

direct-response advertising direct-support advertising direct-ambient advertising personal selling sales promotion

In direct-response advertising, a product or service is offered and a sales response is solicited, through either the one- or two-step approach to direct marketing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

78. Direct marketing in the broadcast industry involves A. public relations and supplementary promotions. B. direct-response advertising and support advertising. C. a one-step direct-marketing approach to sales. D. add-on marketing. E. ambient advertising and aerial advertising. Direct marketing in the broadcast industry involves both direct-response advertising and support advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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79. A television commercial for an apparel brand urges viewers to call its toll-free number to place an order, immediately. The commercial announces a free gift hamper to consumers who place an order before midnight. The apparel brand is making use of A. ambient advertising. B. publicity. C. direct-response advertising. D. sales promotion. E. support advertising. The above scenario is an example of direct-response advertising. In direct-response advertising, a product or service is offered and a sales response is solicited, through either the one- or two-step approach. Examples include ads for apparel, exercise equipment, collectibles, and so on. Toll-free phone numbers are included so that a receiver can immediately call to order. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

80. A television ad for Savory Sandwich instructs its viewers to look in their mailbox for coupon offers that will save them money on their next sandwich order. This is an example of A. ambient promotion. B. support advertising. C. a one-step direct-marketing approach. D. add-on marketing. E. sweeps marketing. Support advertising is designed to do exactly that—support other forms of advertising. Ads for Publishers Clearing House or or other companies telling customers to look in their mailbox for a sweepstakes entry are examples of support advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

81. Which of the following statements is true of infomercials? A. Infomercials are only useful for marketing trends. B. Typically infomercials only use the two-step approach to direct marketing. C. The lower costs on cable and satellite channels have led to the growth of infomercials. D. According to broadcast standards, infomercials cannot exceed 30 minutes. E. Infomercials typically move consumers into the conviction stage of the hierarchy of effects model. The lower cost of commercials on cable and satellite channels has led advertisers to a new form of advertising. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

14-44 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

82. Which of the following statements best defines an infomercial? A. It is a tool used by marketers as a part of the publicity campaign. B. It is a form of direct mail which consists of consumer mailing lists. C. It is a strategy used in public relations to inform the public of a company's policies. D. It is a print advertisement which provides detailed information about a product. E. It is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

83. Infomercials are A. primarily designed to sell products that are classified as trends. B. always televised during off-viewing hours. C. those ads that appear only in print media. D. a part of specialty advertising. E. ads that use both one- and two-step approaches. Today's infomercials use both one- and two-step approaches to direct marketing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

84. Cassandra sees a 30-minute TV show on an entertainment channel that advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This is an example of A. a sales promotion. B. personal selling. C. specialty advertising. D. buzz advertising. E. an infomercial. The above scenario is an example of an infomercial. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. Many infomercials are produced by advertisers and are designed to be viewed as regular TV shows. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

14-45 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

85. Which of the following factors has led to a dramatic increase in home shopping? A. the development of satellite connectivity B. the nationalization of telephone networks C. the development of high-definition television D. the shift in social preferences among consumers E. the widespread use of credit cards The development of toll-free telephone numbers, combined with the widespread use of credit cards, has led to a dramatic increase in the number of people who shop via their TV sets through home shopping channels. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

86. Due to clutter and relatively high costs, the use of _____ by direct marketers does not result in returns as high as those for other forms of direct-marketing media. A. B. C. D. E.

magazines and newspapers television and radio direct mail and catalogs telemarketing and home shopping TV spots and infomercials

Magazines and newspapers are difficult media to use for direct marketing. Because these ads have to compete with the clutter of other ads and because the space is relatively expensive, response rates and profits may be lower than in other media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

87. Which of the following statements is true of telemarketing? A. Telemarketing exclusively uses network television for direct marketing. B. Telemarketing is employed only in a one-step system. C. Business-to-business marketers do not use telemarketing. D. Telemarketing is only used by for-profit companies. E. Telemarketing is effective for charitable organizations. Both profit and charitable organizations have employed telemarketing effectively in both one- and two-step approaches. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Direct Marketing

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88. _____ is the personal presentation, demonstration, and sales of products to consumers in their homes. A. Home shopping B. Direct marketing C. Personal liaising D. Consultative selling E. Direct selling Direct selling is the direct, personal presentation, demonstration, and sales of products and services to consumers in their homes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

89. Which of the following is a form of direct selling? A. party plans B. home shopping C. out-of-home shopping D. ambient advertising E. sales promotions The three forms of direct selling are repetitive person-to-person selling, nonrepetitive person-to-person selling, and party plans. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

90. _____ is when a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing Repetitive person-to-person selling is when a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

14-47 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

91. Which of the following is true of repetitive person-to-person selling? A. It involves the sale of frequently purchased products. B. It is not a useful method for selling durables. C. It is not considered suitable for selling services. D. It involves selling products that are considered to be seasonal. E. It involves selling products through home or office parties. Repetitive person-to-person selling is when a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

92. _____ is when a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing Nonrepetitive person-to-person selling is when a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

93. Which of the following is true of nonrepetitive selling? A. It is not considered useful for selling products such as encyclopedias. B. It is considered to be an indirect sales technique. C. It does not involve selling products at a customer's home, unlike repetitive person-to-person selling. D. It involves selling products at a customer's workplace. E. It is synonymous with ambient selling. Nonrepetitive person-to-person selling is when a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

14-48 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

94. Which of the following products is likely to be sold using a nonrepetitive person-to-person selling technique? A. detergents B. T-shirts C. dairy products D. encyclopedias E. shoes Nonrepetitive person-to-person selling is when a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

95. __________are when a salesperson offers products or services to groups of people through home or office gatherings and demonstrations. A. Repetitive person-to-person selling B. Nonrepetitive person-to-person selling C. Party plans D. Home shopping E. Telemarketing Party plans are when a salesperson offers products or services to groups of people through home or office parties and demonstrations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing. Topic: Define Personal Selling

96. Advertisers can measure the relative effectiveness of a direct-marketing program quickly by using A. cost per thousand (CPM). B. the breakeven point. C. reach and frequency. D. cost per order (CPO). E. net sales. Because they generate a direct response, measuring the effectiveness of direct-marketing programs is not difficult. Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

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97. Which of the following measures aids direct marketers in evaluating the relative effectiveness of an ad based on the number of calls generated? A. cost per order (CPO) B. cost per thousand (CPM) C. cost per man-hour (CPMH) D. cost per new prospect (CPNP) E. sales per database name (SDN) Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

98. _____ is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth. A. B. C. D. E.

Cost per thousand Consumer worth evaluation Customer lifetime value Customer profitability estimation Breakeven point

A commonly employed measure of effectiveness is customer lifetime value (CLTV). CLTV is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Marketing Metrics

99. _____ is a measure of effectiveness used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. Breakeven Point E. Cost per Order Customer Lifetime Value (CLTV) is used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Marketing Metrics

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100. Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. breakeven point E. cost per order Companies use Customer Lifetime Value (CLTV) to assist them in assessing future revenues and profit streams from a customer, so that they can focus more on the satisfaction and retention of their more profitable customers. Thus, a company can focus more attention on profitable customers while spending less marketing effort on those with a low CLTV score. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Marketing Metrics

101. Gina targets a $5 return per order and creates and runs an ad at a cost of $2,500. She considers the ad effective if it generates more than 500 orders. This is an example of a _______________ calculation. A. Customer Profitability Estimation B. Consumer Worth Evaluation C. Customer Lifetime Value D. breakeven point E. cost per order Using cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Marketing Metrics

102. Which of the following is an advantage offered by direct marketing to advertisers? A. personalization of messages B. ability to create a mood C. exclusive image D. greater content support E. accuracy of lists One of the advantages of direct marketing is its ability to offer personalized messages. No other advertising medium can personalize a message as well as direct media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

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103. Which of the following is a disadvantage associated with direct marketing? A. poor image B. poor selectivity C. inability to measure effectiveness D. low frequency level E. lack of segmentation Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way. The mail segment of the direct-marketing industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

104. Direct marketing lets an advertiser A. build a credible image about a company's product by using direct mails. B. reach a large number of people and reduce or eliminate waste coverage. C. make accurate mailing lists consistently for targeting potential customers. D. create a desirable mood in consumers. E. market its products in a cost-efficient manner. Direct marketing lets an advertiser reach a large number of people and reduce or eliminate waste coverage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

105. As postal rates increase, direct-mail advertising is replaced with A. billboards. B. e-mail. C. infomercials. D. telemarketing. E. radio advertising. As postal rates increase, direct-mail profits are immediately and directly impacted. The same is true for print costs, which drives up the costs of mailers and catalogs. The low cost of e-mail has led many companies to switch to this medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

14-52 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

106. Unlike magazines, in direct-response advertising, ________________ is limited to the surrounding program or editorial content. A. mood creation B. profit C. image D. telemarketing E. spiffs In direct-response advertising, mood creation is limited to the surrounding program and/or editorial content. Direct-mail and online services are unlikely to create a desirable mood. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

107. Lucia utilizes direct-response ads on TV, but they yield a lower than expected number of orders. A follow-up study of people who saw the ad revealed that they associated direct-response ads on TV with lower-priced products and low-budget ads. Which of the following disadvantages of direct marketing does the scenario highlight? A. image B. accuracy C. content support D. rising costs E. Do Not Call lists Many people believe unsolicited mail promotes junk products, and others dislike being solicited. Likewise, direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing. Topic: Direct Marketing

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Chapter 14 Test Bank 01/11/2017 16:37:48 Summary Category-# of Questions AACSB: Analytical Thinking-83 AACSB: Reflective Thinking-24 Accessibility: Keyboard Navigation-107 Blooms: Apply-26 Blooms: Remember-53 Blooms: Understand-28 Difficulty: 1 Easy-52 Difficulty: 2 Medium-31 Difficulty: 3 Hard-24 Learning Objective: 14-01 Define direct marketing.-14 Learning Objective: 14-02 Discuss the role of direct marketing in an IMC program.-28 Learning Objective: 14-03 Identify strategies and tactics in the use of direct marketing.-50 Learning Objective: 14-04 Compare the advantages and disadvantages of direct marketing.-15 Topic: Define Personal Selling-8 Topic: Direct Marketing-95 Topic: Marketing Metrics-4

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Chapter 15 Test Bank Student: ___________________________________________________________________________ 1. One of the reasons for the rapid growth of the Internet is consumers' increased desire for information. True False

2. Like other media, which are essentially unidirectional, the Internet also provides only a one-way flow of information. True False

3. The Internet offers consumers the opportunity to provide their own content, offer their own goods and services for sale, and provide feedback on the same as provided by others. True False

4. When major corporations first began to conduct business on the Internet, they put up websites primarily for creating a strong brand image. True False

5. Unlike other media, the Internet is a hybrid of media. True False

6. The Internet allows a user to both purchase and sell products through e-commerce. True False

7. The Internet is a communications medium as well as a direct-response medium. True False

8. The Internet allows companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. True False

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9. The Internet serves as the most effective tool for creating awareness of an organization and its products, especially in the case of large companies. True False

10. The Internet, though very effective in disseminating information to specific target groups, costs much more when compared to other media. True False

11. One of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. True False

12. The Internet can be used as an effective medium by marketers for stimulating trial of their products or services. True False

13. Companies can make use of both "brick-and-mortar" stores as well as the Internet for generating sales. True False

14. Web 1.0 ended with the "bursting of the dot-com bubble." True False

15. Banner ads may be used for creating awareness or recognition. True False

16. Advertisements that appear in the form of small animated characters on the screen while one accesses certain websites are known as pop-ups. True False

17. Pop-ups are usually smaller than banner ads. True False

18. Ronnie is most likely to come across an interstitial while he is waiting for a download link of a software to load. True False

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19. Inorganic search results are those that appear because of their relevance to the search terms, not advertisements. True False

20. A hotel advertiser who places an ad on a travel booking website is making use of contextual advertising. True False

21. Online commercials are significantly different from traditional television commercials. True False

22. Blogs are the most expensive way to reach large audiences. True False

23. One of the perceived disadvantages of the Internet is that it cannot measure commercial effectiveness, due in part to its inability to measure activity in real time. True False

24. All of the methods used to measure Internet activity and effectiveness are accurate. True False

25. Behavior tracking on the Internet helps in tailoring the message to appeal to specific needs and wants of the target audience. True False

26. One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. True False

27. Which of the following statements is true of the Internet? A. The Internet is an interactive medium that allows for a two-way flow of information. B. The Internet is a communications medium rather than a direct-response medium. C. Rapid industrialization is the main factor that has led to the rapid growth of the Internet. D. The Internet is a unidirectional medium like all other media. E. The Internet does not allow consumers to control the messages and content they are exposed to.

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28. When major corporations first began to conduct business on the Internet, they put up websites primarily for A. information purposes. B. product placement. C. increasing interest. D. inducing trial. E. increasing sales.

29. The Internet A. enables only one-way information flow. B. is unidirectional. C. is a direct-response medium. D. doesn't allow feedback from consumers. E. is independent of other media.

30. Naomi has a consulting firm. She wants to use her website to provide details about her company's profile and to answer FAQs. Naomi's primary objective while designing her website is to A. build a brand image. B. allow customer sampling. C. disseminate information. D. handle objections. E. induce trial.

31. Which of the following factors has led to a rapid adoption of the Internet? A. decreased Internet traffic B. decreased government regulations C. the increasing availability of leisure time D. the ability to conduct e-commerce through one's personal computer E. reduction of clutter in terms of broadcast and print media

32. When using the Internet as a medium, traditional marketers have experienced difficulties in A. creating awareness. B. generating interest. C. disseminating information. D. creating brand images. E. creating strong brands.

33. Digital Melody, an online digital media store, allows customers to "sample" songs before they make a purchase decision. In this scenario, Digital Melody is trying to A. disseminate information. B. create awareness. C. build an image. D. create a strong brand. E. stimulate trial.

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34. Which of the following is true of the Internet as a medium for branding? A. Unlike print media, the Internet is not an effective tool for branding. B. Unlike using television as media, the Internet does not enable service branding. C. The Internet is more effective as a media for branding because it has a one-directional communication flow. D. Unlike the radio, the Internet is not an effective medium for branding for large companies. E. The Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation.

35. Which of the following is true of the Internet as an advertising medium? A. Blogs and discussion boards are considered particularly useful for providing information to evaluate products and brands. B. Typically, the Internet does not enable marketers to stimulate trial of products or services. C. Most marketers believe that the Internet is not an effective medium for achieving communications objectives such as consideration and/or evaluation. D. The Internet cannot be used to create a "buzz" for a product or service. E. While it can be used to complement traditional advertising, the Internet cannot be used as an independent medium.

36. DigiCell Inc. sells computer equipment to small- and mid-sized businesses. Its website provides in-depth information on its products, customer service, shipping policies, and suppliers. Like most business-to-business sites, the primary objective of this website is to A. eliminate economies of scale. B. create diseconomies of scale. C. disseminate information. D. replace advertising in trade journals. E. prevent price wars.

37. In developing creative strategies specifically adapted to the medium, marketers have found it most difficult to A. disseminate information through the Internet. B. provide current price lists on the Internet. C. create viable links to suppliers using the Internet. D. overcome online buying center barriers. E. create a brand image on the Internet.

38. The manufacturer of "Allay" pain reliever offered a free sample of the product to visitors who registered at its website. In this case, the communications objective of the website was to A. disseminate information. B. create a route for disintermediation. C. create an e-commerce site. D. stimulate trial. E. create a brand image.

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39. Direct selling of goods and services on the Internet is known as A. direct-response advertising. B. consumer-to-consumer selling. C. business-to-business selling. D. e-commerce. E. blogging.

40. Which of the following is true of e-commerce? A. It is typically considered an ancillary sales medium. B. It cannot be used as a business-to-business medium. C. It is a direct sales strategy. D. It is synonymous with "brick-and-mortar" stores. E. It is a primary component of C2C marketing.

41. Companies like Red Bull use their website to engage visitors with news, live streaming, and video content. This is an example of using the Internet to A. generate interest. B. create awareness. C. disseminate information. D. create an image. E. create a strong brand.

42. The terminology used to refer to the early evolution of the World Wide Web, in which users could view web pages and interface with them but could not contribute to the content of the web page, is known as A. Web 2.0. B. Web network. C. Web 1.0. D. Web 1.8. E. Web HTML.

43. Which of the following statements is true of Web 1.0? A. It started with the bursting of the dot-com bubble. B. It consisted mainly of static sites resulting in a one-way flow of communication. C. It led to the decentralization of communications and interactivity. D. It led to dramatic changes in the World Wide Web with information provided by users as contributors. E. Web 2.0 users acted as contributors in Web 1.0.

44. Which of the following statements is true of Web 2.0? A. For the most part, Web 2.0 consists of static sites resulting in a one-way flow of communication. B. Web 2.0 has led to dramatic changes in the World Wide Web due to decentralization of communications and interactivity. C. Web 2.0 ended with the bursting of the dot-com bubble, leading to the development of Web 3.0. D. Web 2.0 is the terminology used to refer to the early evolution of the World Wide Web in which users could only view the web pages. E. Web 2.0 does not allow users to contribute to the content of a web page.

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45. _____ has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content. A. Interstitial B. Web 1.0 C. Web 2.0 D. E-commerce E. B2B selling

46. Like broadcast or print, the Internet A. can only disseminate and not assimilate information. B. offers extensive psychographic selectivity. C. is an advertising medium. D. has a low reach. E. has no problems related to user privacy.

47. Banner ads A. are rarely used for advertising on the web. B. are typically used in transit advertising. C. are synonymous with interstitials. D. cannot be used for fulfilling direct-marketing objectives. E. can be static, animated, or in flash.

48. Banner ads are also known as A. interstitials. B. paid searches. C. pop-ups. D. side panels. E. links.

49. Yoana is an online women's magazine that features an animated ad for Carmen's Cosmetics on its website. If a visitor clicks on the ad, it will take the visitor directly to Carmen's website. This ad is an example of a(n) A. interstitial. B. banner. C. pop-up. D. sponsorship. E. paid search.

50. _____ occur when a company pays to sponsor a section of a site. A. Paid searches B. Interstitials C. Regular sponsorships D. Content sponsorships E. Irregular sponsorships

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51. Regular sponsorship occurs when A. a sponsor participates in providing the content. B. a sponsor approves the content of a site. C. a company pays to sponsor a section of a site. D. a sponsor contributes all or part of the content. E. advertisers pay only when a consumer clicks on their ad from a search engine page.

52. The website of WEmpower.com, an online women's magazine, has a book section sponsored by Spellbound.com, an e-commerce website. Spellbound.com has a similar arrangement with Valdivia.com and a few other sites. In this scenario, Spellbound.com is using a(n) A. button sponsorship. B. banner sponsorship. C. regular sponsorship. D. interstitial sponsorship. E. content sponsorship.

53. Regular sponsorship occurs A. when a sponsor buys pop-ups. B. when a sponsor buys banners and headliners. C. when a sponsor takes a corporate sponsorship of a page. D. when a sponsor buys pop-unders. E. when a sponsor provides part of the content for a website.

54. Ruminate Inc., an architectural design firm, pays for name association on a section of placeproperty.com, a real estate website. Ruminate also sponsors a section on assetplus.com, another real estate website. Ruminate is using A. guerrilla sponsorship. B. paid search. C. regular sponsorship. D. pay-per-click advertisement. E. content sponsorship.

55. The Clement Network, a satellite television channel that broadcasts weather forecasts, pays money in return for its name association with Nahla.com, an Internet portal. The Clement Network also provides weather information for the site. Which of the following methods of advertising on the Internet is Clement Network using? A. interstitials B. regular sponsorship C. push technology D. pop-unders E. content sponsorship

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56. Gizmo World, a gadgets magazine, pays for name association on a section of TechAtlas.com, an e-commerce site that sells cell phones and accessories. Gizmo World features its own articles on Tech Atlas. This is an example of a(n) A. interstitial. B. regular sponsorship. C. push technology D. pop-unders. E. content sponsorship.

57. _____ are windows or animated creatures that appear on a user's screen in an attempt to get his or her attention when the user is accessing the Internet. A. Pop-ups B. Interstitials C. Links D. Banner ads E. Blogs

58. _____ are ads that appear underneath a web page and become visible only when a user leaves the site. A. Links B. Interstitials C. Banner ads D. Pop-unders E. Blogs

59. While Ginger waited for Etenia.com's apparel site to download, a small ad encouraging her to check out the summer clothing collection at Ritzy, a retail outlet, appeared on her computer screen, along with a link to Ritzy's website. Ritzy's ad is an example of A. content sponsorship. B. a pop-up. C. push technology. D. functional sponsorship. E. a pop-under.

60. After Jones finished reading an article titled "101 Places To Visit Before You Die" in the travel website Excursion 2.0, he closed the page. Subsequently, he saw an ad on his screen that invited him to subscribe to the print version of 2.0 magazine. This ad is an example of A. content sponsorship. B. a pop-up. C. push technology. D. functional sponsorship. E. a pop-under.

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61. Jonathan visits iJaunty.com, a travel website, for information on the top-10 tourist destinations in the United States. When he exits the website, an ad for Emblazon cell phones appears on his computer screen, inviting him to purchase the cell phone at a discounted price. This ad is an example of A. content sponsorship. B. a pop-up. C. regular sponsorship. D. functional sponsorship. E. a pop-under.

62. _____ are ads that appear on a user's computer screen while he or she is waiting while downloading content from a site. A. Pop-unders B. Pay-per clicks C. Interstitials D. Plug-ins E. Floating ads

63. In general, a site that ranks higher on a search page A. is likely to receive more visitors. B. is considered more aesthetically appealing. C. has a better chance of attracting banner sponsorships. D. is likely to receive fewer regular sponsorships. E. is considered less secure from malware.

64. _____ searches are those that appear because of their relevance to the search terms, not advertisements. A. Interstitial B. Optimized C. Nonorganic D. Paid E. Organic

65. Pay-per-click advertising is an example of A. interstitial search. B. organic search. C. nonorganic search. D. nonoptimized search. E. spam search.

66. _____ is the process of improving the volume of traffic driven to one's site by a browser or web portal through unpaid (organic) results as opposed to paid inclusions. A. Search engine optimization B. Linking C. Rich media marketing D. Behavioral targeting E. Contextual targeting

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67. Advertisers employ search engine optimization (SEO) to A. more specifically target customers who may be interested in their offerings. B. attract customers to their products and services through the nonorganic search process. C. monitor Internet traffic. D. include attractive multimedia content in their web pages. E. sponsor a section of a website.

68. _____ is an Internet advertising strategy that is based on advertisers' targeting consumers by tracking their website surfing patterns, such as which websites they have visited and/or searches they have made. A. Search engine optimization B. Linking C. Rich media marketing D. Behavioral targeting E. Contextual targeting

69. Behavioral targeting can be done by A. compiling clickstream data and Internet protocol information. B. providing regular and content sponsorship in a section of a website. C. including animation and flash in websites. D. placing a website higher on a search engine page. E. employing pay-per-click advertising.

70. Clinton Steel Inc., a manufacturer of golf equipment, targets consumers based on their website surfing behaviors. The company places ads on websites where web traffic is highest for golf-related searches. In this scenario, Clinton Steel is using A. behavioral targeting. B. advertising allowance analysis. C. rich media marketing. D. video substitution selection. E. contextual advertising.

71. Once a user visits a website and leaves without purchasing a product, a specifically targeted ad is displayed on subsequent participating websites the user visits. This phenomenon is known as A. retargeting. B. rebounding. C. heuristic targeting. D. search engine optimization. E. contextual targeting.

72. Advertisers who target their advertising based on the information provided on web pages are using A. behavioral targeting. B. advertising allowance analysis. C. rich media marketing. D. database marketing. E. contextual advertising.

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73. Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined by A. the context in which ads are made. B. the content on a web page. C. content sponsorships. D. pay-per-click advertising. E. advertising concepts.

74. As defined by Wikipedia, _____ is "a web advertising in which an advertiser attempts to gain attention by providing valuable content in the context of a user's experience." A. behavioral targeting B. native advertising C. ambient advertising D. support media advertising E. content sponsorship

75. The goal of _____ is to be less intrusive while catching the attention of a reader who is likely interested in the content matter he or she is reading. A. behavioral targeting B. native advertising C. ambient advertising D. specialty advertising E. buzz sponsorship

76. _____ are defined as "a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation." A. Interstitials B. Support media C. Contextual ads D. Simulations E. Rich media

77. _____ include all content that is created in flash. A. Banner ads B. Links C. Interstitials D. Rich media E. Paid searches

78. _____ are short featured films made by advertisers in which companies create their own content to advertise their products. A. Online commercials B. Video on demand C. Blogs D. Webisodes E. Interstitials

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79. The term _____ is commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web. A. Web 1.0 B. Web 2.0 C. paid search D. rich media E. e-commerce

80. As defined by Merriam-Webster, _____ is "Forms of electronic communication (such as Web sites) through which people create online communities to share information, ideas, personal messages, etc." A. pre-rolls B. social media C. native ads D. rich media E. interstitials

81. _____ sites are platforms that allow users to share interests, activities, backgrounds, or real-life connections. A. Social networking B. Contextual advertising C. Behavioral targeting D. User-generated video sharing E. Podcast networking

82. Which of the following is true of social media? A. It is typically not used by firms as a marketing medium. B. There are numerous ways for consumers to access social media. C. It can be accessed only using specific Internet protocols. D. It is a type of content aggregator. E. It is built on the ideological foundations of Web 1.0.

83. As a powerful social medium, YouTube is a A. social networking site. B. content aggregator. C. podcast. D. blog. E. paid search engine.

84. _____ is a medium that uses the Internet to distribute audio or video files for downloading into iPads and other portable devices. A. Paid search B. Interstitial C. Podcasting D. Blogging E. Contextual advertising

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85. The attractiveness of _____ would increase with the growth of the market for iPads. A. social networking sites B. really simple syndication C. user-generated video sharing sites D. blogs E. podcasting

86. A(n) _____ organizes and formats Web-based content in a standard way, sending out notification whenever new material is available. A. social news site B. interstitial C. podcast D. Really Simple Syndication E. content aggregator

87. _____ is a specification that uses XML to organize and format Web-based content in a standard way. A. Podcasting B. Search engine optimization C. Pop-up D. Really Simple Syndication E. Content aggregator

88. A _____ is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. A. widget B. button C. link D. blog E. podcast

89. Which of the following is true of QR codes? A. They are primarily Web 1.0 applications. B. They are considered a part of augmented reality. C. They are used to reflect the writings of a business or a corporation. D. They are Web-based publications consisting primarily of periodic articles. E. They are being threatened by near field communication.

90. Swish Turbo Inc., an automaker, conducted a sweepstakes in which people could enter to win the car that Adam Gosling, a popular golfer, uses during tournaments. To enter the sweepstakes, consumers had to visit Swish Turbo's website. Which of the following promotional mix elements did the automaker use on the Internet? A. direct marketing B. personal selling C. publicity D. public relations E. sales promotions

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91. In the context of personal selling, which of the following factors is compelling companies to reduce new hires and even cut back on their existing sales forces? A. dissuasive medium B. poor reach C. extensive clutter D. limited information E. lack of credibility

92. Which of the following statements is true of personal selling on the Internet? A. Websites are ineffective in enhancing and supporting the personal selling effort. B. The Internet cannot be detrimental to those involved in personal selling in the business-to-business market. C. The low-cost and high-reach advantages of personal selling are allowing companies to increase new hires to expand their existing sales forces. D. Customers can determine if a company's offering satisfies their needs through trial demonstrations or samples offered online. E. The disadvantage of personal selling on the Internet is that it is time-consuming and it also incurs additional costs.

93. Press releases about company growth prospects, recent innovations, and industry-related news are available at the website of Kinetics Inc., a manufacturer of automobile components for trucks. Anyone conducting research on the company has access to this information. In this scenario, Kinetics uses the Internet as as a tool for A. sales promotion. B. personal selling. C. direct marketing. D. public relations. E. advertising.

94. Cats Purr is a non-profit organization that provides shelter and care for abandoned cats and kittens. Cats Purr uses its website to display information about the cats that are available for adoption, how they are cared for at the shelter, and to spotlight various volunteer efforts. This is an example of how the Internet can be used as a tool for A. sales promotion. B. personal selling. C. direct marketing. D. public relations. E. advertising.

95. Eli receives a mail offering a software program that helps in filing taxes online at a discounted price. This offer is an example of how the Internet and _____ can complement each other. A. sales promotion B. personal selling C. direct marketing D. public relations E. interconnects

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96. Which of the following is a traditional method of measuring the effectiveness of the Internet? A. unique visitors B. post-click conversion C. view-through rate D. web page eye tracking E. recall and retention

97. Which of the following is an Internet-specific measure that is used by companies? A. recall tests B. retention tests C. sales D. return on investment (ROI) E. cost per conversion

98. In 2008, _____________________ became the official media coding standard. A. Ad-Id B. sales C. return on investment (ROI) D. cost per conversion E. recall tests

99. Which of the following statements is true of the Internet? A. It can target very specific groups of individuals. B. It leads to a lot of waste coverage. C. It does not resemble a combination trade magazine and trade show. D. It does not carry one-to-one marketing messages. E. There is a lack of creative opportunity associated with its use.

100. Which of the following has been cited as an advantage of using the Internet? A. prestige B. lack of clutter C. privacy of user data D. message tailoring E. reliability

101. Which of the following has been cited as a disadvantage of using the Internet? A. inability to tailor messages B. lack of sales potential C. limited exposure D. potential for deception E. lack of creativity

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102. While some marketers believe that the Internet will eventually replace traditional forms of advertising, others disagree. Which of the following weaknesses of the Internet would support the marketers who disagree? A. lack of reliability of research numbers generated B. inability to provide in-depth information C. inability to offer sight and sound D. lack of sales potential in the business-to-business segment E. lack of creative flexibility in creating tailored advertising messages

103. Which of the following is one of the advantages associated with the Internet? A. target marketing B. message tailoring C. interactive capabilities D. clutter E. sales potential

104. Benita noticed that her banner ads had far lower click-through rates after the website on which she was advertising started offering additional ads on the home page. Benita is dealing with the _________________ disadvantage associated with the Internet. A. clutter B. potential for deception C. measurement challenge D. privacy E. irritation

105. Josie is looking at a native ad on her smartphone, which makes it difficult to see the labeling of the content as an ad. Josie is dealing with the _________________ disadvantage associated with the Internet. A. clutter B. potential for deception C. measurement challenge D. privacy E. irritation

106. Due to the rapid adoption of smartphones and tablets, ______ is now receiving strong attention from marketers. A. Web 1.0 B. mobile C. video on demand D. really simple syndication (RSS) E. pay-per-click advertising

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Chapter 15 Test Bank 1. One of the reasons for the rapid growth of the Internet is consumers' increased desire for information. TRUE A number of reasons can be cited as to why the growth of the Internet has been so rapid. One is consumers' increased desire for information that they are now able to obtain easily. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

2. Like other media, which are essentially unidirectional, the Internet also provides only a one-way flow of information. FALSE Unlike other media, which are essentially unidirectional and responsible for the content provided and products and services offered for sale, the Internet is interactive, allowing for a two-way flow. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

3. The Internet offers consumers the opportunity to provide their own content, offer their own goods and services for sale, and provide feedback on the same as provided by others. TRUE The Internet is interactive, allowing for a two-way flow. Consumers not only control when and which messages and content they are exposed to, but now provide their own content, offer their own goods and services for sale, and provide feedback on the same as provided by others. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

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4. When major corporations first began to conduct business on the Internet, they put up websites primarily for creating a strong brand image. FALSE When major corporations first began to conduct business on the Internet, they put up websites primarily for information purposes, and a one-way flow of information resulted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

5. Unlike other media, the Internet is a hybrid of media. TRUE Unlike other media, the Internet is actually a hybrid of media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

6. The Internet allows a user to both purchase and sell products through e-commerce. TRUE The Internet is a direct-response medium, allowing a user to both purchase and sell products through e-commerce, like Amazon and Craigslist. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Electronic Commerce

7. The Internet is a communications medium as well as a direct-response medium. TRUE The Internet is actually a hybrid of media. In part, it is a communications medium, allowing companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. For others, it is also a direct-response medium, allowing a user to both purchase and sell products through e-commerce, like Amazon and Craigslist. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

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8. The Internet allows companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. TRUE The Internet is a communications medium, allowing companies to create awareness, provide information, and influence attitudes, as well as pursue other communications objectives. For others, it is also a direct-response medium, allowing a user to both purchase and sell products through e-commerce, like Amazon and Craigslist. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

9. The Internet serves as the most effective tool for creating awareness of an organization and its products, especially in the case of large companies. FALSE While a valuable tool for creating awareness—particularly for smaller companies that may have limited advertising budgets—the Internet is not likely to be the most effective of the IMC elements for achieving this objective for larger companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

10. The Internet, though very effective in disseminating information to specific target groups, costs much more when compared to other media. FALSE Information regarding requirements, specifications, submission dates, and so on, is disseminated more quickly, to more potential candidates, and at a much lower cost via the Internet than it is through other media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

11. One of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. TRUE One of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some of these companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

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12. The Internet can be used as an effective medium by marketers for stimulating trial of their products or services. TRUE Many marketers have found the Internet to be an effective medium for stimulating trial of their products or services. Often websites offer electronic coupons in an attempt to stimulate trial of their products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

13. Companies can make use of both "brick-and-mortar" stores as well as the Internet for generating sales. TRUE Many companies maintain their existing "brick-and-mortar" stores while also selling through the Internet. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

14. Web 1.0 ended with the "bursting of the dot-com bubble." TRUE Web 1.0 is generally referred to as the first decade or so of the World Wide Web, ending with the "bursting of the dot-com bubble." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15. Banner ads may be used for creating awareness or recognition. TRUE The most common form of advertising on the web is banner ads. Banner ads may be used for creating awareness or recognition, entering viewers into contests and sweepstakes, or direct-marketing objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15-21 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

16. Advertisements that appear in the form of small animated characters on the screen while one accesses certain websites are known as pop-ups. TRUE When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

17. Pop-ups are usually smaller than banner ads. FALSE Pop-ups are usually larger than banner ads but smaller than a full screen. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

18. Ronnie is most likely to come across an interstitial while he is waiting for a download link of a software to load. TRUE Interstitials are ads that appear on a user's screen while the user is waiting for a site's content to download. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

19. Inorganic search results are those that appear because of their relevance to the search terms, not advertisements. FALSE Organic search results are those that appear because of their relevance to the search terms, not advertisements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15-22 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

20. A hotel advertiser who places an ad on a travel booking website is making use of contextual advertising. TRUE Advertisers who target their ads based on the content of a web page are using contextual advertising. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

21. Online commercials are significantly different from traditional television commercials. FALSE The equivalent of traditional television commercials, online commercials are appearing more often on the Net. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

22. Blogs are the most expensive way to reach large audiences. FALSE Some marketers are excited about the potential of blogs to reach large audiences at a small cost. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

23. One of the perceived disadvantages of the Internet is that it cannot measure commercial effectiveness, due in part to its inability to measure activity in real time. FALSE One of the perceived advantages of the Internet is a company's ability to measure commercial effectiveness, due in part to its ability to measure activity in real time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media. Topic: Marketing Metrics

15-23 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

24. All of the methods used to measure Internet activity and effectiveness are accurate. FALSE Unfortunately, not all of the methods used to measure Internet activity and effectiveness are accurate. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media. Topic: Marketing Metrics

25. Behavior tracking on the Internet helps in tailoring the message to appeal to specific needs and wants of the target audience. TRUE As a result of precise targeting, messages can be designed to appeal to the specific needs and wants of the target audience, much of which comes from behavior tracking. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

26. One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. TRUE One of the greatest disadvantages of the Internet and new media is the lack of reliability of the research numbers generated. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: Marketing Metrics

27. Which of the following statements is true of the Internet? A. The Internet is an interactive medium that allows for a two-way flow of information. B. The Internet is a communications medium rather than a direct-response medium. C. Rapid industrialization is the main factor that has led to the rapid growth of the Internet. D. The Internet is a unidirectional medium like all other media. E. The Internet does not allow consumers to control the messages and content they are exposed to. Unlike other media, which are essentially unidirectional and responsible for the content provided and products and services offered for sale, the Internet is interactive, allowing for a two-way flow. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

15-24 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

28. When major corporations first began to conduct business on the Internet, they put up websites primarily for A. information purposes. B. product placement. C. increasing interest. D. inducing trial. E. increasing sales. When major corporations first began to conduct business on the Internet, they put up websites primarily for information purposes and a one-way flow of information resulted. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

29. The Internet A. enables only one-way information flow. B. is unidirectional. C. is a direct-response medium. D. doesn't allow feedback from consumers. E. is independent of other media. The Internet is a direct-response medium, allowing a user to both purchase and sell products through e-commerce, like Amazon and Craigslist. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

30. Naomi has a consulting firm. She wants to use her website to provide details about her company's profile and to answer FAQs. Naomi's primary objective while designing her website is to A. build a brand image. B. allow customer sampling. C. disseminate information. D. handle objections. E. induce trial. The above scenario is an example of using a website to disseminate information. Information regarding requirements, specifications, submission dates, and so forth is disseminated more quickly, to more potential candidates, and at a much lower cost via the Net than it is through other media. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

15-25 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

31. Which of the following factors has led to a rapid adoption of the Internet? A. decreased Internet traffic B. decreased government regulations C. the increasing availability of leisure time D. the ability to conduct e-commerce through one's personal computer E. reduction of clutter in terms of broadcast and print media A number of reasons can be cited as to why the growth of the Internet has been so rapid. The ability to conduct e-commerce through one's personal computer is very attractive as it now seems there is almost nothing that one can't find or buy on the web. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

32. When using the Internet as a medium, traditional marketers have experienced difficulties in A. creating awareness. B. generating interest. C. disseminating information. D. creating brand images. E. creating strong brands. Interestingly, one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

33. Digital Melody, an online digital media store, allows customers to "sample" songs before they make a purchase decision. In this scenario, Digital Melody is trying to A. disseminate information. B. create awareness. C. build an image. D. create a strong brand. E. stimulate trial. Often websites offer electronic coupons in an attempt to stimulate trial of their products. Others offer samples, promotions, and sweepstakes designed to encourage trial. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

15-26 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

34. Which of the following is true of the Internet as a medium for branding? A. Unlike print media, the Internet is not an effective tool for branding. B. Unlike using television as media, the Internet does not enable service branding. C. The Internet is more effective as a media for branding because it has a one-directional communication flow. D. Unlike the radio, the Internet is not an effective medium for branding for large companies. E. The Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation. Many marketers believe that the Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation. Blogs and discussion boards are considered particularly useful for providing information useful in evaluating products and brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

35. Which of the following is true of the Internet as an advertising medium? A. Blogs and discussion boards are considered particularly useful for providing information to evaluate products and brands. B. Typically, the Internet does not enable marketers to stimulate trial of products or services. C. Most marketers believe that the Internet is not an effective medium for achieving communications objectives such as consideration and/or evaluation. D. The Internet cannot be used to create a "buzz" for a product or service. E. While it can be used to complement traditional advertising, the Internet cannot be used as an independent medium. Many marketers believe that the Internet is an effective medium for achieving communications objectives such as consideration and/or evaluation. Blogs and discussion boards are considered particularly useful for providing information useful in evaluating products and brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

36. DigiCell Inc. sells computer equipment to small- and mid-sized businesses. Its website provides in-depth information on its products, customer service, shipping policies, and suppliers. Like most business-to-business sites, the primary objective of this website is to A. eliminate economies of scale. B. create diseconomies of scale. C. disseminate information. D. replace advertising in trade journals. E. prevent price wars. In the above scenario, DigiCell Inc. aims to disseminate information. One of the primary objectives for using the Web is to provide in-depth information about a company's products and services. Information regarding requirements, specifications, submission dates, and so on is disseminated more quickly, to more potential candidates, and at a much lower cost via the Internet than it is through other media. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

15-27 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

37. In developing creative strategies specifically adapted to the medium, marketers have found it most difficult to A. disseminate information through the Internet. B. provide current price lists on the Internet. C. create viable links to suppliers using the Internet. D. overcome online buying center barriers. E. create a brand image on the Internet. Interestingly, one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

38. The manufacturer of "Allay" pain reliever offered a free sample of the product to visitors who registered at its website. In this case, the communications objective of the website was to A. disseminate information. B. create a route for disintermediation. C. create an e-commerce site. D. stimulate trial. E. create a brand image. The above scenario is an example of stimulating trial through the Internet. Often websites offer electronic coupons in an attempt to stimulate trial of their products. Others offer samples, promotions, and sweepstakes designed to encourage trial. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

39. Direct selling of goods and services on the Internet is known as A. direct-response advertising. B. consumer-to-consumer selling. C. business-to-business selling. D. e-commerce. E. blogging. The Internet offers the opportunity to sell directly to customers in both the consumer market and the business-to-business market. This direct selling of goods and services has been labeled e-commerce. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Electronic Commerce

15-28 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

40. Which of the following is true of e-commerce? A. It is typically considered an ancillary sales medium. B. It cannot be used as a business-to-business medium. C. It is a direct sales strategy. D. It is synonymous with "brick-and-mortar" stores. E. It is a primary component of C2C marketing. The Internet offers the opportunity to sell directly to customers in both the consumer market and the business-to-business market. The direct selling of goods and services has been labeled e-commerce. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Electronic Commerce

41. Companies like Red Bull use their website to engage visitors with news, live streaming, and video content. This is an example of using the Internet to A. generate interest. B. create awareness. C. disseminate information. D. create an image. E. create a strong brand. The site provides news, live streams, videos, and more from the “World of Red Bull.” The objectives of this site and many others like it are simple: Create interest that will bring visitors back to learn more about the products—and, of course, to sell stuff. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program. Topic: Technological Environment

42. The terminology used to refer to the early evolution of the World Wide Web, in which users could view web pages and interface with them but could not contribute to the content of the web page, is known as A. Web 2.0. B. Web network. C. Web 1.0. D. Web 1.8. E. Web HTML. Web 1.0 is the terminology used to refer to the early evolution of the World Wide Web in which users could view web pages and interface with them but could not contribute to the content of the web page. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15-29 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

43. Which of the following statements is true of Web 1.0? A. It started with the bursting of the dot-com bubble. B. It consisted mainly of static sites resulting in a one-way flow of communication. C. It led to the decentralization of communications and interactivity. D. It led to dramatic changes in the World Wide Web with information provided by users as contributors. E. Web 2.0 users acted as contributors in Web 1.0. Web 1.0 consisted mainly of static sites resulting in a one-way flow of communication. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

44. Which of the following statements is true of Web 2.0? A. For the most part, Web 2.0 consists of static sites resulting in a one-way flow of communication. B. Web 2.0 has led to dramatic changes in the World Wide Web due to decentralization of communications and interactivity. C. Web 2.0 ended with the bursting of the dot-com bubble, leading to the development of Web 3.0. D. Web 2.0 is the terminology used to refer to the early evolution of the World Wide Web in which users could only view the web pages. E. Web 2.0 does not allow users to contribute to the content of a web page. Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content such as user-generated ads content, etc. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

45. _____ has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content. A. Interstitial B. Web 1.0 C. Web 2.0 D. E-commerce E. B2B selling Web 2.0 has led to dramatic changes in the World Wide Web, primarily as a result of decentralization of communications and interactivity, with information provided by users as contributors of content, such as user-generated ads, content, and so on. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15-30 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

46. Like broadcast or print, the Internet A. can only disseminate and not assimilate information. B. offers extensive psychographic selectivity. C. is an advertising medium. D. has a low reach. E. has no problems related to user privacy. Like broadcast or print, the Internet is an advertising medium. Companies and organizations working to promote their products and services must consider this medium as they would television, magazines, outdoor, and so on. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

47. Banner ads A. are rarely used for advertising on the web. B. are typically used in transit advertising. C. are synonymous with interstitials. D. cannot be used for fulfilling direct-marketing objectives. E. can be static, animated, or in flash. Banner ads can be static, animated, or in flash. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

48. Banner ads are also known as A. interstitials. B. paid searches. C. pop-ups. D. side panels. E. links. Banner ads may take on a variety of forms as well as a number of names such as leader boards, rectangles, side panels, skyscrapers, or verticals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

15-31 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

49. Yoana is an online women's magazine that features an animated ad for Carmen's Cosmetics on its website. If a visitor clicks on the ad, it will take the visitor directly to Carmen's website. This ad is an example of a(n) A. interstitial. B. banner. C. pop-up. D. sponsorship. E. paid search. The above scenario is an example of a banner ad. Banner ads may take on a variety of forms as well as a number of names such as leader boards, rectangles, side panels, skyscrapers, or verticals. They can also be static, animated, or in flash. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

50. _____ occur when a company pays to sponsor a section of a site. A. B. C. D. E.

Paid searches Interstitials Regular sponsorships Content sponsorships Irregular sponsorships

Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful magazine or Cosmopolitan magazine sponsorship on iVillage.com, or a corporate sponsorship of a page on Forbes.com. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

51. Regular sponsorship occurs when A. a sponsor participates in providing the content. B. a sponsor approves the content of a site. C. a company pays to sponsor a section of a site. D. a sponsor contributes all or part of the content. E. advertisers pay only when a consumer clicks on their ad from a search engine page. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful magazine or Cosmopolitan magazine sponsorship on iVillage.com, or a corporate sponsorship of a page on Forbes.com. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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52. The website of WEmpower.com, an online women's magazine, has a book section sponsored by Spellbound.com, an e-commerce website. Spellbound.com has a similar arrangement with Valdivia.com and a few other sites. In this scenario, Spellbound.com is using a(n) A. button sponsorship. B. banner sponsorship. C. regular sponsorship. D. interstitial sponsorship. E. content sponsorship. The above scenario is an example of regular sponsorship. A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful magazine or Cosmopolitan magazine sponsorship on iVillage.com, or a corporate sponsorship of a page on Forbes.com. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

53. Regular sponsorship occurs A. when a sponsor buys pop-ups. B. when a sponsor buys banners and headliners. C. when a sponsor takes a corporate sponsorship of a page. D. when a sponsor buys pop-unders. E. when a sponsor provides part of the content for a website. A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful magazine or Cosmopolitan magazine sponsorship on iVillage.com, or a corporate sponsorship of a page on Forbes.com. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

54. Ruminate Inc., an architectural design firm, pays for name association on a section of placeproperty.com, a real estate website. Ruminate also sponsors a section on assetplus.com, another real estate website. Ruminate is using A. guerrilla sponsorship. B. paid search. C. regular sponsorship. D. pay-per-click advertisement. E. content sponsorship. The above scenario is an example of regular sponsorship. A common form of advertising is sponsorships. Regular sponsorships occur when a company pays to sponsor a section of a site, for example, a House Beautiful magazine or Cosmopolitan magazine sponsorship on iVillage.com, or a corporate sponsorship of a page on Forbes.com. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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55. The Clement Network, a satellite television channel that broadcasts weather forecasts, pays money in return for its name association with Nahla.com, an Internet portal. The Clement Network also provides weather information for the site. Which of the following methods of advertising on the Internet is Clement Network using? A. interstitials B. regular sponsorship C. push technology D. pop-unders E. content sponsorship The above scenario is an example of content sponsorship. Content sponsorship is one in which a sponsor not only provides dollars in return for name association but participates in providing the content itself. In some cases, a site is responsible for providing content and having it approved by a sponsor; in other instances, a sponsor may contribute all or part of the content. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

56. Gizmo World, a gadgets magazine, pays for name association on a section of TechAtlas.com, an e-commerce site that sells cell phones and accessories. Gizmo World features its own articles on Tech Atlas. This is an example of a(n) A. interstitial. B. regular sponsorship. C. push technology D. pop-unders. E. content sponsorship. The above scenario is an example of content sponsorship. Content sponsorship is one in which a sponsor not only provides dollars in return for name association but participates in providing the content itself. In some cases, a site is responsible for providing content and having it approved by a sponsor; in other instances, a sponsor may contribute all or part of the content. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

57. _____ are windows or animated creatures that appear on a user's screen in an attempt to get his or her attention when the user is accessing the Internet. A. Pop-ups B. Interstitials C. Links D. Banner ads E. Blogs When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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58. _____ are ads that appear underneath a web page and become visible only when a user leaves the site. A. B. C. D. E.

Links Interstitials Banner ads Pop-unders Blogs

Pop-unders are ads that appear underneath a web page and become visible only when a user leaves the site. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

59. While Ginger waited for Etenia.com's apparel site to download, a small ad encouraging her to check out the summer clothing collection at Ritzy, a retail outlet, appeared on her computer screen, along with a link to Ritzy's website. Ritzy's ad is an example of A. content sponsorship. B. a pop-up. C. push technology. D. functional sponsorship. E. a pop-under. The above scenario is an example of a pop-up. When you access the Internet, you no doubt have seen a window or a creature of some sort appear on your screen in an attempt to get your attention. These advertisements are known as pop-ups, and they often appear when you access certain sites. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

60. After Jones finished reading an article titled "101 Places To Visit Before You Die" in the travel website Excursion 2.0, he closed the page. Subsequently, he saw an ad on his screen that invited him to subscribe to the print version of 2.0 magazine. This ad is an example of A. content sponsorship. B. a pop-up. C. push technology. D. functional sponsorship. E. a pop-under. The above scenario is an example of a pop-under. Pop-unders are ads that appear underneath a webpage and become visible only when a user leaves the site. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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61. Jonathan visits iJaunty.com, a travel website, for information on the top-10 tourist destinations in the United States. When he exits the website, an ad for Emblazon cell phones appears on his computer screen, inviting him to purchase the cell phone at a discounted price. This ad is an example of A. content sponsorship. B. a pop-up. C. regular sponsorship. D. functional sponsorship. E. a pop-under. The above scenario is an example of a pop-under. Pop-unders are ads that appear underneath a web page and become visible only when a user leaves the site. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

62. _____ are ads that appear on a user's computer screen while he or she is waiting while downloading content from a site. A. Pop-unders B. Pay-per clicks C. Interstitials D. Plug-ins E. Floating ads Interstitials are ads that appear on a user's screen while he or she is waiting for a site's content to download. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

63. In general, a site that ranks higher on a search page A. is likely to receive more visitors. B. is considered more aesthetically appealing. C. has a better chance of attracting banner sponsorships. D. is likely to receive fewer regular sponsorships. E. is considered less secure from malware. In general, the higher a site appears on a search page the more visitors it will receive. Often searchers will not go past the first page of results. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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64. _____ searches are those that appear because of their relevance to the search terms, not advertisements. A. Interstitial B. Optimized C. Nonorganic D. Paid E. Organic Organic searches are those that appear because of their relevance to the search terms, not advertisements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

65. Pay-per-click advertising is an example of A. interstitial search. B. organic search. C. nonorganic search. D. nonoptimized search. E. spam search. Advertisers will also attempt to reach consumers through nonorganic or paid search such as pay-per-click advertising by placing their ads on web pages that display results from search engine queries. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

66. _____ is the process of improving the volume of traffic driven to one's site by a browser or web portal through unpaid (organic) results as opposed to paid inclusions. A. Search engine optimization B. Linking C. Rich media marketing D. Behavioral targeting E. Contextual targeting Search engine optimization (SEO) is the process of improving the volume of traffic driven to one's site by a search engine through unpaid (organic) results as opposed to paid inclusions. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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67. Advertisers employ search engine optimization (SEO) to A. more specifically target customers who may be interested in their offerings. B. attract customers to their products and services through the nonorganic search process. C. monitor Internet traffic. D. include attractive multimedia content in their web pages. E. sponsor a section of a website. In an effort to more specifically target customers who may be interested in their offerings, advertisers employ search engine optimization (SEO). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

68. _____ is an Internet advertising strategy that is based on advertisers' targeting consumers by tracking their website surfing patterns, such as which websites they have visited and/or searches they have made. A. Search engine optimization B. Linking C. Rich media marketing D. Behavioral targeting E. Contextual targeting An Internet advertising strategy that has seen rapid growth is behavioral targeting. Behavioral targeting is based on advertisers' targeting consumers by tracking their website surfing behaviors, such as which websites they have visited and/or searches they have made. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

69. Behavioral targeting can be done by A. compiling clickstream data and Internet protocol information. B. providing regular and content sponsorship in a section of a website. C. including animation and flash in websites. D. placing a website higher on a search engine page. E. employing pay-per-click advertising. Behavioral targeting is based on advertisers' targeting consumers by tracking their website surfing behaviors, such as which websites they have visited and/or searches they have made. By compiling clickstream data and Internet protocol (IP) information, segments of potential buyers can be identified and ads directed specifically to them. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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70. Clinton Steel Inc., a manufacturer of golf equipment, targets consumers based on their website surfing behaviors. The company places ads on websites where web traffic is highest for golf-related searches. In this scenario, Clinton Steel is using A. behavioral targeting. B. advertising allowance analysis. C. rich media marketing. D. video substitution selection. E. contextual advertising. The above scenario is an example of behavioral targeting. Behavioral targeting is based on advertisers' targeting consumers by tracking their website surfing behaviors, such as which websites they have visited and/or searches they have made. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

71. Once a user visits a website and leaves without purchasing a product, a specifically targeted ad is displayed on subsequent participating websites the user visits. This phenomenon is known as A. retargeting. B. rebounding. C. heuristic targeting. D. search engine optimization. E. contextual targeting. Recently, advertisers have increased their use of retargeting. Once a user visits a website and leaves without purchasing a product, a specifically targeted ad will display on participating subsequent websites the user visits. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

72. Advertisers who target their advertising based on the information provided on web pages are using A. behavioral targeting. B. advertising allowance analysis. C. rich media marketing. D. database marketing. E. contextual advertising. Advertisers who target their ads based on the content of a web page are using contextual advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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73. Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined by A. the context in which ads are made. B. the content on a web page. C. content sponsorships. D. pay-per-click advertising. E. advertising concepts. Whereas behavioral advertising tracks surfing behaviors, contextual ads are determined by the content on a webpage. For example, an advertiser may place an airline ad on a travel site, or a golf club ad on a golf site, or even in or near a story about golf on another site. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

74. As defined by Wikipedia, _____ is "a web advertising in which an advertiser attempts to gain attention by providing valuable content in the context of a user's experience." A. behavioral targeting B. native advertising C. ambient advertising D. support media advertising E. content sponsorship As defined by Wikipedia, native advertising is "a web advertising in which an advertiser attempts to gain attention by providing valuable content in the context of a user's experience; it is similar in concept to an advertorial which is a paid placement attempting to look like an article." Concern has been expressed over the fact that the ads sometimes appear as content, and not ads, leading the consumer to be misled. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

75. The goal of _____ is to be less intrusive while catching the attention of a reader who is likely interested in the content matter he or she is reading. A. behavioral targeting B. native advertising C. ambient advertising D. specialty advertising E. buzz sponsorship The goal of native ads is to be less intrusive while catching the attention of a reader who is likely interested in the content matter he or she is reading. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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76. _____ are defined as "a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation." A. Interstitials B. Support media C. Contextual ads D. Simulations E. Rich media Rich media, as defined by Wikipedia, are "a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio and animation." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

77. _____ include all content that is created in flash. A. Banner ads B. Links C. Interstitials D. Rich media E. Paid searches Rich media include all content that is created in flash. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

78. _____ are short featured films made by advertisers in which companies create their own content to advertise their products. A. Online commercials B. Video on demand C. Blogs D. Webisodes E. Interstitials Short featured films created by an advertiser, such as those created by Jaguar and BMW, are examples of webisodes, in which companies create their own content to advertise their products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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79. The term _____ is commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web. A. Web 1.0 B. Web 2.0 C. paid search D. rich media E. e-commerce As defined in Wikipedia, "The term Web 2.0 is commonly associated with Web applications that facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

80. As defined by Merriam-Webster, _____ is "Forms of electronic communication (such as Web sites) through which people create online communities to share information, ideas, personal messages, etc." A. pre-rolls B. social media C. native ads D. rich media E. Interstitials Social media have been defined in numerous ways. Using the simplest definition from Merriam-Webster dictionary, social media is defined as: "Forms of electronic communication (such as Web sites) through which people create online communities to share information, ideas, personal messages, etc." AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Social Media Definition

81. _____ sites are platforms that allow users to share interests, activities, backgrounds, or real-life connections. A. Social networking B. Contextual advertising C. Behavioral targeting D. User-generated video sharing E. Podcast networking Social networking sites are platforms for networks or social relations among people who share interests, activities, backgrounds, or real-life connections. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Social Media Definition

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82. Which of the following is true of social media? A. It is typically not used by firms as a marketing medium. B. There are numerous ways for consumers to access social media. C. It can be accessed only using specific Internet protocols. D. It is a type of content aggregator. E. It is built on the ideological foundations of Web 1.0. There are numerous ways for consumers to access social media sites, including via desktops, laptops, tablets, smartphones, and connected devices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Social Media Definition

83. As a powerful social medium, YouTube is a A. social networking site. B. content aggregator. C. podcast. D. blog. E. paid search engine. A powerful social medium, YouTube is a content aggregator, hosting content for information and entertainment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Social Media Definition

84. _____ is a medium that uses the Internet to distribute audio or video files for downloading into iPads and other portable devices. A. Paid search B. Interstitial C. Podcasting D. Blogging E. Contextual advertising Podcasting is a medium that uses the Internet to distribute audio or video files for downloading into iPods, iPads, and other portable devices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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85. The attractiveness of _____ would increase with the growth of the market for iPads. A. social networking sites B. really simple syndication C. user-generated video sharing sites D. blogs E. Podcasting Podcasting is a medium that uses the Internet to distribute audio or video files for downloading into iPhones, iPads, and other portable devices. As the market for iPads grows, the attractiveness of this medium does as well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

86. A(n) _____ organizes and formats Web-based content in a standard way, sending out notification whenever new material is available. A. social news site B. interstitial C. podcast D. Really Simple Syndication E. content aggregator Really Simple Syndication (RSS) is a specification that uses XML to organize and format Web-based content in a standard way. The difference between Web content and an RSS feed is that the latter can send out notifications whenever new material is available. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

87. _____ is a specification that uses XML to organize and format Web-based content in a standard way. A. Podcasting B. Search engine optimization C. Pop-up D. Really Simple Syndication E. Content aggregator Really Simple Syndication (RSS) is a specification that uses XML to organize and format Web-based content in a standard way. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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88. A _____ is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. A. widget B. button C. link D. blog E. Podcast A blog is a web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

89. Which of the following is true of QR codes? A. They are primarily Web 1.0 applications. B. They are considered a part of augmented reality. C. They are used to reflect the writings of a business or a corporation. D. They are Web-based publications consisting primarily of periodic articles. E. They are being threatened by near field communication. QR codes may be beginning to grow in popularity; they are being threatened by a new technology, near field communication (NFC). NFC enables marketers to deliver content through an embedded chip that allows wireless communications just by touching the material or being in close proximity to the NFC tag. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

90. Swish Turbo Inc., an automaker, conducted a sweepstakes in which people could enter to win the car that Adam Gosling, a popular golfer, uses during tournaments. To enter the sweepstakes, consumers had to visit Swish Turbo's website. Which of the following promotional mix elements did the automaker use on the Internet? A. direct marketing B. personal selling C. publicity D. public relations E. sales promotions The above scenario is an example of sales promotions on the Internet. Companies have found the Internet to be a very effective medium for disseminating sales promotions. Numerous companies now print online coupons. Other examples include the use of trivia games, contests, sweepstakes, instant win promotions, and so on. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Sales Promotions

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91. In the context of personal selling, which of the following factors is compelling companies to reduce new hires and even cut back on their existing sales forces? A. dissuasive medium B. poor reach C. extensive clutter D. limited information E. lack of credibility The high-cost and poor-reach disadvantages of personal selling are allowing companies to reduce new hires and even cut back on their existing sales forces. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

92. Which of the following statements is true of personal selling on the Internet? A. Websites are ineffective in enhancing and supporting the personal selling effort. B. The Internet cannot be detrimental to those involved in personal selling in the business-to-business market. C. The low-cost and high-reach advantages of personal selling are allowing companies to increase new hires to expand their existing sales forces. D. Customers can determine if a company's offering satisfies their needs through trial demonstrations or samples offered online. E. The disadvantage of personal selling on the Internet is that it is time-consuming and it also incurs additional costs. The web can be used to stimulate trial. For many companies, personal salespersons can reach only a fraction of the potential customer base. Through trial demonstrations or samples offered online, customers can determine if an offering satisfies their needs and, if so, request a personal sales call. In such cases both parties benefit from time and cost savings. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

93. Press releases about company growth prospects, recent innovations, and industry-related news are available at the website of Kinetics Inc., a manufacturer of automobile components for trucks. Anyone conducting research on the company has access to this information. In this scenario, Kinetics uses the Internet as as a tool for A. sales promotion. B. personal selling. C. direct marketing. D. public relations. E. advertising. The above scenario is an example of public relations on the Internet. Many sites devote a portion of their content to public relations activities, including the provision of information about a company, its philanthropic activities, annual reports, and more. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Public Relations

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94. Cats Purr is a non-profit organization that provides shelter and care for abandoned cats and kittens. Cats Purr uses its website to display information about the cats that are available for adoption, how they are cared for at the shelter, and to spotlight various volunteer efforts. This is an example of how the Internet can be used as a tool for A. sales promotion. B. personal selling. C. direct marketing. D. public relations. E. advertising. The above scenario is an example of public relations on the Internet. Many sites devote a portion of their content to public relations activities, including the provision of information about a company, its philanthropic activities, annual reports, and more. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: Public Relations

95. Eli receives a mail offering a software program that helps in filing taxes online at a discounted price. This offer is an example of how the Internet and _____ can complement each other. A. sales promotion B. personal selling C. direct marketing D. public relations E. Interconnects The above scenario is an example of direct marketing on the Internet. Many direct-marketing tools like direct mail, infomercials, and the like have been adapted to the Internet. At the same time, e-commerce—selling directly to the consumer via the Internet—has become an industry all its own. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

96. Which of the following is a traditional method of measuring the effectiveness of the Internet? A. unique visitors B. post-click conversion C. view-through rate D. web page eye tracking E. recall and retention A number of companies use traditional measures of recall and retention to test their Internet ads. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media. Topic: Marketing Metrics

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97. Which of the following is an Internet-specific measure that is used by companies? A. recall tests B. retention tests C. sales D. return on investment (ROI) E. cost per conversion Cost per conversion is an Internet-specific measure that is used by companies. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media. Topic: Marketing Metrics

98. In 2008, _____________________ became the official media coding standard. A. Ad-Id B. sales C. return on investment (ROI) D. cost per conversion E. recall tests The American Association of Advertising Agencies and the Association of National Advertisers use a system called Advertising Digital Identification (Ad-Id). Ad-Id assigns advertising across all media a specific media code to facilitate cross-media buys. In 2008 Ad-Id became the official media coding standard. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media. Topic: Marketing Metrics

99. Which of the following statements is true of the Internet? A. It can target very specific groups of individuals. B. It leads to a lot of waste coverage. C. It does not resemble a combination trade magazine and trade show. D. It does not carry one-to-one marketing messages. E. There is a lack of creative opportunity associated with its use. A major advantage of the Internet digital and social media is the ability to target very specific groups of individuals with a minimum of waste coverage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

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100. Which of the following has been cited as an advantage of using the Internet? A. prestige B. lack of clutter C. privacy of user data D. message tailoring E. Reliability As a result of precise targeting, messages can be designed to appeal to the specific needs and wants of the target audience, much of which comes from behavior tracking. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

101. Which of the following has been cited as a disadvantage of using the Internet? A. inability to tailor messages B. lack of sales potential C. limited exposure D. potential for deception E. lack of creativity The Center for Media Education has referred to the web as "a web of deceit" in regard to advertisers' attempts to target children with subtle advertising messages. The center, among others, has asked the government to regulate the Internet. In addition, data collection without consumers' knowledge and permission, hacking, and credit card theft are among the problems confronting Internet users. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-05 Discuss the social and ethical issues associated with the Internet and digital and social media. Topic: IMC

102. While some marketers believe that the Internet will eventually replace traditional forms of advertising, others disagree. Which of the following weaknesses of the Internet would support the marketers who disagree? A. lack of reliability of research numbers generated B. inability to provide in-depth information C. inability to offer sight and sound D. lack of sales potential in the business-to-business segment E. lack of creative flexibility in creating tailored advertising messages One of the greatest disadvantages of the Internet is the lack of reliability of the research numbers generated. In a study of 410 marketing executives published by McKinsey, the primary reason cited for not investing online was the lack of sufficient metrics. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

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103. Which of the following is one of the advantages associated with the Internet? A. target marketing B. message tailoring C. interactive capabilities D. clutter E. sales potential Clutter is a disadvantage associated with the Internet. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: Social Media Definition

104. Benita noticed that her banner ads had far lower click-through rates after the website on which she was advertising started offering additional ads on the home page. Benita is dealing with the _________________ disadvantage associated with the Internet. A. clutter B. potential for deception C. measurement challenge D. privacy E. Irritation As the number of ads proliferates, the likelihood of one’s ad being noticed drops accordingly. The result is that some ads may not get noticed, and some consumers may become irritated by the clutter. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

105. Josie is looking at a native ad on her smartphone, which makes it difficult to see the labeling of the content as an ad. Josie is dealing with the _________________ disadvantage associated with the Internet. A. clutter B. potential for deception C. measurement challenge D. privacy E. Irritation Bloggers, and marketing influencers who endorse brands without revealing that they are being compensated to do so, and native ads can also be misleading. The problem with native ads may be particularly true when on smartphones where proper labeling the ads as sponsored may be difficult to see. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media. Topic: IMC

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106. Due to the rapid adoption of smartphones and tablets, ______ is now receiving strong attention from marketers. A. Web 1.0 B. mobile C. video on demand D. really simple syndication (RSS) E. pay-per-click advertising As dramatic an impact that the Internet had on companies’ IMC programs, it almost pales in comparison to the changes brought about by mobile. Spawned by the rapid adoption of smartphones and tablets, mobile is now receiving strong attention from marketers, and ad revenues continue to climb, primarily through applications (apps). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Blooms: Remember Difficulty: 1 Easy Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process. Topic: IMC

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Chapter 15 Test Bank 01/12/2017 17:32:54 Summary Category-# of Questions AACSB: Analytical Thinking-87 AACSB: Reflective Thinking-19 Accessibility: Keyboard Navigation-106 Blooms: Apply-22 Blooms: Remember-59 Blooms: Understand-26 Difficulty: 1 Easy-58 Difficulty: 2 Medium-29 Difficulty: 3 Hard-19 Learning Objective: 15-01 Describe the role of the Internet and digital and social media in an IMC program.-28 Learning Objective: 15-02 Discuss the use of Web 1.0 and Web 2.0 media platforms in the IMC process.-64 Learning Objective: 15-03 Explain how to evaluate the effectiveness of communications through the Internet and digital and social media.-5 Learning Objective: 15-04 Compare the advantages and disadvantages of the Internet and digital and social media.-8 Learning Objective: 15-05 Discuss the social and ethical issues associated with the Internet and digital and social media.-1 Topic: Electronic Commerce-3 Topic: IMC-64 Topic: Marketing Metrics-6 Topic: Public Relations-2 Topic: Sales Promotions-1 Topic: Social Media Definition-5 Topic: Technological Environment-25

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Chapter 16 Test Bank Student: ___________________________________________________________________________ 1. Sales promotion involves some type of inducement that provides an extra incentive to buy. True False

2. Sales promotion activities cannot be targeted to different parties in the marketing channel. True False

3. Sales promotions are typically not considered a part of the IMC planning process. True False

4. A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades. True False

5. A major reason for decrease in sales promotion is that customers have become less brand loyal. True False

6. One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. True False

7. A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. True False

8. Promotion programs cannot be developed to coincide with peak sales periods for certain products and services. True False

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9. An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. True False

10. Sampling is generally considered the least effective way to generate trial. True False

11. Sampling through the mail is common for small, lightweight, nonperishable products. True False

12. Event sampling is where a package is attached to another item. True False

13. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. True False

14. The use of newspapers and magazines as couponing vehicles has increased dramatically since the introduction of FSIs. True False

15. One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand. True False

16. When a brand moves to the maturity stage, advertising is primarily used as a reminder to keep consumers aware of the brand. True False

17. In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand. True False

18. Media support for a sales promotion program is typically considered optional. True False

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19. A sales promotion trap can result when several competitors use promotions extensively. True False

20. A brand that is constantly promoted may lose perceived value. True False

21. Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? A. magazine advertising B. direct mail C. public relations D. publicity E. sales promotion

22. Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward A. end users. B. retailers. C. wholesalers. D. salespeople. E. employees.

23. Which of the following is an example of a trade-oriented sales promotion activity? A. samples B. coupons C. refunds/rebates D. dealer contests E. bonus packs

24. How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the branding strategy is determined. C. Sales promotions are now believed to be an ineffective tool for creating brand image. D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E. Sales promotion techniques are increasingly being considered as "obsolete."

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25. Which of the following serves as a reason for the increase in sales promotion? A. growing power of retailers B. increasing brand loyalty of customers C. lack of short-term focus among marketers D. decreased promotional sensitivity E. decreased competition

26. Which of the following developments has resulted in a transfer of power from manufacturers to retailers? A. The advent of optical scanners and computers has given manufacturers access to sales information. B. An increase in brand loyalty among consumers has led to an increase in sales promotion activities. C. Consolidation of the retail industry has resulted in larger chains with greater buying power and clout. D. A significant decrease in promotional sensitivity and time sensitivity among consumers has occurred since the early 2000s. E. Increasingly, manufacturers are introducing more private-label brands into the market.

27. One reason for consumers' increased sensitivity to sales promotions is A. that they have become less time-sensitive. B. the increase in perceived brand loyalty. C. the increased power of manufacturers. D. that they save money. E. that consumers' choices have declined.

28. How are marketers responding to the decline of consumers' attention to mass-media advertising? A. They are using more media monitoring services to make event sponsorship more successful. B. They are using more traditional mass-media-based advertising. C. They are using more sales promotions. D. They are employing clipping services to determine the effectiveness of their press releases. E. They are spending more money on television ads.

29. Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on A. telemarketing. B. direct mail. C. publicity. D. synergistic buying. E. sales promotion.

30. Which of the following is true of the increase in sales promotion by brand managers? A. Brand managers tend to ignore sales promotion due to its primacy effect. B. Many brand managers believe that sales promotions cannot be used to defend against competition. C. Typically, sales promotions are not used by brand managers while introducing new products. D. Sales promotions are typically used by brand managers to meet quarterly goals. E. Sales promotions are generally a neglected part of the IMC process by most brand managers.

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31. Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. Which of the following would best support a marketer in producing a quick and easily measurable jump in sales? A. mass-media advertising B. a strategy that enhances the advertising carryover effect C. sales promotions such as coupons and price discounts D. bait-and-switch marketing techniques E. out-of-home advertising media

32. _____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. A. Evangelism B. Close range C. Account-specific D. Call to action E. Affinity

33. Account-specific marketing is also known as A. a planogram program. B. comarketing. C. dual sponsorship. D. piggyback marketing. E. guerilla marketing.

34. Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. This is an example of A. guerilla marketing. B. brand stretching. C. evangelism marketing. D. account-specific marketing. E. brand extension.

35. Brand equity is also known as A. customer loyalty. B. customer franchise. C. brand extension. D. brand logo. E. trademark.

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36. Which of the following statements describes how brand equity is affected by the increased use of sales promotion? A. Critics argue that sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity. D. There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity. E. Marketing experts generally agree that advertising plays an important role in building and maintaining a brand's image and position, which are core components of its equity.

37. Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as A. nonfranchise-building promotions. B. consumer franchise-building promotions. C. high-involvement sales promotions. D. sales promotion traps. E. event marketing.

38. Which of the following is true of consumer franchise-building promotions? A. They are designed to increase long-term brand preference. B. They are designed to help consumers avoid full-price purchases in the long term. C. They do not always depend on a promotional offer. D. They are a subset of public relations. E. They are synonymous with publicity.

39. Which of the following is true of consumer franchise building (CFB) promotions? A. CFB promotions are designed to promote short-term brand preference. B. CFB promotions cannot make consumers loyal to a brand that is of little value. C. CFB promotions can make consumers loyal to a brand that does not provide a specific benefit. D. CFB promotions typically do not contribute to the development of a favorable brand image. E. CFB promotions are not suitable for brand extension strategies.

40. Which of the following is an example of a nonfranchise-building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs

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41. Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as A. consumer franchise-building promotion. B. nonfranchise-building promotion. C. vertical integration marketing. D. image promotions. E. evangelism marketing.

42. The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is A. sweepstakes. B. contests. C. frequent patronage programs. D. trade promotions. E. event sponsorships.

43. When General Mills included a Mini Minion character toy in its Lucky Charms cereal to provide an extra incentive for customers to buy the cereal, it was using a A. sweepstakes. B. contest. C. frequent patronage program. D. trade promotion. E. sales promotion.

44. When MillerCoors used a Taste Challenge promotion to help regain market share for Miller Light against Bud Light and other brands of light beer, it was A. using a sales promotion to attract users of a competing brand. B. identifying new uses for the brand. C. obtaining repurchase. D. defending current customers. E. targeting a specific market segment.

45. _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. A. A rebate B. A refund C. Sampling D. Couponing E. A sweepstakes

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46. _____ is generally considered the most effective method for generating trial of a new product. A. Couponing B. Sampling C. Rebating D. Sweepstakes promotion E. A contest

47. Samples would be an appropriate promotional strategy A. to support an everyday low price (EDLP) strategy. B. to facilitate a push promotional strategy. C. to introduce a new product into the marketplace. D. in the decline stage of a product's life cycle. E. to build long-term relationships with customers.

48. Which of the following is an advantage of the sampling method of sales promotion? A. It is the least expensive among all methods of sales promotion. B. The costs of the sampling program can easily be recovered with just a few purchases. C. Marketers believe that for all products the results of sampling can be seen immediately. D. It is extremely useful for products and services that do not have subtle features. E. Consumers gain a greater appreciation for a product's benefits.

49. With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature. A. mail sampling B. couponing C. door-to-door sampling D. on-package sampling E. mobile coupon

50. _____ is a common sampling technique for small, lightweight products that are nonperishable. A. Door-to-door sampling B. Sampling through the mail C. In-store sampling D. On-package sampling E. Location sampling

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51. In _____ sampling, a marketer hires temporary demonstrators who set up a table or booth within an outlet, prepare small samples of a product, and pass them out to shoppers. A. door-to-door B. event C. on-package D. in-store E. direct-mail

52. In a(n) _____ sampling, a multiproduct firm attaches the sample to an existing item of the firm. A. checkout B. spiff C. in-store D. on-package E. bounce-back

53. The oldest, most widely used, and most effective sales promotion tool is A. cents-off coupons. B. sampling. C. rebates. D. event sponsorship. E. bonus packs.

54. An advantage of coupons is that they A. elicit faster consumer responses than samples, unlike sweepstakes and rebates. B. generally elicit immediate response from consumers. C. are very effective even without brand name awareness. D. allow a marketer to offer a price reduction only to consumers who are price-sensitive. E. build brand loyalty.

55. Which of the following is a disadvantage of couponing? A. It can be difficult to estimate how many consumers will use a coupon and when. B. It discourages initial product trial. C. It assists in reducing the price of a product only by relying on retailers for cooperation. D. It assists only in attracting new customers but does not help in retaining existing customers. E. It may encourage regular users to trade down to inexpensive brands.

56. Which of the following statements is true of couponing? A. Coupons always assist in providing an immediate response. B. Coupons are often used by consumers who are already loyal to the brand. C. Coupons are useless when it comes to promoting established products. D. Coupons are more effective than sampling for inducing initial product trial in a short period. E. Coupons have an extremely high redemption rate.

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57. The most popular method for distributing coupons is through A. newspaper freestanding inserts. B. direct mail. C. product packaging. D. magazines. E. the Yellow Pages.

58. What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A. less clutter B. lower cost C. lower redemption rate D. lower economies of scale E. cooperative advertising opportunities

59. An in- or on-package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross-sell E. checkout

60. Nearly _____ percent of consumers use coupons on a regular basis. A. 50 B. 80 C. 20 D. 10 E. 90

61. Which of the following have the highest redemption levels of all types of coupons? A. bounce-back coupons B. cross-ruff coupons C. instant coupons D. cross-sell coupons E. premium coupons

62. One of the main types of on-package coupons is the _____ coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it at the time of the purchase. A. bounce-back B. cross-ruff C. instant D. cross-sell E. premium

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63. On the inside of its pizza box, Joe's Pizza places a $1-off coupon, which can be redeemed at the next purchase. In this scenario, Joe's is using a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross-sell E. checkout

64. A package of Confident razor blades contains a 75 cents-off coupon for Confident Foamy shaving cream. This is an example of a(n) _____ coupon. A. cross-ruff B. bounce-back C. checkout D. instant E. rebate

65. Pluto Inc. places a 50 cents-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

66. Packages of Vinnie's Cornmeal have coupons that can be cut out and redeemed at the time of purchase. These are called _____ coupons. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

67. Which of the following is a disadvantage of bounce-back coupons? A. They do not attract nonusers of a particular brand. B. They are redeemable on the purchase of a different product. C. They do not induce customers to repurchase the brand. D. They are not useful for a brand that has reached the maturity stage. E. They are not useful for products that are in the early phases of their lifecycle.

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68. Which of the following is true of in-store couponing? A. It is a highly expensive method of couponing. B. It is typically distributed through checkout counters. C. It is typically a long-term strategy used during the maturity stage. D. It is also known as bond couponing. E. It is also known as cross-ruff couponing.

69. Electronically dispensed checkout coupons A. generate impulse buying and product trial. B. have no redemption deadline. C. are available on a company's website and must be printed out to be used. D. are cost effective and can be targeted to specific categories of consumers. E. are attached to the outside of the package so they can be ripped off and redeemed immediately.

70. A(n) _____ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase. A. mnemonic B. heuristic C. premium D. prommercial E. exhibition

71. NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a A. coupon. B. sample. C. free premium. D. rebate. E. self-liquidating premium.

72. Yummy Oats cereal included tubes of ToothFairy Junior toothpaste inside each of its boxes. This is an example of a A. free premium. B. self-liquidating premium. C. rebate. D. bonus pack. E. nonsubsidized premium.

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73. Consumers must pay the manufacturers' cost-price or a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost

74. Which of the following is true of self-liquidating premiums? A. They are used for lightweight, nonperishable products. B. They require customers to pay for the mailing costs. C. They are typically offered at higher-than-retail prices. D. They are also known as cost-plus premiums. E. They are usually delivered directly to the customers' doorsteps.

75. The in-store sampling approach can be very effective for food products because A. customers get to taste the sample. B. customers get the sample delivered to their homes. C. it is an inexpensive sampling method. D. it does not require a great deal of planning. E. it does not require the cooperation of retailers.

76. Which of the following is a limitation of using on-package sampling? A. It will not reach nonusers of the carrier brand. B. It cannot be used by multiproduct firms. C. It is highly expensive. D. It can be used only for food products. E. It requires extensive product guarantees.

77. Which of the following sampling methods, featuring media tie-ins, is the fastest growing and the most popular? A. event sampling B. bounce-back sampling C. on-package sampling D. in-store sampling E. door-to-door sampling

78. Which of the following is a limitation of using in-store sampling? A. It can be used only for food products. B. It requires the cooperation of retailers. C. It is a highly ineffective method. D. It must always be used in combination with another sampling method. E. It is typically considered effective only for high-end luxury products.

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79. Which of the following is a limitation of sampling through the mail? A. It can be used only by multiproduct firms. B. It must always be used in combination with another sampling method. C. It involves extensive postal restrictions. D. It cannot be used for nonperishable products. E. It can be used only for food samples.

80. Which of the following is a limitation of door-to-door sampling? A. It can be used only by multiproduct firms. B. It is subject to increasing postal rates. C. It can be used only for food products. D. It involves high labor costs. E. It must always be used in combination with another sampling method.

81. Which of the following is an advantage of sampling through the mail? A. It offers a greater markup for the retailer than other sampling techniques. B. It can take place in stores as well as at a variety of other venues such as concerts. C. The marketer has control over where and when the product will be distributed. D. The distribution system is unaffected by postal restrictions and increasing postal rates. E. This sampling method is always used in combination with another sampling method.

82. _____ is a sampling method in which the product is delivered directly to the prospect's residence. A. In-house sampling B. In-store sampling C. Event sampling D. Door-to-door sampling E. Bounce-back sampling

83. A _____ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability. A. sweepstakes B. contest C. refund D. rebate E. sample

84. A _____ is a promotion where winners are determined purely by chance. A. contest B. sweepstakes C. rebate D. premium E. loss leader

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85. Sweepstakes and contests A. are used to move consumers to the conviction stage of the hierarchy of effects model. B. can be used to generate excitement and involvement with a popular and timely event. C. contribute minimally to consumer franchise building. D. do not distract from consumer franchise-building activities. E. are synonymous to each other.

86. Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? A. samples and coupons B. premiums C. contests and sweepstakes D. event sponsorships E. bonus packs

87. Which of the following statements is true of rebates? A. Rebates are synonymous with refunds, and are used only for consumer durables like automobiles and appliances. B. Most retailers want to be involved with rebate programs. C. Nonusers of rebates perceive the rebate redemption process as too complicated. D. Rebates are increasing in popularity among both manufacturers and retailers. E. Rebates are ineffective in encouraging repeat purchases.

88. Got Game, a sports store, ran a promotion campaign in which it offered a box of 15 Pyramid golf balls at the price of 12 balls. This is an example of a A. price-off deal. B. premium. C. bonus pack. D. rebate. E. trade allowance.

89. Bonus packs A. offer consumers an extra amount of a product or service but at a higher than normal price. B. help marketers provide extra value to consumers without having them do anything more than purchase the product. C. are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer. D. are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins. E. result in a higher cost per unit for the consumer.

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90. When reductions from the regular price of a product are offered at the point-of-purchase through specially marked packages, a marketer is using a A. bonus price pack. B. rebate. C. refund offer. D. bounce-back price coupon. E. price-off deal.

91. Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. In addition, customers can accrue points each time they present their cards while making a purchase. These points can be used to purchase cookware, dishes, and other similar hard goods. Spring Supermarket is using a A. bonus program. B. loyalty program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.

92. Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a A. sweepstakes program. B. loyalty program. C. customer rewards contest. D. premium promotion. E. rebate program.

93. Why have loyalty programs become so popular with marketers? A. Loyalty programs support the goal of customer retention. B. Loyalty programs are especially effective when used for new product introductions. C. Loyalty programs are a type of sweepstakes that generate a great deal of consumer interest. D. Loyalty programs allow marketers to set cookies so they can track consumers' activities. E. Loyalty programs are a promotional form of brand extension strategy.

94. Which of the following types of sales promotions are also called continuity programs? A. point-of-purchase displays B. loyalty programs C. price-off deals D. dealer incentives E. event sponsorship programs

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95. Planet Beverage's heavy financial involvement with freestyle skiing competitions and support of beach volleyball tournaments are examples of A. premiums. B. field marketing. C. exhibitions. D. event marketing. E. contests.

96. Which of the following statements about event sponsorships and event marketing is true? A. The amount of money spent on event sponsorships has been declining in recent years. B. Event sponsorships are not typically integrated into a company's marketing communications strategy. C. Event marketing and event sponsorship are synonymous. D. Event sponsorship objectives are often part of an organization's public relations activities. E. Event marketing, unlike other forms of promotion, is ineffective in connecting with consumers in an environment where they are comfortable with receiving a promotional message.

97. Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of A. slotting fees. B. fixed trade spending. C. push money. D. promotional pricing. E. a bonus pack.

98. Which of the following promotions is targeted toward the trade rather than consumers? A. spiffs B. coupons C. premiums and sweepstakes D. bonus packs E. bounce-back coupons

99. An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. This payment by J&J Appliance is known as A. a slotting fee. B. a mnemonic. C. a spiff. D. pull money. E. a bonus pack.

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100. Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them in promoting and selling a company's product is A. a fixed trade spending. B. a rebate. C. a spiff. D. an off-invoice allowance. E. a slotting fee.

101. A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote, or display a manufacturer's product is known as A. cooperative advertising. B. merchandising support. C. a trade allowance. D. a spiff. E. push money.

102. Dewy, a fruit juice manufacturer, offers its retail accounts a $3.00 per case discount on all purchases of cranberry juice during the month of May. This discount will be deducted straight from the bill. This is an example of A. push money. B. a slotting allowance. C. an off-invoice allowance. D. a display allowance. E. a fixed trade spending.

103. Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called A. off-invoice allowances. B. push monies. C. advertising subsidies. D. promotional allowances. E. slotting allowances.

104. Money that must be paid to a retailer so it will take on a company's new product is known as A. slotting allowances. B. failure fees. C. spiffs. D. push monies. E. trade discounts.

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105. Which of the following statements is true of slotting allowances? A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. B. Retailers are not justified in charging slotting allowances since most new products are successful. C. Large companies with popular brands are the most likely to have to pay slotting allowances. D. Slotting allowances are illegal and banned by the federal government. E. The costs slotting allowances add to new product introductions are minimal.

106. Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called A. failure fees. B. slotting fees. C. push monies. D. off-invoice allowances. E. street monies.

107. Slotting allowances are also called A. off-invoice allowances. B. spiffs. C. push money. D. street money. E. rebates.

108. A _____ is a configuration of products that occupy a shelf section in a store, offered to retailers by manufacturers. A. slotting plan B. planogram C. promotional layout D. retail format E. gatefold

109. A manufacturer of skis and skiing accessories provides sales personnel in ski shops with instruction classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of A. cooperative advertising. B. sales force automation. C. a sales training program. D. event marketing. E. a sales incentive program.

110. _____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers. A. A planogram B. A trade layout C. Cooperative advertising D. A trade show E. Event marketing

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111. _____ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. A. Horizontal cooperative advertising B. Vertical cooperative advertising C. Integrated dyadic advertising D. Retail-syndication advertising E. Syndicated advertising

112. Several different manufacturers of personal computers (PCs) have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. The PC manufacturers are using A. cooperative advertising. B. event sponsorships. C. vertical integrated marketing. D. comparative advertising. E. inbound marketing.

113. Which of the following is true of horizontal cooperative advertising? A. It is sponsored by a group of retailers. B. It is used only in the maturity stage of a product's life cycle. C. It is usually conducted by a company and its marketing subsidiaries. D. It is synonymous with comparative advertising. E. It is synonymous with vertical advertising.

114. _____ is advertising supported by raw materials manufacturers to help establish end products that include a company's materials. A. Vertical cooperative advertising B. Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Guerrilla advertising E. Buzz marketing

115. VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. This is an example of _____ advertising. A. horizontal cooperative B. vertical cooperative C. parody D. ingredient-producer cooperative E. comparative

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116. Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called A. joint sales promotions. B. horizontal cooperative advertising. C. vertical cooperative advertising. D. ingredient-sponsored cooperative advertising. E. reseller advertising.

117. With respect to the allocation of the promotional budget, when a brand moves to the maturity stage A. push monies are used to encourage retailers to stock more products. B. advertising is primarily a reminder to keep consumers aware of the brand. C. promotional dollars will be used only for distributing coupons to customers. D. all promotional support for the brand will be removed. E. promotional dollars will be used only for distributing samples.

118. Which of the following is true of allocation of the promotional budget when a brand enters the decline stage? A. In this stage, promotional dollars will be used only for distributing coupons to customers. B. In this stage, promotional dollars will be used only for distributing samples. C. In this stage, price-offs and bonus packs must be used intermittently to maintain consumer loyalty. D. In this stage, all the promotional support for the brand will be removed. E. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

119. Which of the following is true of allocation of the promotional budget when a brand enters the growth stage? A. In this stage, promotional dollars will be used only for bait-and-switch marketing. B. In this stage, promotional dollars will be used only for rebate advertising. C. In this stage, price-offs and bonus packs must be used intermittently to induce product trial. D. In this stage, promotional dollars must be used primarily for advertising to stress brand differences. E. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

120. Which of the following is true of allocation of the promotional budget when a brand enters the introductory stage? A. In this stage, promotional dollars will not be allocated for activities such as sampling and couponing. B. In this stage, a large portion of the budget will be allocated to sales promotion techniques. C. In this stage, promotional dollars must be used to eliminate brand differences. D. In this stage, all the promotional support for the brand will be removed. E. In this stage, promotional dollars will be used only for word-of-mouth marketing.

121. According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the A. purchase behavior is attributed to an external incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. purchase is internally motivated and unaffected by an external stimulus.

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122. When McDonald's introduced its value menu in 2003 and competitors responded by putting popular items on their value meal menus to keep up, it was an example of a(n) ________________ or a spiral that results when several competitors use promotions extensively. A. attribution trap B. sales promotion trap C. primary reinforcement spiral D. secondary reinforcement spiral E. external trap

123. A study by Priya Raghubir and Kim Corfman showed A. purchase behavior is attributed to an internal incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. price promotions may inhibit trial of a brand in certain situations

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Chapter 16 Test Bank 1.

Sales promotion involves some type of inducement that provides an extra incentive to buy. TRUE Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money-back refund or rebate, or an extra amount of a product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

2.

Sales promotion activities cannot be targeted to different parties in the marketing channel. FALSE An important point regarding sales promotion activities is that they can be targeted to different parties in the marketing channel. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

3.

Sales promotions are typically not considered a part of the IMC planning process. \ FALSE While sales promotion has been part of the marketing process for a long time, its role and importance in a company's integrated marketing communications program have increased dramatically over the past decade. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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4.

A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades. TRUE A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

5.

A major reason for decrease in sales promotion is that customers have become less brand loyal. FALSE A major reason for the increase in sales promotion is that consumers have become less brand loyal and are purchasing more on the basis of price, value, and convenience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

6.

One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. TRUE One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

7.

A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. TRUE A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

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8.

Promotion programs cannot be developed to coincide with peak sales periods for certain products and services. FALSE Promotion programs also can be developed to coincide with peak sales periods for certain products and services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

9.

An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. TRUE An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company. While building and/or maintaining brand equity was traditionally viewed as something that was done through media advertising, it has also become an important goal for marketers as they develop their sales promotion programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

10. Sampling is generally considered the least effective way to generate trial. FALSE Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Sampling is generally considered the most effective way to generate trial, although it is also the most expensive. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

11. Sampling through the mail is common for small, lightweight, nonperishable products. TRUE Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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12. Event sampling is where a package is attached to another item. FALSE On-package sampling, where a sample of a product is attached to another item, is a common sampling method. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

13. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. TRUE The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions 14. The use of newspapers and magazines as couponing vehicles has increased dramatically since the introduction of FSIs. FALSE The use of newspapers and magazines as couponing vehicles has declined dramatically since the introduction of FSIs as only 1 percent of coupons is distributed via newspapers and magazines. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

15. One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand. TRUE One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand. Marketers recognize that many purchase decisions are made in the store, and promotional displays are an excellent way of generating sales. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

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16. When a brand moves to the maturity stage, advertising is primarily used as a reminder to keep consumers aware of the brand. TRUE When a brand moves to the maturity stage, advertising is primarily a reminder to keep consumers aware of the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

17. In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand. FALSE In order to integrate the advertising and sales promotion programs successfully, the theme of consumer promotion should be tied in with the positioning platform for the company and/or their brand wherever possible. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

18. Media support for a sales promotion program is typically considered optional. FALSE Media support for a sales promotion program is critical and should be coordinated with the media program for the ad campaign. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

19. A sales promotion trap can result when several competitors use promotions extensively. TRUE A potential problem with consumer-oriented promotions is that a sales promotion trap or spiral can result when several competitors use promotions extensively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools. Topic: Sales Promotions

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20. A brand that is constantly promoted may lose perceived value. TRUE A brand that is constantly promoted may lose perceived value. Consumers often end up purchasing a brand because it is on sale, they get a premium, or they have a coupon, rather than basing their decision on a favorable attitude they have developed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools. Topic: Sales Promotions

21. Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? A. magazine advertising B. direct mail C. public relations D. publicity E. sales promotion Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money-back refund or rebate, or an extra amount of a product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

22. Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward A. end users. B. retailers. C. wholesalers. D. salespeople. E. employees. Activities involved in consumer-oriented sales promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing. These promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketer's brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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23. Which of the following is an example of a trade-oriented sales promotion activity? A. samples B. coupons C. refunds/rebates D. dealer contests E. bonus packs Trade-oriented sales promotion includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

24. How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the branding strategy is determined. C. Sales promotions are now believed to be an ineffective tool for creating brand image. D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E. Sales promotion techniques are increasingly being considered as "obsolete." In the past, sales promotion specialists would be brought in after key strategic branding decisions were made. However, many companies are now making promotional specialists part of their strategic brand-building team, a move that puts sales promotion on par with media advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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25. Which of the following serves as a reason for the increase in sales promotion? A. growing power of retailers B. increasing brand loyalty of customers C. lack of short-term focus among marketers D. decreased promotional sensitivity E. decreased competition There are a number of other factors that have led to the increase in the importance of sales promotion and the shift in marketing dollars from media advertising to consumer and trade promotions. Among them are the growing power of retailers, declining brand loyalty, increased promotional sensitivity, brand proliferation, fragmentation of the consumer market, the short-term focus of many marketers, increased accountability, competition, clutter, and the growth of digital and social media. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

26. Which of the following developments has resulted in a transfer of power from manufacturers to retailers? A. The advent of optical scanners and computers has given manufacturers access to sales information. B. An increase in brand loyalty among consumers has led to an increase in sales promotion activities. C. Consolidation of the retail industry has resulted in larger chains with greater buying power and clout. D. A significant decrease in promotional sensitivity and time sensitivity among consumers has occurred since the early 2000s. E. Increasingly, manufacturers are introducing more private-label brands into the market. One factor that has increased the power of retailers is the consolidation of the retail industry, which has resulted in larger chains with greater buying power and clout. Consolidation has also given large retailers more money for advancing already strong private-label initiatives, and sales promotion is the next step in the marketing evolution of private-label brands. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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27. One reason for consumers' increased sensitivity to sales promotions is A. that they have become less time-sensitive. B. the increase in perceived brand loyalty. C. the increased power of manufacturers. D. that they save money. E. that consumers' choices have declined. An obvious reason for consumers' increased sensitivity to sales promotion offers is that they save money. Another reason is that many purchase decisions are made at the point of purchase by consumers who are increasingly time-sensitive and facing too many choices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

28. How are marketers responding to the decline of consumers' attention to mass-media advertising? A. They are using more media monitoring services to make event sponsorship more successful. B. They are using more traditional mass-media-based advertising. C. They are using more sales promotions. D. They are employing clipping services to determine the effectiveness of their press releases. E. They are spending more money on television ads. Exciting, breakthrough creative ideas are difficult to come by, and consumers’ attention to mass-media advertising continues to decline. Rather than allocating large amounts of money to run dull ads, many marketers have turned to sales promotion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

29. Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on A. telemarketing. B. direct mail. C. publicity. D. synergistic buying. E. sales promotion. Many businesspeople believe the increase in sales promotion is motivated by marketing plans and reward systems geared to short-term performance and the immediate generation of sales volume. Some businesspeople think the packaged-goods brand management system has contributed to marketers' increased dependence on sales promotion. Brand managers use sales promotions routinely, not only to introduce new products or defend against the competition but also to meet quarterly or yearly sales and market share goals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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30. Which of the following is true of the increase in sales promotion by brand managers? A. Brand managers tend to ignore sales promotion due to its primacy effect. B. Many brand managers believe that sales promotions cannot be used to defend against competition. C. Typically, sales promotions are not used by brand managers while introducing new products. D. Sales promotions are typically used by brand managers to meet quarterly goals. E. Sales promotions are generally a neglected part of the IMC process by most brand managers. Brand managers use sales promotions routinely, not only to introduce new products or defend against the competition but also to meet quarterly or yearly sales and market share goals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

31. Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. Which of the following would best support a marketer in producing a quick and easily measurable jump in sales? A. mass-media advertising B. a strategy that enhances the advertising carryover effect C. sales promotions such as coupons and price discounts D. bait-and-switch marketing techniques E. out-of-home advertising media Managers who are being held accountable to produce results often use price discounts or coupons, since they produce a quick and easily measured jump in sales. It takes longer for an ad campaign to show some impact and the effects are more difficult to measure. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

32. _____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. A. Evangelism B. Close range C. Account-specific D. Call to action E. Affinity A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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33. Account-specific marketing is also known as A. a planogram program. B. comarketing. C. dual sponsorship. D. piggyback marketing. E. guerilla marketing. A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

34. Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. This is an example of A. guerilla marketing. B. brand stretching. C. evangelism marketing. D. account-specific marketing. E. brand extension. The above scenario is an example of account-specific marketing. A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

35. Brand equity is also known as A. customer loyalty. B. customer franchise. C. brand extension. D. brand logo. E. trademark. Brand equity, or consumer franchise, is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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36. Which of the following statements describes how brand equity is affected by the increased use of sales promotion? A. Critics argue that sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity. D. There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity. E. Marketing experts generally agree that advertising plays an important role in building and maintaining a brand's image and position, which are core components of its equity. Some marketing experts argue that sales promotion increases come at the expense of brand equity and every dollar that goes into promotion rather than advertising devalues the brand.They say trade promotions in particular contribute to the destruction of brand franchises and equity as they encourage consumers to purchase primarily on the basis of price. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

37. Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as A. nonfranchise-building promotions. B. consumer franchise-building promotions. C. high-involvement sales promotions. D. sales promotion traps. E. event marketing. Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise-building (CFB) promotions. Consumer sales promotion efforts cannot make consumers loyal to a brand that is of little value or does not provide them with a specific benefit. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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38. Which of the following is true of consumer franchise-building promotions? A. They are designed to increase long-term brand preference. B. They are designed to help consumers avoid full-price purchases in the long term. C. They do not always depend on a promotional offer. D. They are a subset of public relations. E. They are synonymous with publicity. Consumer franchise-building promotions are designed to build long-term brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

39. Which of the following is true of consumer franchise building (CFB) promotions? A. CFB promotions are designed to promote short-term brand preference. B. CFB promotions cannot make consumers loyal to a brand that is of little value. C. CFB promotions can make consumers loyal to a brand that does not provide a specific benefit. D. CFB promotions typically do not contribute to the development of a favorable brand image. E. CFB promotions are not suitable for brand extension strategies. Consumer franchise-building promotions are designed to build long-term brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

40. Which of the following is an example of a nonfranchise-building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs Price-off deals, bonus packs, and rebates or refunds are examples of non-FB sales promotion techniques. Trade promotions receive the most criticism for being nonfranchise building and for good reason. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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40. Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as A. consumer franchise-building promotion. B. nonfranchise-building promotion. C. vertical integration marketing. D. image promotions. E. evangelism marketing. Nonfranchise-building (non-FB) promotions are designed to accelerate the purchase decision process and generate an immediate increase in sales. These activities do not communicate information about a brand's unique features or the benefits of using it, so they do not contribute to the building of brand identity and image. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

41. The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is A. sweepstakes. B. contests. C. frequent patronage programs. D. trade promotions. E. event sponsorships. Trade promotions receive the most criticism for being nonfranchise building. Many specialists in the promotional area stress the need for marketers to use sales promotion tools to build a franchise and create long-term continuity in their promotional programs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

42. When General Mills included a Mini Minion character toy in its Lucky Charms cereal to provide an extra incentive for customers to buy the cereal, it was using a A. sweepstakes. B. contest. C. frequent patronage program. D. trade promotion. E. sales promotion. Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional program AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-01 Describe the role of sales promotion in the IMC program. Topic: Sales Promotions

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43. When MillerCoors used a Taste Challenge promotion to help regain market share for Miller Light against Bud Light and other brands of light beer, it was A. using a sales promotion to attract users of a competing brand. B. identifying new uses for the brand. C. obtaining repurchase. D. defending current customers. E. targeting a specific market segment. One strategy to attract new customers is to use a sales promotion to attract users of a competing brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-02 Identify the objectives of sales promotion programs. Topic: Sales Promotions

44. _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. A. A rebate B. A refund C. Sampling D. Couponing E. A sweepstakes Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

45. _____ is generally considered the most effective method for generating trial of a new product. A. Couponing B. Sampling C. Rebating D. Sweepstakes promotion E. A contest Sampling is generally considered the most effective way to generate trial, although it is also the most expensive. As a sales promotion technique, sampling is often used to introduce a new product or brand to the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-37 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

46. Samples would be an appropriate promotional strategy A. to support an everyday low price (EDLP) strategy. B. to facilitate a push promotional strategy. C. to introduce a new product into the marketplace. D. in the decline stage of a product's life cycle. E. to build long-term relationships with customers. As a sales promotion technique, sampling is often used to introduce a new product or brand to the market. However, sampling is also used for established products as well. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

47. Which of the following is an advantage of the sampling method of sales promotion? A. It is the least expensive among all methods of sales promotion. B. The costs of the sampling program can easily be recovered with just a few purchases. C. Marketers believe that for all products the results of sampling can be seen immediately. D. It is extremely useful for products and services that do not have subtle features. E. Consumers gain a greater appreciation for a product's benefits. Sampling generates much higher trial rates than advertising or other sales promotion techniques. Getting people to try a product leads to a second benefit of sampling: Consumers experience the brand directly, gaining a greater appreciation for its benefits. This can be particularly important when a product's features and benefits are difficult to describe through advertising. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

48. With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature. A. B. C. D. E.

mail sampling couponing door-to-door sampling on-package sampling mobile coupon

Door-to-door sampling, in which the product is delivered directly to the prospect's residence, is used when it is important to control where the sample is delivered. This distribution method is very expensive because of labor costs, but it can be cost effective if the marketer has information that helps define the target market and/or if the prospects are located in a well-defined geographic area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-38 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

49. _____ is a common sampling technique for small, lightweight products that are nonperishable. A. B. C. D. E.

Door-to-door sampling Sampling through the mail In-store sampling On-package sampling Location sampling

Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

50. In _____ sampling, a marketer hires temporary demonstrators who set up a table or booth within an outlet, prepare small samples of a product, and pass them out to shoppers. A. B. C. D. E.

door-to-door event on-package in-store direct-mail

In in-store sampling, a marketer hires temporary demonstrators who set up a table or booth, prepare small samples of the product, and pass them out to shoppers. The in-store sampling approach can be very effective for food products, since consumers get to taste the item and the demonstrator can give them more information about the product while it is being sampled. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

51. In a(n) _____ sampling, a multiproduct firm attaches the sample to an existing item of the firm. A. B. C. D. E.

checkout spiff in-store on-package bounce-back

In an on-package sampling, a multiproduct firm attaches a sample of a new product to an existing item of the firm. This procedure can be very cost effective. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-39 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

52. The oldest, most widely used, and most effective sales promotion tool is A. cents-off coupons. B. sampling. C. rebates. D. event sponsorship. E. bonus packs. The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon. Coupons have been around since 1895, when the C. W. Post Co. started using the penny-off coupon to sell its new Grape-Nuts cereal. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

53. An advantage of coupons is that they A. elicit faster consumer responses than samples, unlike sweepstakes and rebates. B. generally elicit immediate response from consumers. C. are very effective even without brand name awareness. D. allow a marketer to offer a price reduction only to consumers who are price-sensitive. E. build brand loyalty. Coupons make it possible to offer a price reduction only to those consumers who are price-sensitive. Such consumers generally purchase because of coupons, while those who are not as concerned about price buy the brand at full value. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

54. Which of the following is a disadvantage of couponing? A. It can be difficult to estimate how many consumers will use a coupon and when. B. It discourages initial product trial. C. It assists in reducing the price of a product only by relying on retailers for cooperation. D. It assists only in attracting new customers but does not help in retaining existing customers. E. It may encourage regular users to trade down to inexpensive brands. There are a number of problems with coupons. First, it can be difficult to estimate how many consumers will use a coupon and when. Response to a coupon is rarely immediate; it typically takes several months to redeem one. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-40 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

55. Which of the following statements is true of couponing? A. Coupons always assist in providing an immediate response. B. Coupons are often used by consumers who are already loyal to the brand. C. Coupons are useless when it comes to promoting established products. D. Coupons are more effective than sampling for inducing initial product trial in a short period. E. Coupons have an extremely high redemption rate. A problem associated with using coupons to attract new users to an established brand is that it is difficult to prevent the coupons from being used by consumers who already use the brand. Rather than attracting new users, coupons can end up reducing the company's profit margins among consumers who would probably purchase the product anyway. However, they can help retain users. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

56. The most popular method for distributing coupons is through A. newspaper freestanding inserts. B. direct mail. C. product packaging. D. magazines. E. the Yellow Pages. Distribution through newspaper freestanding inserts (FSIs) is by far the most popular method for delivering coupons to consumers, accounting for 90 percent of all coupons distributed. An FSI is a four-color multipage printed advertising booklet that contains consumer packaged-goods coupon offers delivered with newspapers (usually in Sunday editions). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

57. What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A. less clutter B. lower cost C. lower redemption rate D. lower economies of scale E. cooperative advertising opportunities The increased distribution of coupons through freestanding inserts (FSIs) has led to a clutter problem. This is leading some marketers to look at other ways of delivering coupons that will result in less clutter and higher redemption rates, such as direct mail. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-41 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

58. An in- or on-package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. B. C. D. E.

cross-ruff bounce-back instant cross-sell checkout

An in/on-pack coupon that is redeemable for the next purchase of the same brand is known as a bounce-back coupon. This type of coupon gives consumers an inducement to repurchase the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

59. Nearly _____ percent of consumers use coupons on a regular basis. A. 50 B. 80 C. 20 D. 10 E. 90 Nearly 80 percent of consumers use coupons on a regular basis and some use them very heavily. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

60. Which of the following have the highest redemption levels of all types of coupons? A. bounce-back coupons B. cross-ruff coupons C. instant coupons D. cross-sell coupons E. premium coupons Instant coupons have the highest redemption levels of all types of coupons, averaging around 20 percent for food products and 27 percent for nonfood items. However, the redemption level is much lower for instant cross-ruff coupons, as it averages around 8 percent. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-42 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

61. One of the main types of on-package coupons is the _____ coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it at the time of the purchase. A. B. C. D. E.

bounce-back cross-ruff instant cross-sell premium

A type of package coupon is the instant coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase. Instant coupons have the highest redemption levels of all types of coupons, averaging around 20 percent for food products and 27 percent for nonfood items. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

62. On the inside of its pizza box, Joe's Pizza places a $1-off coupon, which can be redeemed at the next purchase. In this scenario, Joe's is using a(n) _____ coupon. A. B. C. D. E.

cross-ruff bounce-back instant cross-sell checkout

In the above scenario Joe's Pizza uses bounce-back coupons. An in/on-pack coupon that is redeemable for the next purchase of the same brand is known as a bounce-back coupon. This type of coupon gives consumers an inducement to repurchase the brand. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-43 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

63. A package of Confident razor blades contains a 75 cents-off coupon for Confident Foamy shaving cream. This is an example of a(n) _____ coupon. A. B. C. D. E.

cross-ruff bounce-back checkout instant rebate

The above scenario is an example of a cross-ruff coupon. A type of in/on-pack coupon is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

64. Pluto Inc. places a 50 cents-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon. A. B. C. D. E.

bounce-back cross-ruff instant premium cross-sell

The above scenario is an example of a cross-ruff coupon. A type of in/on-pack coupon is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

65. Packages of Vinnie's Cornmeal have coupons that can be cut out and redeemed at the time of purchase. These are called _____ coupons. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell In the above scenario Vinnie's Cornmeal uses instant coupons. One type of package coupon is the instant coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-44 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

66. Which of the following is a disadvantage of bounce-back coupons? A. B. C. D. E.

They do not attract nonusers of a particular brand. They are redeemable on the purchase of a different product. They do not induce customers to repurchase the brand. They are not useful for a brand that has reached the maturity stage. They are not useful for products that are in the early phases of their lifecycle.

The main limitation of bounce-back coupons is that they go only to purchasers of the brand and thus do not attract nonusers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

67. Which of the following is true of in-store couponing? A. It is a highly expensive method of couponing. B. It is typically distributed through checkout counters. C. It is typically a long-term strategy used during the maturity stage. D. It is also known as bond couponing. E. It is also known as cross-ruff couponing. One popular way to distribute in-store coupons is through electronic devices such as kiosks or at the checkout counter. When the specified product, such as a competitive brand, is purchased, the consumer receives a coupon at the checkout for the company's brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

68. Electronically dispensed checkout coupons A. generate impulse buying and product trial. B. have no redemption deadline. C. are available on a company's website and must be printed out to be used. D. are cost effective and can be targeted to specific categories of consumers. E. are attached to the outside of the package so they can be ripped off and redeemed immediately. Major advantages of electronically dispensed checkout coupons are that they are cost effective and can be targeted to specific categories of consumers, such as users of competitive or complementary products. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-45 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

69. A(n) _____ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase. A. mnemonic B. heuristic C. premium D. prommercial E. exhibition A premium is an offer of an item of merchandise or services, either free or at a low price, that is an extra incentive for purchasers. Many marketers are eliminating toys and gimmicks in favor of value-added premiums that reflect the quality of the product and are consistent with its image and positioning in the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

70. NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a A. coupon. B. sample. C. free premium. D. rebate. E. self-liquidating premium. In the above scenario, the plush toy is an example of a free premium. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. In/on-package free premiums include toys, balls, trading cards, or other items included in cereal packages, as well as samples of one product included with another. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-46 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

71. Yummy Oats cereal included tubes of ToothFairy Junior toothpaste inside each of its boxes. This is an example of a A. free premium. B. self-liquidating premium. C. rebate. D. bonus pack. E. nonsubsidized premium. The above scenario is an example of free premiums. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. In/on-package free premiums include toys, balls, trading cards, or other items included in cereal packages, as well as samples of one product included with another. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

72. Consumers must pay the manufacturers' cost-price or a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs. The marketer usually purchases items used as self-liquidating premiums in large quantities and offers them to consumers at lower-than-retail prices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

73. Which of the following is true of self-liquidating premiums? A. They are used for lightweight, nonperishable products. B. They require customers to pay for the mailing costs. C. They are typically offered at higher-than-retail prices. D. They are also known as cost-plus premiums. E. They are usually delivered directly to the customers' doorsteps. Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs. The marketer usually purchases items used as self-liquidating premiums in large quantities and offers them to consumers at lower-than-retail prices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-47 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

74. The in-store sampling approach can be very effective for food products because A. customers get to taste the sample. B. customers get the sample delivered to their homes. C. it is an inexpensive sampling method. D. it does not require a great deal of planning. E. it does not require the cooperation of retailers. The in-store sampling approach can be very effective for food products, since consumers get to taste the item and the demonstrator can give them more information about the product while it is being sampled. Demonstrators may also give consumers a cents-off coupon for the sampled item to encourage immediate trial purchase. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

75. Which of the following is a limitation of using on-package sampling? A. B. C. D. E.

It will not reach nonusers of the carrier brand. It cannot be used by multiproduct firms. It is highly expensive. It can be used only for food products. It requires extensive product guarantees.

On-package sampling, where a sample of a product is attached to another item, is a common sampling method. This procedure can be very cost effective, particularly for multiproduct firms that attach a sample of a new product to an existing brand's package. A drawback is that since the sample is distributed only to consumers who purchase the item to which it is attached, the sample will not reach nonusers of the carrier brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

76. Which of the following sampling methods, featuring media tie-ins, is the fastest growing and the most popular? A. event sampling B. bounce-back sampling C. on-package sampling D. in-store sampling E. door-to-door sampling Event sampling has become one of the fastest-growing and most popular ways of distributing samples. Many marketers are using sampling programs that are part of integrated marketing programs that feature events, media tie-ins, and other activities that provide consumers with a total sense of a brand rather than just a few tastes of a food or beverage or a trial size of a packaged-goods product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-48 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

77. Which of the following is a limitation of using in-store sampling? A. It can be used only for food products. B. It requires the cooperation of retailers. C. It is a highly ineffective method. D. It must always be used in combination with another sampling method. E. It is typically considered effective only for high-end luxury products. In-store sampling is increasingly popular, especially for food products. The marketer hires temporary demonstrators who set up a table or booth, prepare small samples of the product, and pass them out to shoppers. While this sampling method can be very effective, it can also be expensive and requires a great deal of planning, as well as the cooperation of retailers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

78. Which of the following is a limitation of sampling through the mail? A. It can be used only by multiproduct firms. B. It must always be used in combination with another sampling method. C. It involves extensive postal restrictions. D. It cannot be used for nonperishable products. E. It can be used only for food samples. Sampling through the mail is common for small, lightweight, nonperishable products. The main drawbacks to mail sampling are postal restrictions and increasing postal rates. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

79. Which of the following is a limitation of door-to-door sampling? A. B. C. D. E.

It can be used only by multiproduct firms. It is subject to increasing postal rates. It can be used only for food products. It involves high labor costs. It must always be used in combination with another sampling method.

Door-to-door sampling, in which the product is delivered directly to the prospect's residence, is used when it is important to control where the sample is delivered. This distribution method is very expensive because of labor costs, but it can be cost effective if the marketer has information that helps define the target market and/or if the prospects are located in a well-defined geographic area. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-49 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

80. Which of the following is an advantage of sampling through the mail? A. It offers a greater markup for the retailer than other sampling techniques. B. It can take place in stores as well as at a variety of other venues such as concerts. C. The marketer has control over where and when the product will be distributed. D. The distribution system is unaffected by postal restrictions and increasing postal rates. E. This sampling method is always used in combination with another sampling method. Sampling through the mail is common for small, lightweight, nonperishable products. A major advantage of this method is that the marketer has control over where and when the product will be distributed and can target the sample to specific market areas. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

81. _____ is a sampling method in which the product is delivered directly to the prospect's residence. A. B. C. D. E.

In-house sampling In-store sampling Event sampling Door-to-door sampling Bounce-back sampling

Door-to-door sampling, in which the product is delivered directly to the prospect's residence, is used when it is important to control where the sample is delivered. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

82. A _____ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability. A. B. C. D. E.

sweepstakes contest refund rebate sample

A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. The company determines winners by judging the entries or ascertaining which entry comes closest to some predetermined criteria (e.g., picking the winning teams and total number of points in the Super Bowl or NCAA basketball tournament). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-50 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

83. A _____ is a promotion where winners are determined purely by chance. A. contest B. sweepstakes C. rebate D. premium E. loss leader A sweepstakes is a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry. Entrants need only submit their names for the prize drawing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

84. Sweepstakes and contests A. are used to move consumers to the conviction stage of the hierarchy of effects model. B. can be used to generate excitement and involvement with a popular and timely event. C. contribute minimally to consumer franchise building. D. do not distract from consumer franchise-building activities. E. are synonymous to each other. Contests and sweepstakes are an increasingly popular consumer-oriented promotion. Marketers are attracted to contests and sweepstakes as a way of generating attention and interest among a large number of consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

85. Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? A. samples and coupons B. premiums C. contests and sweepstakes D. event sponsorships E. bonus packs One problem with contests and sweepstakes is the participation in them by hobbyists who submit entries but have no real interest in the product or service. Because most states make it illegal to require a purchase as a qualification for a sweepstakes entry, consumers can enter as many times as they wish. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-51 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

86. Which of the following statements is true of rebates? A. Rebates are synonymous with refunds, and are used only for consumer durables like automobiles and appliances. B. Most retailers want to be involved with rebate programs. C. Nonusers of rebates perceive the rebate redemption process as too complicated. D. Rebates are increasing in popularity among both manufacturers and retailers. E. Rebates are ineffective in encouraging repeat purchases. Nonusers of rebates were particularly likely to perceive the redemption process as too complicated and to suspect manufacturers' motives. This implies that companies using rebates must simplify the redemption process and use other promotional elements such as advertising to retain consumer confidence in the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

87. Got Game, a sports store, ran a promotion campaign in which it offered a box of 15 Pyramid golf balls at the price of 12 balls. This is an example of a A. price-off deal. B. premium. C. bonus pack. D. rebate. E. trade allowance. The above scenario is an example of a bonus pack. Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units. Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more product for the money. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

88. Bonus packs A. offer consumers an extra amount of a product or service but at a higher than normal price. B. help marketers provide extra value to consumers without having them do anything more than purchase the product. C. are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer. D. are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins. E. result in a higher cost per unit for the consumer. Bonus packs give marketers a direct way to provide extra value without having to get involved with complicated coupons or refund offers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

16-52 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

89. When reductions from the regular price of a product are offered at the point-of-purchase through specially marked packages, a marketer is using a A. bonus price pack. B. rebate. C. refund offer. D. bounce-back price coupon. E. price-off deal. Price-off reductions are typically offered right on the package through specially marked price packs. Typically, price-offs range from 10 to 25 percent off the regular price, with the reduction coming out of the manufacturer's profit margin, not the retailer's. Keeping the retailer's margin during a price-off promotion maintains its support and cooperation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

90. Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. In addition, customers can accrue points each time they present their cards while making a purchase. These points can be used to purchase cookware, dishes, and other similar hard goods. Spring Supermarket is using a A. bonus program. B. loyalty program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program. One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). Frequency programs have become commonplace in a number of product and service categories, particularly travel and hospitality, as well as among retailers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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91. Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a A. sweepstakes program. B. loyalty program. C. customer rewards contest. D. premium promotion. E. rebate program. One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). Frequency programs have become commonplace in a number of product and service categories, particularly travel and hospitality, as well as among retailers. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

92. Why have loyalty programs become so popular with marketers? A. Loyalty programs support the goal of customer retention. B. Loyalty programs are especially effective when used for new product introductions. C. Loyalty programs are a type of sweepstakes that generate a great deal of consumer interest. D. Loyalty programs allow marketers to set cookies so they can track consumers' activities. E. Loyalty programs are a promotional form of brand extension strategy. There are a number of reasons why loyalty programs have become so popular. Marketers view these programs as a way of encouraging consumers to use their products or services on a continual basis and as a way of developing strong customer loyalty. Many companies are also realizing the importance of customer retention and understand that the key to retaining and growing market share is building relationships with loyal customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

93. Which of the following types of sales promotions are also called continuity programs? A. point-of-purchase displays B. loyalty programs C. price-off deals D. dealer incentives E. event sponsorship programs One of the fastest-growing areas of sales promotion is the use of loyalty programs (also referred to as continuity or frequency programs). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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94. Planet Beverage's heavy financial involvement with freestyle skiing competitions and support of beach volleyball tournaments are examples of A. premiums. B. field marketing. C. exhibitions. D. event marketing. E. contests. The above scenario is an example of event marketing. Event marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service. Marketers often do event marketing by associating their product with some popular activity such as a sporting event, concert, fair, or festival. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

95. Which of the following statements about event sponsorships and event marketing is true? A. The amount of money spent on event sponsorships has been declining in recent years. B. Event sponsorships are not typically integrated into a company's marketing communications strategy. C. Event marketing and event sponsorship are synonymous. D. Event sponsorship objectives are often part of an organization's public relations activities. E. Event marketing, unlike other forms of promotion, is ineffective in connecting with consumers in an environment where they are comfortable with receiving a promotional message. An event sponsorship is an integrated marketing communications activity where a company develops actual sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and be identified as a supporter of the event. Decisions and objectives for event sponsorships are often part of an organization's public relations activities. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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96. Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of A. slotting fees. B. fixed trade spending. C. push money. D. promotional pricing. E. a bonus pack. Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are known as push money. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

97. Which of the following promotions is targeted toward the trade rather than consumers? A. spiffs B. coupons C. premiums and sweepstakes D. bonus packs E. bounce-back coupons Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are also known as push money (pm) or spiffs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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98. An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. This payment by J&J Appliance is known as A. a slotting fee. B. a mnemonic. C. a spiff. D. pull money. E. a bonus pack. In the above scenario, the payment made to the salespeople is known as a spiff. Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are also known as push money (pm) or spiffs. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

99. Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them in promoting and selling a company's product is A. a fixed trade spending. B. a rebate. C. a spiff. D. an off-invoice allowance. E. a slotting fee. Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are known as push money or spiffs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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100. A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote, or display a manufacturer's product is known as A. cooperative advertising. B. merchandising support. C. a trade allowance. D. a spiff. E. push money. Trade allowance is a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the manufacturer's products. Types of allowances offered to retailers include buying allowances, promotional or display allowances, and slotting allowances. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

101. Dewy, a fruit juice manufacturer, offers its retail accounts a $3.00 per case discount on all purchases of cranberry juice during the month of May. This discount will be deducted straight from the bill. This is an example of A. push money. B. a slotting allowance. C. an off-invoice allowance. D. a display allowance. E. a fixed trade spending. The above scenario is an example of an off-invoice allowance. Off-invoice allowance means a certain per-case amount or percentage is deducted from the invoice. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

102. Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called A. off-invoice allowances. B. push monies. C. advertising subsidies. D. promotional allowances. E. slotting allowances. Manufacturers often give retailers allowances or discounts for performing certain promotional or merchandising activities in support of their brands. These are known as promotional allowances. These merchandising allowances can be given for providing special displays away from the product's regular shelf position, running in-store promotional programs, or including the product in an ad. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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103. Money that must be paid to a retailer so it will take on a company's new product is known as A. slotting allowances. B. failure fees. C. spiffs. D. push monies. E. trade discounts. Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate the new product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

104. Which of the following statements is true of slotting allowances? A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. B. Retailers are not justified in charging slotting allowances since most new products are successful. C. Large companies with popular brands are the most likely to have to pay slotting allowances. D. Slotting allowances are illegal and banned by the federal government. E. The costs slotting allowances add to new product introductions are minimal. Retailers justify the slotting allowance by pointing out the costs associated with taking on so many new products each year, such as redesigning store shelves, entering the product into their computers, finding warehouse space, and briefing store employees on the new product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

105. Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called A. failure fees. B. slotting fees. C. push monies. D. off-invoice allowances. E. street monies. A failure fee is demanded by retailers if a new product does not hit a minimum sales level within a certain time. The fee is charged to cover the costs associated with stocking, maintaining inventories, and then pulling the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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106. Slotting allowances are also called A. off-invoice allowances. B. spiffs. C. push money. D. street money. E. rebates. Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate the new product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

107. A _____ is a configuration of products that occupy a shelf section in a store, offered to retailers by manufacturers. A. slotting plan B. planogram C. promotional layout D. retail format E. gatefold Many manufacturers help retailers use shelf space more efficiently through planograms, which are configurations of products that occupy a shelf section in a store. Some manufacturers are developing computer-based programs that allow retailers to input information from their scanner data and determine the best shelf layouts by experimenting with product movement, space utilization, profit yields, and other factors. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

108. A manufacturer of skis and skiing accessories provides sales personnel in ski shops with instruction classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of A. cooperative advertising. B. sales force automation. C. a sales training program. D. event marketing. E. a sales incentive program. The above scenario is an example of a sales training program. Manufacturers provide sales training assistance to retail salespeople in a number of ways. They may conduct classes or training sessions that retail personnel can attend to increase their knowledge of a product or a product line. These training sessions present information and ideas on how to sell the manufacturer's product and may also include motivational components. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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109. _____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers. A. A planogram B. A trade layout C. Cooperative advertising D. A trade show E. Event marketing One important promotional activity targeted to resellers is a trade show, a forum where manufacturers can display their products to current as well as prospective buyers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

110. _____ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. A. Horizontal cooperative advertising B. Vertical cooperative advertising C. Integrated dyadic advertising D. Retail-syndication advertising E. Syndicated advertising Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

111. Several different manufacturers of personal computers (PCs) have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. The PC manufacturers are using A. cooperative advertising. B. event sponsorships. C. vertical integrated marketing. D. comparative advertising. E. inbound marketing. In the above scenario, the PC manufacturers are using cooperative advertising. One form of trade-oriented promotion we examine is cooperative advertising, where the cost of advertising is shared by more than one party. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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112. Which of the following is true of horizontal cooperative advertising? A. It is sponsored by a group of retailers. B. It is used only in the maturity stage of a product's life cycle. C. It is usually conducted by a company and its marketing subsidiaries. D. It is synonymous with comparative advertising. E. It is synonymous with vertical advertising. Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

113. _____ is advertising supported by raw materials manufacturers to help establish end products that include a company's materials. A. Vertical cooperative advertising B. Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Guerrilla advertising E. Buzz marketing Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers; its objective is to help establish end products that include the company's materials and/or ingredients. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

114. VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. This is an example of _____ advertising. A. horizontal cooperative B. vertical cooperative C. parody D. ingredient-producer cooperative E. comparative The above scenario is an example of vertical cooperative advertising. The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

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115. Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called A. joint sales promotions. B. horizontal cooperative advertising. C. vertical cooperative advertising. D. ingredient-sponsored cooperative advertising. E. reseller advertising. The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business. Manufacturers generally share the cost of advertising run by the retailer on a percentage basis up to a certain limit. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools. Topic: Sales Promotions

116. With respect to the allocation of the promotional budget, when a brand moves to the maturity stage A. push monies are used to encourage retailers to stock more products. B. advertising is primarily a reminder to keep consumers aware of the brand. C. promotional dollars will be used only for distributing coupons to customers. D. all promotional support for the brand will be removed. E. promotional dollars will be used only for distributing samples. Allocation of the promotional budget may vary according to a brand’s stage in the product life cycle. When a brand moves to the maturity stage, advertising is primarily a reminder to keep consumers aware of the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

117. Which of the following is true of allocation of the promotional budget when a brand enters the decline stage? A. B. C. D. E.

In this stage, promotional dollars will be used only for distributing coupons to customers. In this stage, promotional dollars will be used only for distributing samples. In this stage, price-offs and bonus packs must be used intermittently to maintain consumer loyalty. In this stage, all the promotional support for the brand will be removed. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

With respect to the allocation of the promotional budget, according to a brand's stage in the product lifecycle, when a brand enters the decline stage of the product lifecycle, most of the promotional support will probably be removed and expenditures on sales promotion are unlikely. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

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118. Which of the following is true of allocation of the promotional budget when a brand enters the growth stage? A. B. C. D. E.

In this stage, promotional dollars will be used only for bait-and-switch marketing. In this stage, promotional dollars will be used only for rebate advertising. In this stage, price-offs and bonus packs must be used intermittently to induce product trial. In this stage, promotional dollars must be used primarily for advertising to stress brand differences. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

With respect to the allocation of the promotional budget according to a brand's stage in the product lifecycle, in the growth stage, promotional dollars may be used primarily for advertising to stress brand differences and keep the brand name in consumers' minds. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

119. Which of the following is true of allocation of the promotional budget when a brand enters the introductory stage? A. B. C. D. E.

In this stage, promotional dollars will not be allocated for activities such as sampling and couponing. In this stage, a large portion of the budget will be allocated to sales promotion techniques. In this stage, promotional dollars must be used to eliminate brand differences. In this stage, all the promotional support for the brand will be removed. In this stage, promotional dollars will be used only for word-of-mouth marketing.

With respect to the allocation of the promotional budget according to a brand's stage in the product lifecycle, in the introductory stage, a large amount of the budget may be allocated to sales promotion techniques such as sampling and couponing to induce trial. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising. Topic: IMC

120. According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the A. purchase behavior is attributed to an external incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. purchase is internally motivated and unaffected by an external stimulus. According to the attribution theory, consumers who consistently purchase a brand because of a coupon or price-off deal may attribute their behavior to the external promotional incentive rather than to a favorable attitude toward the brand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools. Topic: Sales Promotions

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121. When McDonald's introduced its value menu in 2003 and competitors responded by putting popular items on their value meal menus to keep up, it was an example of a(n) ________________ or a spiral that results when several competitors use promotions extensively. A. attribution trap B. sales promotion trap C. primary reinforcement spiral D. secondary reinforcement spiral E. external trap A sales promotion trap or spiral can result when several competitors use promotions extensively. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools. Topic: Sales Promotions

122. A study by Priya Raghubir and Kim Corfman showed A. purchase behavior is attributed to an internal incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. price promotions may inhibit trial of a brand in certain situations A study by Priya Raghubir and Kim Corfman showed that offering a price promotion is more likely to lower a brand’s evaluation when the brand has not been promoted previously compared to when it has been frequently promoted; that price promotions are used as a source of information about a brand to a greater extent when the evaluator is not an expert but does have some product or industry knowledge; and that promotions are more likely to result in negative evaluations when they are uncommon in the industry. The findings from this study suggest that marketers must be careful in the use of price promotions as they may inhibit trial of a brand in certain situations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 3 Hard Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools. Topic: Sales Promotions

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Chapter 16 Test Bank 01/12/2017 17:32:58 Summary Category-# of Questions AACSB: Analytical Thinking-107 AACSB: Reflective Thinking-16 Accessibility: Keyboard Navigation-123 Blooms: Apply-18 Blooms: Remember-61 Blooms: Understand-44 Difficulty: 1 Easy-60 Difficulty: 2 Medium-46 Difficulty: 3 Hard-17 Learning Objective: 16-01 Describe the role of sales promotion in the IMC program.-28 Learning Objective: 16-02 Identify the objectives of sales promotion programs.-6 Learning Objective: 16-03 Explain how to choose consumer- and trade-oriented sales promotion tools.-77 Learning Objective: 16-04 Explain how to coordinate sales promotion with advertising.-7 Learning Objective: 16-05 Discuss potential problems in the use of sales promotion tools.-5 Topic: IMC-7 Topic: Sales Promotions-116

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Chapter 17 Test Bank Student: ___________________________________________________________________________ 1. Publicity, public relations, and corporate advertising are integral parts of the overall promotional effort. True False

2. Public relations is limited to business management. True False

3. Ads themselves can be the focus of publicity. True False

4. One main advantage of marketing public relations is that media time and space are guaranteed. True False

5. One of the main reasons why firms are concerned about public attitudes is that these attitudes may affect the sales of the firm's products. True False

6. The public relations process is an ongoing process. True False

7. Community members and customers of a firm are considered external because the firm normally communicates with them in the ordinary routine of work. True False

8. People who live and work in the community where a firm is located are often the target of public relations efforts. True False

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9. Public relations efforts are often targeted to more than one group of individuals. True False

10. To be used by the press, information must be of interest to the medium as well as to its audience. True False

11. Since public relations communications are not perceived in the same light as advertising, they tend to have less credibility. True False

12. The fact that the media are not being compensated for providing information makes public relations a credible source among the public. True False

13. The relative cost of public relations is very high. True False

14. Public relations messages are subject to the clutter of ads. True False

15. A major advantage of public relations is the potential for completing the communications process. True False

16. Publicity is a subset of the public relations effort. True False

17. Public relations is typically a short-term strategy, while publicity is a concerted program extending over a period of time. True False

18. Public relations is usually controlled by a firm or its agent. True False

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19. Public relations is designed to provide only positive information about a firm. True False

20. Publicity is always positive and is always under the control of, or paid for by, an organization. True False

21. Publicity is usually perceived as being sponsored by a company. True False

22. A reason for publicity's power is its news value and the frequency of exposure it generates. True False

23. Corporate advertising does not promote any one specific product or service. True False

24. Corporate advertising is designed to promote the main product or service of a company. True False

25. One of the reasons why corporate advertising is considered controversial is because it is a costly form of self-indulgence. True False

26. A corporate ad is not as easy to write as an ad designed to position a product. True False

27. Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. True False

28. A disadvantage associated with corporate image advertising is its inability to reach a select target market. True False

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29. Whirlpool's association with Habitat for Humanity, related to its efforts to eliminate poverty housing, is an example of a sponsorship. True False

30. Which of the following statements about public relations is true? A. Typically, shorter forms of public relations and publicity are interchangeable functions. B. Public relations is not considered a management function. C. Public relations has the same objectives as product and service promotion. D. An effective public relations program continues over months or even years. E. Public relations deals only with the activities designed to sell a product or service.

31. In the traditional perspective, public relations is a _____ function whose primary responsibility is to maintain mutually beneficial relationships between an organization and its publics. A. financial B. human resources C. nonmanagement D. nonmarketing E. sales

32. _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance. A. Public relations B. Image advertising C. Corporate advertising D. Public administration E. Public offering

33. The new role of PR differs from the traditional role of PR in that it A. views PR as a nonmarketing function. B. has a narrower perspective of PR functions. C. considers marketing and public relations as separate departments. D. considers all noncustomer relationships necessary only in a marketing context. E. requires the marketing department to report to public relations.

34. The new role of public relations is characterized primarily by A. a less communication-oriented role. B. a less finance-oriented role. C. a more sales-oriented role. D. a less technical role. E. a more marketing-oriented role.

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35. According to Thomas. L. Harris, public relations activities that are designed to support marketing objectives are known as A. service marketing communications. B. public administration functions. C. marketing public relations functions. D. public activity networking. E. marketing system functions.

36. Marketing objectives that may be aided by _____ activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. A. sales promotion B. public relations C. advertising D. human resources E. outdoor marketing

37. Which of the following statements describes an advantage of the use of marketing public relations (MPR)? A. The effectiveness of MPR can be easily measured. B. It is easy to tie slogans with MPR activities. C. MPR breaks through the clutter. D. The use of MPR guarantees a specific media time and place. E. MPR helps in increasing control over media.

38. Which of the following is an advantage of using MPR? A. It helps in extending a company's control over the media. B. It is a cost-effective way to reach a target market. C. It enables marketers to easily use slogans and other advertising devices. D. It provides a guarantee for media time and space. E. It offers several standard effectiveness measures.

39. Which of the following is a disadvantage of using MPR? A. It does not contribute to a company's ROI. B. It lacks credibility. C. It fails to support advertising programs. D. It rarely influences opinion leaders and trendsetters. E. It does not guarantee media time and space.

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40. Which of the following is a disadvantage of MPR? A. It is not a cost-effective way to reach the market. B. It fails to achieve credibility. C. It is difficult to tie in slogans and other advertising devices. D. It fails to break through the clutter. E. It does help in improving ROI.

41. According to Cutlip and colleagues, which of the following is the first step to developing a public relations plan? A. Hold programs to handle PR problems. B. Develop plans for handling PR problems. C. Define PR problems. D. Take actions to counter PR problems. E. Evaluate the programs taken to counter PR programs.

42. In public relations targeting, external audiences include A. the customers. B. the public. C. the suppliers. D. the stockholders. E. the employees.

43. Which of the following is considered an internal audience for a public relations activity? A. customers B. media C. government D. public E. civic groups

44. _____ include employees, stockholders, and investors of a firm as well as members of the local community, suppliers, and current customers. A. Internal audiences B. Secondary audiences C. Mediated audiences D. External audiences E. Theoretical audiences

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45. Which of the following is considered an external audience of a public relations activity? A. customers B. suppliers C. members of the local community D. stockholders E. press

46. Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with A. the current customers of an organization. B. the employees of a firm. C. the press. D. government officials. E. community members.

47. Which of the following methods of communication is typically used to create goodwill within an organization? A. organizational newsletters B. award ceremonies C. annual reports D. grievance committees E. corporate picnics

48. _____ are used to inform an audience about how well a firm is doing, its future plans, financial information, and other information that goes beyond numbers. A. Corporation certificates B. Articles of association C. Annual reports D. Grievance committee reports E. Memoranda of association

49. The press, educators, civic and business groups, governments, and financial communities are all A. internal audiences. B. secondary audiences. C. mediated audiences. D. external audiences. E. tertiary audiences.

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50. One of the most critical external publics is the _____, which determine what a person will read in newspapers or online, or see on TV, and how this news will be presented. A. supplier B. customer C. government D. media E. investor

51. Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences? A. potential investors and the media B. current customers and employees of the firm C. supply chain members and current customers D. suppliers and employees of the firm E. stockholders and the public at large

52. A number of groups and major corporations, such as Marketing EDGE and the Direct Marketing Association, provide information regarding innovations, state-of-the-art research, and other items of interest to A. suppliers. B. financial groups. C. educators. D. civic organizations. E. the media.

53. Companies help _____ by making financial contributions, offering sponsorships, and delivering speeches at functions to create goodwill. A. suppliers B. financial groups C. educators D. civic organizations E. the media

54. _____ offer companies the potential for new sources of funding and so must be kept abreast of new developments in the organization. A. Suppliers B. Financial groups C. Educators D. Civic organizations E. Employees

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55. Companies that support lobbying efforts are A. trying to reach internal audiences. B. engaged in flighting. C. targeting government bodies. D. stressing the importance of homogeneity. E. targeting educators.

56. Major accomplishments, major breakthroughs, emergencies, or catastrophes typically warrant a(n) A. community involvement program. B. national press conference. C. exclusive interview. D. focus group survey. E. internal accounting process.

57. Companies often make use of _____ when they have significant news to announce, such as the introduction of a new product or advertising campaign. A. community involvement programs B. press conferences C. exclusives D. focus group surveys E. interviews

58. The management of a multinational firm sends copies of an article to several different European newspapers announcing its decision to start operations in Spain. Which public relations tool is being employed by the company? A. community involvement B. press conference C. exclusives D. marketing public relations (MPR) E. press release

59. An international football player invites the media to hear his decision to retire from professional football. In front of a live audience, he announces his decision and explains his future plans as well. Which of the following public relations tools is illustrated in this scenario? A. community involvement B. social networking C. exclusives D. press conference E. press release

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60. When a right to a public relations effort is offered to one particular medium since the medium reaches a substantial number of people in the target audience, it is known as a(n) A. social network. B. mnemonic. C. press release. D. exclusive. E. press conference.

61. Energon Inc., a beer manufacturer, distributes free water bottles in areas where there is water scarcity. Moreover, the company sponsors several local events such as concerts, theater productions, and sporting events. In this scenario, Energon Inc. is engaging in A. community involvement. B. integrated public relations activities. C. exclusives. D. press conferences. E. press releases.

62. How does the use of the Internet differ from the use of other traditional media for disseminating PR information? A. The Internet often fails to offer updated PR information due to several constraints. B. The Internet is confined by time and space limitations that do not inhibit other media. C. The Internet enables companies to archive press releases. D. The Internet cannot be used by organizations to defend themselves against negative publicity. E. The Internet is rarely used as a public relations source.

63. Since public relations communications are typically perceived as _____, they are not subject to the problems of clutter that are associated with other forms of promotional communication. A. corporate-sponsored advertisements B. public-sponsored advertisements C. image builders D. news items E. exclusives

64. Which of the following statements is true of public relations? A. This medium of promotion lacks credibility. B. The relative cost of public relations is very low. C. The absolute cost of public relations is very high. D. Public relations messages are subject to a lot of clutter. E. Public relations is ineffective in generating sales leads.

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65. Which of the following is an advantage of public relations? A. effectiveness at completing the communications process B. high absolute cost but low relative cost C. ability to complete the communications process D. effective lead generation E. strong connection between the receiver and the source

66. The cost of public relations is A. generally not considered as a part of the marketing budget. B. very low in both relative and absolute terms. C. very high in relative terms and very low in absolute terms. D. very low in relative terms and very high in absolute terms. E. not easy to determine as it fluctuates across initiatives.

67. Which of the following is the most affordable form of communication available to smaller companies? A. public relations B. image advertising C. corporate advertising D. public administration E. public offering

68. PR information about technological innovations, medical breakthroughs, and the like results almost immediately in a multitude of inquiries that result in A. high marketing costs. B. loss of credibility. C. high clutter. D. quality sales leads. E. loss of market share.

69. Which of the following is a disadvantage of PR? A. It has less credibility than advertising. B. It is costly in both relative and absolute terms. C. It is subject to clutter. D. It can misfire if mismanaged. E. It does not contribute to sales.

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70. In a review of emerging models for measuring public relations effectiveness, Amit Jain concluded that A. the number of press releases developed is the best way to measure public relations effectiveness. B. public relations evaluation can validate the results of an organization's efforts. C. evaluating public relations efforts tells management what has been achieved through public relations activities. D. traditional methods for measuring public relations effectiveness no longer work. E. media content analysis is not an effective way to measure public relations effectiveness.

71. Which of the following does Mark Weiner suggest for measuring the effectiveness of MPRs? A. quantitative assessment of consumers' attitudes toward a product B. number of personal interviews given by company representatives C. dollar value of community involvement D. number of press releases developed E. percentage of people who have encountered the press release

72. _____ helps in systematically and objectively identifying the characteristics of messages that are broadcasted and analyzing the content to determine trends and perceptions relevant to a product or brand. A. Regression analysis B. Focus group discussion C. Marketing-mix modeling D. Survey research E. Media content analysis

73. Drawing data from multiple sources and integrating them to provide insight into the PR process is referred to as A. regression analysis. B. focus group discussion. C. marketing-mix modeling. D. survey research. E. media content analysis.

74. Which of the following is an advantage of measuring the effectiveness of PR activities? A. It helps find the percentage of people who encounter the press release. B. It reduces the high absolute costs connected with PR activities. C. It enables the PR and marketing teams to function independently. D. It helps complete the communication process. E. It helps management judge the quality of PR achievements.

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75. According to Mark Weiner, which of the following is a common method used for measuring the effectiveness of public relations activities? A. number of customer complaints B. public opinion and surveys C. sales measures D. computer simulations E. trend analyses

76. _____ refers to the generation of news about a person, product, or service that appears in broadcast or print media. A. Indirect advertising B. Direct response advertising C. Sales promotions D. Publicity E. Advertainment

77. Which of the following statements about publicity is true? A. Publicity always originates within a firm and is paid for by the firm. B. Publicity is used to generate news about a person, and not a product or service. C. Public relations is, in reality, a subset of the publicity effort. D. Publicity is typically a short-term strategy. E. Publicity is designed to provide only positive information about a firm.

78. An article published in a national newspaper states that a new drug manufactured by a well-known company to treat lung cancer is not as effective as the company claims it to be. The article also describes how the drug has been linked to several deaths and cases of serious side effects. This is an example of A. an advertorial. B. negative publicity. C. controlled public relations. D. image advertising. E. negative lobbying.

79. Unlike other forms of promotion, _____ is not usually perceived as being sponsored by the company, especially in negative instances. A. direct marketing B. outdoor advertising C. publicity D. transit advertising E. trade promotion

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80. Which of the following is one of the important reasons for the high power of publicity as a form of promotion? A. its ability to eliminate the problem of clutter B. its ability to eliminate the problem of economies of scale C. its news value and the frequency of exposure it generates D. its lack of ability to generate word of mouth information E. its lack of credibility

81. What is the reason for publicity being considered by many marketers to be the strongest form of marketing communications? A. its effectiveness at completing the communications process B. its ability to make or break a brand C. its inability to affect sales D. the ease with which it complements other communications activities E. the positive image it always attaches to products and organizations

82. Which of the following communications methods is potentially the most powerful in terms of its ability to make or break a product or a company? A. sales promotions B. advertorials C. online advertising D. publicity E. celebrity branding

83. Publicity is considered much more important than advertising, sales promotion, or other forms of public relations because of the A. control it has over the message. B. timing of the message. C. credibility it offers to the message. D. accuracy of the message. E. lack of clutter in the message.

84. The manufacturers of some best-selling products often stage events in which people are paid to act as interested buyers standing in long queues to purchase the products. Which of the following strategies is being illustrated in the given scenario? A. the staging of press conferences B. the management of publicity C. the use of press releases D. the creation of video news releases E. the use of sponsorships

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85. A _____ is a publicity piece produced by publicists so that stations can air it as a news story. A. video news release B. celebrity branding C. spilt-run test D. news mnemonic E. dramatization ad

86. A news channel runs a two-minute story on phishing scams. The report features the testimonies of a phishing victim and a computer security expert from a software company. The story narrates how a security product from the company acts as "a first line of defense" against phishing scams. If the report is actually funded by the company, the given scenario would then be an example of A. image advertising. B. advocacy and news advertising. C. cause-related news advertising. D. video news release. E. direct response advertising.

87. A popular cartoon channel on television ran a holiday feature on the best and worst high-tech gifts for children. In the feature, a technology expert recommended games that were developed by selected companies. If this holiday feature was jointly funded by the selected companies, it is an example of a(n) A. cause-related ad. B. mnemonic. C. image ad. D. video news release. E. event sponsorship.

88. Marketers use _____ when they want to have as much control as possible over publicity. A. press conferences B. advertorials C. press releases D. video news releases E. sponsorships

89. Which of the following is an advantage of publicity? A. high control over the information being conveyed B. control over the timing of information release C. accuracy of the information being publicized D. control over any inappropriate word-of-mouth marketing E. perception of being endorsed by the media

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90. In the context of PR, the timing of a press release is left entirely to the A. suppliers in a firm. B. financial groups in a community. C. educators in a community. D. civic organizations in a community. E. media.

91. Which of the following is a disadvantage of publicity? A. lack of credibility B. a perception of being endorsed by the media C. control over timing of publicity D. information can be inaccurate E. low potential for word-of-mouth communication

92. One of the main disadvantages of publicity is the A. lack of control over the information conveyed. B. low credibility it offers. C. lack of support that is often shown by the media. D. lack of confidence people have in such information. E. minimal frequency of exposure that it generates.

93. Communications activities designed to promote a firm's overall image, without reference to a specific product, are called A. corporate advertising. B. event branding. C. advertorials. D. lobbying. E. cause-related advertising.

94. Why is corporate advertising considered controversial? A. Consumers are highly interested in this form of advertising. B. It places too much importance on products and services. C. It is considered a waste of money for a company. D. It depends on the names of a company's brands rather than the company itself. E. It exposes the negative aspects of a firm's functioning.

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95. The illustration in an ad for Aries Venture showed an elephant walking a narrow log bridging two cliffs. The headline read, "Who says you can't be big and nimble?" Since the ad made no reference to the specific products offered by Aries Venture, it is an example of A. corporate advertising. B. advocacy advertising. C. an advertorial. D. lobbying. E. continuity advertising.

96. Which of the following is true of corporate advertising? A. It portrays the image that a firm is in trouble. B. It is typically used to generate greater sales of a particular product. C. It generates high levels of interest among consumers. D. It is usually used to promote a service as opposed to a product. E. It usually brings a significant return on investment.

97. Which of the following is the best example of corporate advertising? A. Saturn Inc.'s use of a popular actress as a spokesperson B. Mars and Gray promoting its concern for the environment C. Crest Golf's signing of pro-golfer Bryan Raymond as a spokesperson D. W&W conducting a contest to choose a new color for their candies E. Haven Funeral Home giving out free calendars to all of its clients

98. Which of the following statements about corporate advertising is true? A. It is a cheap form of advertising. B. It attracts the interest of consumers. C. Corporate image ads are highly tangible. D. Corporate ads are not easy to write. E. It concentrates on the promotion of one specific product or service.

99. The term _____ tends to be used as a catchall for any type of advertising run for the direct benefit of a company rather than for its products or services. A. direct marketing B. sales promotion C. aerial advertising D. corporate advertising E. trade promotion

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100. One of the major goals of corporate advertising is A. developing consumer interest in a company's products and services. B. creating awareness about the new products of a firm. C. inducing trial. D. inviting feedback. E. communicating an organization's views on social issues.

101. Positioning ads and sponsorships are examples of A. transit advertising. B. cause-related advertising. C. image advertising. D. advocacy advertising. E. WOM advertising.

102. _____ is a form of corporate advertising devoted to promoting an organization's overall reputation. A. Transit advertising B. Cause-related advertising C. Image advertising D. Advocacy advertising E. Symbolic advertising

103. An ad for Bingley Tableware proudly claims that its line of dinner plates and dishes is inspired by and similar to a popular film star's designer wedding china. The ad shows a happy bride and groom sitting at their wedding table, which is laid with Bingley china. This is an example of A. cause-related advertising. B. advocacy advertising. C. a general positioning ad. D. a direct response ad. E. a financial support ad.

104. Grand Thornton's print ad states, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm." This is an example of A. direct-response advertising. B. corporate image advertising. C. cause-related advertising. D. advocacy advertising. E. event sponsorship.

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105. Firms that spend more on corporate advertising also tend to have A. ineffective IMC programs. B. unidimensional marketing strategies. C. greater return on investments. D. higher-priced stocks. E. better positioning strategies.

106. In its ad, a well-known car company explains its "Global Earth Charter," which has led to the recycling of 400 million pounds of steel annually and an aggressive recycling program that keeps 20 million pounds of other scrap metal from reaching landfills. Which type of image advertising has been used in this ad? A. recruitment ads B. sponsorships C. paid positive publicity D. general positioning ads E. financial support ads

107. When Alstone Mobile refers to itself as "The good tire people," it is engaging in A. positioning advertising. B. recruitment advertising. C. advocacy advertising. D. sales promotions. E. direct marketing.

108. What type of advertising is being used when a large corporation sponsors a college bowl game? A. advocacy advertising B. image advertising C. issue advertising D. cause-related advertising E. advertorial marketing

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109. Which of the following is true of event sponsorships? rev: 01_12_2015_QC_CS-2774

A. They are highly useful public relations tools. B. They are typically inexpensive. C. They are unsuitable for gaining affinity with target audiences. D. They are a poor platform from which to build equity and gain affinity with target audiences.

E. They are not suitable platforms for building equity.

110. Many companies are attracted to event sponsorships because A. they help build equity and gain affinity with target audiences. B. they help in segmenting the target market. C. they are less expensive than traditional forms of advertising. D. they help in elucidating controversial issues of public importance. E. they explain management's position on social issues.

111. _____ is a major form of corporate advertising that addresses social, business, or environmental issues. A. Image advertising B. Aerial advertising C. Advocacy advertising D. Event sponsorship E. Trade promotion

112. While portraying an image for a company or organization, _____ does so indirectly, by adopting a position on a particular issue rather than by promoting the organization itself. A. advocacy advertising B. publicity C. sponsorship D. public relations advertising E. image advertising

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113. _____ advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. A. Advocacy B. Image C. Aerial D. Event E. Interactive

114. An oil company in the United States develops an advertisement that promotes offshore oil-drilling in the country. The ad states the availability of oil resources and stresses the importance of reducing dependence on foreign oil sources. The ad's goal is to get members of the public to support offshore drilling. This is an example of A. image advertising. B. trade promotion. C. direct-response advertising. D. event sponsorship. E. advocacy advertising.

115. Which of the following is true of advocacy advertising? A. Advocacy advertising is concerned with elucidating controversial social issues. B. Advocacy advertising is most suitable for high-end luxury products. C. Advocacy advertising is designed to directly create an image of the firm in the public eye. D. Advocacy advertising is ineffective for large organizations. E. Advocacy advertising is used to promote the organization itself.

116. When M1 Oil runs an advertisement urging citizens to support and donate to a law enforcement memorial fund, this is an example of A. advocacy advertising. B. event marketing. C. specialty advertising. D. personal branding. E. event sponsorship.

117. An international soda manufacturer runs an ad campaign in which it addresses the problem of global warming. The campaign aims to educate people on the issue in depth and provides an alternative perspective on lifestyle choices. This ad is an example of A. advocacy advertising. B. event marketing. C. specialty advertising. D. corporate repositioning. E. image sponsorship.

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118. Which of the following statements is true of advocacy advertising? A. Advocacy advertising is typically suitable only for small firms. B. Advocacy ads may be sponsored by a firm or by a trade association. C. Advocacy ads can be used only in conjunction with cause-related marketing. D. Advocacy ads are mainly used for attracting sponsorships for events. E. Advocacy ads use direct advertising to promote an organization.

119. While considered a form of advocacy advertising, _____ may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important cause. A. direct-response ads B. image ads C. positioning ads D. issue ads E. transit ads

120. A departmental store ad about a consumer tax problem would constitute _____ advertising. A. image B. event C. direct-response D. trade E. issue

121. _____ marketing is an increasingly popular method of image building, in which companies link with charities or nonprofit organizations as contributing sponsors. A. Cause-related B. Event C. Image D. Transit E. Cooperative

122. Cause-related marketing refers to A. all advertising designed to cause sales. B. all advertising designed to cause attitude change. C. linking companies with nonprofit organizations. D. changing the current image of an organization. E. responding to any negative publicity faced by a firm.

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123. Making outright donations to a nonprofit cause, having companies volunteer for the cause, donating materials or supplies, running public service announcements, or even providing event refreshments are some of the forms of _____ marketing. A. cause-related B. event C. image D. transit E. cooperative

124. McDonald's sponsorship of the Ronald McDonald House, where families of hospitalized children can stay free of charge, is an example of A. advocacy advertising. B. cause-related marketing. C. publicity. D. advertorial marketing. E. transactional marketing.

125. Which of the following is true of cause-related marketing? A. It involves sponsoring a sports-related event. B. It helps increase consumer acceptance of price increases. C. It does not help consumers in differentiating between brands. D. It is also known as advocacy marketing. E. It does not include outright donations.

126. Which of the following is true of corporate advertising? A. It is highly effective in promoting organizations. B. It reaches a select target market. C. It follows strong ethical principles. D. It fails to take advantage of the benefits derived from PR. E. It fails to effectively position a firm.

127. Which of the following is a criticism commonly applied to corporate advertising? A. poor vehicle for repositioning a company or a brand B. failure to take advantage of the benefits derived from public relations C. not effective at reaching the target market D. questionable effectiveness E. lack of control over public opinion

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128. Attitude surveys and focus group research help in measuring the effectiveness of A. corporate advertising. B. celebrity branding. C. advertorials. D. lobbying. E. continuity advertising.

129. Which of the following is used to measure the effectiveness of corporate advertising? A. regression analysis B. focus group research C. boolean analysis D. BCG matrix E. cumulative frequency analysis

130. It is often difficult to measure the effectiveness of corporate advertising activities. Which of the following measures would be most useful in this effort? A. tying PR activities directly to sales B. timing the amount a sponsored logo appears on television C. conducting studies relating to corporate advertising and stock prices D. computer simulations E. measuring effectiveness of the sales promotional tools instead

131. Projected spending on sports event sponsorships in 2016 is A. $2 billion B. $2.22 billion C. $970 million D. $878 million E. $15.74 billion

132. Advertising sponsored by the American Heart Association and the American Stroke Association and targeting teens to stop smoking is an example of A. advocacy advertising. B. cause-related marketing. C. VNR. D. event sponsorship. E. image advertising.

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Chapter 17 Test Bank Key 1.

Publicity, public relations, and corporate advertising are integral parts of the overall promotional effort.

TRUE Publicity, public relations, and corporate advertising all have promotional program elements that may be of great benefit to marketers. They are integral parts of the overall promotional effort that must be managed and coordinated with the other elements of the promotional mix.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

2.

Public relations is limited to business management.

FALSE Public relations is not limited to business management, but extends to other types of organizations, including nonprofit institutions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

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3.

Ads themselves can be the focus of publicity.

TRUE Ads themselves can be the focus of publicity. There seems to be as much hype about the ads on the Super Bowl as there is for the game itself.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

4.

One main advantage of marketing public relations is that media time and space are guaranteed.

FALSE One main disadvantage of marketing public relations is that media time and space are not guaranteed.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

5.

One of the main reasons why firms are concerned about public attitudes is that these attitudes may affect the sales of the firm's products.

TRUE One of the main reasons why firms are concerned about public attitudes is that these attitudes may affect the sales of the firm's products.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

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6.

The public relations process is an ongoing process. TRUE The public relations process is an ongoing one, requiring formalized policies and procedures for dealing with problems and opportunities.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

7.

Community members and customers of a firm are considered external because the firm normally communicates with them in the ordinary routine of work. FALSE According to John Marston, community members and customers of a firm are considered internal rather than external because these groups are already connected with the organization in some way, and the firm normally communicates with them in the ordinary routine of work. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

8.

People who live and work in the community where a firm is located are often the target of public relations efforts. TRUE People who live and work in the community where a firm is located or doing business are often the target of public relations efforts.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

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9.

Public relations efforts are often targeted to more than one group of individuals. TRUE Public relations efforts are often targeted to more than one group, and are a direct result of concerns initiated in the marketplace.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

10. To be used by the press, information must be of interest to the medium as well as to its audience. TRUE To be used by the press, information must be factual, true, and of interest to the medium as well as to its audience. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

11. Since public relations communications are not perceived in the same light as advertising, they tend to have less credibility. FALSE Since public relations communications are not perceived in the same light as advertising—that is, the public does not realize an organization either directly or indirectly paid for them—they tend to have more credibility.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

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12. The fact that the media are not being compensated for providing information makes public relations a credible source among the public. TRUE The fact that the media are not being compensated for providing the information may lead receivers to consider the news from public relations to be more truthful and credible. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

13. The relative cost of public relations is very high. FALSE In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

14. Public relations messages are subject to the clutter of ads. FALSE Since they are typically perceived as news items, public relations messages are not subject to the clutter of ads.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

17-29 . McGraw-Hill Education.

15. A major advantage of public relations is the potential for completing the communications process. FALSE Perhaps the major disadvantage of public relations is the potential for not completing the communications process. While public relations messages can break through the clutter of commercials, a receiver may not make the connection to the source.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

16. Publicity is a subset of the public relations effort. TRUE Publicity is really a subset of the public relations effort.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17. Public relations is typically a short-term strategy, while publicity is a concerted program extending over a period of time. FALSE Publicity is typically a short-term strategy, while public relations is a concerted program extending over a period of time.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-30 . McGraw-Hill Education.

18. Public relations is usually controlled by a firm or its agent. TRUE Public relations is designed to provide positive information about a firm and is usually controlled by the firm or its agent. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

19. Public relations is designed to provide only positive information about a firm. TRUE Public relations is designed to provide positive information about a firm and is usually controlled by the firm or its agent.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

20. Publicity is always positive and is always under the control of, or paid for by, an organization. FALSE Publicity is not always positive and is not always under the control of, or paid for by, an organization. Both positive and negative publicity often originates from sources other than the firm.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

17-31 . McGraw-Hill Education.

21. Publicity is usually perceived as being sponsored by a company. FALSE Unlike advertising and sales promotions, publicity is not usually perceived as being sponsored by a company.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

22. A reason for publicity's power is its news value and the frequency of exposure it generates. TRUE A reason for publicity's power is its news value and the frequency of exposure it generates.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-02 Compare the advantages, disadvantages, and effectiveness of public relations and publicity. Topic: Public Relations

23. Corporate advertising does not promote any one specific product or service. TRUE Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Topic: Public Relations

17-32 . McGraw-Hill Education.

24. Corporate advertising is designed to promote the main product or service of a company. FALSE Actually an extension of the public relations function, corporate advertising does not promote any one specific product or service. Rather, it is designed to promote a firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Topic: Public Relations

25. One of the reasons why corporate advertising is considered controversial is because it is a costly form of self-indulgence. TRUE Corporate advertising is a costly form of self-indulgence. Firms have been accused of engaging in corporate image advertising only to satisfy the egos of top management.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Topic: Public Relations

26. A corporate ad is not as easy to write as an ad designed to position a product. TRUE Corporate ads are not easy to write. The message to be communicated is not as precise and specific as one designed to position a product.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Topic: Public Relations

17-33 . McGraw-Hill Education.

27. Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. TRUE Advocacy advertising is concerned with propagating ideas and elucidating controversial social issues of public importance in a manner that supports the interests of a sponsor. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Learning Objective: 17-04 Compare the different forms of corporate advertising. Topic: Public Relations

28. A disadvantage associated with corporate image advertising is its inability to reach a select target market. FALSE An advantage associated with corporate image advertising is that it reaches a select target market. Corporate image advertising should not be targeted to the general public. It is often targeted to investors and managers of other firms rather than to the general public. It doesn't matter if the general public does not appreciate this form of communication, as long as the target market does.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-03 Discuss the advantages, disadvantages, and effectiveness of corporate advertising. Topic: Public Relations

29. Whirlpool's association with Habitat for Humanity, related to its efforts to eliminate poverty housing, is an example of a sponsorship. TRUE When a company associates with a charity, it can result in a carryover effect that benefits the company's image.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-04 Compare the different forms of corporate advertising. Topic: Public Relations

17-34 . McGraw-Hill Education.

30. Which of the following statements about public relations is true?

A. Typically, shorter forms of public relations and publicity are interchangeable functions. B. Public relations is not considered a management function. C. Public relations has the same objectives as product and service promotion. D. An effective public relations program continues over months or even years. E. Public relations deals only with the activities designed to sell a product or service. The public relations process does not occur all at once. An effective public relations program continues over months or even years. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

31. In the traditional perspective, public relations is a _____ function whose primary responsibility is to maintain mutually beneficial relationships between an organization and its publics.

A. financial B. human resources C. nonmanagement D. nonmarketing E. sales In the traditional perspective, public relations is viewed as a nonmarketing function whose primary responsibility is to maintain mutually beneficial relationships between the organization and its publics.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-35 . McGraw-Hill Education.

32. _____ is the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and acceptance.

A. Public relations B. Image advertising C. Corporate advertising D. Public administration E. Public offering Public relations has been defined as the management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

33. The new role of PR differs from the traditional role of PR in that it

A. views PR as a nonmarketing function. B. has a narrower perspective of PR functions. C. considers marketing and public relations as separate departments. D. considers all noncustomer relationships necessary only in a marketing context. E. requires the marketing department to report to public relations. The new role of PR perceives all noncustomer relationships as necessary only in a marketing context.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-36 . McGraw-Hill Education.

34. The new role of public relations is characterized primarily by

A. a less communication-oriented role. B. a less finance-oriented role. C. a more sales-oriented role. D. a less technical role. E. a more marketing-oriented role. PR takes on a much broader (and more marketing-oriented) perspective, designed to promote the organization as well as its products and/or services.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

35. According to Thomas. L. Harris, public relations activities that are designed to support marketing objectives are known as

A. service marketing communications. B. public administration functions. C. marketing public relations functions. D. public activity networking. E. marketing system functions. Thomas L. Harris has referred to public relations activities designed to support marketing objectives as marketing public relations (MPR) functions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-37 . McGraw-Hill Education.

36. Marketing objectives that may be aided by _____ activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance.

A. sales promotion B. public relations C. advertising D. human resources E. outdoor marketing Marketing objectives that may be aided by public relations activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

37. Which of the following statements describes an advantage of the use of marketing public relations (MPR)? A. The effectiveness of MPR can be easily measured.

B. It is easy to tie slogans with MPR activities. C. MPR breaks through the clutter. D. The use of MPR guarantees a specific media time and place. E. MPR helps in increasing control over media. MPR helps breaks through the clutter. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-38 . McGraw-Hill Education.

38. Which of the following is an advantage of using MPR?

A. It helps in extending a company's control over the media. B. It is a cost-effective way to reach a target market. C. It enables marketers to easily use slogans and other advertising devices. D. It provides a guarantee for media time and space. E. It offers several standard effectiveness measures. An advantage of using MPRs is that it is a cost-effective way to reach target markets.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

39. Which of the following is a disadvantage of using MPR?

A. It does not contribute to a company's ROI. B. It lacks credibility. C. It fails to support advertising programs. D. It rarely influences opinion leaders and trendsetters. E. It does not guarantee media time and space. One of the disadvantages of MPRs is that it does not guarantee media time and space. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-39 . McGraw-Hill Education.

40. Which of the following is a disadvantage of MPR?

A. It is not a cost-effective way to reach the market. B. It fails to achieve credibility. C. It is difficult to tie in slogans and other advertising devices. D. It fails to break through the clutter. E. It does help in improving ROI. One of the disadvantages of MPRs is that it is difficult to tie in slogans and other advertising devices. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

41. According to Cutlip and colleagues, which of the following is the first step to developing a public relations plan?

A. Hold programs to handle PR problems. B. Develop plans for handling PR problems. C. Define PR problems. D. Take actions to counter PR problems. E. Evaluate the programs taken to counter PR programs. Cutlip and colleagues suggest a four-step process for developing a PR plan: (1) define public relations problems, (2) plan and program, (3) take action and communicate, and (4) evaluate the program.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-40 . McGraw-Hill Education.

42. In public relations targeting, external audiences include

A. the customers. B. the public. C. the suppliers. D. the stockholders. E. the employees. External audiences are those people who are not closely connected with the organization (e.g., the public at large).

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

43. Which of the following is considered an internal audience for a public relations activity?

A. customers B. media C. government D. public E. civic groups Internal audiences may include the employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-41 . McGraw-Hill Education.

44. _____ include employees, stockholders, and investors of a firm as well as members of the local community, suppliers, and current customers.

A. Internal audiences B. Secondary audiences C. Mediated audiences D. External audiences E. Theoretical audiences Internal audiences may include the employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

45. Which of the following is considered an external audience of a public relations activity?

A. customers B. suppliers C. members of the local community D. stockholders E. press The press, educators, civic and business groups, governments, and the financial community can be external audiences.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-42 . McGraw-Hill Education.

46. Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with

A. the current customers of an organization. B. the employees of a firm. C. the press. D. government officials. E. community members. Organizational newsletters, notices on bulletin boards, awards ceremonies and events, direct mail, and annual reports are some of the methods used to communicate with the employees of the firm.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

47. Which of the following methods of communication is typically used to create goodwill within an organization?

A. organizational newsletters B. award ceremonies C. annual reports D. grievance committees E. corporate picnics Social events, such as corporate bowling teams or picnics, are used to create goodwill among the employees of a firm. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-43 . McGraw-Hill Education.

48. _____ are used to inform an audience about how well a firm is doing, its future plans, financial information, and other information that goes beyond numbers.

A. Corporation certificates B. Articles of association C. Annual reports D. Grievance committee reports E. Memoranda of association Annual reports are a communications channel for informing stockholders and investors about why the firm is or is not doing well, outlining future plans, and providing other information that goes beyond numbers.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

49. The press, educators, civic and business groups, governments, and financial communities are all

A. internal audiences. B. secondary audiences. C. mediated audiences. D. external audiences. E. tertiary audiences. The press, educators, civic and business groups, governments, and the financial community can be external audiences.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-44 . McGraw-Hill Education.

50. One of the most critical external publics is the _____, which determine what a person will read in newspapers or online, or see on TV, and how this news will be presented.

A. supplier B. customer C. government D. media E. investor Perhaps one of the most critical external publics is the media, which determine what you will read in your newspapers or online, or see on TV and how this news will be presented.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

51. Which of the following groups would most likely be the target of public relations efforts designed to increase communications with external audiences?

A. potential investors and the media B. current customers and employees of the firm C. supply chain members and current customers D. suppliers and employees of the firm E. stockholders and the public at large The press, educators, civic and business groups, governments, and the financial community can be external audiences.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-45 . McGraw-Hill Education.

52. A number of groups and major corporations, such as Marketing EDGE and the Direct Marketing Association, provide information regarding innovations, state-of-the-art research, and other items of interest to

A. suppliers. B. financial groups. C. educators. D. civic organizations. E. the media. A number of organizations provide educators with information regarding their activities. These groups and major corporations provide information regarding innovations, state-of-the-art research, and other items of interest.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

53. Companies help _____ by making financial contributions, offering sponsorships, and delivering speeches at functions to create goodwill.

A. suppliers B. financial groups C. educators D. civic organizations E. the media Companies' financial contributions to these groups, speeches at organization functions, and sponsorships are all designed to create goodwill. Corporate executives' service on the boards of nonprofit organizations also generates positive public relations.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-46 . McGraw-Hill Education.

54. _____ offer companies the potential for new sources of funding and so must be kept abreast of new developments in the organization.

A. Suppliers B. Financial groups C. Educators D. Civic organizations E. Employees Financial advisors, lending institutions, and others must be kept abreast of new developments as well as of financial information, since they offer the potential for new sources of funding.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

55. Companies that support lobbying efforts are

A. trying to reach internal audiences. B. engaged in flighting. C. targeting government bodies. D. stressing the importance of homogeneity. E. targeting educators. Public relations often attempts to influence government bodies directly at both local and national levels. Successful lobbying may mean immediate success for a product, while regulations detrimental to the firm may cost it millions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-47 . McGraw-Hill Education.

56. Major accomplishments, major breakthroughs, emergencies, or catastrophes typically warrant a(n) A. community involvement program.

B. national press conference. C. exclusive interview. D. focus group survey. E. internal accounting process. Major accomplishments (such as the awarding of the next Super Bowl, FIFA, or Olympics location), major breakthroughs (such as medical cures), emergencies, or catastrophes warrant a national press conference.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

57. Companies often make use of _____ when they have significant news to announce, such as the introduction of a new product or advertising campaign.

A. community involvement programs B. press conferences C. exclusives D. focus group surveys E. interviews Companies often call press conferences when they have significant news to announce, such as the introduction of a new product or advertising campaign. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 17-01 Describe the roles of public relations, publicity, and corporate advertising in the promotional mix. Topic: Public Relations

17-48 . McGraw-Hill Education.

58. The management of a multinational firm sends copies of an article to several different European newspapers announcing its decision to start operations in Spain. Which public relations tool is being employed by the company?